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Foreign Account Tax Compliance Act (FATCA) - Crown Dependencies simultaneous announcement

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Tuesday 09 October 2012

The Governments of Guernsey, Jersey and the Isle of Man are today simultaneously announcing their intention to negotiate partnership agreements with the United States of America to implement FATCA.

These agreements will follow the model intergovernmental agreement published by the US Government on 26 July 2012 and will be similar in form to the agreement between the United Kingdom and the USA signed on 12 September 2012. This follows consultation with industry representatives who have given their support for the proposed course of action.

Discussions have taken place at official level between the Crown Dependences jointly and the USA, and formal negotiations will now take place with the intention of concluding intergovernmental agreements rapidly. Once signed, they will be subject to ratification by each of the Island parliaments and implementation of the agreements will be through the domestic legislative procedures relevant to each of the three jurisdictions.

Deputy Peter Harwood, Chief Minister, said:

"Basing FATCA implementation on an intergovernmental agreement is preferred by industry in all three Crown Dependencies. We are pleased to confirm our joint intention to follow this approach with the US Government. This announcement today provides certainty for our business community as they also prepare for FATCA. Entering into this type of arrangement highlights the cooperative approach of the Crown Dependencies to international tax matters and confirms Guernsey's commitment to being a well-regulated, internationally co-operative tax transparent jurisdiction. I am particularly pleased that the three Crown Dependencies have worked together and adopted a common position on this issue."

-ENDS-

Contact information:

Philip Henderson, External Affairs Officer
Email:         pressroom@gov.gg
Tel:              01481 717131

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