OECD Latest Review Includes Approvals For Guernsey And Jersey

The OECD Forum on Harmful Tax Practices (FHTP) has concluded that the domestic legal frameworks of Guernsey and Jersey are in line with agreed standards and therefore "not harmful". This latest endorsement follows the approval by the EU Code of Conduct Group of the substance regimes of both jurisdictions in March 2019.

The results  released on 23 July 2019 form part of the FHTP's ongoing review of the domestic law regimes of low tax jurisdictions with regard to preferential tax regimes and the OECD substance legislation standards agreed in November 2018, which require that the core income generating activities for certain highly mobile sectors of business activity must be conducted with qualified employees and operating expenditure in the jurisdiction. The FHTP has reviewed 287 regimes since the start of its BEPS Project and in 2020 will continue to monitor the implementation of the new laws in practice.