Transactions such as these, together with bank deposits exceeding 100bn placed with Jersey banks and the presence in Jersey of leading financial services providers and their professional advisers, make Jersey an attractive place to do business. Tax is often the first that is considered. In that regard a range of possible tax treatments for vehicles is available in Jersey. A Jersey company in which local residents have no ownership interests may be treated as non-resident for tax purposes in Jersey in which event it will pay no tax on income from a source outside Jersey. In certain circumstances it is, however, desirable for a company within a structure to pay tax at a particular level.
Jersey offers that flexibility.
For these purposes an international business company or an income-tax company may provide the best solution depending upon the appropriate level of tax. This range of treatments is available within a fiscal regime that is, however, very simple. Further, administration in Jersey of the tax system is efficient and pragmatic and areas of uncertainty can always be addressed rapidly with the authorities. While largely based on English law, which is internationally regarded as flexible enough to accommodate structures, Jersey's commercial legislation has proved to be less cumbersome in certain areas that have caused difficulties under the corresponding English statutes. The flexibility of Jersey law allows not only the creation of a wide range of structures and types of vehicle, including companies, trusts, unit trusts and limited partnerships but it also allows for their use in innovative ways.