Zero-ten response ‘good news’
Thursday 25th November 2010, 3:00PM GMT.
John Riva
EUROPE’S response to the zero-ten tax package is ‘very good news’ for the future of the finance industry, according to the tax partner at major accountancy firm KPMG Channel Islands
John Riva said he was very pleased with the outcome of the meeting last week at which the EU Code of Conduct group on tax matters discussed zero-ten.
Mr Riva said his assessment was that there was a ‘tacit’ acceptance of the zero-ten regime.
‘It would appear we will be able to maintain a zero per cent and a ten per cent rate and that will give us certainty,’ he said.
However, he said that the code group had decided that a process known as ‘deemed distribution’ of profits to shareholders was a business tax rather than a personal tax.
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It may be wonderful for the finance world, but an on going disaster for the rest of the population of Jersey!
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Now….Over to you TED.
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We’re not stupid. Zero Ten is an artificial device to allow the offshore finance centres to bring in business, corporates, spvs’ (should that be spives) and fund structures to them because they have little or no indigenous business in proportion to the business that comes in and can be taxed via income tax on employees to service them, import duties and sales tax. It’s a leaching operation because we’ve never had to support the change from an industrialised to a post industrialised society, also cutting other countries tax base allows us to propagate an artificial system. Ireland is not that much better with its 12.5% corporation tax and international finance centre operations. Its not tax competition because our society over here does not have to support the scale or complexity of operations of the countries that it harms so that is a fallacious arguement of the most deceitful type. I appreciate how things operate over here gives well remunerated and interesting jobs to tax professionals and lawyers but that misses the point. To put it in layman’s terms, why is there such a huge gulf in the offshore financial centres between corporation tax and the income and direct tax take. I’m not a Guardian reader (D Telegraph actually) but I find they way we genuflect ourselves to allow corporates and the like to avoid their reasonable tax share in other countries so that we can run around our 40mph island in Aston’s and the like a bit shameful.
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Response to Mistershifter
Dear Mistershifter,
By maintaining 0/10, we maintain our competitiveness and stability as an international finance centre, which in turn secures 60% of our tax take. The ‘finance world’, as you describe it, are 12,500 people who are part of the population of Jersey, who make a living from the finance industry, and all of the other people in industries supported by spend from the finance industry.
Kind regards,
Geoff Cook
Original comment by mistershifter
Posted November 25, 2010 at 3:09 pm
It may be wonderful for the finance world, but an on going disaster for the rest of the population of Jersey!
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Notice how its 12,500 now when only last year it was 13,000….. So how long before its 12,000, 11,500, 11,000 and so on…..?
If Geoff Cook wants some home truths here the only people that make a proper living out of finance are the Share Holders and Partners of these finance firms. Then its the clients but most of the people working in this industry are just robots taking home an average pay if lucky.
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And so the race to the bottom continues. Next up, subsidy/10
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