Are you absolutely certain you\’ve got this right?
Oh dear, who are you kidding Mr Ozouf?
Jersey Finance say that in December 2010 there was over £366 billion held in Jersey of which more than £160 billion was in cash and at least £30 billion of that was for EU depositors.
Let’s apply a rate of 2.5% to this cash (which is low for the balances in question) and generate a return of £750 million. Tax was withheld at 27.5% on average during the year. So tax withholding applied to £14.5 million of the interest paid and the rest avoided the tax charge.
So, applying tax to less than 2% of deposits counts as full cooperation does it Mr Ozouf? And opposing all measures that might extend the scope – or even opting for full information exchange like the Isle of Man and Guernsey also counts as full cooperation does it?
Please pull the other one. No one believes you, and the evidence as to why is clear for all to see. We can all see why you think this process is working well – because it’s very obvious it’s hardly really working at all whilst giving you an essential fig leaf of respectability.
And then you wonder why people are sickened at the continuing abuse you promote. Well, you shouldn’t be: the world can spot a sham when it sees one and your press release and all that lies behind it is just that.
So, if you\’re an EU resident with a bank account in Jersey you\’ve got two things you can do.
1) Say you don\’t want them to tell your tax residency about the interest you\’re earning. In which case they scrape off that special rate that Ritchie is talking about.
2) Say, yes, please do tell my place of tax residency about the interest I\’m earning. So you can pay me the interest whole and I\’ll obviously have to declare it on my tax return: because you\’ve already told them about it.
Now as far as I\’m aware, there aren\’t any other options. Not as an individual: my Jersey account certainly doesn\’t allow any other options.
So, what Ritchie is pointing at is that almost everyone is having their interest income declared to their place of tax residency. That is, that almost everyone isn\’t avoiding tax by having a bank account in Jersey.
However, he\’s taking this evidence of very little to none tax evasion as evidence of large amounts of tax evasion.