Global Forum on Transparency and Exchange of Information for Tax Purposes: Recommendation on Accounting Records

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A decision made on 21 November 2012:

Decision Reference: MD-E-2012-142
Decision Summary Title :	The Global Forum on Transparency and Exchange of Information for Tax Purposes (the “Global Forum”) recommendation on accounting records		Date of Decision Summary:	13 November 2012
Decision Summary Author:	Director, Finance Industry Development		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	The Global Forum on Transparency and Exchange of Information for Tax Purposes (the “Global Forum”) recommendation on accounting records		Date of Written Report:	13 November 2012
Written Report Author:	Director, Finance Industry Development		Written Report: Public or Exempt?	Public
Subject: The Global Forum on Transparency and Exchange of Information for Tax Purposes (the “Global Forum”) recommendation on accounting records
Decision(s): The Minister for Economic Development approved that amendments should be drafted in accordance with the recommendation of the Global Forum in respect of the provisions relating to accounting records found in the following Laws: i) Companies (Jersey) Law 1991 ii) Limited Partnerships (Jersey) Law 1994 iii) Separate Limited Partnerships (Jersey) Law 2011 iv) Incorporated Limited Partnerships (Jersey) Law 2011 v) Foundations (Jersey) Law 2009 vi) Trusts (Jersey) Law 1984
Reason(s) for Decision: The Global Forum is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 100 jurisdictions. It is charged with in-depth monitoring and peer review of the implementation of international standards of transparency and exchange of information for tax purposes and has reviewed, and published a report on, Jersey. Overall, the report concludes that the legal and regulatory framework in Jersey for the exchange of information generally functions effectively to ensure that the required information will be available and accessible. In the case of accounting records, however, the report: Observes that “not all relevant entities and arrangements are consistently required to keep reliable accounting records” and recommends that Jersey addresses this point; and recommends that express provisions be introduced to hold accounting records for a minimum of 5 years, where express provisions are missing from legislation. In order to address the above, law drafting instructions have been prepared to amend most of the laws that govern the organisation of legal persons and arrangements in Jersey. These are: i) Companies (Jersey) Law 1991 ii) Limited Partnerships (Jersey) Law 1994 iii) Separate Limited Partnerships (Jersey) Law 2011 iv) Incorporated Limited Partnerships (Jersey) Law 2011 v) Foundations (Jersey) Law 2009 vi) Trusts (Jersey) Law 1984 It is requested that the Minister sign an MD to endorse the policy decision to make amendments to the above laws in line with the recommendation from the Global Forum.
Resource Implications: As a result of this decision the Law Draftsman’s office will expend time preparing amendments to the above legislation. Apart from this, there are no further financial or manpower implications as a result of this decision.
Action required: The Law Draftsman to draft appropriate amendments to the Laws listed in this document.
Signature: Senator AJH Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):