Jersey Reinforces Commitment To OECD Agreement

by Robert Lee, Tax-News.com, London

11 March 2009

The States of Jersey will discuss the ratification of agreements for the exchange of information relating to tax matters between Jersey and the Nordic countries of Denmark, the Faroes, Finland, Greenland, Iceland, Norway and Sweden on March 24 with a view to bringing the documents into effect.

The documents represent the further fortification of a political commitment made by Jersey in 2002, to support the OECD’s tax initiative on transparency and information exchange through the negotiation of tax information exchange agreements with each of the OECD member states.

A document disclosed by the State of Jersey explains that the move is as part of Jersey’s commitment to building up an improved rapport with OECD members, notably those within the European Union; to gain general support for the island when it is discussed within international fora; to remove key barriers to market access, such as black lists; and lastly to push towards the closure of ‘unco-operative jurisdictions’ who may be gaining an advantage on Jersey from that position.

Jersey has already received some recognition for its commitment to concluding TIEAs, with the Secretary General of the OECD commending Jersey when speaking in October, 2008. Concluding his statement on compliant jurisdictions he added that “a clear political recognition should be given to those offshore financial centres that have made progress,” later stating that offshore centres involved in the signing of TIEAs were “setting out a new direction for their financial centres.”

In recognition of Jersey's compliance Jeffrey Owens, Head of the OECD Centre for Tax Policy and Administration on a separate occasion stated, “We at the OECD recognise the importance of the progress Jersey has made in signing TIEAs, and in receiving clear political endorsement from OECD member countries. To show that the choice Jersey has made is the right one we recognise the need for firm action to be taken with regard to those jurisdictions that are not showing the same commitment to tax information exchange."

Jersey statement noted that the Nordic TIEAs are similar to those signed with the United States of America in 2002, the Netherlands in 2007, and Germany in 2008 and include an agreement for the avoidance of double taxation in many areas.

It is anticipated that the documents will be ratified on March 24, when they are tabled before the States, especially given the significance of forthcoming G-20 talks where a new blacklist of non-cooperative jurisdictions is likely to be discussed.

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