Tax system in the spotlight again

Tuesday 22nd June 2010, 2:57PM BST.

Treasury Minister Philip Ozouf

A MAJOR review of Jersey’s business tax regime has been launched following concerns that the current system fails to comply with EU standards.

Treasury Minister Philip Ozouf yesterday outlined five alternatives to the current zero-ten system – some of which could force currently tax-free businesses to begin paying into the exchequer.

The review has been launched after some EU member states expressed concern over the zero-ten regime.

But Senator Ozouf said that the review was also an opportunity to find ways of taxing some firms which currently do not contribute to the States coffers.

Under the system, foreign non-finance firms do not pay tax in the Island. Jersey non-finance firms pay no business tax either, but their shareholders pay tax on proceeds as personal income. Finance firms pay ten per cent tax on their profits and utility firms pay 20 per cent.

Although the system has twice been found to be compliant, some EU member states now believe that zero-ten may not be in the ‘spirit’ of the code of EU tax.

• Read the full report: Business tax review

Read the full story in the Jersey Evening Post. Click here for subscription details. Individual editions are also available online.

1
Bernard

June 22, 2010 at 1:21 pm

And how much is this review going to cost? The members of the states are truly pathetic! It’s simple! Don’t spend money on non essential work around the island or on stupid statues or non government owned water theme parks. We would be a lot better off if the monkeys at the zoo were running the island, they seem to show more intelligence!

Report abuse
2
Nellie Macon

June 22, 2010 at 1:49 pm

The OECD directive called for a “level tax playing field”. This has never been the case under 0-10. Different kinds of companies continue to pay different amounts of tax so it never met the required criteria right from the start.

Jersey will only be totally compliant once all companies pay exactly the same amount of tax which is not difficult to achieve – except that the COM refused to give Jersey owned Jersey companies the same benefits as other companies operating in Jersey.

Report abuse
3
truthseeker

June 22, 2010 at 2:37 pm

Fact is we have wealthy people here paying as little as 5% who have “Negotiated” their situation..rich politicians who spat the dummy out and said they’d leave who had tax reductions,a chief Minister who comes out with this beauty.”It would be immoral” to tax further those who had negotiated rates,well Mister just damn well re-open negotiations with them and set a fair rate..ordinary people are up to the gills with taxes and do not seem to be able to cut a deal at Cyril Le Marquand with the chief of Tax…or perhaps we should have an island wide Tax strike…They’d be screwed and not know what to do..

Report abuse
4
tom

June 22, 2010 at 2:48 pm

2% tax on all companies, 5% GST and income tax stay were it is.

This would create good growth in Jersey and make us very competitive

Report abuse
5
PJG

June 24, 2010 at 1:27 pm

tom #4
I could live with that !

Report abuse