JERSEY must fight off its image as a tax haven that exists to strip other economies of billions, according to the Attorney General, William Bailhache, and the director general of Jersey Financial Services Commission, John Harris.
Both men gave speeches at the BakerPlatt Economic Crime Symposium – an event on financial crime and related regulatory issues for senior offshore professionals – last week.
Mr Harris (pictured) warned that the finance industry should expect to be more vulnerable to economic crime at present. ‘There has probably never been a more important time to focus on financial wrong-doing,’ he said. ‘Market circumstances we now confront could provide fertile ground for economic misdoings.’ He added that misinformation through the national media was something to fear.
Mr Bailhache said that the world situation required Jersey to be more vigilant in meeting the standards which the international community requires to be met. ‘At the end of the day, the Island is obviously far too small, politically, geographically and economically, to win any international debate by muscle,’ he said. ‘The only way of doing so is to show that in those areas which interest the international community – finance and human rights are the most obvious – we not only have the desire to meet international standards but we do actually do so.’
Article posted on 18th November, 2008 - 3.00pm
5 Article Comments
There’s lies, there’s damn lies, then there’s convincing the Big Wide World that we are not a tax haven keen to strip billions from their economies so please don’t squash us, please. Honest. Please!
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Slight problem with this one gang
There are several definitions of tax havens. The Economist has tentatively adopted the description by Geoffrey Colin Powell (former Economic Adviser to Jersey): “What … identifies an area as a tax haven is the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance.” The Economist points out that this definition would still exclude a number of jurisdictions traditionally thought of as tax havens.[1] Similarly, others have suggested that any country which modifies its tax laws to attract foreign capital could be considered a tax haven[2]. According to other definitions,[3] the central feature of a haven is that its laws and other measures can be used to evade or avoid the tax laws or regulations of other jurisdictions.
One argument in favor of tax havens is that they help pressure developed countries to reduce their tax rates( please note this Gordon and Barrack please, thanks)
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The problem is that Jersey prides itself on levels of bank deposits or assets under management/administration. You see the stats released all the time, often with a large picture in the JEP of a smiling Chief Minister or counterpart hailing Jersey’s successful financial industry following an increase.
The fact is, the beneficial owners of these assets are, in large part, not residents of Jersey. Ergo, they must belong to individuals/corporations who don’t reside here. Why you ask? Not always, but usually to avoid tax where they do reside (quite legally no doubt).
To argue you are not a tax haven and then proudly display your financial feathers every three months is simply hypocritical. I’m not saying its wrong, but perhaps Jersey needs some therapy so it can accept what it’s finance industry really exists for.
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If we meet international standards? Why have we not signed up to the UN `rights of the Child’. Or, not introduced a `minimum wage’ and, still imprison children at La Moye!I could go on but I think you get the picture!
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Absolutely Rio – if we are to come up to internationally accepted standards of legislation and look like a civilised state rather than deliberately remaining a strange but in no way cute little set of anachronism off the coast of France then the the States have got many many pieces of legislation to rush through and sharpish. Race discrimination, sex discrimination, employee protection etc. etc. Otherwise it might be argued by some that our legal framework has been left back in the 1860s so that our ‘laws and other measures can be used to evade or avoid the tax laws or regulations of other jurisdictions’. In a world where media-generated impressions and consumer confidence are the basis of GDP, you can quibble all you like over arcane details but if Honest Joe thinks you’re a tax haven then you will be shut down. Soon. Time for Plan B.
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