Jersey: Paradise Lost In Translation

Recent media coverage around the Paradise Papers has drawn unwarranted negative attention to activity in Jersey and IFCs more widely.

Disappointingly, the attempt to paint all offshore activity as secretive and founded on abusive tax avoidance is both misleading and one-sided. It doesn't reflect the true picture, and it neglects to mention the vital role that IFCs play in encouraging international investment, which has a positive effect on countries across the globe.

It's a shame, because in this geopolitically unstable world, having sensible conversations about global trade, overseas financial flows and cross-border investment would be really helpful. Instead, this theft of data – the only act of criminality that I can see thus far in this whole campaign – has sought to reinforce outdated stereotypes about offshore jurisdictions.

As far as Jersey is concerned, we would counter the allegations made in the media coverage and reiterate Jersey's goal – to work with businesses and governments to encourage clear, forward-thinking investment that supports wealth creation and has positive impacts on communities worldwide.

It's a goal that we know we are achieving. For instance, activity in Jersey contributes around £5 billion to the UK in tax revenue, and helps facilitate £0.5 trillion of foreign investment into the UK and almost €200 billion in the rest of the EU each year, supporting hundreds of thousands of jobs that otherwise wouldn't exist.

We can do that because our tax neutral platform enables investors and businesses to work efficiently and transparently, pooling their investments with different investors from different countries to put their money to work.

The concept of morality has come up regularly in debates around the Paradise Papers, and I would argue that actually Jersey has a very strong moral position.

First, because what Jersey is doing is undeniably positive – taking clean, disclosed investor capital, putting it to work and creating wealth, growth and jobs in all corners of the world, benefitting the many, not just the few.

And second because we've got a very honest 'tax neutral' system that doesn't rely on the kind of complicated tax model that some other countries operate. Our system ensures that tax is paid where it needs to be paid - we leave all the profits on the table for the country with taxing rights to tax it in full, it's just that Jersey doesn't take any of that tax for itself. It's a transparent system that, far from enabling abusive tax avoidance, is actually enabling countries to tax their citizens properly. In fact, through the common reporting standard (CRS) we proactively provide countries with information enabling them to collect the tax.

Our latest piece of research is a case in point – it highlights, for instance, why pension funds in countries all over the world, from the USA and the UK, to Sweden and South Korea, all make use of Jersey's tax neutrality.

Pension funds are exempt from paying tax, but some jurisdictions add another layer of tax when pension funds invest in different countries. So, investors choose Jersey when pooling their money with other investors - they benefit from the private equity and real estate expertise available here for making their investments – which ultimately means better returns for the fund and more money in the pot for those millions of ordinary people around the world saving for their retirement.

So, Jersey is attractive to investors not just for tax reasons, but also because of our expert workforce.

It's entirely normal, entirely transparent, and entirely reputable.

Whilst we're on tax avoidance, HMRC estimates that of the £34bn UK tax gap, just 5% is attributable to any form of tax avoidance. The bulk is down to tax returns not being completed correctly, VAT and excise fraud and the moonlight economy.

Of course, should there be evidence of any abusive tax avoidance in Jersey, then the authorities here would act. So far, though, we have not seen any evidence of a Jersey firm being involved in such practices in any of the stories highlighted in the media.

Neither is the work done in Jersey secretive, because we do all this in one of the best regulated environments anywhere in the world. The rules and regulations around cross-border finance can be complicated, but our focus on providing clarity means that Jersey's finance industry is actually keeping things simple. Jersey remains one of the best regulated international finance centres, recognised by some of the world's leading bodies including the OECD. The likes of the IMF, World Bank and MONEYVAL have also all seen fit to grant us their endorsements.

Moreover, we have signed up to all cooperation and information sharing mechanisms, including BEPS and the Common Reporting Standard, and we have a central register of beneficial ownership that meets international standards, to help share information with tax authorities globally.

Overall, the narrative that offshore finance is somehow responsible for social injustice and inequality around the world is just not honest. True, the world of finance generally has a lot to do to win back the trust of a public that has endured a tough decade, the result of the global financial crisis, but to lay blame at the door of IFCs misses the point.

Do we want to live in a world where foreign investment is encouraged in local high streets, towns, shopping centres, health institutions and businesses and where we have access to investment opportunities around the world that can provide returns for our families and retirement? Or do we want a world where investment is restricted, less diverse, and delivers low returns?

I know which one I'd prefer, and Jersey is very much part of making the former happen. Let's not get caught up in this media wave, and let's make sure the true, positive value of what we do here doesn't get lost in translation.

Linkedin -
Twitter - @jerseyfinance
Youtube -

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Jersey Finance Limited
Jersey Finance Limited
Jersey Finance Limited
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Jersey Finance Limited
Jersey Finance Limited
Jersey Finance Limited
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions