Guernsey Enhances Tax Cooperation With South Africa

by Amanda Banks, Tax-News.com, London

25 February 2011

The South African government has concluded its first tax information exchange agreement, with Guernsey on February 21, 2011.

Welcoming the agreement's signing, Guernsey Chief Minister Lyndon Trott said:

“This TIEA, with South Africa, is the twenty-second TIEA that Guernsey has signed to date, and the third Agreement signed during 2011.”

“I am particularly delighted that, not only is this Guernsey’s first TIEA with a country in the African continent, but also that South Africa’s first TIEA is with Guernsey.”

In a Joint Declaration, signed at the same time as the TIEA, both South Africa and Guernsey expressed their wish to strengthen their economic and trading relationship, each country recognizing the other’s commitment to operating financial regulatory systems that meet the highest international standards in order to combat money laundering, terrorist financing and other financial and fiscal crimes.

The Joint Declaration makes it clear that the broadening of the political and economic relationship between South Africa and Guernsey will be an ongoing process and that, following the entry into force of the TIEA, measures will be examined which may enhance that relationship, including elements of double taxation, discrimination and other undesired tax barriers.

Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.

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