Attac Jersey is a Member of the International Tax Justice Network. We are Members of the Association for the Taxation of financial Transactions for the Benefit of Citizens, (ATTAC) and the Tax Justice Network, (TJN). The aims of both organisations are to research, educate and campaign to further public awareness. We are seeking to alleviate poverty through the creation of just taxation systems to fund social goods.

Saturday, October 30, 2010

Posted by JERSEYattac at 
11:59 AM 0 comments   


This programme was on yesterday. It is available on "Listen Again" for a week, or can be downloaded as a podcast.
Posted by JERSEYattac at 12:46 PM 0 comments   
A Taxing Dilemma
While the government axes public spending to try to cut the deficit, Michael Robinson investigates loopholes which let big businesses slash their UK tax bills. This month George Osborne said he plans to make Britain the most attractive corporate tax regime in the G20. But some companies have already moved abroad for tax reasons. And for others able to operate on a global scale, there are many ways for them to reduce their tax liability. So how does the Government square the tax circle? Producer: Gail Champion.
This programme was on yesterday. It is available on "Listen Again" for a week, or can be downloaded as a podcast.




JDA president, former Senator, Mr. Ted Vibert, said that the Treasury Minister’s proposal to raise GST to 5% could be the last straw for people on lower and middle incomes.

So far, they have silently accepted the cuts in services and jobs but the fact that the rich on this island have escaped with comparatively little sacrifice has made them very upset.

Over the years the ordinary working  of Jersey have  shown that they are prepared  make sacrifices in troubled times.  But when their section of the community is hit hard and the well-off escape lightly, they resent the unfairness of it all.”

It’s even more galling when the island has half a billion pounds sitting in the Rainy Day Fund and we’re telling our young children that they can’t have school milk, our sportsmen won’t be able to go and take part in competitions outside of the island, hospital services are being reduced, grants to schools are being slashed, 20-20 has added another layer to the problems of middle Jersey and now we have a hike in GST”
And the wealthy.   Nothing, except the 2% on GST”

Senator Ozouf seems intent on dividing an already divided society into the haves and the have-nots. The have-nots have had enough of it “
for direct comments: <>

 the government axes public spending to try to cut the deficit, Michael Robinson investigates loopholes which let big businesses slash their UK tax bills. This month George Osborne said he plans to make Britain the most attractive corporate tax regime in the G20. Bsome companies have already moved abroad for tax reasons. And for others able to operate on a global scale, there are many ways for them to reduce their tax liability. So how does the Government square the tax circle? Producer: Gail Champion.

Posted by JERSEYattac at 7:53 AM 0 comments   
23rd October 2010for immediate publication.

Rise in GST is NOT inevitable

The proposed budget plan to increase GST from 3 to 5% as of next June is notinevitable, according to Deputy Montfort Tadier.

The budget must be ratified by the States and is subject to amendments. As we saw last year, it is not a given that the Treasury Minister will get what he wants.’

While the treasury proposals for GST were entirely predictable, the increase is not inevitable.’

Deputy Tadier is calling for likeminded politicians and members of the public to come together to resist the proposals to increase GST which he says will hit low and middle earners the most and threaten economic recovery at a time when retail sales are already fragile.

It will be interesting to see just to what extent the public and retailers have accepted GST and whether, in these times of widespread austerity, this will be one increase too far for the public of Jersey.’

Islanders are already having to deal with financial assaults on all sides: A reduction in allowances under ‘20 means 20’; a rise in University Fees  - and private school fees; Utility bills will increase significantly, on top of an already high cost of living, not helped by the fact that we are often paying GST on top of VAT.’

Promises that those on income support will not be affected provide little comfort for the many others who are still struggling to make ends meet.

Deputy Tadier is calling for likeminded politicians and members of the public to come together to resist the proposals to increase GST which he says will hit low and middle earners the most and threaten economic recovery at a time when retail sales are already badly hit.

Consideration should be given to use a small percentage of the ‘rainy day fund’ to cover (part of) the deficit until we are in a better position to know if and when we are coming out of global recession. Increasing GST in these uncertain times is both foolhardy and risk increased hardship.

If you would like to contact my blogsite please go to 

Posted by JERSEYattac at 7:03 AM 0 comments   


Turkeys vote against Christmas again.

Dear Editor,

What a ridiculous statement from the finance industry in tonight's edition headed 'Warning from Finance'.

The warning is against making significant changes to the current Island's business tax regime which is based on the ridiculous and

EU-unpopular 0/10 system, which allows off Island registered companies like Normans, L'Horizon, The Grand, The Radisson, Burtons, Boots, British Home Stores to name but a few who are making money in competition with Jersey companies to pay exactly 0% tax, whilst the shrinking finance industry only has to pay 10%. Of course they do not wish to change such a money-making arrangment. It's 'Turkeys voting against Christmas' again but they omit to mention the big negative, that this brainwave has plunged Jersey into a £100 million debt!

Well, blame the so-called recession and divert interest from 0/10. In any case, just introduce jolly old GST (Goods and Services Tax) and make it up from robbing the people, especially all those who can least afford yet more expense. If you are rich then 3,5,10,15% GST makes not a jot of difference.

