On 22 October 2013, a draft amendment to the Taxation (Exchange
of Information with Third Countries) (Jersey) Regulations was
lodged with the States of Jersey.
The accompanying report states that the main objective of the
amendments is to address:
A number of perceived shortcomings with the current regime;
Jersey's inclusion on the French list of non-cooperative
The report signals a clear commitment to ensuring that tax
information requests made of Jersey entities are dealt with quickly
and in line with international standards.
Crucially, the proposed amendments will retrospectively apply to
existing requests, subject to certain exceptions. The report
envisages that this may expedite Jersey's removal from
France's list of non-cooperative jurisdictions.
The key changes proposed by the draft amendments include:
Limiting the statutory scope for appeal to judicial review
grounds only (so that instead of an appeal being put on the basis
that the notice is outside the scope of the Regulations, the appeal
will in future have to be put on the basis that the Comptroller was
acting illegally, irrationally, or under some procedural
Removing several references to the need to act reasonably and
to only demanding information that is reasonably required
(presumably to make the Comptroller's decisions less
susceptible to judicial review).
Deleting the requirement for the Comptroller to provide a
summary of the reasons for giving the notice (presumably for the
same reasons as above).
Reducing the time period for responding to a notice from 30 to
Curtailing the appeal route itself. If an appellant loses
its case before the Royal Court, the appellant can only appeal to
the Privy Council (with leave), as opposed to the existing right of
appeal to the Jersey Court of Appeal.
Restricting the time period for any application for judicial
review to 14 days after receipt of the notice.
Carving certain matters out of the scope of judicial review
altogether (for example it will not be possible to judicially
review any decision by the Comptroller not to allow a third party
recipient to disclose a third party notice to a tax payer).
Requiring information to be provided, even when a judicial
review has been commenced (however this information will not be
provided to the foreign tax authority until the judicial review has
been determined, unless the Royal Court grants permission to do
The proposed amendments are due to be debated in the States of
Jersey on 5 November 2013 and could be brought into force very
shortly after that.
Financial institutions in Jersey will need to keep abreast of
this amendment. If the amendment comes into force, the Jersey
TIEA regime will require quicker and more decisive action from
recipients of notices, in particular recipients of third party
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.
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