After the. Panama Papers. transparency, the new minimum standard?

Transcription

1 After the Panama Papers transparency, the new minimum standard?

2 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?

3 The Political Economy It s Complicated... Source The Economist

4 It s About to get Even More Complicated

5 UK Europe Global Bribery Act ICB/Ring-Fencing UK PSC Register Diverted Profits Tax FSA Liquidity FSB Shadow Banking Resolution Regimes Convention on Mutual Administrative Assistance in Tax Matters EU Tax Package AIFMD MiFIDII / MIFIR Solvency II CRD IV BEPS Common Reporting Standard IFRS 10 G8 & G20 Agenda MONEYVAL FATCA Basel III

6 Presentation Title Here Date Here Author Name Here

7 UK Government Finances Will offshore tax compliance plug the funding gap? bn 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)

8 R (Bn) South African Government Finances Will offshore tax compliance plug the funding GAP in South Africa? Presentation Title Here Date Here Author Name Here Debt (Jan 2016) ?? 0 0 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?

9 Tax Amnesty s/disclosure Regimes Do They Work? Country Year(s) Estimated Yield Actual Yield South Africa Temporary and permanent VDP India black money bill 2010 to current Unknown R8.3bn BEPS 2015 Rs 2 Lakh crore ( 10.5bn) Rs 3,770 crore ( 393m) UK CD facility 2013/14 & 2014/15 400m 17.7m Liechtenstein & Swiss facility 2009 up to 31/3/15 8bn 1.6bn Russia 2015/ Unknown Unknown Unknown US$130m

10 Presentation Title Here Date Here Author Name Here

11 The Panama Pandemic

12 Media Allegations Driving Pitchfork Politics

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

14 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

15 The Problem with Public Registers: Self Reporting Impact on Private Companies Unintended Criminal Activity CRS AEOI Criminal Concealment First Mover Disadvantage Human Rights Impact

16 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

17 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 4 th 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.

18 Transparency in Practice US/UK Foreign Account Tax Compliance Act (FATCA) Common Reporting Standard Jersey committed as an early adopter of the CRS BEPS Jersey has been fully supportive of the OECD s BEPS programme

19 CRS - Jersey What is reported Jersey committed as an early adopter of the CRS Impact on Jersey s Private Wealth Sector When and who is it reported to

20 FATCA/IGAs A Trust Example Trustee: Trustee does the reporting on behalf of the trust Protector / Enforcer: Reportable value will be trust value. Beneficiary: Report on distributions received. No distributions = no reporting BEPS Discretionary Trust Assets 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.

21 Why Jersey?

22 Thank You Allan Wood, Business Development Director, Growth Markets Jersey