Jersey is one of the most stable and successful international finance centres in the world.
The Government, and as a jurisdiction, committed to the highest standards of tax transparency and financial regulatory compliance and to the promotion and protection of the Island’s well-deserved reputation. Successive international assessments by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes and by MONEYVAL have confirmed the Island’s leading position.
Jersey also has a well-established record as an early adopter of international standards, including the OECD’s Common Reporting Standard (CRS) and through the Island’s early commitment to participating in the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
What is Economic substance?
Economic substance refers to a transaction that has a purpose besides the reduction of a tax liability. The concept is used in the examination of tax shelters to see if they are abusing the tax laws.
Public consultation
The purpose of this consultation is to get feedback from key stakeholders (including companies, industry associations, practitioners and any other interested parties) on the actions required for the Government of Jersey to address concerns raised by the EU’s Code of Conduct Group (Business Taxation) regarding economic substance.
The Government of Jersey is seeking views on the outline proposal contained within this consultation and how the actions within the outline proposal can be implemented. The proposal draws on thinking within the Organisation for Economic Co-operation and Development (OECD) and EU relating to economic substance, as well as looking at legal and regulatory requirements that already exist in Jersey.
Feedback provided will inform the drafting of the relevant legislation and allow government to ensure a smooth transition for companies carrying out relevant activities.
Deadline
The deadline for public comments is 31 August 2018
The public consultation document is available here
