Zero-Ten Still Viable and Best Option for Jersey's Finance Industry
A recent comment, distributed to Channel Island media from the UK Treasury regarding ECOFIN and Zero-Ten tax regimes, has resulted in headlines implying that Jersey's Zero-Ten tax regime will be scrapped. Jersey's government clarified the matter yesterday in a statement that reiterated the point that it is the interaction of the Deemed Distribution rules that is the main area of focus, rather than Zero-Ten as a whole.
Geoff Cook, CEO of Jersey Finance commented;
"The types of headlines we have seen in the local media have seriously misunderstood the situation. The content of the UK Treasury's comment uses some very unclear language, but in no way actually contradicts my understanding of Jersey's stance on the matter. They are correct in saying that the entire Zero-Ten regime was reviewed, however any implication that the entire regime was viewed as harmful is not correct. As already confirmed by our government, my understanding is that the interaction of Deemed Distribution is the element considered to be potentially harmful, was subject to a paper by the EU Commission, and is now the key area of focus for Jersey.
The UK Treasury's press release also refers to wanting to support Guernsey to "move towards a normal, internationally acceptable business tax regime", which is also extremely unclear, as to my knowledge, there is no "normal, international" business tax regime, with approaches to tax varying extensively throughout the world, depending on the needs and economic structure of each territory.
While interaction of Deemed Distribution may change, depending on the formal assessment of EU Code Group, Zero Ten is still a viable, strong regime for Jersey and its finance industry, ensuring we remain competitive and provide stability."