Business that we don’t want

IF you log into the Jersey Company Registry you won’t find any Apple companies registered in Jersey, and if you were able to trawl around local banks you probably won’t find any Apple money deposited anywhere in the Island.

The regulator will have been unaware of any Apple relationship, and there is no real economic benefit to the Island.

Unfortunately in life there’s always one, someone who spoils things to the detriment of others. In this case it appears that someone, somewhere, decided it would be a good idea to advise Apple to move their tax domicile to Jersey.

Appleby’s decision to advise that Jersey should be used as Apple’s tax domicile is not illegal but, in my opinion, is against the best interests of the Island, the finance sector and everyone who lives and works here. This is not the type of business that we want, need, or should condone. Too much risk for too little reward. Bringing our own legislation up to scratch in this regard will allow the OECD to concentrate on real money-laundering centres, and the corporate tax code jurisdictions of Ireland and Luxembourg.

So how big is this offshore tax evasion problem? Between 2010 and 2015 the number of UK HMRC (taxman) convictions for worldwide offshore tax evasion was just 11 – that’s right, 11 convictions in five years. And while the BBC and others believe that stealing documents is a positive – we won’t go into the crime of being in possession of stolen goods – it actually makes prosecution harder. It is questionable whether evidence based on stolen information is admissible in court. Furthermore, there is a risk that the stolen data has been altered and may not meet the strict requirements of a criminal trial.

Jersey has a bright future as a safe haven in a messed-up world, providing expertise and facilitating transactions and cross-border fund flows. It needs to undertake business that meets ethical standards and is in the best interests of the Island. Professionals who act against the interests of the wider community should not be allowed to operate here.

‘A few bad apples’ is often a defence used when misconduct surfaces within an organisation. What the Island needs to do is show the world that the standards that we apply today are the standards that will be required tomorrow. As The Osmonds said in 1970: ‘One bad apple don’t spoil the whole bunch, girl.’

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