Taxation (Companies – Economic Substance) (Amendment) (Jersey) Law 2019

Taxation (Companies – Economic Substance) (Amendment) (Jersey) Law 2019 Contents Article 1 Amendment of the Taxation (Companies – Economic Substance) (Jersey) Law 2019 3 2 Article 1 (interpretation) amended . 3 3 Article 4 (meaning of “Jersey core income-generating activities”) amended . 4 4 Article 5 (requirement to meet economic substance test) amended . 4 5 Article 8 (exchange of information to competent authorities) amended . 4 6 Citation and commencement . 4 Endnotes 5 Table of Endnote References . 5 Taxation (Companies – Economic Substance) (Amendment) (Jersey) Law 2019 A LAW to amend further the Taxation (Companies – Economic Substance) (Jersey) Law 2019 . Adopted by the States 4th June 2019 Sanctioned by Order of Her Majesty in Council 8th October 2019 Registered by the Royal Court 18th October 2019 Coming into force 1st January 2019 THE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law – 1 Amendment of the Taxation (Companies – Economic Substance) (Jersey) Law 2019 ( 1 ) The Taxation (Companies – Economic Substance) (Jersey) Law 2019 [1] is amended in accordance with this Law. ( 2 ) In this Law, a reference to an Article by number only is a reference to the Article of the same number in the Taxation (Companies – Economic Substance) (Jersey) Law 2019 [2] . 2 Article 1 (interpretatio n ) amended In Article 1 – ( a ) after the definition “connected person” there is inserted – “ “core income-generating activity” has the meaning given by Article 4;”; ( b ) for paragraph (c) of the definition “fund management business” there is substituted – “(c) a person carrying on a business excluded from fund services business under the Financial Services (Jersey) Law 1998 [3] by virtue of Article 3 and paragraph 21 of Schedule 2 to that Law, except where a separate manager has been appointed to the unregulated fund;”; ( c ) in paragraph (b) of the definition “high risk IP company”, for “Jersey core-income generating activities” there is substituted “core income-generating activities”; ( d ) the definition “Jersey core income-generating activity” is deleted. 3 Article 4 (meaning of “Jersey core income-generating activities”) amended In Article 4 – ( a ) in the heading, “Jersey” is deleted; ( b ) for “The expression “Jersey core income-generating activities” means relevant activities being carried on from within Jersey and includes” there is substituted “In this Law “core income-generating activity” includes any of the following activities”. 4 Article 5 (requirement to meet economic substance test) amended In Article 5, for paragraph (2)(c) and (d) there is substituted – “(c) all of the company’s core income-generating activities are carried out in Jersey; and (d) if any core income-generating activities are carried out in Jersey for the company by another entity, the company is able to monitor and control the carrying out of that activity by the other entity.”. 5 Article 8 (exchange of information to competent authorities) amended In Article 8 – ( a ) in paragraphs (1)(a) and (2)(a), “in the European Union” is deleted; ( b ) after paragraph (2) there is inserted – “(3) Nothing in this Article requires the Comptroller to provide information to the competent authority of a country or territory unless the provision of the information is permitted under – (a) a bilateral agreement made between Jersey and that country or territory; or (b) the OECD and Council of Europe (2011), Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol.”. 6 Citation and commencement This Law may be cited as the Taxation (Companies – Economic Substance) (Amendment) (Jersey) Law 2019 and comes into force on 1st January 2019. dr. m. egan Greffier of the States Endnotes Table of Endnote Reference s [1] L.3 /2019 [2] L.3 /2019 [3] chapter 13.225