Chief Minister Lyndon Trott, left, represented Guernsey at the British-Irish Council meeting in the Isle of Man which was also attended by Deputy prime Minister Nick Clegg, third right. (Picture by John Gregory/www.isleofman.com )

NICK CLEGG yesterday said that the UK Government will defend the right of the Crown Dependencies to determine their own tax regimes – but that they must be transparent.

The Deputy Prime Minister was answering questions at a press conference after the first day of a British-Irish Council meeting in the Isle of Man.

On the website isleofman.com, the Liberal Democrat leader was quoted as saying that the UK has an ongoing discussion with Guernsey, Jersey and the Isle of Man about their tax regimes.

‘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.’

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