Jersey has introduced economic substance legislation effective for accounting periods starting on or after 1 January 2019. The rules apply to Jersey tax resident companies performing one of nine ‘relevant activities’. In-scope companies are required to demonstrate economic substance in Jersey by passing a certain test. Companies failing to meet that test could be subject to financial penalties and an exchange of information with other relevant tax authorities, and in the most serious cases, they could be struck-off Jersey’s company register. Advisers should familiarise themselves with the rules as the Jersey income tax returns for the first reporting period of economic substance information are now available for completion.
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Jersey has introduced economic substance legislation effective for accounting periods starting on or after 1 January 2019. The rules apply to Jersey tax resident companies performing one of nine ‘relevant activities’. In-scope companies are required to demonstrate economic substance in Jersey by passing a certain test. Companies failing to meet that test could be subject to financial penalties and an exchange of information with other relevant tax authorities, and in the most serious cases, they could be struck-off Jersey’s company register. Advisers should familiarise themselves with the rules as the Jersey income tax returns for the first reporting period of economic substance information are now available for completion.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
