Jersey – extension of economic substance requirements to partnerships

Draft legislation has been lodged for debate in the Jersey legislature which will have the effect of extending the economic substance requirements, introduced for companies tax resident in Jersey in 2019, to partnerships. The legislation is scheduled to be debated on 29 June 2021 and if approved will come in to force shortly thereafter.

Related briefings

Isle of Man – extension of economic substance requirements to partnerships and limited liability companies

The Income Tax (Substance Requirements) Order 2021 was approved by Tynwald on 16 June 2021. This Order extends the scope of the economic substance rules in Part 6A of the Income Tax Act 1970 to cover partnerships, including limited partnerships both with and without legal personality, and limited liability companies (LLCs). The expanded rules will apply to accounting periods commencing on or after 1 July 2021.

Economic substance Q2 2021

Since our Q1 update, important developments have occurred with respect to the applicability of the economic substance regime. Specifically, amendments are proposed that will bring partnerships (or, in the case of Bermuda, more types of partnerships) into scope.

Solvency statements under Companies (Jersey) Law 1991 – is it time to go paperless?

In April of this year, the Royal Court of Jersey considered the practicalities around the making of a solvency statement pursuant to the Companies (Jersey) Law 1991, as amended. The judgment handed down in the matter of Crystal Lake Investments Limited (2021: JRC104) may well change the way in which these statements are documented in practice going forwards and also serves as a timely reminder to Jersey boards to ensure an appropriate paper trail supports decisions made.

Trustee knowledge series: Advanced paper one: adding and excluding beneficiaries

Offshore trusts often include provision for the addition, appointment and removal of beneficiaries, to provide flexibility for the future and to “arm the trustees with a weapon which will enable them to consider all developments and respond to all future mishaps and disasters”. Without the benefit of a crystal ball, settlors cannot predict if a change in future circumstances may mean certain persons either need to be added to the class of beneficiaries or removed from the existing class. This paper is intended to give an overview of the relevant powers of addition and removal to be taken into account before exercising the powers and some of the common issues that may arise in relation to exercising the powers.

Latest Briefings

Upstream greenhouse gases – in or out of environmental impact assessment?

The High Court (Court) decision in An Taisce — The National Trust for Ireland v An Bord Pleanála & Ors [2021] will be of assistance to environmental impact assessors, to legal practitioners and those preparing environmental impact assessment reports (EIARs). It provides some useful guidance on understanding the concept of “indirect effects” under the EIA Directive in the context of Greenhouse Gases (GHG), particularly “upstream” GHGs, and will assist with decision-making on what scope of GHGs to include in EIARs or Environmental Impact Assessments (EIAs).

Prospects for trans-Pacific investment boosted

On 2 June 2021, four months after the UK’s formal application, it was announced the UK can start the process of joining the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).

Greenwashing and consumer protection: What businesses need to know

Businesses which make claims about their ‘green’ credentials in order to promote products or services need to ensure, more than ever before, that they do not fall foul of consumer legislation. Gwendoline Davies and Nick McQueen explain and offer practical advice.

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