Categorized | news

Jersey and Bermuda cleared of tax blacklist – by France

Well it looks like Jersey and Bermuda just received a massive Christmas present from France, as the country has taken them off their taxation black list.

If you weren’t aware, France keeps a blacklist of all sovereign countries that act like tax havens and don’t share information for taxation purposes. However, France has reconsidered their classification, based on the fact that both Jersey and Bermuda have been complying with all information requests from France for some time now – so in return, the French have decided to strike their names from the list of uncooperative countries.

This is some interesting news, not just for the French but for taxpayers here at home as well – if Jersey and Bermuda is complying with demands from the French finance ministry for tax information, this could very well be the start of the ability to make some inroads for Her Majesty’s Revenue & Customs to begin getting to the bottom of all these multinationals engaging in tax avoidance through these countries. This is even better news for any contractor who’s run afoul of HMRC and how keen it’s been lately when it comes to rooting out tax avoidance through disguised employment.

Truth be told, the amount of revenue the taxman is going to rake in from IR35 is nothing compared to what it could reap if there was more disclosure from tax havens like Bermuda and Jersey, so this could be a very good thing. Contractors are tired of having their accountants scramble to get them out of hot water that they by rights shouldn’t even be in, just because the Government lacks the brass to stand up to large corporations like Starbucks or Amazon – primarily because it’s afraid these mega-companies will pack their bags, leave, and take economy-stimulating jobs with them.

Honestly though, do you think the millions of freelancers and contract workers burning the midnight oil don’t have just as much positive impact on the economy? These workers tirelessly sacrifice of themselves so British small businesses can stay afloat in poor economic conditions, and the thanks they get is unfair tax scrutiny? Let’s hope the UK follows France’s lead in this issue.

Yes, I know – nobody wants to have to follow in France’s footsteps, but they can’t all be bad, right?

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