Resolution of European Parliament calling on EU governments to take action on tax avoidance and evasion

1240/5(6834)

WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY G.P. SOUTHERN OF ST. HELIER ANSWER TO BE TABLED ON TUESDAY 1st MAY 2012

Question

Does the Chief Minister welcome the resolution of the European Parliament to call on EU member States to take action on tax avoidance and evasion (which condemns tax competition; demands better company registrars and registers of trusts; demands full country-by-country reporting; demands more resources for tax authorities; condemns the use of tax havens and in particular highlights the need to generalise automatic information exchanges and to extend the scope of the Savings Taxation Directive in order to effectively end banking secrecy)?

Will he inform members what actions, if any, he will take to demonstrate his willingness to co- operate with such initiatives?

Answer

Jersey has long had an excellent reputation for complying with international standards and initiatives whether they be in respect of tax, financial regulation or anti-money laundering. That reputation is well founded on third party assessments by the OECD Global Forum of Transparency and Exchange of Information for Tax Purposes, the International Monetary Fund and the Financial Stability Board which are seen by the G20 as the key bodies in promoting essential international cooperation in dealing with the current global issues.

I am determined to maintain and enhance that reputation and Members can be assured that, as and when the measures the European Parliament has referred to in its resolution become an international standard, our declared policy of compliance with such standards will be as actively implemented in the future as it has been to-date. Indeed independent assessments have shown that we compare favourably with the EU Member States and G20 countries in the application of international standards such as the recommendations of the Financial Action Task Force on anti- money laundering, and particularly those relating to the availability and accessibility of information on the beneficial ownership of companies and trusts to which the resolution refers indirectly.

There is a further dimension to this policy when it comes to the European Union and that is what can be described as our good neighbour approach'. This is most clearly reflected in the voluntary support we have given the EU Member States in their application of the EU Directive on the Taxation of Savings Income. In the regular discussions that my officials have with officials of the European Commission it is always made clear that we are committed to maintaining that support, in partnership with the other non-EU territories who are similarly involved, once the EU Member States reach agreement among themselves on the adoption of the proposed extended scope of the Directive to which the European Parliament's resolution refers.

We will continue to follow closely developments in the European Union including the response of the EU Member States to the European Parliament's resolution. In our discussions however with many of the Member States, and particularly those that we join with in the OECD Global Forum Peer Review Group of which we are a vice-chair, we have found their focus is not on tax havens as in the resolution but on uncooperative jurisdictions. This is evidenced by the fact that, within the French administration, the French Chair of the Peer Review Group is from the General Delegation on non-cooperative countries and territories. In this context Jersey is seen by all members of the Group and beyond as a cooperative jurisdiction accepting fully the importance of the effective application world-wide of the standards set by the Global Forum. We are determined to protect our present high standing in this respect and we will do so by continuing to respond appropriately and positively to both existing and new international standards and initiatives.