2 July 2013
This report powerfully illustrates the interdependent and mutually beneficial relationship between Jersey and the UK. In recent months we have taken steps to advance our shared agenda on zero tolerance of tax evasion and commitment to transparency.
This independent report now goes further by quantifying the benefit to the UK of Jersey as a well regulated international finance centre in bringing global investment to UK business, infrastructure and the City of London.
Two weeks ago Jersey's Chief Minister met the UK Prime Minister to support his G8 initiatives on tax, trade and transparency. David Cameron welcomed the island's position and commended the leadership shown by all the Crown Dependencies. He highlighted the importance of tax competition as a vital driver of economic growth and prosperity for all.
We have committed to enhanced information exchange with the UK and have supported the G8 on improving transparency on beneficial ownership – particularly among those countries that don’t yet hold a central register of beneficial ownership of companies, as Jersey does.
In addition to combatting tax evasion by UK residents we are joining in the global fight against tax evasion. We have agreed to join in the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters and are sharing in the G20 initiatives on tax transparency. We are also close to completing the negotiation of an enhanced tax information exchange agreement with the USA.
There is no conflict between compliance with international standards and continued success as an international finance centre, and we will continue to support the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes through our position as a vice chair of the Forum’s Peer Review Group.
The role on international finance centres
In recent months there has been a debate about the role of international finance centres.
Jersey already has a long track record of commitment to meeting global standards and these new agreements put beyond dispute our hard line on tax evasion, which has been a criminal offence in Jersey for more than a decade.
Jersey’s relationship with the UK dates back more than 800 years and we are committed to strengthening it further, particularly in areas of mutual benefit. Some commentators have suggested that Jersey provides no benefit to the UK and in fact is a drain on it.
This research tells a different story.
This independent analysis of Jersey’s value to Britain comes to the overwhelming conclusion that Jersey is of significant benefit to the UK – as a trading partner providing capital and inward investment.
The report also shows that the majority of capital inflows to Jersey come from outside of the UK, but that the majority of the investment from Jersey goes into the UK.
It is our strong belief that Jersey is able to attract the global investment because we are a high quality international financial centre with a strong commitment to transparency and to combatting tax evasion.
We will continue to grow our banking business so deposits can be upstreamed to the UK; and we will focus on new opportunities for inward investment to fund growth and investment in UK infrastructure – with a particular focus on the emerging economies of the world.
We will build stronger relationships with the City, and the wider financial services sector, to secure a competitive and globally compelling UK/Jersey proposition – so we can compete with other large finance centres, like Hong Kong, Singapore and New York.
Jersey is in a unique position to support jobs and investment in the UK and this is where we see our long term contribution to a historic partnership.