Monday 10 December 2012
Following the repeal of Guernsey's deemed distribution regime earlier this year, ECO FIN (the EU's Council of Finance Ministers) last week formally endorsed the European Union Code of Conduct Group on Business Tax's assessment that Guernsey's corporate tax regime now complies with the principles of the EU Code of Conduct on Business Tax.
The Group's formal assessment took place at their September meeting, at which States of Guernsey officials were present.
Guernsey's Chief Minister, Deputy Peter Harwood, said: "This formal endorsement is a very important development. As stated in an Ann ex to the 2013 Budget Report, we can now consider the 2010 corporate tax review to be concluded. This will provide certainty to our industry".
The importance of Code Group compliance was emphasised this week in the European Commission's Communication to the European Parliament and European Council on Fighting Tax Fraud and Tax Evasion.In this Communication minimum standards of (third country) good governance in tax matters have been proposed. These are defined as third countries which meet both the following criteria:
- have effectively implemented and applied the international standard for transparency and exchange of information; or
- do not operate tax measures which are considered harmful in the areas of business tax (and in this latter respect applying the principles and criteria of the Code of Conduct are set as guidance).
Deputy Harwood said: "It is a testament to the hard work undertaken by all in recent years, and the significant European engagement, that we are considered both compliant with the principles of the Code of Conduct, and also that under the proposals set out by the European Commission are clearly seen as meeting standards of good governance in tax matters. This is a not inconsiderable achievement given the misinformation and misperceptions that continue to be perpetuated in some quarters about our jurisdiction".
ENDS
