Author Topic: Jersey and the Paradise Papers  (Read 641 times)

Offline gladiator

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Jersey and the Paradise Papers
« on: November 06, 2017, 06:21:43 PM »
The international  law firm Appleby is connected with 1190 companies in Jersey which was revealed by the millions of internal documents leaked to the German newspaper SZ ( Sueddeutsche Zeitung).

Quotes of SZ:

“They show how even this prestigious firm did business with lawbreakers or sanctioned oligarchs." " Appleby is a leading member of the "Offshore Magic Circle," a worldwide network of lawyers, consultants, and other managers who serve companies in tax havens.”

https://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=search&rurl=translate.google.co.uk&sl=de&sp=nmt4&u=https://projekte.sueddeutsche.de/paradisepapers/wirtschaft/kanzlei-appleby-in-der-kritik-e649023/&usg=ALkJrhgxROf6Tpip9GzWaWytHeeP0X91Nw

The International  Finance Centre of Jersey claims on their website that their legal system is robust, modern and sophisticated  and the source and foundation of Jersey’s finance industry.

They also claim quote: “Jersey remains one of the best regulated international finance centres, a position that has been acknowledged by independent assessments from some of the world’s leading bodies including the OECD.

Jersey is fully aligned with the highest standards of the third anti-money laundering EU Directive and was the first offshore finance centres to become a full signatory to the IOSCO Multilateral Treaty, an international benchmark for cross border co-operation between regulators.

The Jersey authorities have signed 42 international tax agreements to date, which assist in building good quality business with those countries and are also a reflection of Jersey’s commitment to comply with international standards. “

https://www.jerseyfinance.je/jersey-the-international-finance-centre

This will be all true but what about the moral legitimacy by  allowing and assisting business with Jersey’s name on it with companies from a claimed terrorist, other criminals, sanctioned oligarchs and other dubious customers?

Quote of SZ:

“Appleby has long since admitted a lot of false customers. Some of them - including corrupt politicians, sanctioned businessmen, convicted tax evaders - can be found in the Paradise Papers. Alhassan lists particularly succinct examples: a suspected member of the Chinese mafia, an extradited fraudster from Mexico, and a later murdered client whose money was probably from crime. Also Appleby had helped someone who was a terrorist on the "Ten Most Wanted" list of the Federal Bureau of Investigation FBI, to manage a trust. Appleby, it says on the slide of the presentation, wants to have reimbursed internal and external reports to regulators about these particularly sensitive customers”

Does the COM and the Jersey’s government not feel morally accountable and should put measures in place that companies such as Appleby not misuse legal tax evasion loop holes?

Quote of SZ:

“The Paradise Papers show how inseparably the offshore world is interwoven with the industrial nations. The economist Gabriel Zucman has calculated how big the dimension of this world is for this research: more than 600 billion euros are shifted annually from multinationals to tax havens.”

https://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=search&rurl=translate.google.co.uk&sl=de&sp=nmt4&u=https://projekte.sueddeutsche.de/paradisepapers/politik/das-ist-das-leak-e229478/&usg=ALkJrhhMjKDiH7KMrAM9svbo8WOkz376hQ

Just imagine what good could have been done with that lost tax money for the poor and vulnerable children and adults.
« Last Edit: November 07, 2017, 04:22:07 AM by gladiator »

Offline Jerry Gosselin

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Re: Jersey and the Paradise Papers
« Reply #1 on: November 07, 2017, 03:17:57 AM »
Apple's secret tax bolthole:

https://www.bbc.co.uk/news/amp/world-us-canada-41889787

Have a guess where it is!  ::)

Offline gladiator

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Re: Jersey and the Paradise Papers
« Reply #2 on: November 07, 2017, 04:51:09 AM »
A New Home

Apple wanted to find a country without transparency, taxes or pesky political opposition where it could set up shop. It seems to have found one.

JERSEY


To read WORLD NEWS about JERSEY:

https://projekte.sueddeutsche.de/paradisepapers/wirtschaft/apple-scouts-a-country-without-rules-e654132/

Any comment from the Jersey finance industry or COM?  ???

Offline shortport

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Re: Jersey and the Paradise Papers
« Reply #3 on: November 07, 2017, 05:01:09 AM »
Just proves we are owned by the finance industry,they control local politics and laws and we suffer for it.A good example is 0/10.Its killing us and making them richer.

