The UK Government signs up to a Jersey tax agreement

(HMRC notice released on 10 March 2009)

Along with other Crown Dependencies and Overseas Territories, Jersey has agreed to join as a signatory to a Tax  Information Exchange Agreement (TIEA) with the UK.  The use of TIEAs forms part of the HM Revenue & Customs (HMRC) drive against offshore tax avoidance and evasion.

The Financial Secretary to the Treasury, the Rt. Hon Stephen Timms MP said:
"Exchange of information and transparency between countries and territories is vital in combating tax avoidance and evasion. Jersey's decision to embrace this principle is very welcome and a crucial step in the right direction.
"More countries and territories must now follow Jersey's example. In coming weeks we will be working with G20 partners to boost global co-operation to address tax evasion. I urge those who have not yet met international standards to think again and start work on the necessary reforms immediately".

HMRC Permanent Secretary for Tax, Dave Hartnett said:
"The importance of this TIEA with Jersey should not be under-estimated. It will enable us to obtain the information we need to ensure that the days when putting assets offshore provided an unfair tax advantage are well and truly over."

The full text of the agreement is accessible on the HMRC website by following the link below: http://www.hmrc.gov.uk/international/jersey-eol.pdf

Key notes :

•  TIEAs allow governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the agreement.
• The UK already has a TIEA in place with Bermuda and signed TIEAs with the Isle of Man, the British Virgin Islands and Guernsey. To date, Jersey has signed TIEAs with the United States, the Netherlands, Germany, Denmark, Finland, Greenland, Iceland, Norway, Sweden and the Faroes.
• Jersey and the UK will also agree to amend the provisions of the 1952 arrangement between the two governments for the avoidance of double taxation with respect to taxes on income, notably to add provisions on the taxation of income from pensions and a mutual agreement procedure.