Banking and finance perspective on Jersey substance proposals

Были опубликованы новые требования теста на экономическую сущность для компаний-налоговых резидентов Джерси с целью приведения их в соответствие с требованиями ЕС.

Юридические лица-налоговые резиденты Джерси должны управляться на Джерси следующим образом:

  • на Джерси должны проводиться заседания совета директоров с достаточной частотой с учетом необходимого уровня принятия решений;
  • во время этих заседаний должен быть кворум совета директоров, физически присутствующих на Джерси;
  • стратегические решения компании должны быть приняты на заседаниях совета директоров, и протоколы должны отражать эти решения;
  • все записи и протоколы компании должны храниться на Джерси;
  • совет директоров в целом должен обладать необходимыми знаниями и опытом для выполнения своих обязанностей.

Компании-налоговые резиденты Джерси, которые осуществляют соответствующие виды деятельности, должны будут продемонстрировать, что они осуществляют основную деятельность, приносящую доход (CIGA) на Джерси. Характер CIGA варьируется в зависимости от отрасли, как показано ниже.

Особые требования предъявляются к банковскому бизнесу, финансированию и лизингу транспортных средств, страховому бизнесу, а также компаниям-резидентам с доходом от интеллектуальной собственности.

Хотя первоначальные руководящие указания были совместно опубликованы правительствами Джерси, Гернси и острова Мэн, ожидается, что дальнейшие подробные руководящие указания относительно точного определения видов деятельности, которые подпадают под действие законодательства и определения адекватности в отношении сотрудников, расходов и помещений по тесту CIGA будут опубликованы в установленном порядке.

Introduction
‘Directed and managed’ test
Core income generating activities
What is the impact of carrying on a relevant activity?
Comment
Introduction

New proposed requirements for an economic substance test for Jersey tax-resident entities have been published to meet the requirements of the EU Code of Conduct Group.

The reforms are set to come into force on 1 January 2019, subject to approval by the States of Jersey, and establish new tests for certain tax-resident companies carrying on relevant activities in respect of demonstrating that they are directed and managed in Jersey, and that their core income generating activities are undertaken here.

‘Relevant activities’ for the purposes of this article include:

companies holding a licence to carry on deposit taking business under the Banking Business (Jersey) Law 1991;
financing and leasing vehicles; and
companies holding a licence to carry out insurance business under the Insurance Business (Jersey) Law 1996.
Specific consideration should be given to outsourcing arrangements, to each company within a relevant structure and to updating policies and procedures. Further consideration also needs to be given in respect of the detailed guidance on the definition of ‘adequacy’ that is anticipated soon, and in respect of companies generating income from intellectual property, which will be subject to more stringent tests.

‘Directed and managed’ test

Jersey tax-resident entities must be directed and managed in Jersey, as follows:

There must be meetings of the board of directors in Jersey at adequate frequencies given the level of decision making required.
During these meetings, there must be a quorum of the board of directors physically present in Jersey.
Strategic decisions of the company must be set at meetings of the board of directors and the minutes must reflect those decisions.
All company records and minutes must be kept in Jersey.
The board of directors, as a whole, must have the necessary knowledge and expertise to discharge their duties as a board.
Core income generating activities

Jersey tax-resident entities which carry on relevant activities will need to demonstrate that they carry out core income generating activities (CIGAs) in Jersey. The nature of the CIGA varies by industry sector, as summarised below.

CIGAs for banks
Companies holding banking business licences will need to demonstrate that the following CIGAs are carried out in Jersey:

raising funds;
managing risk;
providing loans, credit or other financial services for customers;
managing regulatory capital; and
preparing regulatory reports and returns.
CIGAs for finance and leasing vehicles
Financing and leasing vehicles will need to demonstrate that the following CIGAs take place in Jersey:

agreeing funding terms;
identifying or acquiring assets to be leased (in the case of leasing);
setting the terms and duration of acquiring assets to be leased (in the case of leasing);
monitoring and revising agreements; and
managing any risk.
CIGAs for insurance businesses
Companies holding an insurance business licence will need to demonstrate the following CIGAs are carried out in Jersey:

predicting and calculating risk; and
providing client services.
What is the impact of carrying on a relevant activity?

Companies carrying on a relevant activity must be able to demonstrate:

in adequate level of (qualified) employees in Jersey, or adequate level of expenditure on outsourcing to service companies in Jersey proportionate to the activities of the company;
in adequate level of annual expenditure incurred in Jersey, or adequate level of expenditure on outsourcing to service companies in Jersey, proportionate to the activities of the company; and
adequate physical offices or premises in Jersey, or adequate level of expenditure on outsourcing to service companies in Jersey, for the activities of the company.
The new law proposes sanctions for non-compliance to include financial penalties, strike-off from the register of Jersey companies and reporting to any relevant tax or regulatory authorities.

Comment

Affected entities should review outsourcing arrangements (where relevant) in respect of Jersey tax-resident companies that fall within the scope of the new law and whether the third-party service provider agreements in place meet the tests set out therein.

It is anticipated that many structures will be compliant with the new requirements already – consideration should still be given to whether any policies and procedures must be amended or updated as a result of the new law.

IP income generating companies (ie, tax-resident companies with income from intellectual property) will be subject to enhanced requirements.

Although initial high-level guidance has been jointly published by the governments of Jersey, Guernsey and the Isle of Man, it is expected that further detailed guidance notes on the precise definition of activities to fall within the scope of the law and the definition of adequacy in respect of employees, expenditure and premises under the CIGA test will be published in due course.

Автор: Simon Felton

Источник: https://www.internationallawoffice.com/Newsletters/Private-Client-Offshore-Services/Jersey/Ogier/Banking-and-finance-perspective-on-Jersey-substance-proposals?utm_source=ILO+Newsletter&utm_medium=email&utm_content=Newsletter+2018-12-20&utm_campaign=Private+Client+%26+Offshore+Services+Newsletter

 

 

 

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