'Take Google Tax seriously when dealing with the UK'

Justin Woodhouse, PwC's new head of tax in the Channel Islands, presented the findings at a well-attended seminar.

He said that offshore businesses were keen to learn more about the new tax, introduced by the UK in the spring, which introduces a 25% charge on profits considered to be artificially diverted from the UK.

Also known as the 'Google Tax' and targeted at multinational companies who have been in the frame for structuring activities to reduce their UK tax liabilities, others could be caught by the legislation, which PwC said was widely drafted, complex to apply and with subjective elements.

'This is not mission critical to Jersey and Guernsey but it's another thing to think about,' said Mr Woodhouse, pictured, who recently moved to the islands with the firm.

'My impression is that the islands have been in the business of creating real substance structures here for quite some time now.

'And this is not aimed at real transactions, it is aimed at the highly artificial end of the market.'