Guernsey Visits Brussels Ahead Of Business Tax Code Talks

by Amanda Banks, Tax-News.com, London

24 November 2009

Guernsey Chief Minister, Lyndon Trott, and Chief Executive of the States of Guernsey, Mike Brown, have discussed matters of key concern to Guernsey with various European Union (EU) officials during a three-day visit to Brussels.

Numerous meetings took place with high-ranking officials in the European Commission’s tax and internal market directorates, senior European Parliamentarians (MEPs) from the leading European political parties, as well as with the Swiss Ambassador to the EU, Jacques de Watteville. The visit, according to a Guernsey Treasury press release, marked a major progression in consolidating relations that Guernsey is actively developing with influential contacts in Brussels, extending the range of policy-makers and politicians that Guernsey can count on for support.

The highlights of the visit included a meeting at the European Commission’s department for taxation just one day ahead of talks between EU Member State senior Treasury ministers and officials on the highly secretive Code of Conduct for Business Taxation. Ever since it was clear that Guernsey corporate tax legislation would be under scrutiny in the Code Group, regular representations have been made to the UK government and the Commission, which play vital behind-the-scenes roles in the group’s deliberations.

This latest meeting between Guernsey and the Commission was, the Treasury claims, the most constructive yet and built on previous conversations, including those recently held in Mexico at the Organization of Economic Cooperation and Development (OECD) Global Forum earlier this year. While the Code Group did not debate the Guernsey legislation during the course of the day, the Guernsey government is confident that it will have the opportunity to present its views on the revised Code and have time to adapt before any new legislation, with regards the Channel Islands' corporate tax systems, is placed under the spotlight.

Talks with the Swiss Ambassador picked up on themes addressed in meetings earlier this year, principally the ongoing EU negotiations to review the savings tax directive, and the OECD processes. A statement from the Guernsey government remarked that it was a valuable opportunity to hear more about the Swiss perspective and approaches on tax and financial services dossiers, and to reiterate Guernsey’s willingness to cooperate where the two countries’ interests are aligned.

“While there was much praise from all for what has been achieved so far by Guernsey, this is by no means a one-off process. Further work is necessary to keep up momentum and to build on this initial success. The advice received on this trip was supportive and encouraging and underlined the need and support for a permanent Brussels presence,” the Guernsey government concluded in its statement.

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