Spin the message that if 0/10 is interfered with some companies might be inclined to leave!! But where to? And, if they are not paying any tax now, then what difference would it make if they left? If, say, 30% left who were paying no tax, then 70% would now be paying tax, and the self-induced so-called black hole would not be necessary! Oh dear, is this too simple?

Yours faithfully,

John Heys
Posted by Attac Jersey - at 2:24 PM 0 comments Links to this post
Tuesday, August 24, 2010

TonyTheProf said... (subject: farm shops)

See also:
Posted by JERSEYattac at 1:49 AM 0 comments    Google Buzz
Wednesday, September 1, 2010
Jersey Evening Post 25.8.2010 

Wednesday, September 1, 2010
Jersey Evening Post 25.8.2010 

Warning from finance

The finance industry has warned against

making significant changes to the Island's

current business tax regime. A survey of the

heads of 50 businesses reveals that 65%

think that a change to the zero-ten tax regime

would have an adverse effect on Jersey's status

as an International finance centre. Four out of

ten believe that moving from the zero-ten regime

would have a negative effect on their company.

Full report to follow.

blog archive August 2010

Tuesday, August 10, 2010

Maurice Merhet's article on the subject of

banking and entitled Mo's Law
posted below on the 6th of August

is further discussed on the Tax
Research UK Blogsite August

10th ,2010,


Posted by Attac Jersey - at 3:28 PM 0 comments

Friday, August 6, 2010

06 August, 2010

Mo’s Law

Maurice Merhet

The banks have proved themselves to be

How? Why? Alternative?

Links to this post


1. By loaning money to people who could not pay it back. Reason – so as to take

property and make a large profit.

2. By refusing personal loans and suggesting customers use credit cards. The
bank then

charges 18% on the overdraft. Not only that – if you are £10,000 over on your

card and have paid back £9,900 they still charge you 18% on the full amount.
This is

legalised extortion.


So as the banks can pay themselves large and excessive bonuses. It is we, the

who are doing the paying. This makes it very bad for the whole British
economy. The

banks are so powerful it is they that rule the economy not the government.


As we own 84% of the Royal Bank of Scotland this is what we do. We pay

2% interest and loan out money at say 10% on secure loans, credit cards on
collateral at

12% on a sliding scale. We would not pay bonuses but a fair wage.

This one move would force the banks to do they same which would benefit the

economy. They would no longer expect depositors to be satisfied with ½% nor

prepared to pay 15%.

One added advantage – this would free all these very clever but overpaid
bankers so that

they could do something useful for society that was not dishonourable.

This is Mo’s Law.

Posted by Attac Jersey - at 5:02 PM 3 comments

Tuesday, August 3, 2010

Letter to the Editor of the Jersey Evening Post

2nd August 2010

Where are the expensive failures from?

John Heys

Here we go yet again. Will our overpaid selecting civil servants never learn?
wonderful, highly experienced, foreign department director has jacked the job
in after
only four years at the Airport.

No reason given is OK, but it would be nice to know why. At least in the prison
one could not get on with the Jersey way and one’s wife could not settle here.
Can you
imagine not being able to settle in such a beautiful place? What nonsense.

I trust there will be no golden handshakes and that we, as the ever tolerant
taxpayers, will
be assured of this.

So now, with egg all over their faces, the selecting bunchwill have a chance to
choose a
Jersey boss for the Airport, and henceforth continue to do so.

For goodness sake, wake up! Just look at your expensive failures; tourism,
police, prison,
Airport, etc.

Where do they all hail from?

Posted by Attac Jersey - at 1:46 PM 1 comments

Links to this post

Links to this post

blog archive July2010

Friday, July 23, 2010

letter to JEP. 23/07/10

Letter to the Editor of the Jersey
Evening Post

23rd July 2010

Why do the States favour non-resident companies on tax
while still pretending Jersey is not a tax haven?

Pat Lucas
I would like to congratulate John Clennett, former Treasurer to the States
of Jersey, for his excellent Letter to the Editor dated 16.7.2010, in which he
explores the root causes of Jersey's fiscal black hole. By pointing out the
correlation between the projected deficit exceeding £64 million for 2010 and
similar amounts for the following two years with the implementation of Zero-Ten it
is perfectly obvious that our economy is in this deplorable mess as a direct result
of Zero-Ten.
As far back as May 2005 Richard Murphy of Tax Research UK and adviser to
the Tax Justice Network warned in a report prepared for the States of Jersey that
this huge deficit would occur if our government pursued the Zero-Ten option. At
the time he said the new laws underpinning Zero-Ten " not appear to meet
the requirements of that Code (the EU Code of Conduct) and might also breach
some other EU requirements." The States of Jersey ignored the warning and
now, 5 years on, the Treasury Minister tries to blame the global recession for our

The global recession is not the reason why a Goods and Services Tax was
introduced. Neither is it the reason why our Government wants to hike up the
rate of GST to 5%. These measures are necessary because the European
Union has expressed its concern that the details of the Zero-Ten policy continue
to contravene their attempts to remove harmful tax practices. As Mr Murphy
advised in 2005 "...this law (the zero-ten policy) reproduces the ring fence
that exists under existing Jersey tax law which has largely ensured that only
companies owned by Jersey residents have been taxed whilst companies owned
by those who were not resident have, in the main, not been taxed. As such this
provision contravenes section B2 of the Code."

