By Rob Byrne BBC News Online. Read about our approach to external linking. The standard rate of corporate income tax in Jersey is 0%. Jersey is one of the top worldwide offshore financial centers It is described by some as a tax haven. Most Jersey-based companies pay little or no tax. "Sectors: Banking." A new list of corporate tax havens has named Jersey as the seventh most "aggressive" in the world. But the move could prove controversial after Jersey was accused of being 'up there with the worst' of the world's tax havens. 'Don't give up, the storm ends': A message of hope. It attracts deposits from customers outside of the island, seeking the advantages such places offer, like reduced tax burdens. The small Channel Island's special status has made it rich by enabling global corporations to avoid tax elsewhere. Government of Jersey. "Banking." The consensus around effective tax rates has led academics to note that the term "tax haven" and " offshore financial centre " are almost synonymous. If Jersey cannot act like a tax haven, what exactly is the point of it? As a tax haven, Guernsey has a developed banking sector, which is instrumental to the development of Guernsey as an international financial centre. Eighteen of Jersey’s [tax exile]residents paid less than £10,000 in tax last year, the Assistant Treasury Minister said yesterday. An EU Commission spokesperson said that, by international standards, no member state can be described as a tax haven and the criteria for non-EU countries is the same. 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Accessed Feb. 16, 2020. Tier 3 restrictions 'worst-case scenario' for town, 'Don't give up, the storm ends': A message of hope. Residents of Jersey pay income tax rates of 20%. A tax haven is a country that offers foreigners little or no tax liability in a politically and economically stable environment. The tourists visiting Jersey often report fascinating numbers of shiny private jets and new yachts. Published. A spokesperson for Guernsey's government said the index "lacks credibility" and the island is "part of the solution in the fight against financial crime". "High Value Residency." "Historic tax concessions and practices." Jersey Finance. "Moving to Jersey: Open a Jersey bank account." With respect to offshore accounts, no registration of trust accounts is required among the companies that administer individual financial accounts on the island. Jersey offshore companies benefit from the zero/ ten tax law which had been passed in the jurisdiction. No taxes are levied against capital gains or capital transfers, but a 5% tax on goods and services was implemented in June 2011. Additionally, a stamp duty of up to 9% applies to the transfer of immovable property within the nation’s borders, and its individual parishes collect property taxes.. In the run-up to the G8 summit, the BBC is taking a special look at tax environments across the globe. As early as the late seventeenth century, Jersey gained attention from British officials as a hub for international smuggling, but Britain failed to bring the island’s government to heel., Jersey first gained a reputation as a tax haven in the 1920s, when wealthy Brits began moving to the island, or, in many cases, simply transferring their wealth to the island, in order to benefit from its lack of wealth and inheritance taxes. . The article heavily features Jerseyman John Christensen, TJN’s Director (along with Richard Murphy of Tax Research UK, who has been influential in TJN’s history.). Accessed Jan. 24, 2020. Accessed Jan. 24, 2020. The Jersey offshore companies cannot do business with residents of Jersey or conduct business operation in the tax haven. Jersey has today been dealt a blow in its bid to be considered a transparent and well-regulated jurisdiction following allegations in the Paradise Papers that Apple settled on the island after shopping around for a new low-tax home to stash their profits. Since Jersey has attracted many high-net-worth individuals, the picturesque Island has a high life standard which corresponds to the countries in Western Europe. Jersey tax haven has implemented its zero/ten tax schemes from January of 2009. 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The top three are the British Virgin Islands, Bermuda and the Cayman Islands, with Guernsey in 15th place and the Isle of Man in 17th. The exceptions to this standard rate are: financial service companies (defined in the Income Tax Law) which are taxed at 10% utility companies which are taxed at 20% Accessed Feb 16, 2020. Government of Jersey. In 1928, the Jersey government introduced an income tax of 2.5%. Under the German Occupation of the Channel Islands, the income tax was raised to 20%, where it remains, but the island still does not have an inheritance, wealth, corporate, or capital gains tax. As deposits from wealthy individuals filled the nation’s coffers, the revelation that most any tax could be avoided in Jersey brought the banking business to roost on the island, giving birth to one of the most popular offshore destinations for U.S. dollars, rubles, yen, and other global currencies. 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