27 June 2012

Jersey 'Breakaway' Threat Over Tax

While Scotland prepares for a historic referendum on its links to London, a senior Channel Islands politician has called for a smaller part of the UK to break away.

Jersey needs to "stop take things lying down" and declare independence over regulatory clampdowns on its controversial financial industry, the island’s assistant chief minister has said.

Sir Philip Bailhache told the Guardian that relations had been strained over the past five years and it was becoming clear the UK and Jersey did not always share interests.

Sir Bailhache said: "I hope that the constitutional relationship with the UK will continue. But if it becomes plain that our interests in fact lie in being independent it doesn't seem to be that we should bury our head in the sand and say we're not going to do that."

Last week comedian Jimmy Carr was widely criticised for using a tax avoidance scheme involving a Jersey company.

For decades the crown dependency has had a tax and legal framework aimed at drawing in wealthy individuals and businesses.

But now politicians in the UK and elsewhere are lashing out at tax avoidance at home and it has sparked a debate in Jersey, stoking the fires of independence advocates.

Lord McNally, the UK minister responsible for dealing with the Channel Islands, said it would be "ill-advised" of any of the islands to go independent.

(NE)