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Jersey Publishes Brown's Tax Transparency Letter,
by Jason Gorringe, Tax-News.com, London
Friday, April 17, 2009
The States of Jersey has released a letter from United Kingdom Prime Minister Gordon Brown which urges the Crown Dependencies to put 'clear water' between themselves and those territories which have done the bare minimum to meet international standards on tax transparency.
While fully supporting the efforts already made by many of the UK's offshore
territories in meeting the OECD's target of signing 12 Tax and Information Exchange
Agreements, Brown's letter, addressed to Chief Minister Terry Le Sueur, stressed
the importance for the Crown Dependencies (Guernsey, Jersey, Isle of Man) - all
of which appear on the OECD 'white list' - to "set the pace" in the
process.
"Recent developments have underlined the importance of embracing international
standards on tax transparency," Brown's letter began. The letter continued:
"I fully support the current initiatives and believe it is strongly in the interests
of all jurisdictions - including the Crown Dependencies - to meet these international
standards."
"This standard should be seen as an indicator of commitment to the principle
of tax transparency. I think it is particularly important that the Crown Dependencies
continue to set the pace in this process and put clear water between themselves
and those jurisdiction which only just meet the international standard. If genuine
progress in agreeing, implementing and abiding by these agreements does not
continue to be made I will encourage the G20 to look at the issue again until
all abide by the highest standards."
"Similarly, as all international efforts on harmful tax practices start to refocus
on the issue of tax avoidance, it will be vital to the interests of the Crown
Dependencies that they can readily meet the new international standards which
emerge."
Brown concluded that the Foot Review of UK offshore territories, due to be
published on April 22, will provide "support for the Crown Dependencies
on these matters" over the coming months.
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