It is proposed that the Tax Department will be able to identify companies carrying out ‘relevant activities’ such as banking, insurance and fund management and impose substance requirements on them, which may include having physical offices and employees based in Jersey.
Those requirements, which would allow Jersey to meet the commitments made in 2017 to the EU Code of Conduct Group on Business Taxation, could then be enforced through a series of measures including fines and, ultimately, striking a company from the register.
The consultation follows months of preparations and engagement with industry, including representatives of Jersey Finance and the Jersey Financial Services Commission.
It has also involved work with representatives of the EU Code of Conduct Group, OECD officials and the EU Commission in order to obtain clarity on the EU’s expectations.
External Relations Minister Ian Gorst said: ‘The consultation on these proposals represents the latest step in the evolution of the Island’s international tax policy – and maintains our longstanding commitment to tax neutrality, transparency and that regulated financial institutions have a real physical presence in the Island.
‘We strongly welcome input from industry practitioners and members of the public on these proposals.’
To respond to the consultation email tax.policy@gov.je.
