A quick look at what’s been going on in Europe.

Jersey has provided clarification on economic substance guidelines for intellectual property (IP) companies.

The jurisdiction supplemented the guidance notes on its economic substance test to clarify how it affects tax-resident IP holding businesses, and certain other types of company. In particular, it sets out how a high-risk IP company can disprove the presumption that it fails the substance test. This is done by producing detailed business plans that clearly lay out the commercial rationale for holding the assets in Jersey and evidence that the ...