Mr Murphy also made it clear that "The new 10% tax on the profits of financial
services companies is in contravention of sections B1, B2, B3 and B5 of the

It is proposed under this law that only finance companies regulated by
Jersey Financial Services will be charged at 10% unless those companies
are undertaken through Special Purpose Vehicles. To date those are mainly
companies understood to be operating in the financial services but which:-

"(a). are not owned by Jersey residents;

(b). supply services within Jersey but for the benefit of persons not
resident in Jersey;

(c). undertake a very limited range of transactions for which they are
specifically incorporated, each of which may have little or no
economic substance within Jersey despite taking place there;

(d). are deemed not to be resident in Jersey despite meeting all the
normal tests for being so including being incorporated there, holding
all their directors' meetings there and undertaking all their
commercial transactions there."

Why do the States persist in giving favourable tax treatment to non-resident
companies while still trying to pretend that Jersey is not a tax haven?
Who benefits from this Zero-Ten legislation? Why have warnings about its
acceptability to the EU been consistently ignored? Why have those who have
tried to advise Jersey to opt for fairer and more sustainable tax options been
referred to as "not friends of Jersey"?

In 2005 we were advised that:-

Individually and in combination these factors ensure that the new law
will fail tests B1, B2 and B3 of the Code. The discretion granted to
the JFSC to deem any activity undertaken by an SPV ensures that
the new law will also fail test B5 of the Code.

It's time to wake up Jersey! Let's take heed of what is happening and stop kidding ourselves. Our
deficit is a consequence of the choice taken to adopt the Zero-Ten policy. So much easier, isn't it, to
blame the global recession than to face up to the fact that our present tax system is not only grossly
unfair but, for that very reason, is most unlikely to meet the requirements of the EU Code of Conduct.

Another sticky topic which our government seems reluctant to face up to.

Posted by Attac Jersey - at 6:29 PM 2 comments

Thursday, July 15, 2010


Working paper from the Kent Business School

by John Christensen and Mark Hampton


Links to this post

Posted by Attac Jersey - at 4:33 PM 0 comments

Tuesday, July 13, 2010

(due to technical reasons I have had to post this
comment as an article,blogmaster . 13.07.2010)

Links to this post

Anonymous said...

Clearly Jersey does not have a functioning democracy and this
was shown at the recent by election for Senator. About 15,000
people voted; of these about ten thousand voted for the
Establishment, and “elected” Le Gresley, whilst five thousand
voted for the “progressives”. The level of abstention says it
all; 75% of the electorate did not vote. That is not a
functioning democracy and those elected under such a system
cannot really claim very much legitimacy. That 40,000 did not
vote is a sad indictment of the system.

Did they all not vote because they are basically content with
their lot and with the existing political set up? I would argue
that there is a great deal of cynicism about government and
although there is a desire for something better, they do not
know how it can be achieved. Many have given up waiting for
change; others have simply been ground down by a political
machine that resists reform and modernization.

The essential reason is that capital, in the form of the finance
industry, has captured the island economically and politically.
But, you say Banks don’t have votes. However Banks don’t
need votes when they own politicians. Jersey, you see is a
Bank; and Banks are not democratic institutions. Capital has
no need for any other form of government than that which
already exists. It functions quite adequately; prioritising the
interests of finance at all times. Thus new innovative
legislation favouring finance comes through without dissent –
protected cell companies; egaming etc. The latter was sold
with the official propaganda that in its wake would follow
higher speed internet connections for average joe. Meanwhile

social legislation struggles. Indeed legislation on
discrimination has just been axed as part of the initial 2%
cuts. Is much dissent heard about that “cut” amongst the
clamour for saving life guards at Havre des Pas and school

Senator Le Gresley was “elected” precisely to prevent
candidates who support reform and democratisation from
being elected. Ineffective and ultimately loyal, he will pose
no challenge to the status quo.

There is hope however. The current proposed cuts are
provoking a degree of resistance. The Teachers have led the
way, albeit in a tentative fashion. Workers are beginning to
recognise their interest as workers and the need to protect
their jobs. There is a dawning that the government runs the
island exclusively in the interests of wealthy non residents
who happen to hide their money in institutions that operate
out of the island and whose only loyalty is to those clients and
their money.

As the programme of austerity begins to bite there will be a
period of fear and uncertainty; then resistance will begin. The
government is unaccustomed to direct class warfare. To date
it has been possible to buy social harmony with economic
prosperity. Now there is an assault on public services with
plans for cuts, motivated in part from a genuine deficit, but
more so from ideology. The government serves the interests
of the wealthy and will not raise taxes on its natural supports.
It is obliged by virtue of its commitment to running a low tax
regime, to keeping corporation taxes low. So low that the
state is unable to raise the money it needs to provide
essential public services for the ordinary citizen. The
government is prepared to sacrifice the interest of working
people to keep the finance industry in a low tax environment.

Posted by Attac Jersey - at 4:47 PM 1 comments

Sunday, July 11, 2010

Links to this post

From: PAT LUCAS 11.07.2010


First, I must point out that Attac is not a political party. Neither is the Tax Justice
Network of which Attac Jersey is a member.
These are two non-governmental organisations with distinct brands of their
own and whose aims are to research, educate and campaign to further public
awareness. Both seek to alleviate poverty through the creation of just taxation
systems to fund social goods.

