The Channel Islands have recently introduced new Economic
substance laws that meet requirements set out by the EU's Code
of Conduct Group (Business Taxation) (COCG). Amit Taylor, Head of
Corporate Services at Intertrust in Guernsey, explains what the
changes mean and why they're good news.
The substance laws that have come into force in each island (and
in the Isle of Man) represent significant pieces of legislation
that will require certain tax-resident companies to meet a series
of economic substance tests to prove their compliance. The new laws
could result in some changes to how entities operate but are
ultimately good news for the Crown Dependencies and build on the
substance requirements which previously existed in both
islands.
