FOR MOST people, Jersey has traditionally conjured up images of picturesque villages and coastlines, its famous cows and Jersey Royal potatoes. More recently, however, the island has found itself cast as a villain, seeking to aid multinationals and wealthy individuals to avoid paying their "fair share" of the
Yet as a recent study by academics
Their report illustrates how attacks on international financial centres, like Jersey, often fail to grasp the real nature of tax evasion and avoidance (most of which occurs onshore), and the reality that offshore centres are invariably highly transparent and well regulated. Jersey, for instance, adheres to the highest standards set by international bodies like the IMF and the
Further, critics of offshore finance deliberately overlook the many ways in which international financial centres benefit both the
As for the global benefits, the
As well as examining the benefits of free trade, Gordon and Morriss analyse why people and multinationals use international financial centres like Jersey. The emphasis on tax evasion and avoidance is too simplistic an explanation, given the efficiency benefits for investors looking to avoid double taxation. Further, offshore centres are most often well-regulated market places, with Jersey offering all the protection associated with the British common law legal system.
Discussions about international business and tax policy are too important to be debated using baseless assumptions, and should be firmly rooted in economic research: reports like Moving Money make an extremely important contribution to the public debate, and will prove invaluable in moving discussions around offshore finance beyond sensationalist headlines.
Most Popular Stories
- Neighbor Warns Chris Brown to Stay Off His Property
- Venezuelan Officials Banned From Traveling in U.S.
- Homeowners More Satisfied With Mortgage Servicers
- Ford Tremor: Easy to Park, Hard to Pay For
- WWE Showing Off Its Muscles
- As Jobs Market Strengthens, Many Don't Feel It
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- Target Taps Pepsi Exec as New CEO
- Hispanic Arts Leaders Unite Across the Border
- Islamic State Fights for Control of Syrian Oil Wealth