Friday, November 30, 2012

Jersey confirms that Son of FATCA is on its way

Hot on last week's revelations in the International Tax Review that the British government is set to impose its own 'son of FATCA' on the UK Overseas Territories and Crown Dependencies, Jersey's Colin Powell (pictured) is reported in today's Jersey Evening Post confirming that, in the words of the JEP:  
"Jersey will have little choice but to hand over information to the UK tax man about UK residents who have bank accounts here, says the Island’s leading adviser on international affairs."
Despite our various caveats on this Son of FATCA arrangement (see here), not least the gigantic fact that this appears to be a unilateral move designed to protect the UK but not other countries, we welcome this steady ratcheting up of pressure from the UK government on its tax haven satellites. This, if indeed it comes to pass as reported, would be just a first step in a much wider process.

The message now needs to be firmly driven home that the time has come for these jurisdictions to seriously plan for a post-tax haven economy.  Sharpen those pencils please.


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