Industry news / 25 January 2016

Italy whitelist move a boost for Jersey funds industry


On 6th January, the Italian Parliament approved the Stability Law for 2016, which revised parts of the Italian Tax Code on blacklists on corporate taxation and Controlled Foreign Company (CFC) rules. This means that, with immediate effect, Italian blacklists on the 'deductibility of costs' and CFCs have both been abolished and that Jersey will no longer be listed.

In addition, Jersey, which has an agreement in place to allow for the exchange of information with Italy, is also now to be included on Italy’s updated whitelist to reflect international standards of tax information exchange.

Graeme McArthur CEO, Crestbridge, believes this has a number of benefits for Jersey, including enhancing its position as a major funds centre in Europe. He said:

“First and foremost, this development brings with it significant reputational benefits and is welcome recognition by a key EU country that Jersey is a fully cooperative and compliant partner jurisdiction. Jersey can have a major role to play in facilitating high quality cross-border co-investment into and out of the EU through tax neutral vehicles and this move by Italy goes some way in underlining that role.

“Specifically, this development could increase alternative funds activity in Jersey by opening up the options for private equity, infrastructure and real estate fund structuring both into and out of Italy. Rather than structuring funds through an EU holding company, for instance, direct investment through Jersey into Italy is now much more of a possibility, whilst it is also a helpful move in an AIFMD context, making it easier for Jersey funds to access Italian professional investors. Equally for Italian funds wanting to market and invest beyond Europe, this change means that Jersey, as a non-EU jurisdiction, may well prove a much more appealing option.”