24 November 2008
The UK Chancellor of the Exchequer has today (24 November 2008) in his Pre-Budget Report, announced a review of the Crown Dependencies. A similar review will be conducted into the UK Overseas Territories. The review will look at financial supervision and transparency, taxation issues relevant to financial stability, sustainability and future competitiveness, financial crisis management and international co-operation.
Jersey's Chief Minister, Senator Frank Walker, said - "We welcome this review, and we understand the Chancellor's desire to undertake it against the backdrop of turbulent economic conditions across the globe, which were the subject of the recent G20 summit in Washington.
"The Review will give us a further opportunity to show the strength of Jersey's regulatory system and the extent of our international co-operation and transparency. We are confident it will also provide us with further third party endorsement of our continuing compliance with international standards, of our preparedness to cope with the present economic climate and withstand future shocks, and also of our ability to sustain the long term stability of our economy.
"The review will be able to take full advantage of the assessment carried out by the IMF, completed last week, which has addressed many of the matters to be covered, and of the previous endorsements of our compliance with international standards. The Review also will be able to build upon the recent very positive statements made by the Secretary General of the OECD about our commitment to information exchange and transparency, reflected in the ten Tax Information Exchange Agreements already signed and the further agreements under discussion.
"We are very confident that the review will add to these endorsements. We will give whoever is asked to undertake the review every possible assistance, as we have done with the IMF assessment teams and other external assessors before them."
Senator Walker met Lord Bach, the Minister with responsibility for the Crown Dependencies, today (Monday 24th November) and had preliminary discussions about the review. After the meeting Senator Walker said: - “'We have been assured that the review will not seek to interfere in the Crown Dependencies' domestic fiscal autonomy, but we do understand the need to consider how in the international context fiscal structures impact on future sustainability and competitiveness. We therefore look forward to working with the Independent reviewer on these points.”
On Thursday (November 27th) a meeting will be held with HM Treasury to consider in detail the review's terms of reference - who will undertake it, how it will be undertaken and over what timescale. A further statement will be made following that meeting.
Notes to editors:
For more information please contact Senator Terry Le Sueur on 07797 718798.
On 21st October the OECD Secretary General made a statement, following a reference to the fact that Jersey was one of six jurisdictions to have signed a number of Tax Information Exchange Agreements, that what is now required is "clear political recognition being given to those offshore financial centres that have made progress.”
The Summary of Conclusions of the meeting in Paris called by France and Germany on the 21st October also called upon the participating countries to recognise the efforts made by certain jurisdictions like Jersey that "have set out a new direction for their financial centres and have signed tax information exchange agreements, which constitute effective instruments for fighting international tax fraud and evasion."
The Federal Republic of Germany issued a Political Declaration when Jersey signed a TIEA with them in July 2008 which "welcomes Jersey as a member of the community of nations committed to international cooperation and information exchange on tax matters and wishes to assure the Government of Jersey that Jersey will be fully and equally treated as such by the German authorities".
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