Guernsey Signs 7 TIEAs At Annual Nordic Council Session

by Phillip Morton, Investors Offshore.com

03 November 2008

Guernsey's Chief Minister Lyndon Trott has signed seven agreements on exchange of tax information with the Nordic Countries.

The Tax Information Exchange Agreements (TIEAs) were signed at a short ceremony last Wednesday in Helsinki with the governments of Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway and Sweden. The signing took place during the Nordic Council Session, the annual intergovernmental meeting of these seven countries.

Deputy Trott said: "The importance of exchanging tax information has been increased by economic globalisation. I am delighted that at its recent meeting the OECD recognised the significant progress we have made to achieve its rigorous standards. We now have nine agreements in place – a testament to our commitment to transparency."

Welcoming these agreements, Jeffrey Owens, Director of OECD’s Centre for Tax Policy and Administration, said:

“It is jurisdictions such as Guernsey that are showing leadership in the area of tax transparency. These agreements will cement Guernsey’s record of good regulation and transparency. In the current financial crisis a positive reputation for integrity is an essential ingredient for the continuing success of all financial centres.”

Under the terms of these agreements, the Nordic Countries and Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters. In addition to the TIEAs, reciprocal agreements will be signed that lift the burden of double taxation in a number of specific areas such as shipping and air transport.

The signing of these agreements will create the opportunity for Guernsey to negotiate further agreements to avoid double taxation with each of the Nordic countries in the future.

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