Tuesday 22 October 2013
Guernsey's Chief Minister has signed an agreement with the UK on Tuesday 22 October on a package of tax measures.
The inter-governmental agreement (IGA), modelled on a similar agreement being negotiated with the US relating to the Foreign Account Tax Compliance Act (FATCA), will enhance automatic tax information exchange already undertaken between Guernsey and the UK under EU Savings Directive-equivalent measures, which have been in existence since 2005 (with automatic exchange being the only option since 2011).
The signing of the agreement further confirms the States' commitment to tax transparency and meeting international standards on tax information exchange. It is anticipated that the similar agreement being negotiated with the US, will also be signed shortly.
The agreement with the UK was co-signed with the UK's Exchequer Secretary to the Treasury, David Gauke MP. Jersey's Chief Minister, Senator Ian Gorst, also signed an equivalent agreement between Jersey and the UK, today.
Chief Minister Deputy Peter Harwood commented:
"These measures are in line with the provisions of the agreement being negotiated with the US regarding FATCA, which we will be signing shortly. The two agreements with the UK and the US have been supported by our industry, being key to a sustainable future for the finance sector and securing our global reputation for tax transparency.
"When I announced this proposed agreement earlier this year, I emphasised that it was further illustration of Guernsey's commitment to combating tax evasion and the principle of automatic exchange. Our twin IGA approach to US and UK reporting will provide our industry with a very strong platform to compete on the world stage against weaker, less transparent jurisdictions."
The UK IGA will be subject to States debate and decision at its December meeting. The report to be presented to the States will also include the recommendation, previously announced by the Chief Minister in June, to formally request the UK to extend the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters to Guernsey. The States will also be asked to formally confirm Guernsey's support for the compilation of an OECD Model for automatic information exchange, and its support for the OECD model to be rapidly adopted as the global standard for automatic information exchange.
The UK IGA will be published shortly and will contain details of the alternative reporting regime for UK non-domiciliaries. Guidance notes will be published shortly after the US IGA is signed, as it is the intent for there to be common guidance, as far as possible. These notes are being developed jointly with the States of Jersey.
ENDS
