Tuesday 25 October 2016
Member of the Policy & Resources Committee, Deputy Lyndon Trott, has signed a Multilateral Agreement for Guernsey to exchange tax information as part of the OECD's Base Erosion and Profit Shifting (BEPS) Project.
The Multilateral Competent Authority Agreement (MCCA) provides for automatic exchange of information in accordance with Country-by-Country reporting by large multinational enterprises.
BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no tax jurisdictions where there is little economic activity, resulting in little or no overall corporate tax being paid.
Deputy Chief Minister, Lyndon Trott said,
"Guernsey publically stated its intent to participate in the OECD's BEPS Project as an Associate in March 2016 and remains committed to the collective aim to reach a globally fair and modern international tax system. It was a privilege to represent Guernsey at the signing of the agreement in the 21 October 2016 in Paris to reinforce this commitment."
The signing of the multilateral agreement further demonstrates this and is aligned with Guernsey's commitment to meeting international standards, which is well recognised by the OECD. The States of Guernsey has also consulted with business, industry associations and other interested parties in relation to the legislation required to introduce Country-by-Country reporting.
The signing, held at the OECD in Paris, also provided the opportunity for Deputy Trott to meet with Secretary General of the OECD, Angel Gurría. Representatives of the Isle of Man, led by Chief Minister Howard Quayle MHK; and the Government of Jersey, led by Chief Minister Senator Ian Gorst, were also present in Paris.