Jersey, Guernsey, IoM Note EU's New Tax Blacklist
by Amanda Banks, Lowtax.net, London
06 December, 2017
The UK Crown Dependencies of Guernsey, Jersey, and the Isle of Man have responded to the announcement from the European Union that it will not include the territories on its new list of territories that are non-cooperative in tax matters.
On December 5 the EU Council of Finance Ministers adopted recommendations presented to it by the EU Code of Conduct (Business Taxation) Group, which assessed some 92 jurisdictions to determine if they were engaging in harmful tax competition.
Although the Code Group did not place Guernsey, Jersey, or the Isle of Man on its list of non-cooperative jurisdictions for tax purposes, it set out a number of broad areas where it would like the Crown Dependencies to take further steps to address "substance" concerns. These concerns involve legal entities who are registered in the Crown Dependencies but have no real economic activity there, so-called brass plate companies.
In separate statements in response, the Crown Dependencies said they will work with the Code Group to address substance concerns, noting they have already signed up to the OECD's Base Erosion and Profit Shifting (BEPS) action plan, which reinforces the importance of economic substance, as well as committing to other international tax transparency measures.
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