By Niamh Lalor

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 published today – and set to come into force on 1 January, subject to States approval – establish new tests for tax resident entities carrying on “relevant activities”, including fund management. The tests require those entities to demonstrate that they meet the economic substance tests, including that they are “directed and managed” in Jersey, and that certain of their “core income generating activities” are undertaken here.