Jersey has received word from the European Union Code of Conduct Group on
Business Taxation that the territory's corporate tax regime will meet international standards after the proposed abolition of the island's 'harmful' deemed distribution provisions.
The long-awaited announcement follows months of discussions between the Crown
Dependencies, Jersey, Guernsey and the Isle of Man with the European Union after
they were notified that provisions in their zero-ten tax regimes ran contrary
to the 'spirit' of the EU Code of Conduct.
Both Jersey and the Isle of Man had earlier committed to remove similar elements of their
regimes, relating to deemed distribution and attribution provisions, identifying these as the areas being concentrated on by EU negotiators.
Welcoming the unofficial conclusion of the EU negotiations, Jersey Chief Minister
Terry Le Sueur said:
“Following the ongoing Review of our Business Tax Regime, the Treasury
Minister proposed, and the States then agreed, legislative amendments which
aimed to remove elements of our legislation that were considered harmful by
the Code Group.”
"At its meeting [on] September 13, which was attended by Jersey officials,
I am pleased to report the Code of Conduct Group accepted that our rollback
proposal would remove the harmfulness of our regime. This has to be ratified
by ECOFIN in December at the end of the Polish Presidency.”
"This is excellent news for Jersey, and vindicates the consistent stance
maintained by the Treasury Minister and myself over a long period.”
"In these challenging times it is good to be able to present members with
some very positive news, which should serve to significantly strengthen confidence
in our island’s future."
LAWANDTAX-NEWS.COM
