Taxation (Implementation) (International Tax Compliance) (Base Erosion and Profit Shifting) (Country by Country Reporting) (Jersey) Regulations 2016

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 25 August 2016:

MINISTERIAL DECISION REFERENCE: MD-ER-2016-0033
DECISION SUMMARY TITLE: Drafting instructions in respect of the Taxation (Implementation) (International Tax Compliance) (Base Erosion and Profit Shifting) (Country by Country Reporting) (Jersey) Regulations 2016
DECISION SUMMARY AUTHOR:	Head of International Agreements	IS THE DECISION SUMMARY PUBLIC OR EXEMPT?		Public
REPORT TITLE: Drafting Instructions to Law Draftsman
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:	Head of International Agreements	IS THE REPORT PUBLIC OR EXEMPT?		Exempt – Clause 3.2.1(a)(xiv)
DECISION AND REASON FOR THE DECISION: The Minister for External Relations approved instructions for the Law Draftsman to prepare, in pursuance of Article 2 of the Taxation (Implementation) (Jersey) Law 2004, regulations for the introduction of country-by-country reporting (CBCR) in Jersey. The Taxation (Implementation) (International Tax Compliance) (Base Erosion and Profit Shifting) (Country by Country Reporting) (Jersey) Regulations 2016 would introduce a new obligation for multinational enterprises with parent entities resident in Jersey and with a consolidated group revenue of €750m or more in a 12-month accounting period (reduced proportionately for periods less than 12 months) to make an annual country-by-country return to the Jersey Taxes Office. The CBC report would contain details of revenue, profit, taxes and other measures of economic activity for each tax jurisdiction in which the multinational enterprise does business. Jersey has committed to support actions proposed by the OECD under the BEPS programme. The BEPS project has identified “Action 13 – Transfer Pricing Documentation and Country-By-Country Reporting (CBCR)” as one of the four minimum standards. Following an earlier public consultation, it was agreed that draft Regulations would be presented to Ministers for consideration prior to being presented to the States for approval.
RESOURCE IMPLICATIONS: Law Drafting time will be required to draft the proposed Regulations. Implementing CBCR in Jersey will have resource implications for the Taxes Office, which are currently being assessed. There are no other resource implications for the States of Jersey as a result of this decision.
ACTION REQUIRED: That law drafting instructions be sent by the Financial Services Unit to the Law Draftsman requesting that the Taxation (Implementation) (International Tax Compliance) (Base Erosion and Profit Shifting) (Country by Country Reporting) (Jersey) Regulations 2016 de drafted.
SIGNATURE:			POSITION: Minister for External Relations

DATE SIGNED			EFFECTIVE DATE OF THE DECISION