As may be expected we favour certain political philosophies, politicians and
parties more than others and are prepared to help them. This is democracy at
work. But we are not a party so please do not lump us all together. It’s unfair to
all concerned.

In response to the last posting I agree that if we look at the numbers of votes
in the recent election Jersey does have a democratically elected government
and Francis le Gresley easily topped the polls. No doubt about that. Well done
Senator le Gresley.

However, I disagree entirely with the statement that, “…there just aren’t as many
unhappy people as (we?) seem to enjoy believing there are?” I wish to make it
quite clear that I do not assume that only happy people vote in elections. And
I certainly do not relish the unhappiness of others. What we need to find out is
who is unhappy and why they’re unhappy about the way Jersey is governed at
present. That might give us a big clue as to why so few people vote in elections.

You speak of this environment of spending cuts, rising unemployment, rising
taxes and a supposedly growing level of dissatisfaction with the present
government structure.
Convinced that they are not heard by the “Very Important Ruling Party” many
have stopped voting after years of trying to have their voices heard. They’ve
seen their Island taken from them, large parts have been covered in concrete,
the tax avoidance industry has taken over from tourism and agriculture and
other ventures which might have been given a chance to flourish but have been
stifled under the lead weight of finance. Some simply cannot understand how our
government works, who to be wary of and who to trust.

At election time there are a few opportunities to listen to the candidates. Anyone
can go along to the hustings; some can ask questions, others don’t get a word
in either because of lack of time or because they’re not used to speaking up in
public. Others can’t do much at all for reasons of their own. After the hustings
and the elections there’s usually a decent write-up in the JEP about it. Good.
Quite good. But a lot more needs to be done if we are to enjoy the democracy so
many deserve.
Why not help people to understand by running programmes on Channel TV and
Radio Jersey as a matter of course? The individual candidates and parties might

enjoy setting out their stalls during the time leading up to elections. Why not
have greater audience participation? We need ongoing debates all year round
so that people can hear various sides of the arguments, ask questions and learn
as much as they wish to learn in their homes as well as outside. Don’t let’s jump
to the conclusion that people would find this boring. It’s up to all of us to make it
lively, relevant and interesting and open.
We need more honesty and openness if people are to believe what is said.
Surely this is democracy in action?
They wonder why they have to pay tax and why our Jersey businesses have
to pay tax to keep the Island going while finance, national and international
businesses pay little and, in some cases, nothing at all. They wonder why they
are getting poorer and risk losing their jobs while those who have thrown away
so much of our Island’s money on mistakes and useless projects are doing very
nicely thank you.

You say that the petty bickering among some of the politicians does nothing to
inspire the population with confidence. I totally agree with you. We need debate,
discussion and relevant research. We don’t want inappropriate bickering.

As for coming up with policies to replace our main source of income I must draw
your attention back to our blogsite to Plan B for Jersey

To quote Richard Murphy, “never again can it be said we have not
delivered an alternative. Because we have.It is radical. But it has
Jersey’s strengths at its core, exploitation of a new market as its focus
and it is consistent with the state of Jersey finance as it says it is”

Posted by Attac Jersey - at 3:32 PM 1 comments

Monday, July 5, 2010



Links to this post

From Tax Research UK

Jersey is not a good neighbour

Posted by Attac Jersey - at 5:43 PM 0 comments


Date: Sun, 4 Jul 2010 21:32:42 +0100

Links to this post

Subject: [Intertax] Plan B for Jersey (or any other secrecy jurisdiction you
care to name)

Jersey has just launched a public consultation on the future of its tax

I have written a submission but show that at the heart of Jersey's problems
is the fact that it remains a secrecy jurisdiction - and their market is dying

So I have written a new industrial strategy for Jersey - which is radical and
transformative and could make them a lot of money. I have challenged
them to become the MOST transparent jurisdiction in the world - the place
where honest people will choose to do business because everything will be
on public record

They say they have nothing to hide. Plan B says in that case you've
nothing to lose and everything to gain by going for transparency.

Until now Jersey was not ready for Plan B - it's crisis was not big enough for it to
embrace change.

Now it is - the deficit I forecast five years ago is overwhelming them.

but never again can it be said we have not delivered an alternative. Because we

It is radical. But it has Jersey’s strengths at its core, exploitation of a new market
as its focus and it is consistent with the state of Jersey finance as it says it is

The only possible reason for not doing it is Jersey’s finance centre really does
not do what it says it does,,,, But that’s another issue

Plan B is here

Best regards


Tax Research LLP
The Old Orchard
Bexwell Road
Downham Market
Norfolk PE38 9LJ
United Kingdom

+44 (0) 1366 383500
+44 (0) 777 552 1797
skype: richardmurphy1572

Posted by Attac Jersey - at 5:38 PM 0 comments

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blog archive June 2010

Sunday, June 27, 2010

The Allies

Pat Lucas

When I look at our Jersey Government I see that, apart from a couple of
exceptions, the "Council of Ministers" at the top of the States Assembly and
those with power, wealth and influence who work closely with them to run this
Island stand shoulder to shoulder with one another like a solid wall of steel.
They rarely listen to anything of importance ordinary residents of Jersey have
to say. They make a show of asking our opinion on certain issues but most of
us know that we count for little or nothing in their scheme of things. They see
themselves as the Extremely Important Ruling Party. Anyone who dares to
contradict this “absolute truth” runs the serious risk of being ridiculed, rubbished
or discredited.