Offline Jerry Gosselin

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Re: Jersey and the Paradise Papers
« Reply #4 on: November 07, 2017, 06:11:36 AM »

Any comment from the Jersey finance industry or COM?  ???

Complete silence about this all day on the Geoff Cook Twitter page. I bet he's been too busy tonight preparing his black ops brief for the news bulletins tomorrow. I remember a couple of years ago when the Guardian dared to say that Jersey was going bankrupt, his brief, if I remember correctly, was to point out the shortcomings in the Guardian's own finances, as if that made any difference whatsoever to the argument. He's probably studying the BBC's own investments looking for shareholdings in tech companies like Apple.

Apple's links with Jersey were also mentioned on a major French TV bulletin tonight, which interviewed a representative of OXFAM (another past target of Geoff Cook's black ops). The report estimated that tax avoidance is costing France 20 billion euros a year (120 billion euros for the whole of Europe).

Did anybody see that scowling guy (Anthony Travers), Chairman of the Cayman Islands Stock Exchange, on Newsnight tonight? He said that both the Panama Papers and the Paradise Papers were "fake news" and that "these journalists should be in prison".  :o Well I think Jersey Finance may finally have found a suitable replacement for the great Cook when he finally retires / becomes a Senator!

« Last Edit: November 07, 2017, 06:15:13 AM by Jerry Gosselin »

Offline boatyboy

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Re: Jersey and the Paradise Papers
« Reply #5 on: November 07, 2017, 03:17:03 PM »
Well well, you really couldn't make this up unless you were a paid fiction writer or the States of Jersey Government ?

How many times over and over again has anyone that will listen been be told, Jersey is well run jurisdiction that follows the banking and investment tax  rules. The JFSC web site brags:

Quote:

Q2: What conditions do banks need to meet to operate in Jersey? What banks are permitted to operate in the Island?

Jersey has developed a comprehensive licensing policy for its banks. This was last reviewed and updated in September 2014 and is published on the Commission’s website. The Banking Business Licensing Policy can be found under the heading Specific to Banking Business by clicking here.

The policy reflects the long established conservative approach that the Island has adopted towards banks operating within it.
Whilst the policy offers some level of flexibility, its core tenets are that banks should:

be members of the Top 1,000 banks in the world, measured by Tier 1 capital size;

have no dominant controllers;

commit to supporting their Jersey businesses;

meet the financial standards laid down by the Commission; and

be adequately experienced and competent in relevant areas of banking.

The Commission applies financial requirements to those banks that are incorporated in Jersey (as opposed to branches – see Q13). These are in line with international standards and are designed to ensure that Jersey’s banks remain well capitalised, with good liquidity levels at all times.

Other specific licence conditions are established with individual banks to reflect their particular circumstances. These can include such things as higher capital requirements and limitations on activities or types of customer that a bank can deal with.


The Commission’s supervisory approach and performance were assessed by the International Monetary Fund in late 2008 and were found to be compliant, or largely compliant, with current international standards in all relevant areas. The specific gradings received put Jersey in the very top echelon of the world’s regulators.


End

https://www.jerseyfsc.org/banking-business/frequently-asked-questions-faqs/

So all is well then and Jersey has nothing to fear from outside scrutiny, eh well No actually is the tail wagging the same old misguided dog.

Just out from the Bailiwick Express.

Quote:

This morning the Government of Jersey reacted with the following statement:

“Jersey does not want abusive tax avoidance schemes operating in the island and expects financial services providers to abide by a voluntary code to say they will not take on this kind of business.

https://www.bailiwickexpress.com/jsy/news/jersey-heart-paradise-papers-icash-expose/?t=i

Well thats alright then, lets follow suit and change the drink driving laws to make them all voluntary without fear of prosecution that would certainly attract a certain sector of tourism and encourage more spending by outsiders.


BB
« Last Edit: November 07, 2017, 03:27:23 PM by boatyboy »

Offline Fritz

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Re: Jersey and the Paradise Papers
« Reply #6 on: November 08, 2017, 12:27:12 AM »
Loved Apples, "Rider".
"No credible opposition to current government".

Offline boatyboy

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Re: Jersey and the Paradise Papers
« Reply #7 on: November 08, 2017, 04:13:56 AM »

To be fair let the blacklist also contain Delaware, and the many other low tax regimes. The way the EU feels about the UK at the moment who knows. Certainly the Paradise Papers will not help little Jersey.

