There is so much within them that requires comment But it s clear the key issue in here is a simple one the fact that Jersey is knowingly helping tax evaders to pursue their activities Ill have to deal with the other issues later The mail issued on ID: 40477
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JerseyCallouslyindifferenttotaxevasionThedifficultyofdealingwiththemailsthathavecomeoutofJerseyinthelastfewdaysisknowingwheretostart.Thereissomuchwithinthemthatrequirescomment.Butitsclearthekeyissueinhereisasimpleone:thefactthatJerseyisknowinglyhelpingtaxevaderstopursuetheiractivities.Illhavetodealwiththeotherissueslater.ThemailissuedontheinstructionsofTerryLeSueur(MinisterofFinance)andthestatementofMalcolmCampbell(headoftax)onlyaddtotheimpressionthatJerseyis,asIhavesuggested,rottentothecore.LookatwhatBillOgleysaysforLeSueur:ThecontrollerofIncomeTax hasmadeastatementclarifyingthattheexchangewasdevotedtoantiavoidanceratherthanfacilitationofavoidance,asallegedbythereporter.Ofcourse,thatsright.Thecorrespondencewasconcernedwithpreventingavoidance.ButonlyinthecontextofJersey.ThisisapparentfromMalcolmCampbellscommentthat:Iam..contentthatIwillhave..powerstoattackanytaxavoidance..onthedomestictaxfront Itisamatterforotherjurisdictionsworldwidetotakepowerstothemselvesintheirowndomestictaxlawsiftheyfeelthattheircitizensareavoidingorevadingtheirowndomestictaxes.Inotherwords,asCampbellhimselfacknowledges,andastheAttorneyGeneralofJerseyobviouslyrealisesonlytoowell,thenewtrustlawsinJerseydofacilitategreatertaxavoidance(astheAttorneyGeneralapparentlyputitalthoughasiscommonplaceinJerseywheretheparametersofacceptabilityaresomewhatdifferentfromthoseelsewhere,foravoidancepleasereadevasion).ButCampbelldoesnotcareabouttheconsequencesofthelegislationfortherestoftheworld.Worsethanthatthoughhehastriedtopretendthereisnosuchriskforothers.Hesaidinhisstatement:Webelievethatatrustshouldbeatransparentvehicle,withthedeclarationoftrustsettingoutunambiguouslytheextentofthepowersofboththesettlorandtrustee.Theeffectoftheproposedchangeswillbetoenhancetransparencyandaccountability,somethingthatcanonlybeofbenefittothosewhoestablishtrusts;thosewhoadministerthemand,indeed,thosewhoseektochallengethem.ItisimpossibleformetobelievethatCampbellthinksthistobetrue.Thereasonissimple.ItisnottrueofJerseytrusts.Thereasonsare: ThereisnoregisteroftrustsinJersey.Nooneknowshowmanythereare,forxample;ThereisnorequirementforatrustinJerseytopublishitstrustdeed,toanyone;ThedutyofatrusteeinJerseyistoconcealtheidentityofthesettlor,thetrustdeedandtheactionsofthetrust.Thisisimplicitintheprofessionalrelationshipofclientconfidentiality,whichisnotinanywayoverriddenbystatuteinJerseywithregardtotrusts;NotrusthastofileaccountsinJersey,andifthetrustiscreatedforanonresidentpersontheydonothavetosubmittaxreturns.TothereforesuggestthatwhatJerseyisdoingistoenhancetransparencyandaccountabilityisinstraightforwardtermsuntrue:thereisnoconceptofeithertransparencyoraccountabilityinherentinJerseytrustsorthelawandpracticeofthem.Indeed,theirentirepurposeistofacilitatetheexactopposite.AndgiventhatopaquenessandimpregnabilityaretheirintentionMalcolmCampbell,TerryleSueurandalltheotherspartytothiscorrespondencemustknowthatjustasthisnewlawenhancestheopportunityforabuseinJersey(JohnHarriscommentstothecontrarybeingsoabsurdthatanyremainingshredofcredibilityhehadintheinternationaltaxcommunitymusthavegone)soitfollowsthatitmustincreasethechanceforabuseelsewhereaswell,anabusewhichthoseothercountrieshavenochanceoftacklingpreciselybecauseJerseyslawisdesignedtomakesurethattheperpetratorsoftaxevasionarebeyondreach.InwhichcasethedefenceofferedbyJerseyiscompletelyhypocritical.IthascreatedanewlawwhichhasdeeplyworriedoneofitsseniorlawofficersbecauseoftheopportunityforabusewithinJerseythatithascreated,andthatconcernissojustifiedthatstatutorystepsarerequiredtopreventJerseycitizensavailingthemselvesofthatopportunity.AndyetJerseywishestopretendthatthisshouldbenoconcernforanyoneelse.TherealityisthatallcountrieswhowishtotacklecriminalitywillseethatJerseyispromotingtaxevasionbyactingasithas,andisquiteindifferenttotheconsequences.Thisiscorruptionofthehighestorder.Internationalactionisneededtostampitout.AndtheUKhastotaketheleadindoingso.RichardMurphyDirectortaxResearchLLPwww.taxresearch.org.uk/blog/