Jersey Ratifies Information Exchange Agreement With Germany

by Robert Lee, Tax-News.com, London

21 January 2009

The States of Jersey ratified an agreement for the exchange of tax information between Jersey and Germany on January 21, a pact which, according to the Jersey government, will 'promote mutual respect and co-operation' between the two jurisdictions.

The Tax Information Exchange Agreement (TIEA) was signed in Berlin last July, when the Federal Republic of Germany issued a Political Declaration which welcomed Jersey “as a member of the community of nations committed to international co-operation and information exchange on tax matters” and which expressed the German government’s wish “to assure the government of Jersey that Jersey will be fully and equally treated as such by the German authorities".

The agreement, which has been ratified by the States of Jersey, will officially come into force once Germany has completed its own domestic procedures. The agreement is likely to be in force by March or April 2009.

The Chief Minister, Senator Terry Le Sueur, commented: “I am particularly pleased at this public recognition of Jersey’s commitment to international cooperation and information exchange on tax matters; and to complying with international standards of financial regulation, anti-money laundering, and combating the financing of terrorism.”

“Last year the OECD Secretary General referred to the fact that Jersey has signed a number of Tax Information Exchange Agreements, and called for clear political recognition for those offshore financial centres that have made this kind of progress.”

This TIEA is the same as the previous ones signed by Jersey, in providing for the exchange of information only on request, which has to be formulated in writing with the greatest detail possible.

Following the entry into force, Germany and Jersey will continue the dialogue to examine what measures could be adopted to further enhance and broaden their political and economic relationship, including the further clarification of elements of double taxation, discrimination and other undesired tax barriers.

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