The IBC begins its long decline

Monday 10th April 2006, 12:00AM BST.

ONE of the Island’s key attractions for financial services companies has been closed to new participants, as demanded by the European Union.

As announced by the States last week, the International Business Company (IBC) structure has been abolished to new entrants, effectively from 1 January 2006.

In addition, as those firms already locked into the scheme will be already aware, the Comptroller of Income Tax will be gradually winding down existing agreements to meet the EU target date of 31 December 2011.

The IBC structure was introduced in 1993 as a ‘tax-efficient vehicle’ for firms operating from the Island, but making some of their profit overseas, in response to increased competition from Europe.

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