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New Laws and Regulations passed by States Assembly

07 December 2018

​A series of new Laws and Regulations, proposed by the Minister for External Relations, were successfully passed by the States Assembly yesterday [6 December 2018].

This legislation is designed to protect Jersey’s international interests and also to ensure that the government is able to respond effectively to the potential impacts of Brexit.

The Taxation (Companies - Economic Substance) Law provides the means to fulfil the commitments made by the Government of Jersey to the EU Code of Conduct Group in November 2017, by imposing substance requirements on all Jersey tax resident companies undertaking relevant activities. It also ensures that those substance requirements can be monitored and enforced.

The Minister for External Relations, Senator Ian Gorst said: “I hope, and believe, that this new legislation will meet the requirements of the EU Code Group, which means that Jersey should be assessed “fully cooperative” and not included in the so-called “EU Blacklist.”

The new Sanctions and Asset-Freezing Law preserves Jersey’s power to impose EU sanctions and also allows Jersey to impose UK sanctions made under the UK’s Sanctions and Anti-Money Laundering Act after the UK leaves the EU. This means Jersey will retain the ability to impose the same sanctions as the UK following Brexit.

Senator Gorst said: “I am delighted that the draft Law has been passed by the Assembly. The Law forms part of Jersey’s Brexit contingency planning and will ensure that, whether or not there is a Brexit deal, the Island can continue to enforce sanctions effectively and in accordance with international standards.”

Finally, the States Assembly approved the EU Legislation (Customs Union, Import and Export Control) regulations that create the powers necessary to implement the landmark Jersey / UK Customs Arrangement, agreed in November, which establishes a customs union between Jersey and the United Kingdom.

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