Jersey ‘will have to share data with UK’
Friday 30th November 2012, 2:50PM GMT.
Colin Powell was speaking at the eighth annual compliance and economic crime symposium
JERSEY will have little choice but to hand over information to the UK tax man about UK residents who have bank accounts here, says the Island’s leading adviser on international affairs.
Colin Powell was in London on Wednesday to speak to UK officials about a rift that has developed between the Island and Westminster over the provision of tax data.
Mr Powell said the UK had ‘unsurprisingly jumped on the bandwagon’, after the Island indicated it would sign up to an agreement with the USA designed to prevent American citizens evade tax.
The decision by the Island to sign an ‘inter-governmental agreement’ with the US on the Foreign Accountant Tax Compliance Act (Fatca) prompted the UK to act to secure the same type of agreement.
The UK’s move came out of the blue but it would appear that the Island will have little choice but to agree.
Read the full story in the Jersey Evening Post. Click here for subscription details. Individual editions are also available online.
Friday 24 May
- Join Elin Rose's battle against cancer
- Are you ready to roller?
- Ramsay Cudlipp's fruit de (night) mer
- Facebook warning from police
- Get ready for the Town Criterium
Travel
To, from and around the Island
Jersey Airport Arrivals/Departures
Jersey Harbours Arrivals/Departures
Links to UK regional airports
Jersey Bus Information/Timetables
This is Jersey
Jersey Evening Post
The End Is Nigh!
Report abuse
Several months ago somebody quoted, regarding safety levels and the la collet the site, that jersey “can do what it wants.” evidently not, please stop this stupid arrogant facade, jersey does what it,s told! There you go everyone, get your teeth in to that. Ps, I,m just playing devils advocate here.
Report abuse
Why if the UK ‘unsurprisingly jumped on the bandwagon’does the article contradict itself ‘The UK’s move came out of the blue’.
It can’t be unsurprising and out of the blue at the same time !!!
Report abuse
We are so regulated in Jersey there will be not one single tax evader in the data. Therefore no loss of business so why is it a crisis ?
Report abuse
What’s the point of opening an offshore account in Jersey then?????? Why do you think people do it in the first place………
Report abuse
Gross Interest (ability to earn more due to interest on interest)
No sles tax on financial advice (a £1m portfolio managed at 1%saves £2k on a £10k cost)
Thats two legitamate reasons.
Report abuse
Forgive of if I’m wrong but doesn’t Jersey already have an obligation to inform the UK of relevant income earned by UK-residents, apart from certain non-doms, under the EU Savings Tax Directive, to which Jersey signed up several years ago. A directive which the Jersey authorities do nothing to police or enforce, with the result that Jersey financial institutions can effectively decide either to follow or to ignore it. Of course, Jersey will say that we uphold our obligations , whilst failing to do a thing to ensure that the banks and trust companies stand by their legal obligations.
Report abuse
Sam
Wrong. Jersey hands over a cheque but no names or details as it has refused to adopt automatic exchange of information under the EUSD, unlike Guernsey and the Isle Man who switched to automatic exchange last year.
That decision by Jersey has, in my view, been crucial in relation to this latest move by the UK. Lets think about it. The EU (and UK) say they want automatic exchange. Jersey says no. Jersey then says yes to the US’s request. UK and EU not surprisingly get upset at that.
It’s not hard to work out. Another misguided and arrogant decision by the States of Jersey with massive cost implications.
Report abuse
But the UK does get the tax (at 35%) under the EUSD…so it will not gain anything. It is nit only Jersey that with hold the names, places within th EU (such as Austria) do it to!
The UK itself is the biggest Tax Haven in Europe, they should start by looking at home first…
Report abuse
GAME OVER!
Report abuse
No surprises there.
Report abuse
Should read, CONTINUE to hand over information.
Report abuse
LOL
Report abuse
the sooner we have an election the better.
We need to sharpen up very quickly.
Told you so means nothing now. We need to put the finest heads together to get ahead.
Report abuse
Gino, agree we need an election but please do not even consider standing. You speak the biggest loan of drivel and have absolutely nothing to offer. You do not qualify as one of the “finest heads”.
Report abuse
Our new broom here in Guernsey ended up with an even bigger load of incompetents than the last lot.
All the reasons most people want to become a politician are ironically all the reasons that most people never should.
Report abuse
Please, not you again
Report abuse
Giving data to the UK makes no difference to tax evaders. A huge amount of these individuals live in Jersey and commute to either work or run their businesses in the UK purely to avoid paying tax. Also, there are many loop holes in Jersey even if one gives data out on these individuals, one can easily still get away without paying as no one is monitored on how long they actually spend in the UK annually so its easy to avoid paying UK tax. There is also the tax free “dividend” on shares or loans to oneself from one’s company, another easy way of avoiding tax. Unless the loop holes and actual laws are changed, providing data on people will not help or change anything.
Report abuse
#10 Gino – We had an election and this lot were what we got, why on earth do you think another election would deliver some mysterious group of ‘finest heads’? However I’m sure you will agree that if we lift the lid on government secrecy it will all come right…..
