Friday 13 December 2013
Guernsey's Chief Minister was joined by his Crown Dependency counterparts today in signing a FACTA agreement with the US Government.
The intergovernmental agreement was signed at the US Embassy in London with the US Ambassador to the UK. The agreement was concluded 48 hours after Guernsey's States of Deliberation gave its unanimous approval, and committed Guernsey to continuing to meet the highest standards of tax transparency.
Guernsey's Chief Minister, Deputy Peter Harwood, said:
"This is an important agreement for our finance sector. It gives them the long-term sustainability and stability that they have asked for clearly and consistently.
"This is a further step in the direction we have been travelling for a decade or more - that of leadership on tax transparency. FATCA is shaping the new global standards in information exchange; and once again Guernsey has shown its commitment to meeting those new global standards decisively and at the earliest possible juncture."
Deputy Harwood signed the agreement with the US Ambassador, HE Matthew Barzun. This comes a few weeks after an equivalent agreement was concluded with the UK, and two days after Guernsey's States Assembly also confirmed Guernsey's commitment to requesting that the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters be extended to Guernsey.
Deputy Harwood said:
"As I said in my statement to Guernsey's Assembly on Wednesday, signing the FATCA agreement is in our economic interests. Guernsey has been committed to exchanging tax information since it signed its first Tax Information Exchange Agreement with the US authorities in 2002. Today we have enhanced those arrangements, and in doing so we have further enhanced our reputation and our leadership position on tax transparency."
Deputy Harwood added:
"It is also appropriate that I am accompanied today by Mike Brown, the outgoing Chief Executive of the States of Guernsey. Mike helped to bring about the commitment by the States of Guernsey to the original Tax Information Exchange Agreement with the US authorities in 2002 and has helped to steer the Island upon its subsequent course and commitment to tax transparency."
U.S. Ambassador to the United Kingdom, Ambassador Matthew W. Barzaun said:
"By working together to detect, deter, and discourage offshore tax abuses through increased transparency and enhanced reporting, we can help build a stronger, more stable, and accountable global financial system. We look forward to collaborating with the Governments of Jersey, Guernsey, and Isle of Man to further these objectives,"
ENDS
Photos of today's signing ceremony at the US Embassy in London can be found by clicking the following link:
http://www.flickr.com/photos/usembassylondon/sets/72157638635262185/
Further information
1. Guernsey has automatically exchanged information, under agreements equivalent to the EU Savings Directive, with EU Member States since 2011.
2. FATCA is the US Foreign Account Tax Compliance Act, which was signed into US law in 2010.
3. Guernsey signed a 'UK FATCA' with HM Treasury in October 2013.
4. Deputy Harwood's statement on 11 December 2013 to the States Assembly, on 'US FATCA', 'UK FATCA' and the OECD Multilateral Convention on Mutual Assistance in Taxation Matters can be found at http://www.gov.gg/article/109984/Statement-made-by-the-Chief-Minister-on-tax-transparency
