United Kingdom > Jersey > Legal Developments > Tax & Private Client
Search News and Articles
Philanthropy in Jersey
“Jersey is an ideal jurisdiction in which to establish philanthropic structures”
By Zillah Howard Partner, Bedell Cristin Jersey Partnership
Jersey Tax Update – Zero/10: Code Compliant
Executive Summary Jersey's Zero/10 tax regime was approved by the Council of Ministers of the European Union in Brussels on 19 December 2011.
Limited Partnerships in Jersey
The Limited Partnerships (Jersey) Law 1994 (the ‘Law’) provides a comprehensive statutory framework for the establishment and operation of limited partnerships in Jersey.
In The Royal Court
Zillah Howard, Partner highlights some of 2011's Royal Court decisions in relation to trusts - published in Private Client Practitioner's Jersey Report 2011.
Good news for Jersey statement regarding Jersey's zero-ten tax regime
On 13 September 2011 the EU Code of Conduct Group accepted that the current zero rate of Jersey corporation tax was not harmful if a proposed change was made which would only affect individuals who are resident in Jersey for tax purposes. The proposal is to abolish the deemed distribution and attribution rules for Jersey resident shareholders. The proposal is that Jersey residents will pay tax only on distributed company profits. The deemed distributions had never applied, and will not apply, to foreign shareholders.
Philanthropy
For many people, philanthropy is a topic of increasing importance. Whilst philanthropy may, in strict terms, focus on the wellbeing of human kind, the term tends to be given a wider meaning, encompassing a broad range of giving initiatives. Some of those initiatives will be characterised as charitable in the relevant jurisdiction, others - albeit altruistic and benevolent in nature - may not.
Cayman Islands trusts
Introduction
In simple terms, a trust is a legal arrangement whereby one or more persons (the trustees) hold and deal with property (the trust fund) on behalf of other persons (the beneficiaries). A trust is created when one person (the settlor or grantor) transfers property to the trustees who are legally obliged to deal with such property for the benefit of the beneficiaries.
HMRC's information powers and what they mean for offshore trustees?
This briefing considers the recent First Tier Tax Tribunal case of Revenue and Customs v Panos Parissis and Adrian Towland and Ian Harrison [2011] and its practical implications for offshore trustees.
Delay in imposition of tax penalties
The Cyprus Government's budget, approved by the Cyprus Parliament in December 2010, introduced a number of new penalties for late payment and late filing of returns, which were due to take effect on 30 June 2011.
Tax Planning International European Tax Service
UK: Open for business – the start of a new era?
- Belgium: Liability of tax advisors & shareholders for tax debts of a
- hell company
- Russia: Importance of substance for structures using Cyprus
- Luxembourg & Germany: Taxation of German cross-border workers
- Slovak Republic: Transfer Pricing facts 2011
- Cyprus – Germany Tax Treaty: Important changes
Focus on Offshore Funds
With a number of major regulatory directives on the horizon, the question of domiciliation is an important one for hedge funds. HFMWeek talks to two industry experts about the relative merits of on and offshore domicilliation, and how offshore jurisdictions are adapting to these new regulatory pressures.
A version of this article appeared in HFMWeek on 9 June 2011.
Jersey - The Introduction of Separate Limited Partnerships and Incorporated Limited Partnerships
Jersey has now introduced two new types of limited partnerships: the "Separate Limited Partnership" and the "Incorporated Limited Partnership".
Shifting Sands
There are challenges and opportunities for the Cayman Islands in the wake of the global recession. A version of this article appeared in the April 2001 edition of The American Lawyer published by ALM Media, LLC.
In the matter of A re:
the rectification of an erroneous instrument of appointment and retirement of trustees
Obituary: Hastings-Bass
It is with much sadness that we report the death in London on Wednesday, 9 March 2011 of Hastings-Bass, at the premature age of 36. In the years since its birth, Hastings-Bass had become a household name amongst, and highly popular with, trustees around the common law world.
Tax Information Exchange Agreements
Tax Information Exchange Agreements ("TIEAs") are agreements which allow governments to exchange information relevant to their domestic tax laws.
Jersey Taxation of Investment Vehicles
The principal Jersey tax statute is the Income Tax (Jersey) Law 1961 (as amended) (the “Income Tax Law”) which determines the rate of Jersey income tax payable by Jersey investment vehicles.
Private Client Handbook 2010/11
Country Q&A
Jersey Exempts Investment Funds and Securitisation Vehicles from Tax Liability
Underlining Jersey’s commitment to its investment fund and finance industry, the Island has passed an amendment law to provide an explicit statutory exemption from any liability to tax in Jersey for investment funds and certain capital markets issuers.
