Guernsey signs FATCA-esque agreement with UK 23 October 2013London Reporter: Jenna Jones
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Guernsey has signed an intergovernmental agreement (IGA) with the UK on a package of tax measures.
Peter Harwood, Guernsey’s chief minister, signed the IGA in London alongside the David Gauke, the UK’s exchequer secretary to the treasury.
The IGA is similar to the model I type agreement being negotiated with the US relating to the Foreign Tax Compliance Act (FATCA) that is expected to be signed shortly.
The agreement enhances the automatic tax information exchange provisions already in place between Guernsey and the UK under measures equivalent to the EU Savings Tax Directive.
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “I am very pleased that Guernsey has signed this agreement with the UK. It enhances the provisions regarding automatic exchange of information which have already been in place since 2011 and, once again, demonstrates our determination to tackle tax evasion.”
“The OECD has continually reaffirmed that Guernsey adopts international standards of tax transparency and exchange of information. This agreement further reinforces our status as a leader in making strides to combat tax evasion and we look forward to building on this even further by signing a similar model I agreement with the US, in relation to FATCA, in the near future.”
Harwood added: “These measures are in line with the provisions of the agreement being negotiated with the US regarding FATCA, which we will be signing shortly. The two agreements with the UK and the US have been supported by our industry as being key to a sustainable future for the finance sector and securing our global reputation for tax transparency.”
“When I announced this proposed agreement earlier this year, I emphasised that it was further illustration of Guernsey’s commitment to combating tax evasion and the principle of automatic exchange. Our twin IGA approach to UK and US reporting will provide our industry with a very string platform to compete on the world stage against weaker, less transparent jurisdictions.”
Guernsey’s IGA with the UK was signed at the same time that Ian Gorst, Jersey’s chief minister, signed an equivalent agreement between Jersey and the UK.
Harwood also singed Tax Information Exchange Agreements (TIEAs) with Slovakia and Gibraltar. It also follows two ‘partial’ Double Taxation Agreements (DTAs)—one for individuals and another for shipping and aircraft—with Poland.
Guernsey has now signed 48 TIEAs and 21 DTAs, including eight ‘full’ DTAs and 13 ‘partial’ DTAs.
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