After the

…transparency, the new minimum standard?

Panama Papers

Presentation Title Here Date Here

Author Name Here

Agenda

The Political Economy

After the Panama Papers

Public Registers – The New Global Standard

Transparency in Practice

Why Jersey?

The Political Economy – It’s Complicated...

Source – The Economist

…It’s About to get Even More Complicated

AIFMD Diverted Profits Tax

FSB Shadow Banking

ICB/Ring-Fencing BEPS

MiFIDII / MIFIR

Bribery Act

UK PSC Register

CRD IV

Solvency II

EU Tax Package

Convention on Mutual Administrative Assistance in Tax Matters

FSA Liquidity

FATCA Basel III

IFRS 10

Resolution Regimes

Common Reporting Standard

MONEYVAL

G8 & G20 Agenda

UK Europe Global

Presentation Title Here Date Here

Author Name Here

0

200

400

600

800

1000

1200

1400

1600

Debt (Dec 2015) Spending Fiscal deficit

(2015/16 estimate)

Total tax receipts Tax gap (2013/14) Tax gap -

evasion/criminality

Undeclared tax in

the CDs (HMRC

estimate)

1542

748

69.5

533

34 9.5 1

£ bn

Will offshore tax compliance plug the funding gap?

UK Government Finances

Presentation Title Here Date Here

Author Name Here

0

200

400

600

800

1000

1200

1400

1600

1800

2000 1900

1463

139

900

202.5

0 0

R (

Bn

)

Will offshore tax compliance plug the funding GAP in South Africa?

Debt (Jan 2016)

Spending (2016/17 estimate)

Fiscal deficit (2016/17 estimate)

Total tax receipts (2014)

Tax gap - mid point (estimated)

Tax gap - evasion/criminality?

Undeclared tax in the CDs?

? ?

South African Government Finances

BEPS

Country Year(s) Estimated Yield Actual Yield

South Africa Temporary and permanent VDP

2010 to current Unknown R8.3bn

India black money bill

2015 Rs 2 Lakh crore (£10.5bn) Rs 3,770 crore (£393m)

UK CD facility Liechtenstein & Swiss facility

2013/14 & 2014/15 2009 up to 31/3/15

£400m £8bn

£17.7m £1.6bn

Russia 2015/2016 2007

Unknown Unknown

Unknown US$130m

Tax Amnesty’s/Disclosure Regimes – Do They Work?

Presentation Title Here Date Here

Author Name Here

The Panama Pandemic

…Media Allegations Driving Pitchfork Politics

Nations Agree Tax Crackdown in Wake of Panama Leak and Anti-Corruption Summit on 12 May

Public Registries – a New Global Standard?

Following the G5 announcement, a further 40 countries have

signed up to the development of a global standard on beneficial

ownership exchange.

Jersey has committed to the standard, provided there is a level

playing field and that the international standard:

Is set up by the OECD

Is integrated with CRS reporting

Matches the CRS in satisfying the requirements of

congeniality and data safeguards

The Problem with Public Registers:

Self Reporting

Criminal Concealment

Impact on Private Companies

First Mover Disadvantage

Unintended Criminal Activity

Human Rights Impact

CRS AEOI

The Jersey Model – Regulation of Trust and Company Service Providers:

Only regulated TCSP’s can incorporate companies for non-Jersey

residents

Legislative requirements of TCSPs

Requirements for up-to-date and relevant data

JFSC routine examinations of service providers

The Jersey Model – International Recognition:

MONEYVAL Assessment

Rigorous assessment process over last 18 months

Jersey compliant/largely compliant in 48/49 areas

Highest score among states assessed in the

MONEYVAL 4th

elevation cycle – Jersey at the top of

the global table

“Jersey’s combination of a central

register of the UBO with a high level

of vetting/evaluation not found

elsewhere and regulation of TCSPs

of a standard found in few other

jurisdictions has been widely

recognised by international

organisations and individual

jurisdictions as placing Jersey in a

leading position in meeting

standard of beneficial ownership

transparency.”

Common Reporting Standard

Jersey committed as an early adopter of the CRS

BEPS Jersey has been fully supportive of the OECD’s BEPS programme

Transparency in Practice

US/UK Foreign Account Tax Compliance Act (FATCA)

What is reported

Impact on Jersey’s Private Wealth Sector

Jersey committed as an early adopter of the CRS

CRS - Jersey

When and who is it reported to

BEPS

Trustee:

Trustee does the reporting

on behalf of the trust

Discretionary Trust

Settlor / Grantor:

If settlor can benefit from

trust, report whole value

of trust plus

distributions.

If trust is not settlor

interested, settlor still

has a/c but value is nil.

Protector / Enforcer:

Reportable value will be trust value.

Beneficiary:

Report on distributions

received. No distributions

= no reporting

Assets

FATCA/IGAs – A Trust Example

Why Jersey?

Allan Wood, Business Development Director, Growth Markets – Jersey Finance

@jerseyfinance

www.jerseyfinance.je

Thank You