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Irish Times
The Taoiseach pointed to the fact that the Isle of Man, a crown dependency, was not in the United Kingdom or European Union but abides by many EU rules.
How does this work? Are they somehow relying on the UK's EU membership? Will this come to an end with Brexit?
by gk (gk (gk quattro due due sette @gmail.com)) on Tue Nov 14th, 2017 at 03:18:25 PM EST
I've been asking the same questions about Jersey etc. which has a remarkably favourable relationship with the EU. A lot of "loose ends" will need to be tidied up and don't even appear in mainstream Brexit discourse at the moment.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Nov 14th, 2017 at 04:35:27 PM EST
[ Parent ]
Wikipedia on Jersey: "The European Commission have confirmed in a written reply to the European Parliament in 2003[18] that Jersey is within the Union as a European Territory for whose external relationships the UK is responsible. Jersey is not fully part of the European Union but has a special relationship with it, notably being treated as within the European Community for the purposes of free trade in goods.[19]"

So in practice, UK's little islands that are officially outside UK are treated as if they were inside UK.

by fjallstrom on Tue Nov 14th, 2017 at 04:51:47 PM EST
[ Parent ]
Wikipedia says "Trade takes place mostly with the United Kingdom. The island is in customs union with the UK".

Also relevant: "Offshore banking, manufacturing, and tourism form key sectors of the economy.[60] Agriculture and fishing, once the mainstays of the economy, now make declining contributions to the island's Gross Domestic Product."

So in practice, yes I think they are relying on UK's EU membership.

by fjallstrom on Tue Nov 14th, 2017 at 04:41:12 PM EST
[ Parent ]
Well, any jurisdiction can "abide by". This can be entirely voluntary.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Cyrille (cyrillev domain yahoo.fr) on Tue Nov 14th, 2017 at 04:41:49 PM EST
[ Parent ]
It is important to realise that the City of London, the Channel Is and the Isle of Man, although nominally part of the British Isles and subject to the Crown, are in fact legally "offshore entities" answerable to no authority whatoever.

It probably arose from sloppy law making back in the mists of time which probably would have been sorted out during the Victorian period if it wasn't that, even then, certain people found it convenient to move large sums of money around without it ever coming under the jurisdiction of a taxing authority.

The dirtier business of the Empire would have been impossible without it and the intrigues both before and after WWII ensured the survival of these Medieval arrangements.

It will only end when the world loses patience with this piratical island off Europe and decides to slap large tarriffs on any financial arrangement that involves them. Till then we're gonna hoover up all your dirty cocaine profits and think ourselves very clever

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Nov 14th, 2017 at 05:45:07 PM EST
[ Parent ]
UK tax shelters in the Channel and the Caribbean and Hong Kong are like "beachheads" for the City's finance league and their international clients. Laundering is their principal business. There are a few thousand owner/occupants containing UK nationals between them, 10x as many "domiciled" post boxes and LLCs, and say, four inns and commercial office "parks".  "Crown Dependency" and "overseas territory" status provides businesses certain protection of UK courts and customs jurisdiction in the unlikely event of customer complaints. Not all of these are filthy rich.

I for instance never knew the name of my landlord, located at a box on Isle of Man. I met a squiggly line on the lease documents and the property manager who also collected the rent electronically.

There's the case of a UID at calculatedrisk, dual Canada/US citizen (married to a US naturalized Chinese) currently working and residing in California who let slip (on separate occasions)delight in managing banking accounts through their parents in UK, Jersey, and Hong Kong. The tax and FX arbitrage opportunities are mind boggling.

Then there are the millions of anonymous Brit pensioners frittering away the former pound currency edge from Cyprus, Malta, and Gibraltar, too. Their savings must be protected.

That's why HRM minions will play the pirate at the EU's shores for decades to come whether or not ah legitimate brokers lose their "passports."

Diversity is the key to economic and political evolution.

by Cat on Tue Nov 14th, 2017 at 06:57:25 PM EST
[ Parent ]
My father had an account in Jersey for the simple reason that nonresidents cannot open accounts in the UK for fear that they might be terrorists. Jersey on the other hand, has no objection to terrorists or anyone else as long as they have enough money (if they are suicide terrorists, even better. Their heirs won't be able to get the money out of Jersey without getting a probate of the will from a Jersey court, using a Jersey lawyer)
by gk (gk (gk quattro due due sette @gmail.com)) on Tue Nov 14th, 2017 at 07:21:14 PM EST
[ Parent ]

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