The EU savings tax directive
The implementation of the EU savings tax directive by the Cayman Islands and its impact on Cayman Islands mutual funds
Tax Information Exchange Agreements
Tax Information Exchange Agreements ("TIEAs") are agreements which allow governments to exchange information relevant to their domestic tax laws.
The implementation of the EU savings tax directive
The implementation of the EU savings tax directive by the Cayman Islands and its impact on Cayman Islands mutual funds
Tax Information Exchange Agreements
Tax Information Exchange Agreements ("TIEAs") are agreements which allow governments to exchange information relevant to their domestic tax laws.
Jersey Taxation of Investment Vehicles
The principal Jersey tax statute is the Income Tax (Jersey) Law 1961 (as amended) (the “Income Tax Law”) which determines the rate of Jersey income tax payable by Jersey investment vehicles.
France and Jersey Tax Agreement
French 3% Real Estate Tax Exemption France and Jersey entered into a tax information exchange agreement (TIEA) on 23 March 2009. Jersey has previously entered into similar agreements with 13 other OECD countries.
Offshore equity transactions: Implications of recent changes to corporate tax law in China
The Chinese State Administration of Taxation (“SAT”) issued Circular [2009] No. 698 (“Circular 698”) on 10 December 2009. Circular 698 addresses various tax issues on equity transfers by non-Chinese tax resident enterprises. It applies retroactively from 1 January 2008 and covers direct and indirect sales by non-Chinese tax resident enterprises of unlisted shares of Chinese tax resident enterprises.
TAX MIGRATIONS BY UK CORPORATES
It has been widely reported in the UK press that a number of UK corporates with significant non-UK business interests are considering migrating for tax purposes to Ireland or other lower taxation jurisdictions in an effort to combat what they perceive to be an onerous UK corporate tax regime. The Telegraph recently cited a YouGov poll which reports that one in three UK companies are considering such a move, with some 38% of executives polled at medium and large companies in the UK stating they had discussed moving operations offshore to reduce corporation tax.
Jersey and Guernsey on the OECD "white" list
The G20 Summit resulted in a list of jurisdictions surveyed by the OECD global forum in implementing the internationally agreed tax standard. We are delighted that with a committed effort over the years, the Jersey and Guernsey position has been formally acknowledged in that both jurisdictions are on the white list of countries that have substantially implemented the internationally agreed tax standard. The list includes some 40 countries, including the United States, the United Kingdom and other major financial centres. We are also pleased that our offices in Dublin and Geneva are not included on the tax haven lists.
UK Groups - Relocating from the UK using a Jersey Holding Company
Jersey has been the jurisdiction of choice for a number of high profile groups relocating from the UK over the last year or so. Despite the recent proposals of the UK government to implement tax changes in an attempt to stem the flow of UK multinationals to more tax favourable jurisdictions, several large groups still consider there to be benefits in migrating out of the UK and have plans to relocate using a Jersey holding company in the course of the next year.
A Trustees Limited -v- W, X, Y and Z [2008] JRC 097
What considerations are involved when a trustee asks the Court to approve its decisions?
The Continuing Usefulness of Offshore Employee Benefit Trusts
Employee Benefit Trusts, known as EBTs, are trusts usually written on discretionary terms, under which trustees hold assets for the benefit of a class of beneficiaries, typically the employees and former employees of the funding company and their respective spouses, family and dependants.
Trusts (Amendment No.4) (Jersey) Law 2006
The Law was registered on 20 October 2006 by the Royal Court and came into force on 27 October 2006. The Law introduces several important amendments to the Trusts (Jersey) Law 1984 (the "1984 Law") as highlighted below.
Hastings Bass in Jersey
There have been two recent Jersey cases which help to develop and clarify the law where trustees exercise a discretion which is later found to have adverse and unintended consequences and where the trustees would have acted differently had they taken relevant factors into account or had they not taken irrelevant factors into account.
Jersey Trusts
A "trust" is a legal arrangement which exists in many jurisdictions when one person (a "trustee") owns assets not for his own use and benefit but for the benefit of others (the "beneficiaries"). It is normal, but not essential, for a trust to be constituted in writing in the form of a "trust deed" or "trust instrument" which will set out the manner in which the beneficiaries can benefit from the trust, as well as the powers and duties which the trustees will have in administering the trust and its assets.
Private Trust Companies
Private trust companies ("PTCs") are able to operate in Jersey pursuant to an exemption from the registration requirements which apply in relation to financial services business pursuant to the terms of the Financial Services (Jersey) Law 1998 (the "1998 Law").
