Jersey On The Verge Of Signing Tax Treaty With Ireland, Reports Suggest

by Jason Gorringe, Tax-News.com, London

08 January 2003

According to the Jersey Evening Post, Jersey and Ireland are on the verge of signing a tax information exchange agreement, allowing the sharing of specific information between the two countries with regard to civil tax investigations.

Speaking in late November, Frank Daly, head of Ireland's Revenue Commissioners announced that talks between the Irish tax authority and its counterparts in Jersey, Guernsey and the Isle of Man had taken place under the auspices of the OECD tax cooperation initiative. However, although Jersey theoretically has until 2006 to implement information exchange agreements with various other jurisdictions, recent reports have suggested that a tax treaty with Ireland is imminent.

Speaking to the local newspaper, adviser to the States of Jersey on Finance, John Harris confirmed that Jersey is obliged by the commitment which it made to the OECD to negotiate a treaty with Ireland, among others, observing: 'Now it's just a matter of getting around to it.'

Following Frank Daly's announcement regarding the spirit of cooperation which has developed between Ireland, the Channel Islands, and the Isle of Man as a result of the recent talks, several Irish banks with branches in the aforementioned jurisdictions were said to be assessing their positions, given that the Irish tax authority could soon be able to access information on bank accounts and trusts held there by Irish residents.

The Sunday Business Post reported at the time that Irish banks with operations in the Isle of Man, Jersey, and Guernsey were bracing themselves for a potential outflow of around 5.5 billion euros.

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