Jersey: Chancellor Must Address Root Causes Of Tax Evasion
In advance of the UK Chancellor’s Autumn Statement, Geoff Cook, CEO of Jersey Finance said:
“The Chancellor has shown a strong commitment to tackling tax evasion and I look forward to hearing more detail behind his future plans in this regard in the Autumn Statement. It is vital that the UK Government considers all jurisdictions on an equal footing, and does not allow misconceptions of offshore financial centres to dictate its tax policies.
“The focus must remain on the root cause of tax losses. The UK loses more every year in the avoidance of VAT, £12.4 billion in 2013, than it does to all other forms of tax avoidance or evasion combined, a total of £3.1 billion in 2013. We encourage and support tax authorities in enforcing the highest standards of tax compliance necessary to combat evasion, however it might occur. The temptation simply to blame offshore financial centres for tax leakages does not address the root cause of the problem.
“Allowing common misconceptions of offshore financial centres to steer tax policies will only serve to hinder the UK in its efforts towards combating the real causes of tax evasion.
“Jersey’s inclusion in the ‘early adopters group’ for a global common reporting standard is a reflection of just how seriously it takes its role in combating tax evasion and tax fraud on the world stage, and will continue to support and further the international agenda for the automatic exchange of information.