Non-Charitable Purpose Trusts
Prior to 1996 the Trusts (Jersey) Law, 1984 (the "1984 Law") only provided for the creation of Jersey law trusts in favour of persons (including corporate entities) or for the benefit of charitable purposes but precluded the formation of noncharitable purpose trusts. The Trusts (Amendment No. 3) (Jersey) Law, 1996 (the "1996 Amendment") amended the 1984 Law to make it possible to create a valid Jersey trust for non-charitable purposes in respect of which there are no beneficiaries.
Powers of Attorney
The Powers of Attorney (Jersey) Law 1995 (the "Powers of Attorney Law"), which came into force on 1st October 1995, effected a number of significant changes to the previous law on powers of attorney in the Island.
Beneficiaries' Rights to Trust Information in the Light of Schmidt v. Rosewood Trust Limited
The decision of the Privy Council in Schmidt v. Rosewood Trust Limited [2003] 2 A.C 709 ("Schmidt v. Rosewood"), delivered in March 2003 on an appeal from the courts of the Isle of Man, has excited great interest among trust practitioners because it considers the approach to be taken to the question of disclosure of information by trustees to beneficiaries.
Trustee Liability: Walker and Others v. Stones and Others
This Briefing is an attempt to summarise the findings contained in the judgment (delivered by Sir Christopher Slade) of the English Court of Appeal in Walker and Others v. Stones and Others [2001] 2 WLR 623, [2000] 4 AII ER 412. The judgment was published on 26 September 2000 and offers useful assistance upon various areas relevant to trustee liability.
Exculpatory Clauses in Jersey Trusts
The Court of Appeal in Jersey has recently delivered a judgment of major significance to professional trustees.
Offshore Centre Development
The past 12 months have been very active in terms of new developments and new initiatives implemented or proposed by the Jersey government, States of Jersey (the "States") and the regulator, the Jersey Financial Services Commission (the "Commission").
Trusts
The Financial Services (Trust Company Business (Registration and Fees)) Amendment) (Jersey) Order 2006
The draft Income Tax (AmendmentNo. 28) (Jersey) Law 2007
The draft Income Tax (Amendment No. 28) (Jersey) Law 200- has been adopted by the States of Jersey and is awaiting the approval of the Privy Council.
The Income Tax (Amendment No. 27)(Jersey) Law 2007
The Income Tax (Amendment No. 27) (Jersey) Law 2007 came into force on 16 January 2007. The Law amends Article 123 of the Income Tax (Jersey) Law 1961 in order to permit Jersey incorporated companies meeting prescribed criteria to be regarded as non-tax resident in Jersey.
Funds
The Collective Investment Funds (Permits) (Exemptions) (Amendment) (Jersey) Order 2007
Recent Jersey Income Tax Law Change – The Jersey Company is Now More Attractive Than Ever!
Jersey incorporated companies owned by non-Jersey residents have for many years been able to elect for tax ‘exempt company’ status, and on the payment of a nominal annual fee (currently, £600) are treated as non-resident for Jersey income tax purposes.
Private Trust Companies
The Trusts (Amendment No. 4) (Jersey) Law 2006, which provides for extensive amendments to the Trusts Law, came into force on 27 October 2006.
Consultation on Trust Company Business Codes of Practice
In August, the Commission issued a Consultation Paper entitled “Trust Company Business Codes of Practice”. The Commission is seeking to amend the existing Codes of Practice, which were first introduced in November 2000 and subsequently amended in October 2001, in the light of recommendations made by the International Monetary Fund, findings from its regulatory supervision, industry feedback, and the recent repeal of Article 56 of the Trusts Law (which article provided for the individual directors of a corporate trustee to be held liable as guarantors for any breach of trust committed by the corporate trustee).
Consultation on Jersey Expert Fund Guide
In August, the Commission issued a Consultation Paper entitled “Expert Funds: Proposed changes to the Jersey Expert Fund Guide”. The Jersey Expert Fund Guide (the “Guide”) has proved extremely successful since its launch in February 2004 in streamlining the processes for the establishment of collective investment funds aimed solely at “expert investors”.
New Trusts Law
Trusts (Amendment No 4) (Jersey) Law 200- (the "new law")
On 25 April 2006 the States of Jersey approved the draft Trusts (Amendment No 4) (Jersey) Law 200- (the "new Law"). The Law will now go to the Privy Council for approval, and it is hoped that it will be enacted by the end of the year. The Law will introduce several important amendments to the Trusts (Jersey) Law 1984 (the "1984 Law").
Offshore Funds
Offshore Funds - Jersey Lights the Afterburners
The funds sector in Jersey has experienced considerable success in recent years. Jersey's aim is to set itself apart from other offshore centres as the first choice for domicile of alternative investment funds, as a leading administration centre, and to grow an established fund management community in the Island - and is taking great steps to realise this ambition.
