Following a review of the Crown Dependencies' approach to taxation, the EU Code of Conduct Group (COCG) ruled that the Isle of Man and Guernsey were compliant with most of the EU principles of good tax governance, among them the principles of "fair taxation". However, one area of concern that was raised was that of economic substance. As a result, the Isle of Man and Guernsey committed to address these concerns by the end of 2018.
This article by John Nelson, Managing Director of Dixcart in Guernsey, provides a comprehensive summary of the measures implemented in response to the COCG's ruling. Nelson begins by detailing the two main elements of the COCG proposal: establishing organisations conducting relevant activities and then imposing substance requirements on such organisations. The article also covers off the consequences for non-compliance as well as the effect of the ruling on other jurisdictions such as Bermuda, the Cayman Islands and the UAE.
Read the full article here: https://www.alliottgroup.net/practice-management-resources-for-owner-managed-firms/offshore-centres-improve-approach-to-taxation/
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
