09 September 2010In Business and Economy
The EU Code of Conduct Group is due to conduct a comprehensive review of Jersey’s business
taxation scheme in September.
The decision was made in June to review Jersey’s ‘zero-ten’ system – a practice introduced in 2008 that limits businesses to only ever paying a maximum of ten per cent in corporate tax.
Terry Le Sueur, Chief Minister of Jersey, made the announcement in June, reiterating that any move to govern the island’s tax laws would be “fine, because it actually gives us
greater clarity”.
The announcement came following
accidentally leaked news about Guernsey avoiding the review by publically stating that they would be working to a presumption of a ten per cent rate of tax.
However, representatives from Jersey Finance, the island’s finance industry organisation, have alluded to a state of
“nervousness” about the impending review. The general consensus amongst experts is that changing Jersey’s tax laws would drive away international business from its attractive tax neutrality.
The EU begins its review later this month.
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