Treasury Minister rejects royal petition's tax claims

Thursday 04 May 2023

A petition calling on King Charles III to crack down on tax havens ahead of his Coronation this weekend has been rebuffed by Jersey’s Treasury Minister, who has described the petitions claims as "erroneous".

The Tax Justice Network issued an open letter to the King asking him to use his influence to revamp laws allowing tax avoidance in the UK, the Crown Dependencies and British overseas territories.

The letter claimed that an estimated £152 billion in tax was being avoided globally each year – of which Jersey and Guernsey were responsible for more than £6.9bn.

The allegations were rejected on Jersey’s behalf by Treasury Minister, Deputy Ian Gorst.

Deputy Gorst said: “Jersey meets all international tax standards and has a long-standing track record of active cooperation with the international standard-setting bodies and with the European Union.

“It is regrettable that the Tax Justice Network did not check with the Government before making these erroneous claims.”

Pictured: The petition called on King Charles III to crack down on tax havens ahead of his Coronation this weekend.

The letter from economist Alex Cobham, who is Chief Executive of the network, stated that “Jersey has even introduced a newform of anonymous ownership vehicle this year”, but this particular claim was also rebuffed by the Treasury Minister.

Deputy Gorst added: “It is factually wrong to claim, as the Tax Justice Network’s letter does, that Jersey Limited Liability Companies allow for anonymity.

“The LLC regime, which came into force in 2022, does not allow anonymous ownership – all members must be declared by initial registration with the Jersey Financial Services Commission, and all subsequent changes must be updated within 21 days.”

A spokesperson for the UK Treasury said the government 'did not recognise' the £152bn tax loss each year attributed by the network.

The UK spokesperson added: “The UK has led international tax reform, which includes improving tax transparency so countries can find hidden incomes and assets, and by implementing the global minimum corporate tax, ensuring large multinational groups pay the right tax in the right place.”