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In this update:

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• Special Offer: Premium News Service
• Featured Offshore Jurisdiction: Jersey
• Featured International Tax Site: United Kingdom
• Featured Content: DIY Investment Selector
• Featured Report: The World Of Offshore And Its Future

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Kate James

Featured Offshore Jurisdiction
JERSEY

Triple Boost For Jersey's Funds Sector, by Carla Johnson, Investors Offshore, London 01/02/2007

Ogier Jersey Appoints New Managing Partner, by Jason Gorringe, for LawAndTax-News.com, London 30/01/2007

Jersey Publishes Economic Development Business Plan 2007, by Jason Gorringe, Tax-News.com, London 25/01/2007

Jersey Not In EU Fiscal Area
The island of Jersey, one of the Channel Islands between England and France, is a British Crown dependency although in practice is it self governing. Britain is responsible for its external affairs including negotiations with the European Union; under the UK's accession treaty with the EU, Jersey forms part of the single market but is outside the EU fiscal area. Jersey does not generally enter double-tax agreements, but has treaties with the UK and Guernsey, and a limited treaty with France.

Economy Buoyant But Jersey Is Full Up!
Jersey has a buoyant economy dominated by the finance sector. Unemployment is very low. The political stability in Jersey together with its consistently low tax status and its international reputation as an important financial centre make it an attractive prospect to foreign investors and workers. To protect the island's limited resources the government tends to discourage labour-intensive inward investment that is controlled by non residents. There are no investment grants or incentives, but electronics and other knowledge-based industries have been encouraged.

Jersey's Lowtax Specialisations
Jersey has particularly strong banking, investment fund and trusts sectors, with very well-developed advisory and financial infrastructure. The Jersey Financial Services Commission's quarterly report for the period to 30th June 2006 shows that almost 50 banks held bank deposits of GBP183 billion, and funds domiciled on the island stood at GBP160 billion.

There are a number of low-tax business formats, including International Business Companies, 'Exempt' companies, and Limited Partnerships. (N.B. In accordance with the Island’s commitment to the European Council of Finance Ministers (Ecofin), Jersey has pledged to ensure that no new International Business Companies are capable of being formed from 1st January, 2006.)

Jersey v. the EU and the OECD?
Jersey's unique situation with regard to the EU is both a strength and a weakness. The island will remain a favoured base for holding and trading companies working into the EU, and for e-commerce activity; but it has the EU and the OECD to contend with. After several years of 'hands-off' policy in regard to Jersey taxation, the UK government in 2002 threatened Jersey with sanctions if it didn't fall in line with EU information-sharing rules.

Jersey signed a 'commitment' letter to the OECD in February 2002, but it contained an 'Isle of Man' level playing field clause making changes dependent on comparable changes in Switzerland and the USA. By mid-2003, however, the OECD seemed to have forgiven Jersey, and was assisting it to design a '0/10' corporate tax system.

In May, 2002, it became clear that Jersey, along with its fellow UK dependent territories Guernsey and the Isle of Man, was ready to sign up to the EU information-sharing regime. After the EU finally reached its compromise agreement on the Savings Tax Directive in early 2003, Jersey decided, along with Guernsey and the Isle of Man, to apply a withholding tax to the returns on personal savings for EU residents. The Directive came into force on July 1, 2005.

Learn more in our full Jersey Knowledgebase and Jersey News sections.

Featured Network Content
DIY INVESTMENT SELECTOR

There are as many different offshore investment situations as there are offshore investors, and anyone considering making offshore investments must absolutely take appropriate professional advice. But it can be useful to have a first idea of what kind of investment, and which offshore jurisdictions, might be suitable before approaching professionals.

The InvestorsOffshore DIY Guide allows an individual to specify the broad outlines of his or her offshore investment profile, and receive in return some suggestions as to the most suitable investment route to be further explored with professional guidance.

First, the DIY Guide offers a number of typical investor profiles to choose from:

CHOOSE YOUR PROFILE AND RESIDENCE NOW!