Please tell me why most of you ignore the needs of our people who struggle
to keep pace with the high prices of property, rents and goods and services?
And now you want to hike up the Goods and Services Tax to 5%. What are you
trying to do to our people? Introduce a fair Corporation Tax onto UK and foreign
Companies so that they pay the same rate of tax as our Jersey companies have
to pay. That should bring in enough to be going along with for a while! Are you
afraid they might leave? Don’t be. Have the courage of your convictions. That’s
what we want. Why do you close your ears and your minds when our people
ask you to stop covering large parts of our Island including the Waterfront with
concrete eyesores. We love our beautiful Island and it breaks our hearts to see it
ruined a bit more day after day. And why can’t you see that the over expensive,
and possibly highly dangerous, new incinerator being built at La Colette was not
what most of us wanted? We tried hard enough to let you know. Again we were

Don’t talk down to us. As I pointed out in an earlier blog, we are not stupid. We
see the unfairness and the gross injustices inflicted on this Island and its people
and we would appreciate a few straight answers please. Don’t take what I’m
saying too personally. I want answers to my questions because right now you are
in positions of power but it’s not about you as individuals. It’s about our Island.
Our whole system of Government is a mess. It doesn’t work, it’s not going to
work and needs changing as a matter of urgency. Perhaps taking another look
at “Clothier” might help.

We need a complete overhaul of Jersey’s Government. Meanwhile, until that
happens, those who are elected to represent us still have to work in it. For this
reason I have the utmost respect for those people - the States Members who
are aware of what is happening to Jersey, try to change it for the better, look
after their constituents and battle on year in year out for democracy, fairness and

justice for the rest of us. It amazes me how they have the strength and the heart
to go on sometimes. I must emphasise here that I’m not referring to a particular
Party. I’m talking about a sizeable group of politicians who regularly speak up for
the rest of us in the States Chamber. Believe me. Such men and women do exist
and they need our support. To clarify my point I’ll call them “the Allies”.

I am appealing to “the Allies” to look for a way of working together much more
closely than you are doing at present. Perhaps the ideal way would be to form
yourselves into one single, strong, highly disciplined Party allowing for just a few
Independents who support you whenever they feel they can. That would be the
basis for an honourable Opposition – goodness knows we need one if you want
to penetrate that wall of steel without knocking yourselves out entirely.

If you can’t or are not prepared at this stage to form a strong Opposition Party
then, above all, please recognise and thrash out your grievances in private and
then put them aside. I’m not asking you to put on one another’s uniforms or
become little clones of one another. That’s not what I’m saying at all. I’m asking
you to stand shoulder to shoulder with your colleagues whenever you possibly
can. You really have to present a solid, strong united front or risk being far less
effective than you could be. Together you will be strong. That is what so many of
us are expecting from you. Please do this for us.

As for the rest of us – the ordinary people of Jersey - I believe we must do much
more to support those States Members who work on our behalf. We could at
least find out more about what each candidate stands for and get out there
and vote at election time if we haven’t so far. Some of them have really put
themselves out in their own time and at their own expense for individuals in their
constituencies and those people still didn’t bother to vote. How would that make
us feel if the boot was on the other foot!

We could also put forward our views and suggestions or send them a message
once in a while. We won’t always agree with what they do or say. So let’s tell
them what we want. Phone them up, e-mail them, take an interest in what is
going on in our Island, learn all we can. United and working together with us we
will be strong. More than that we might even open our eyes and see that these
politicians are made of flesh and blood like we are. OK so they’re paid to do a
job. I get paid for my job too but that doesn’t mean I don’t need a nudge in the
right direction or a kind word sometimes. I respond well to that sort of treatment.
So do we all. That can’t be asking too much can it?

Posted by Attac Jersey - at 1:10 PM 10 comments

Tuesday, June 22, 2010

Links to this post

Denise Carroll said...

Can I change the topic of conversation and ask you to reflect
for a moment on events especially over the last week here
in Jersey. We have two so called parties Time for Change
and the JDA who seem to be singing from the same hymn
sheet but are currently so busy bickering between themselves
that they seem to have lost sight of the fact that whilst this
is happening the establishment are able to do what they
want. The establishment are no doubt sitting laughing and
working out which candidate they will place where in the next
The chances are that unless somebody locks these two
parties, pretty damn quickly, in a room until they have sorted
out their differences and can act like statesmen none of them
deserve to be in government.

Neither party will succeed in anything until they can prove to
the public they are worthy once again.

June 21, 2010 10:00 PM

Posted by Attac Jersey - at 1:13 PM 14 comments

Friday, June 18, 2010

Links to this post

Time for Jersey to discuss Plan B?

John Heys
June 18th 2010
In Jersey we are constantly told that we cannot survive without the Tax
Avoidance Industry. Without them we’re warned that we’ll suffer from
unemployment, increased crime and a collapse in house values so how could
we possibly entertain the hope that they might leave?
As Pat Lucas has said elsewhere, “…undesirable though these problems are
the real problem is not primarily crime or unemployment or rising house prices
or any of the other evils which may befall us. The root of the problem here is
tax avoidance and corruption. It’s that which we need to get rid of.
Now, please don’t talk down to us or say we don’t understand anything
because we do. When the tax avoidance industry leaves Jersey - and it will-
we’ll need to completely restructure our economy with professional advice
from our friends and colleagues.”
Even now huge money-making vested interests do not want to acknowledge

the demise of the self-centered finance industry. They even have the gall to
hotly deny that the set-up is not a tax haven!

