The author of the report, Michael Foot
JERSEY faces renewed pressure to disclose tax information about Island bank accounts to other EU countries.
The Foot Report into offshore finance centres has recommended that Jersey set a firm date for introducing the European Union Savings Directive (EUSD) – which would mean that the Jersey tax office would automatically disclose interest earned in Jersey bank accounts held by EU residents to their national tax authorities.
Both Jersey and Guernsey have opposed the move, saying that to sign up to the EUSD before their competitors could damage the finance industry.
Jersey’s current position is that it will do so when everyone else does – when there is a ‘level playing field’ – but the report states that Jersey should get on with it, and calls on the UK to put pressure on other countries to sign up too.
Article posted on 4th November, 2009 - 2.58pm
8 Article Comments
Am I missing something here?? As a finance employee who’s job role includes account opening; knowing whether your client falls under the scope of EUSD is an existing requirement; so I ask , what do we do currently with monies taken in respect of EUSD??? Hope we’re not skimming client funds to cover States Xmas parties…..
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Don’t do it Jersey or I and hundreds like me in the City will move our private accounts and any private companies we may have to more kindly shores.
We already have a tax grab in the UK for those of us over the 100K mark of approx 70 pc when you take into account income (earned in the UK), council, Value Added and benefit in kind taxes.
Tell the EU and the UK to go whistle! Someone somewhere will provide these sorts of services within the FSI.
Even the polititians in the countries that want to crackdown on this want to ensure they only pay a fair tax and are not penalised for achievment by heavy handed socialism…
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What a shame Jersey having to capitulate, never heard the like!!!
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i am glad we have a photo of mr foot, as i was thinking of the other much older mr foot.
my bread and butter comes from a spin off of finance in jersey.
less occupied offices will take food from my table.
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“which would mean that the Jersey tax office would automatically disclose interest earned in Jersey bank accounts held by EU residents to their national tax authorities.”
If Jersey means to be transparent then this is the way to go. If people have things to hide then they will want to move their money to more secretive locations.
The EU is slowly but surely cranking up the pressure. Unfortunately as Jersey is a one trick pony it will feel a big draft. Who’s fault is that?
Taking the easy short term option can often turn into a lot more pain and a long term loss. Unfortunately due to short sightedness by those steering the ship it is in danger of foundering on the reef of complacency.
Jersey has major issues to face whether it likes it or not. A lack of viable alternatives to finance, due to the running down of agriculture and tourism, and an inability to diversify into other sectors, has left Jersey very vulnerable to outside influences. The winds of change are gathering pace. Will Jersey be in the eye of the storm and be largely immune, like over the last 60 years, or will Jersey be exposed to the full force of the storm?
I do hope I am wrong (for other peoples sakes) but I believe the later is more likely, consequently I would recommend anyone listening to batten down the hatches and ride out the storm least they get blown away. I would strongly advise everyone to have a plan B. The other option is to carry on as normal and hope for the best.
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“which would mean that the Jersey tax office would automatically disclose interest earned in Jersey bank accounts held by EU residents to their national tax authorities.”
What about the interest not declared?
Not to long a go the BBC highlighted Jersey banks NOT declaring interest to the tax office here and in the UK. If the account holder does not disclose the interest how can the Jersey tax man declare it to other countries.
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Times are going to get much more difficult for Jersey as wll as other off-shore banking facilities. It won’t be so easy depositors to look for other friendlier tax havens, as they are all coming under increased pressure not only from the EU, but other organisations such as G20, WTO, etc, to become more transparent. Even secretive Liechtenstein has had to start opening its books.
At least the Island dows seem as badly hit as the Isle of Man, which is loosing a substantial part of its UK subsidised budget.
Whilst I would not expect the finance industry to disappear overnight, Jersey must focus on diversifying its economy, as a matter of urgency, before too many ordinary working people suffer. This is not easy in time of recession, but so often it takes a crisis to create opportunity. Heed the “Wake-up-call”.
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Just “get on with it Jersey” and stop procrastinating and damaging the future of the EU …..or join the EU and find something more worthwhile to do!
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