BRITISH Deputy Prime Minister Nick Clegg MP was asked about his views on the crown dependencies and the zero 10 tax issue at a press conference held at this morning's British-Irish Council meeting in the Isle of Man.
Liberal Democrat MP Mr Clegg was asked had he gleaned anything about the work of crown dependencies and how and they make their budgets balance.
He said that the fact the Isle of Man, Guernsey and Jersey have a law against having any deficits whatsoever "would be a pretty draconian solution to the world's problems".
He added: "I think you are talking about the varied fiscal jurisdictions which do exist, the crown dependencies, that is a fact we will continue to promote and defend but within the context obviously of wider moves within the European Union and internationally in order to make sure there is full transparency in all tax jurisdictions and that tax jurisdictions don't co-exist in a way which creates perverse incentives to investors and so deprive exchequers of legitimate income. And that's an ongoing discussion which we have, we touched on it only briefly in the margins of this summit and that's an ongoing process which hasn't been altered by the content of this summit."
He was also asked whether he has any views on zero 10. The Isle of Man has zero corporation tax for most companies. Some, such as banks, have to pay 10 per cent.
The European Union is looking into the implications of zero 10.
Mr Clegg answered: "That's something which is covered by the Code of Conduct group (of the European Union).
"That is part of a wider attempt to try and create greater stability and transparency in different tax jurisdictions which we have within the Isles we have represented here and within the European Union generally."
Mr Clegg was also asked whether he considered the Isle of Man, Jersey and Guernsey to be tax havens.
He replied: "I don't think it makes much sense trying to hurl around labels. There is a process by which different tax jurisdictions compare what they are doing and do so in a co-ordinated fashion, at least in the Code of Conduct group.
"That's where I think the different tax measures and the level of transparency - which is very high in the crown dependencies - should be properly handled, as it is."
The British-Irish Council is the only international forum comprising the governments of the UK, Ireland, Northern Ireland, Scotland, Wales, the Isle of Man and Jersey.
A number of senior politicians from the jurisdictions attended the event and the subject of the economy dominated the discussions this morning.
Photo by John Gregory
