JERSEY has moved a step closer to financial crisis after senior figures in Europe ruled against its zero-10 regime, a long-time critic of offshore centres claimed yesterday.

At the end of last year, HM Treasury told Jersey to reform its corporate tax regime – something Guernsey has already said publicly it would do – but the island had clung to the hope that a high-level European working party would rule in its favour.

Richard Murphy, the co-founder of campaign group Tax Justice Network, said the working party met at the end of January. If Mr Murphy is right and Jersey cannot find a way to appease both the UK and Brussels, the island’s £100m. black hole could increase greatly.

But Jersey Treasury minister Philip Ozouf (pictured) remains convinced there is no need for serious concern and that a solution will be found.

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