Tax changes could impact islands financial status

The body that represents Jersey's financial industry says potential changes to taxation could affect the island's business status.

The States is consulting businesses over the zero-ten rate of tax and the latest EU tax code of conduct.

The zero-ten scheme, introduced in 2008, means many businesses based in the island pay a maximum of ten per cent corporation tax.

Financial experts on the island fear changes would "drive business away."

Heather Bestwick, of Jersey Finance, whose organisation represents the island's finance industry, said: "The industry is a centre for tax neutrality and so it's important if a company is set up, Jersey can say to investors we're not going to be subject to tax in two jurisdictions.

"What we're hopeful for is that we don't have to move away from anything that's not broken, because the tax regime is very attractive to international business.

"There's a bit of nervousness about having to announce any changes before we've really bedded in the zero-ten system."

Island's economy

The States is also consulting on a number of options for changing the tax systems.

Senator Philip Ozouf, the Treasury Minister, said the States would consider the effect on the island's economy and only make changes if it was in the best interest of the island.

He said: "International views on tax are changing and Jersey needs to be ready to respond."

An EU assessment of the scheme is due to take place in September.