Policy & Resources Committee - P.2017/55
The States are asked to decide:-
Whether they are of the opinion to approve the draft Ordinance entitled "The Income Tax (Pension Amendments) (Guernsey) Ordinance, 2017", and to direct that the same shall have effect as an Ordinance of the States.
This proposition has been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.
EXPLANATORY MEMORANDUM
The Ordinance is made under the Income Tax (Guernsey) Law, 1975 and amends that Law to enable the Director of Income Tax to grant formal approval to pension schemes (in this case superannuation funds, retirement annuity contract or retirement annuity trust scheme) in respect of which exemptions from income tax apply by virtue of sections 40(o) and 40(ee) of that Law.
The option for these schemes to seek approval under the Law, together with associated regulations and rules made under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000, will enable Guernsey firms to benefit from an exemption within the OECD Common Reporting Standard on financial account information reporting requirements for pension schemes (insofar as all of the relevant criteria are met). The OECD standard was implemented in Guernsey last year by the Income Tax (Approved International Agreements) (Implementation) (Common Reporting Standard) Regulations, 2015 (also made under the Income Tax Law).
The Ordinance will also make provision for the reporting of information to the Director by approved schemes both when they apply for approval and periodically thereafter, enabling the Director to ascertain that they continue to comply with the conditions of their approval. At the same time, the reporting of information obligations in respect of other approved pension schemes, funds, contracts and trusts will be tidied up and regularised.
The Policy and Resources Committee is given power to make detailed regulations (which will need to be laid before the States) prescribing any limitations, conditions, restrictions and qualifications subject to which approvals may be granted and otherwise for carrying the relevant approval provisions into effect.
