Senator Ian Gorst travelled to the Belgian capital on Wednesday, accompanied by Guernsey’s Chief Minister Gavin St Pier, as part of a joint delegation, with the aim of pointing out Jersey’s compliance with numerous international tax transparency agreements.
The Island was the subject of a favourable review by the Organisation for Economic Cooperation and Development, which placed it in the top bracket of jurisdictions in terms of tax transparency.
But it has also been rocked by negative coverage in the international media of tech giant Apple’s decision to use the Island in offshore tax-planning arrangements after a loop-hole was closed in Ireland.
Questions have also been raised over whether Jersey will pass the economic substance test, which assesses whether companies taxed here carry out business in the Island, as part of a blacklisting exercise being carried out by the EU Code of Conduct Group.
Senator Gorst and Deputy St Pier are due to meet European Commission officials, Members of the European Parliament and member states representatives to discuss the matters.
The Chief Minister said that he was ‘glad’ to return to Brussels at a time when there are a ‘number of important matters under consideration’.
‘As well as the ongoing Brexit negotiations, the EU Code of Conduct Group will shortly be considering the outcome of their assessment of 90 non-EU jurisdictions on tax co-operation,’ he said.
‘I want to reiterate during this visit that Jersey has co-operated fully with the screening process. We are, therefore, committed to working closely with the Code Group in future to address any concerns and ensure Jersey continues to be viewed in this way.’
He added that the Island has a ‘positive story’ to tell on matters of tax transparency.
‘In January 2016 we joined the BEPS Inclusive Framework, and signed the respective Multilateral Instrument,’ he said.
‘We implemented OECD country-by-country reporting standards into domestic law, and made the first exchanges of tax information under the Common Reporting Standard in September 2017.
‘And, as was announced on Friday, Jersey has received a “compliant” rating from the [OECD[ Global Forum Peer Review Process.’
‘I want to use this visit to listen to what our European colleagues have to say, and to reaffirm Jersey’s position as a co-operative jurisdiction and good neighbour. We expect companies to pay the tax that is due in the jurisdictions where it is owed.’
