Letter - Minister for External Relations re Tax Haven Blacklist - Economic Affairs - 7 January 2019

Published on: 7 January 2019

Panel: Economic and International Affairs Panel

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Scrutiny Office

Senator Ian Gorst

Minister for External Relations Cyril Le Marquand House The Parade

St. Helier

JE4 8UL

3rd January 2019 Dear Minister

Economic Affairs Scrutiny Panel "Tax Haven" Blacklist

Firstly, I'd like to wish you a Happy New Year, I trust you enjoyed Christmas and the New Year celebrations. The Panel is very much looking forward to working with you over the coming term and I'm sure there will be much to discuss as you continue your work building and enhancing relations with other jurisdictions.

In that regard, I note the recent announcement that Jersey has been blacklisted as a "tax haven" by the Netherlands Government. Given the recent effort to pass the Economic Substance law, I find this unilateral development quite concerning and so would like to understand how you intend to respond to this move by the Dutch government and whether you think such unilateral moves make our efforts to satisfy Ecofin, and the EU (as a whole), redundant or compromise their effectiveness?

In addition, I'd be grateful if you could advise as to the impact you think this move by the Dutch could have on the island's finance sector. Do you think this move suggests that Jersey should be building stronger relations with the Netherlands, particularly as it is also a significant international finance centre that features in many corporate structures that are devised in Jersey and through which capital flows between the two jurisdictions?

I'd be grateful if you could respond within five working days of the date of this letter. Yours sincerely

Deputy Kirsten Morel

Chairman

Economic Affairs Scrutiny Panel