Basis for assessing the residency of Jersey companies in the Income Tax (Jersey) Law.

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A decision made (21/11/2006) regarding the basis for assessing the residency of Jersey companies in the Income Tax (Jersey) Law.

Subject:	The basis for assessing the residency of Jersey companies in the Income Tax (Jersey) Law.
Decision Reference:	MD-E-2006-0203		Exempt clause(s):
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	N/A
Telephone or e-mail Meeting?	N/A		Report File ref:
Written report – Title	The basis for assessing the residency of Jersey companies in the Income Tax (Jersey) Law – proposed amendment.
Written report – Author (name and job title)	Paul de Gruchy, Director, Finance Industry Development
Decision(s): To approve the Proposition annexed to the Report, and instruct the Director – Finance Industry Development to lodge the Proposition as an Amendment to the Income Tax (Amendment No.26) (Jersey) Law 200-.
Reason(s) for decision: To clarify the Income Tax (Jersey) Law to confirm that a Jersey company may be regarded as not being tax resident in the Island by the Comptroller if the management and control of the company is carried out in another jurisdiction that has a standard rate of tax applicable to companies resident in that jurisdiction equal to or greater than 10%. This change will enable Jersey companies to be utilised in a wider range of activities, while minimising the risk of Jersey companies seeking to avoid Jersey tax through moving their management and control.
Action required: Paul de Gruchy to request that the Greffe lodge the Proposition for discussion by the States on 5 December 2006.
Signature: Senator P.F.C.Ozouf (Minister)		Date of Decision: 21 November 2006