The  Express ( Indian )

The island of Jersey, a few kilometres off the coast of France, was where the latest reports said Apple shifted much of its offshore wealth when Ireland changed its laws under pressure from the EU. “It is important that this list comes out (…) in 2017, it must be credible and up to the challenge,” said EU Economics Affairs Commissioner Pierre Moscovici, who is leading the blacklist effort.

http://indianexpress.com/article/world/paradise-papers-european-union-pushes-for-first-ever-blacklist-of-tax-havens-4926829/

BB

Offline gladiator

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Re: Jersey and the Paradise Papers
« Reply #8 on: November 08, 2017, 01:38:17 PM »
Whilst the Chiefminister Ian Gorst is enjoying himself in the Middle East obviously for the greater good for Jersey, there are more negative revelation in the world news about his island Jersey.

Revealed: As MPs condemn global tax avoidance after the Paradise Papers leak records show their own pension pot has £6m in a Jersey property fund and £6m in Apple, Amazon and Google

The Parliamentary Contributory Pension Fund - which overall was worth £621million in March 2016 - has four property funds, only three of which are UK-based, the Financial Times revealed.
The fourth fund is the Jersey-based BlackRock UK Property Fund and is worth £6.6million.

In 2016 it sold a £14.5m stake in another offshore fund, the Luxembourg-based Morgan Stanley Global Property Fund.


Read more: http://www.dailymail.co.uk/news/article-5057513/MPs-pension-fund-invests-6m-Jersey-property-fund.html#ixzz4xp5H8t86

Another evidence of the self-interest of London to keep a good relationship to Jersey.

Offline gladiator

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Re: Jersey and the Paradise Papers
« Reply #9 on: November 10, 2017, 04:15:56 AM »
MILLIONS FLOCK TO JERSEY AFTER ISLAND OFFICIALLY DECLARED ‘PARADISE’

Hordes of British holidaymakers have cancelled planned excursions to the Caribbean, Maldives and Fiji after a report has branded the island of Jersey ‘paradise’, despite a long run of Trip Adviser reviews to the contrary.

The island’s new status was revealed in the so-called Paradise Papers, a comprehensive list of the destinations most favoured by the rich and famous, which put Jersey alongside Bermuda, the Cayman Islands and the Isle of Man. The report described the island as ‘the best kept secret of the super-rich’, and ‘ideal for a last-minute diversion, attracting such luminaries as Bono, the Duke of Westminster and the Queen’.

Read more on:

http://www.newsbiscuit.com/2017/11/08/millions-flock-to-jersey-after-island-officially-declared-paradise/

 ;)

Offline gladiator

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Re: Jersey and the Paradise Papers
« Reply #10 on: February 12, 2018, 02:42:28 AM »
Jersey under investigations by EU parliament

EU parliament to launch tax inquiry in the wake of the Paradise Papers

The committee's remit will cover EU VAT fraud, non-dom rules and the EU tax haven black list

Quotes:

The EU parliament has voted in favour of launching a special committee, provisionally entitled Taxe 3, to tackle financial crimes, tax evasion and tax avoidance.

The committee will look at national schemes which provide tax privileges for new residents or foreign income, leading to non-dom regimes and the sale of residency or citizenship to circumvent paying tax.
Green negotiator for the agreed mandate and MEP Sven Giegold commented that the parliament will investigate these tax privileges for the first time.

In December 2017 the EU identified 17 countries to blacklist as tax havens, but later announced the revocation of 8 of those countries. Another 47 countries were put on notice, including UK crown dependencies Jersey, Guernsey and the Isle of Man.
While hailed as a positive move towards combatting improper tax practices, the list was criticised for the lack of clarity surrounding its processes and criteria.