Of course it is a tax haven which has ruined this once beautiful Island with
sheer greed, avarice and concrete. Now with 0/10 we the people are paying
the tax the Finance Industry should be paying. Particularly since finance has
been the dominant industry here the price of housing has risen well beyond
our children’s reach at £470,000 for a basic 3 bedroom starter home. Many
in the business are from the UK and will, when they’re ready, simply leave
having had a great time and having built up a healthy bank account. Already
much of the backroom work has been hived out to places where labour costs
are less.
Certainly it will be difficult for those remaining when it all goes. Along with
others I have been calling on our Government for years to diversify in
preparation for the inevitable, only to be sniggered at by Chief Minister Le
Sueur and his cronies.

So what do we have? Two other industries - Tourism and Agriculture which
have been allowed to shrink to about 3% and 1% of our GDP. This in itself is
a disgrace while at the same time the States of Jersey have pumped millions
of pounds into the finance industry - and remember this is a private industry.

We need to take another look at Tourism and offer the kinds of holidays that people
really want to enjoy. Walking around our beautiful cliffs, horse riding, nature study,
learning more about the Island’s history, enjoying delicious local produce – these
are the things that many visitors enjoy, savouring the unique quality of life of each
location. Reading this you would imagine that Jersey would generate some income
from Tourism but there is a problem.
The way the Tourism Industry is structured at the moment means that Jersey
makes a mere pittance. The airlines which bring visitors here make money for
the UK; the hotels which are mainly UK owned reap all the profits. Again the
money goes to the UK. Due to the Chief Minister’s policy on taxation of 0%
corporation tax UK owned businesses do not pay tax in the Island. As a result
most of the profits made in the High Street go straight to the UK as well.
To remedy this situation we need radical political change. Party politics
seems to be the only way to go. We need a General Election and a clean
sweep to start again. Our Island must look to the EU and the UK for help
so that we can start afresh. The longer we are persuaded that the so-called
finance industry is the Holy Cow the less time we have to prepare for the
inevitable crunch.

blog archive 26 May, 2010

Wednesday, May 26, 2010


May 26, 2010

From John Heys.

THE slow but inevitable ruination of this beautiful Island of Jersey by an
incapable and dictatorial junta of senior States members must be exposed to the
outside world, and stopped now as the mistakes are getting beyond recovery,
with no accountability at all.

Once very prosperous tourism and agriculture industries have been run down in
total favour of the so called finance industry. The Chief Minister and his cohorts
disregard the writing on the wall and pump millions into a tax haven industry now
under attack from many sides.

Things have slipped down hill to the point where our GDP is: Finance 58%;
tourism, the one live mainstay of our economy, 3%; and agriculture, famous for
the Jersey Royal, tomatoes, and flowers, about 1% – facts which our ministers
ignore, stating how wonderful things are with billions of pounds invested/hidden

Senator Le Sueur recently proposed giving £100 million in tax relief to the finance
industry, which, of course, a small economy like this cannot possibly withstand,
so to make it up he suggested introducing a general tax.

Against many alternatives which he would not contemplate, he said that it would
be introduced. Incensed, the Jersey people held a petition to which 20,000
signatures were penned. When it was presented, Senator Le Sueur’s comment
was: ‘I do not care how many signatures there are, GST will be introduced’, and
when informed that elderly people on small fixed incomes were finding it even
harder to purchase affordable food, he said : ‘They will just have to shop around’.

Both comments are an example of the total lack of understanding and the
dictatorship attitude under which Jersey suffers.

Many large companies and hotel groups operating and making big profits in
Jersey do not pay income tax, while Jersey companies have to, and everyone
is running around like chickens with their heads off because we now have a big
shortfall in our financial situation, a painfully obvious result of a ridiculous policy.

The civil service is totally top heavy, grossly overpaid and unaccountable for
huge financial errors. As an example, it was decided to contract a French firm to
build an incinerator without taking account of cheaper alternatives or adequate

public consultation, at the approximate cost of £107 million, and although the
exchange rate between the euro and the pound was to be accounted for, it was
ignored, and we now find that this glaring error could cost the tax payer £2 or 3
million extra.

There was an uproar from the public, so an inquiry was held in what Jersey
calls ‘behind closed doors’ to discover just who was in the wrong. The result
was that the matter had been dealt with, no one was sacked or moved, and that
the matter is now closed. I cannot imagine many countries, except those like
Zimbabwe, or Iran perhaps, having the sheer audacity to treat the public in such
a dictatorial manner.

We are constantly spun by the ruling junta that we are so lucky to have the
finance industry paying in so much money, making this Island rich, but they never
mention that we are so rich that out of the 52,000 working people, 8,500 are on
Income Support because they cannot afford to live, or that due to the wonderful
finance industry, the average price of a three bedroom house is £470,000, or that
Jersey per GDP capita is the 3rd richest country in the World, yet its minimum
wage is the lowest in all of 27 EU member states, and that Jersey spends less
than 75% of the EU average on social protection.

