Jersey To Ratify Maltese DTA

by Amanda Banks, Tax-News.com, London

07 June 2010

Jersey’s legislative assembly, the States, is expected to ratify the convention for the avoidance of double taxation and fiscal evasion the territory signed with Malta in January 25, 2010 when the text is tabled on June 8.

The double taxation agreement contains provisions for the exchange of tax information between the two territories’ tax authorities in line with the Organization for Economic Cooperation and Development (OECD) standard on tax transparency.

When the convention is ratified by both parties and enters into force it will lay a beneficial legal framework assigning the taxing rights of the respective countries with regard to interest, dividends, royalties and capital gains. In addition, in line with the two countries' commitment to the OECD standard, the agreement incorporates provisions to allow for the exchange of tax information between the two countries’ tax authorities to facilitate investigations pertaining to tax crimes and in civil tax matters.

The Jersey government’s announcement also disclosed that the island is close to signing several other tax information exchange agreements with third countries. The statement said that Tax Information exchange Agreements had been initialled and were ready for signing with Indonesia, Italy, Mexico and South Africa, and negotiations were well-advanced with Argentina, Canada, China, India, Japan and Spain.

Jersey has also contacted and received positive feedback on starting negotiations with Brazil, the Czech Republic, South Korea, Luxembourg, Poland, Portugal, Switzerland and Turkey, the government disclosed.

Jersey was one of the first territories to have been recognized as ‘substantially-implementing the internationally-agreed standard on tax information exchange,’ receiving a place on the OECD 'white list' on April 2, 2009. In the meantime, Jersey volunteered itself as one of the first territories to undergo a peer review by the OECD to assess the implementation of its commitment to the standard.

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