UK politician, Ed Miliband is threatening to put Jersey and Guernsey on a tax black-list unless measures are made to improve transparency.
He says if the Labour Party are voted in during the next election, he will take action within six months of coming into power.
Jersey's Chief Minister, Senator Ian Gorst, has defended the island's tax transparency saying their standards are ones that others could follow.
Gorst's response comes after UK Labour leader Ed Miliband's threats that if his party is voted into power in the next elections, he will give British tax havens six months to open their books.
Miliband had said he could put Jersey and Guernsey on a tax black-list unless measures are made to improve transparency.
But the Chief Minister told ITV News that Jersey regularly meets all the necessary standards with regards to tax.
Jersey's Chief Minister has responded to Ed Miliband's threats to put the island on a tax black-list by inviting him to Jersey.
Lord Mandelson said he strongly supported the Labour leader and dismissed claims that he had 'sounded out' a possible replacement.
Offshore tax havens would have just six months to open their books or face international blacklisting if Labour win the election in May.