Jersey is a tax haven playing to the benefit of the rich financed by the poor, who
pay 20% in tax whilst the rich have a nice sliding scale of tax, so on their first
£million they pay 20%, on the next half £million 10%, and 1% from then on, so
on a declared £10 million, their tax bill would run at just 3.5%, and even then that
can be avoided.

A total disgrace is the huge civil service pay cheque: 270 get from £70,000 to
£89,999; 62 get from £90,000 to £109,999; 36 get from £110,000 to £129,999;
19 get from £130,000 to £149,999; 22 get from £150,000 to £169,999 two
get from £170,000 to £189,999; one gets from £190,000 to £209,000; one
gets from £210,000 to £229,999; five get from £230,000 to £249,999. And,
recently announced, one gets £287,089, of which £42,500 is a bonus when his
department actually made a loss of £610,000. And we think the banking rewards
are immoral.

We have been warned that money is scarce and belts will have to be tightened
and painful economies made, yet our states departments have overspent more
than £8,520,000, as far as we know, and not one member will be held to account.

Staffing levels have had to be scrutinised and redundancies painfully actioned,
yet on the other hand Senator Ozouf has announced that another 127 posts have
been created and 30 temporary positions introduced, and further adds that local
jobs should go to local people when only the other week I wrote about dozens of
top local jobs filled by outsiders and it continues practically every day, so who is
he trying to convince?

It is painfully obvious that this island does not have the wherewithal to run itself
and is being inexorably driven towards huge irrecoverable problems, with ever
mounting costs due to mistakes, constant overspends, and with the tax evasion
and avoidance procedures coming under scrutiny, so that when the numerous
methods are exposed and get stopped, we will have no industry to fall back on.

Much of the blame unfortunately lies with the apathetic Jersey public. When there
is a chance with elections to get rid of all the chaff in our States, only 33% of the
people bother to vote, stating: ‘What is the point, there is no alternative’, or ‘They
are all the same’.

I feel that we are at a point now when we must look to either the UK or the EU to
step in and start to provide professional guidance with some form of local party
politics to monitor the situations.

There are a number of good States Members struggling to introduce common
sense, but they are constantly out-voted by the nodding heads controlled by the
ministerial system.
It has even been suggested that Jersey declare UDI. With no help, guidance or
watchful eye at all from the UK, we are in chaos now. Given a free hand, this
Island would nose dive into ruination.

What is needed is party politics, where manifestos are published and members
expected to abide by them, thus providing control and accountability.

I fear that unless drastic measures are taken now to halt and redress the
downward rush, Jersey will find itself in the worst mess it has ever been in, and
the finance industry will leave the sinking ship to go to where it can continue
making fortunes in safety.

Article posted on 26th May, 2010 - 3.00pm

Posted by Attac Jersey - at 8:11 PM 1 comments

blog archive may 25th, 2010 /2

The foundations of Tax Justice

I am often asked what I mean by "’tax justice’. As a result, and as a
contribution to the Briefing Sheet series I am developing, I have written the
following summary of what I think tax justice is. It is also available as a briefing

Tax justice

Tax justice is a broadly based concept. It relates to individuals and all taxable
entities. But it also relates to tax systems as a whole.

Tax compliance – the duty of the taxpayer

For the individual taxpayer tax justice is about tax compliance. This happens
when the individual seeks to pay the right amount of tax (but no more) in the
right place at the right time where right means that the economic substance of
the transactions they undertake coincides with the place and form in which
they report them for taxation purposes.

Tax and society

But tax justice is about much more than the individual: tax justice is also about
the existence of tax systems that promote social well being within and between
societies. It is about the creation of environments in which all people can
prosper. That necessarily means that the state institutions and businesses that
meet the needs of people can also prosper. But it means yet more than that: it
means that those who fail to prosper are protected from misfortune until such
time as they can prosper again.

That means tax justice is about four things above and beyond the duty of the
individual to be tax compliant. First it is about understanding why we tax.
Second it is about defining the attributes of a good tax system. Third it is about
defining the process that delivers tax justice and finally it is about
understanding transparency – without which tax justice is not possible.

The 5 Rs for taxing

There are five reasons for taxation. Tax is used to:

1. Raise revenue;

2. Reprice goods and services considered to be incorrectly priced by the market
such as tobacco, alcohol, carbon emissions etc. and by providing tax reliefs e.g.
for childcare;

3. Redistribute income and wealth;

4. Raise representation within the democratic process because it has been
found that only when an electorate and a government are bound by the
common interest of tax does democratic accountability really work; and finally
to facilitate:

5. Reorganisation of the economy through fiscal policy.

If tax justice is to prevail taxes must be set taking all these considerations into

The 10 Cs of a good tax system

An efficient taxation system has nine attributes with one over-riding
characteristic to which they all contribute. An efficient tax system is:

1. Comprehensive – in other words, it is broad based;

2. Complete – with as few loopholes as possible;

3. Comprehensible - it is as certain as is reasonably possible;

4. Compassionate – it takes into account the capacity to pay;

5. Compact – it is written as straightforwardly as possible;

6. Compliant with human rights;

7. Compensatory – it is perceived as fair and redistributes income and wealth as
necessary to achieve this aim;

8. Complementary to social objectives;

9. Computable - the liability can be calculated with reasonable accuracy;

All of which facilitate the chance that it will be:

10. Competently managed.

In combination these are key attributes of a good tax system.

