Jersey should be 'ready' for independence from the UK
He said: "Independence is quite a long way down the road, but I do feel and I have been saying for quite a long time, that we should not close our eyes to this possibility."
He said Jersey needed to protect its economic interests.
It emerged last week more than 1,000 people, including comedian Jimmy Carr, were using the legal Jersey-based K2 scheme which sheltered £168m a year from the UK Treasury.
Sir Philip said Jersey had not been marketing itself as a tax haven nor a place where people can ignore their fiscal dues.
He said Jersey had signed a range of tax information exchange agreements with countries in the European Union and elsewhere to demonstrate it was a transparent jurisdiction.
Sir Philip said: "If Jersey was faced with a stance by the UK or the European Union which meant the finance industry was going to up sticks and leave the island, then that clearly would be an instance where we would have to consider very carefully where our best interests lay.
"We should be ready for independence if it was obvious that it was the right thing for the island to do."
The minister's comments appeared on the front page of the Guardian newspaper on Wednesday.
He told the newspaper that relationships with the UK had been "strained" over the past five years and Jersey's interests were not always aligned with those of Britain.
Sir Philip said Jersey's government was planning to open an office in London, and had opened a Channel Islands office with Guernsey in Brussels.
Bailhache comments spark attack on Jersey
Speaking to the JEP this morning Senator Bailhache said the article had been a fair representation of what he said when he met with the Guardian journalist a month ago, before the K2 scheme hit the headlines.