15 April 2013Accounting & tax analysis

Guernsey receives green light on tax from OECD

Guernsey’s tax standards have been endorsed by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.

The review by the OECD examined the legal and practical framework in place for the exchange of tax information internationally. Guernsey was found to have all of the essential elements assessed by the OECD in place.

Commenting on the review, Guernsey’s chief minister, Peter Harwood, said: “This is a rigorous examination by expert assessors versed in the legal and practical systems required to comply with international standards in this field. Guernsey was one of the first jurisdictions to have undergone a stand-alone Phase 2 review, and has been found to have all of those essential elements that have been assessed in place. In short, we have shown that we continue to meet the international standards of transparency, co-operation and information exchange in tax matters.”

Gavin St Pier, Minister of the Treasury and Resources Department in Guernsey, commented: “Guernsey has been committed to the principles of transparency and exchange of information for tax purposes since making a political commitment to the OECD in 2002. We have 40 signed Tax Information Exchange Agreements (TIEAs) and five Double Taxation Agreements (DTAs), all of which meet the highest international standards. More are in various stages of negotiation.

“We also exchange information under agreements equivalent to the EU Savings Tax Directive (EUSTD) and we are in negotiation with the US on an Intergovernmental Agreement (IGA) relating to the Foreign Account Tax Compliance Act (FATCA) and with the UK on a similar package of measures.”