The 6 steps to tax justice

Tax justice can be defined as a six stage process:

1. Define the tax base. This is the first essential step in creating progressive
taxation and in promoting the better use of resources within society.

2. Find what is to be taxed. If the tax base cannot be accurately located then
there is no point trying to tax it.

3. Count the tax base. Unless the tax base can be quantified it cannot be taxed.

4. Tax the tax base at the right rates of tax. In the process making sure the
inter-relationship between the various tax bases is properly managed to ensure
that the essential revenue raising, repricing and redistributive qualities of a
just tax system is vital.

blog archive 25 May, 2010

Posted by Attac Jersey - at 8:11 PM 1 comments


Posted by Attac Jersey - at 11:44 AM 0 comments

Tuesday, May 25, 2010

Jersey and Guernsey VAT scams undermine the UK economy

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Tax Research UK

The Jersey and Guernsey VAT scams undermine the UK’s

May 25th, 2010

Sometimes I wonder why I allow comments on this blog: so many commentators promote

abusive ideas or simply seek to abuse the hassle quite often seems to outweigh the benefit.

Then along comes comments, like the one I’ve already referred to this morning, or this one

on the fundamental problems VAT abuse through Jersey and Guernsey causes to UK small

businesses, and I realise providing a voice can be worthwhile:

The whole Jersey scam makes me mad. Very simply, I am losing money..!

I sell manufacturer own ink cartridges. "I can get those cheaper on the internet" is a common

cry. When compared against mainland based retailers, my customers tend to see the error of

their ways finding that I am indeed cheap and pay up!

But then there are the customers who have found the sites in the channel islands.

I was horrified to find a particular item that I was selling on my shelf for £12.85 is available

for £10.90 on the web site that my customer buys his inks from. Do the maths… yes, that

is the same price as I am selling it without VAT!!! How can I compete when there is a built

in 17.5% discount The on-line retailer doesn’t even have to begin to be competitive. That

particular customer could be worth £400 turnover each quarter to me on cartridges alone - not

to mention the lost revenue to the public purse!

This loop hole MUST be closed. We cannot compete.

I recently had a letter from HMRC after I complained to my MP. In this letter, they stated that

the VAT office are "monitoring the situation"..

I’m monitoring my P & L!


Thame, Oxfordshire

blog archive 20 May, 2010

Eva Joly :Tax Superhero 2010

May 20th, 2010

Christian Aid today (Thursday 20 May) announced the winner of
its Tax Superhero of the Year award, which recognises outstanding
individual work on the potential of tax to change the world.

Eva Joly, an activist, European politician and former judge, has beaten
other nominees including the comedians Ricky Gervais and Graham
Norton and is the winner of this year’s Award.

Norwegian-born Joly was elected as a Member of the European
Parliament in 2009 for the Europe Ecologie list and represents Ile de
France. She also chairs the Parliament’s Committee on Development.
Her work has shifted the terms of the international debate about the
vital importance of tax revenues to developing countries.

As a judge in France, Ms Joly famously investigated a half-billion
Euro corruption scandal involving the state-owned oil company Elf-
Acquitane, and received death threats as a result. Thirty people were
eventually convicted in connection with the affair.

‘Eva Joly has a proud record of championing the vital role that
tax revenues play in both rich and poor countries – and also of
successfully fighting corruption,’ said Helen Collinson, Christian
Aid’s Campaign Manager, Economic Justice. ‘She is an outstanding

ambassador for tax justice and good governance.’

Christian Aid will officially announce Ms Joly’s award outside the Royal
Exchange building in the City of London during its Alternative Tax
Awards 2010 ceremony, from 9.30am on Thursday, 20th May. The date
coincides with accountants’ own awards bash at London’s Park Lane

In addition to Ms Joly, Christian Aid also received nominations
for comedians Ricky Gervais and Graham Norton, for tax justice
campaigners John Christensen, Richard Murphy and Alvin Mosioma
and for investigative reporter Denis Roberts. Other nominees were the
singers Billy Bragg and Katie Melua, the novelist Rhidian Brook and the
Christian Aid board member Phil Hodkinson. Another nomination was
for the organisation Blood:Water Mission, which works on HIV/AIDS
and water.

Christian Aid launched its Alternative Tax Awards in 2009, to highlight
its campaign about the vital importance of tax for developing
countries. The organisation estimates that they currently lose around
$160 billion a year as a result of tax dodging by unscrupulous
companies trading internationally. This is a vast sum, equal to roughly
one-and-a-half times the amount of money that they receive in
development aid each year.

‘The money urgently needed to pay for education, medical care,
sanitation and other public services which we in the UK take for
granted,’ said Helen Collinson.

Christian Aid is campaigning for the introduction of a new accounting
standard, country-by-country reporting, which would require
multinational companies to publish the profits they make and the taxes
they pay in every country in which they operate. It is also working
towards the automatic, multilateral exchange of tax information
between countries, to help governments more effectively counter tax
dodging. In addition, the organisation supports the strengthening of
poor countries’ collection of tax domestically, to help strengthen their
governments’ accountability to their citizens.—————–

Eva’s great.

I’m more than happy to lose to her!

Posted by Attac Jersey - at 7:47 PM 0 comments

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