Thursday 17 March 2022
Guernsey is suspending all forms of tax cooperation (exchange of information for tax purposes) with Russia, with immediate effect. This decision is a further demonstration of the Bailiwick's support for Ukraine and aligns with a similar announcement today by the UK Government.
The relationship for the exchange of information for tax purposes between Guernsey and Russia came into effect from July 2015 when Russia signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters ("the MAAC") (as the MAAC was already extended to Guernsey in August 2014). The MAAC is one of the agreements that creates an international framework for exchanging information for tax purposes between tax administrations.
Deputy Mark Helyar, Treasury Lead for the Policy & Resources Committee said
"The Bailiwick of Guernsey is in lockstep with the UK in respect of measures being applied to Russia. This decision to cease the exchange of tax information is an extension of Guernsey's existing policy."
"The exchange of information for tax purposes is a tool used to combat tax evasion and profit shifting and to risk assess for potential tax avoidance. Suspending the ability for Russia to receive such information from Guernsey ensures that the Russian government cannot use that information to increase its tax revenues. Guernsey's decision is an appropriate part of the international response to the invasion of Ukraine.
Guernsey will, of course, continue to meet all of its other commitments to international standards and agreements on tax transparency and the exchange of information with all other partner jurisdictions."