On a less facetious note its all a storm in a teacup, if the business is legit HMRC shouldn’t get too excited about the data they receive.
Report abuse
10 Hopefully this means you wont be wasting our time by standing again Gino
Report abuse
I have a nasty feeling that many naive posters on here are in for a shock
We have nothing to fear, Jersey’s finance industry is already heavily regulated, nothing will change…blah blah blah
I suspect there’s quite a few Jimmy Carrs getting a little nervous
Report abuse
If Jersey is so convinced of the quality of it’s regulation then why did Jersey politicians rush over to the UK for crisis talks when the asked for the same data to be provided about their citizens evading tax. It is so abundantly clear that Jersey IS in fact a tax haven. If this were not the case then the States who have no worries whatsoever in handing over the information.
Report abuse
Do we believe they didn’t anyway?? Who trusts a Goverment ??
Report abuse
Let’s get real for a minute and consider what areas will not be affected by this proposed legislation; the funds industry, trusts dealing in asset protection, property holding, confidentiality, all non-UK client business, employee incentive schemes, wealth management, CI listings, infrastructure, tax efficiencies permitted by HMRC etc etc
What remains is a nominal amount of individuals who did not scarper c.10 years ago with the dawn of EUSD. Assuming they are not already fully disclosing, good ridence to them.
Report abuse
From what I have read I thought the US and the UK were after the details of people with trusts and companies as well.
Report abuse
correct
Report abuse
They are the ones who have been sitting pretty until now and congratulating themselves that only mugs have bank accounts.
Report abuse
Agreed, maybe if some of this lot go forth and multiply elsewhere and take their immigrant scrounging cleaners and the like with them we will have a bit of common courtesy and decency back.. AND less of a drain on OUR taxes!!
Anyone who has not been here ten years send them packing and pronto I foresee a mess to clear up and a big one we have enough of our OWN poor and disadvantaged being bullied out of the way to accommodate relatives and families of low paid immigrant workers who quite simply take the piss and couldn’t give a toss about anything other than handouts and what they can get clear the lot out!!!!
Report abuse
I take it you include Doctors, Nurses etc in this 10 year purge?
Report abuse
Doctors and nurses are not ‘low paid’
Report abuse
Rentokil: Doctors and nurses are underpaid in comparison to lawyers.
Report abuse
The money will soon be flowing out of Jersey or if you listen to Jersey Finance then we will lose nothing as we are well regulated and all the cash/ schemes is clean.
I think we all know that we are guilty of facilitating tax avoidance and therefore monies and business will move. The question is how much and what are the implications for Jersey ?
Lawyers in Jersey know that US Fatca will harm us financially, therefore UK plus europe will only add to the problems.
Report abuse
Finest heads?!!!? Here lol don’t be silly Gino……
Report abuse
I was brought up and educated in Jersey years and left nearly 12 years ago. I still have a bank account on the island and was informed over a year ago that the bank would notify H.M.R.C. of the amount of money I have there. So what’s new?
Report abuse
Never mind the party’s over here come’s the hangover……..
Report abuse
There’s a boat in the morning, if you can get on it.
Report abuse
I have been saying it for a long time now but politicians, government officials, JFSC, Jersey Finance have not listened to my arguements. It is over, finished. Jersey is bankrupt stock. No sane finance business will buy into Jersey now.
Report abuse
Colin Powell, eh?
I wondered where the man who changed the island had disappeared to.
There I was thinking he must be keeping his head well below the parapet!
Report abuse
The usual band of people missing the issue. See jervan’s email. Tax avoidance is a fancy way of HMRC trying and failing to capture a quantum of monies. The more interesting thing is how they allow companies who clearly make money in the UK not pay tax, and are fully aware of Amazon, Ebay etc. HMRC have an agenda of targetting individuals tax and not companies, which demonstrates how tax is not quite a level playing,field
Report abuse
Another step to the Channel Islands incorporation into the UK.
Report abuse
do they know ian christmas is still on full pay in prison. they do now
Report abuse
NO not Ians Dad but i wish i was after all the Tax Payers Money that he has been receiving since he was charged & NOW FOUND GUILTY even worse if it is true that he is still getting paid DISGRACEFULL what about all the honest old age pensioners who have all PAID THEIR DUES FOR YEARS & the people who was here in the OCCUPATION
NICE WORK IF YOU CAN GET IT
Report abuse
Agreed, this is why Jersey needs a clear out top to bottom.
Report abuse
With the UKs HMRC looking at credit reference agencies to provide data on ‘spending patterns’ of up to 2 million UK people (The Telegraph 3/12/12). That raises significant questions about the access to data held by UK credit agencies on bona fide Jersey residents.Are they Jersey Data Protection registered? Can they scour data on US as well??Will the cow tow of our Ministers (inevitable) expose Jersey people to external scrutiny in the process?
Are our politicians looking out for their own citizens or will this be ‘Save the Finance Industry at any cost!’?
Any return comments based on ‘if you have nothing to hide…etc’ are unworthy.
Report abuse