News has reached me of complete panic having broken out in the upper echelons of the Jersey government as a result of the decision by the Isle of Man to sign up to full information exchange with the UK.
Now I can't name sources, of course, but the suggestion is that Jersey was banking on the Overseas Territories backing their position intended to perpetuate the policy of non-cooperation with UK that has always been intended to help tax evaders using the isalnd's sservices. My understanding is that the approach to the UK from St Helier has been, shall we say, as obstructive as possible on this issue.
But, as ever, they forgot the ability of the Isle Man to out- manoeuvre them. Douglas did that on zero-ten, it did it on the EU Savings Directive and it's doing it again now. I've little doubt that much of this can be out down to the strategic thinking of Malcolm Couch, the Comptroller of Income Tax in the Isle of Man. Jersey has never had anyone to match him.
And with the Isle of Man now agreeing to cooperate on tax with the UK Jersey is left high and dry. What can it do? Refuse to cooperate and not comply with FATCA? It will be left with a massive hemorrhage of clean money (and yes, there is some, of course) to Douglass and it will get all the crooks in exchange. That's game over for Jersey, but co-operation may have the same result. If, as the Isle of Man obviously thinks it has already cleaned up its act already then Jersey, which clearly has not, also loses by signing with the UK.
Whichever way it turns business is walking out of the door. If only they'd listened to John Christensen many years ago instead of sending him into exile and the Tax Justice Network.
If only they'd listened to what we in the Tax Justice Network had to say.
But now, they've made their bed. And I suspect they're going to have to sign the agreement with the UK, as are all the Overseas Territories, like it or not. And if the UK has to lend some financial support whilst those places go through a period of cold turkey as they wean off dirty money as a result it will be a price well worth paying.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
I hope you meant non-co-operation!
I did
But the mistake was quite funny though
Is that praise for the Isle of Man I hear? Wonders never cease! I can report that the attitude to this here is rather relaxed, perhaps reflecting the fact that there ain’t a lot of undeclared money here. You should visit, I think you’d be pleasantly surprised – on the odd day the sun shines it is a beautiful place to be
You ave a long way to go yet
But I’ve also long said you’re way ahead of Jersey
But that’s not saying much
So which of the International Finance Centres have done more than the Isle of Man ?
Look at the Financial Secrecy Index
Can I ask which of the International Financial Centres have gone further than the Isle of Man, in your opinion?
But that wont answer my question, do you really believe that the Cooks islands should be ranked as less secretive than the IoM by any measure?
If FSIO says so, yes
If not, no
We’ve done the work
Do you think, in light of this, that the subject of Jersey independence will come up, Richard?
I am certain it will
But that won’t get round FATCA from the US or UK
If the UK insists UK based banks will not be able to trade in Jersey, independent or not