Originally published on 7 June 2002
No sooner had Jersey reached an agreement with the OECD on its harmful tax competition initiative, than attention was focused on the EU’s so-called tax package and how it might affect Jersey, as well as the other Crown Dependencies and British Overseas Territories. The issue was brought to public attention in mid-April when, shortly before the UK Budget speech, Ms. Dawn Primarolo, HM Paymaster General in the UK Government, contacted Senator Pierre Horsfall, President of Jersey’s Policy & Resources Committee, and demanded a commitment from Jersey to cooperate with implementing the EU’s Code of Conduct on Business Taxes. In spite of intense pressure from the UK Government, Senator Horsfall refused to give this commitment. This article examines the background to the tax package and considers the extent to which Jersey might cooperate with the EU in relation to the package.
