Jersey Finance has responded to recent reports in local and international media that Jersey is in danger of once again being included in the EU’s tax blacklist.
The reports claim that a review from a senior OECD official has called for amendments to Jersey's new legal framework for economic substance to address 'minor' deficiencies.
According to Investment International, the Government of Jersey will ask members to vote on four changes to the law – amending the definitions of a 'fund management business' and 'core income-generating activities' in Jersey, as well as changes to the articles relating to requirements to meet economic substance tests, and the exchange of information with other authorities.
Joe Moynihan, CEO of Jersey Finance, commented: "From an industry perspective, these amendments are completely in line with previous commitments and are not material changes to the economic substance legislation. They only seek to clarify certain definitions in the law so that they satisfy all stakeholders, including the EU, OECD and the industry in Jersey.
"This is important legislation and it is vital for all parties to work together to provide absolute clarity on this issue. We are confident these minor amendments will be approved in due course and that there is therefore no risk of any change to Jersey's recognised status as a cooperative jurisdiction."