Global Vision, Local Wisdom

Economic Substance Rules

Carl Hansen

Guernsey, Jersey and the Isle of Man have all recently introduced “economic substance” rules which come into effect for accounting periods commencing on or after 1 January 2019. The rules are in response to an European Union and Organisation for Economic Co-operation and Development (OECD) initiative to increase transparency and to crack down on perceived abuses in certain sectors. The rules apply to all companies which are tax resident in one of the Crown Dependencies.

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