Guernsey Signs Tax Information Exchange Agreement With UK

by Robert Lee, Tax-News.com, London

22 January 2009

A new tax information exchange agreement between the governments of the United Kingdom and Guernsey was signed in London on January 20 2009 by William Bach, Parliamentary Under Secretary of State for Justice, and Lyndon Trott, Chief Minister of Guernsey.

The governments have also agreed 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.

The text of the agreement will in due course be laid as Schedules to a draft Order in Council for consideration by the House of Commons.

Welcoming the signature, the Financial Secretary to the Treasury, the Stephen Timms said:

"This new tax information exchange agreement represents a significant step in our efforts to counter and prevent tax evasion and avoidance. I welcome the willingness of the States of Guernsey to implement these high standards of transparency and exchange of information."

Lord Bach, Crown Dependencies Minister said:

"The signing of this agreement shows the collaborative nature of the relationship between the UK and Guernsey, and Guernsey's commitment to meeting high international standards."

The agreement will enter into force as soon as both governments have completed the legislative procedures needed to give it effect.

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