A proposal officially lodged yesterday by External Relations Minister Sir Philip Bailhache would, if approved, formally implement the Base Erosion and Profit Shifting action plan – a plan which prevents tax avoidance strategies that move profit to low-tax jurisdictions – in the Island.
Ministers and high-ranking officials from 76 countries and jurisdictions have either signed or have committed to signing the agreement, which is part of regulations put forward by the Organisation for Economic Co-operation and Development.
In the proposition, Senator Bailhache, who is currently recovering from a suspected heart attack, said: ‘The Chief Minister Senator Ian Gorst joined representatives of other jurisdictions at the OECD headquarters in Paris for the signing of the convention.
‘The convention will allow Jersey to strengthen its tax treaty network in an efficient and comprehensive manner, without the need for costly and time-consuming bilateral negotiations.’
He added that the Island’s commitment to OECD regulations would ‘further Jersey’s reputation as a responsible international actor’ and that as an active member of the BEPS associate, the Island would be ‘able to contribute to the overall development of the project’.
The proposition is due to be debated on Tuesday 14 November.