This will likely impact non-dom regimes used to avoid tax in the UK, as Giegol said: “In the context of Brexit the committee will give particular attention to the British Crown Dependencies and Overseas Territories.”

https://www.accountancyage.com/2018/02/09/eu-parliament-launch-tax-inquiry-wake-paradise-papers/

Further interesting reading:

Paradise Papers: EU parliament votes to launch tax inquiry

Taxe 3 inquiry marks a further threat from the EU to the UK’s network of offshore tax havens


https://www.theguardian.com/news/2018/feb/08/paradise-papers-eu-parliament-votes-launch-tax-inquiry


Mr Richard Murphy is a Professor of Practice in International Political Economy at City University of London in part of an article says:

The EU tax haven list is very bad news for Jersey, Guernsey and the Isle of Man
Posted on December 5 2017

http://www.taxresearch.org.uk/Blog/2017/12/05/the-eu-tax-haven-list-is-very-bad-news-for-jersey-guernsey-and-the-isle-of-man/
« Last Edit: February 12, 2018, 02:53:45 AM by gladiator »

Offline Jerry Gosselin

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Re: Jersey and the Paradise Papers
« Reply #11 on: February 12, 2018, 05:24:44 AM »
Mr Murphy's prediction that the crown dependencies will likely be forced to introduce corporation tax at not less than 12.5% in the near future is something worth keeping an eye on after May's elections.

I just wonder whether this might be one of the underlying reasons why Jersey is currently tripping over its tongue to attract start-up Tech companies to the island, with the inevitable consequences on house prices and rentals. It may not be the main motivation but I can't help noting that any significant transfer of local manpower resources away from the existing financial services sector to the growing Tech sector would have the effect of shifting tax revenue away from an industry where much of the profits "do not reflect real economic activity in the jurisdiction" to a new industry where they do - because all the high net worth foreign Tech workers wll actually be living in the island and running their businesses from here.

In the long run I can't see anything good coming from having a new source of government income from corporation tax if one of the side effects is a vast influx of thousands of high net worth foreign Tech workers. These are the same people who have destroyed old San Francisco, contributing to 7,500 people being homeless. They pump huge sums of money into political parties to lobby for a clampdown on people who have to sleep rough on the streets, as well as trying to remove any existing restrictions that inhibit them from evicting longstanding tenants in order to rent out their properties to higher earners. They will do the same thing if we invite them here and without a doubt their political leverage will make sure that most of that new corporate tax income will end up being spent on them rather than the rest of us struggling with high rents and increasingly costly food prices.
« Last Edit: February 12, 2018, 05:36:42 AM by Jerry Gosselin »

Offline Fritz

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Re: Jersey and the Paradise Papers
« Reply #12 on: February 13, 2018, 01:18:14 AM »
Worth keeping our collective noses to the ground on this one.

Offline shortport

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Re: Jersey and the Paradise Papers
« Reply #13 on: February 13, 2018, 02:18:06 AM »
This could be great news for the average islander.Seeing as GST was bought in to cover the lack of income from the ridiculous 0/10 tax regime,if corporation tax was reintroduced then we could scrap GST .If some companies decided to leave the island because ,horror of horrors,they might have to pay some tax towards the local community where they have chosen to base themselves,then there might be a reduction in the finance industry and some people might leave to greener pastures.So no GST and fewer people,sounds good to me.

Offline Jerry Gosselin

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Re: Jersey and the Paradise Papers
« Reply #14 on: February 13, 2018, 08:20:49 AM »
Seeing as GST was bought in to cover the lack of income from the ridiculous 0/10 tax regime,if corporation tax was reintroduced then we could scrap GST .

GST won't be scrapped until hell freezes over. Once you introduce a tax like that it is impossible to abolish because politicians come to rely on it more and more. Moreover, even the poor have to pay it. If it was a tax that only the rich had to pay then you'd soon get powerful voices calling for it to be lowered or scrapped, but getting rid of a tax that even the poor have to pay - no, not a chance in hell. It also catches the few tourists who still come here, who would otherwise mostly escape being taxed (although they're paying enough just to get here).

Just by chance a FOI response has been published this week. Part of the request wanted to know what tax revenue would be generated if Jersey introduced a single corporate tax rate of 20%. This is the rather unenlightened answer:

Quote
Historically, profits information has not been systematically collected from all companies tax-resident in the Island / with a taxable presence in the Island. For this reason, the Taxes Office cannot accurately estimate the revenue that could be raised through applying a corporate income tax rate of 20% to all such companies. It must also be acknowledged that changing the corporate tax rate in the manner outlined in the question would result in a marked change of behaviour.

https://www.gov.je/Government/Pages/StatesReports.aspx?ReportID=3454


A marked change of behaviour? So it seems this would be quite a drastic change that the island may be forced to concede. It doesn't sound like they'd ever do it voluntarily.