1 Developments in the Channel Islands
1.1 Economic Substance
On 18 October 2019, the Taxation (Companies – Economic
Substance) (Amendment) (Jersey) Law 2019 was registered in the
Royal Court and came into force from 1 January 2019. The law amends
the Taxation (Companies – Economic Substance) (Jersey) Law
2019, which makes provision for imposing an economic substance test
on certain companies regarded as resident in Jersey under Article
123 of the Income Tax (Jersey) Law 1961 and for determining whether
the test is met by assessing the extent of certain activities
carried out in Jersey by such companies.
On 25 November 2019, the Crown Dependencies' tax authorities
jointly released updates to the joint guidance notes on the
application of economic substance legislation, which were
previously issued on 26 April 2019. Notably, additional detail is
included on areas including pure equity holding companies, the
directed and managed test, fund management and
