UK-Jersey TIEA Signing Imminent

by Robert Lee, Tax-News.com, London

11 March 2009

Jersey is to sign a Tax Information Exchange Agreement with the UK on March 10 as part of the island’s ongoing commitment to the OECD’s tax initiative on transparency. The latest agreement with the UK marks the 10th negotiated TIEA for Jersey since its first in 2002, with the USA.

Jersey’s Chief Minister, Terry Le Sueur, will travel to London to sign the UK TIEA with the Financial Secretary to the Treasury, Stephen Timms. Le Sueur said: “Our continuing programme of signing agreements with jurisdictions across the globe confirms our commitment to the OECD standards of tax information exchange, and demonstrates our willingness to comply with international standards of financial regulation, anti-money laundering, and combating the financing of terrorism."

“We are particularly pleased to have Jersey recognised by the UK as a member of the community of jurisdictions committed to international co-operation and information exchange on tax matters, and to have their assurance that Jersey will be treated as such by the UK authorities.”

“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. We hope to see this reflected in the outcome of the G20 Summit in London on April 2 and that there will greater pressure put on those countries, including some OECD members, who have not yet shared Jersey’s commitment to transparency and co-operation.”

The document will need to be ratified by the UK and Jersey governments before it comes into force officially.

Jersey is due to sign a TIEA with France later this week, and subsequently with Ireland. Negotiations are in advanced stages with both Australia and New Zealand. Discussions are also underway with Spain and Italy, and Jersey is more than willing to extend such agreements to all other jurisdictions, including OECD countries, when they are ready to engage, concluded Jersey’s statement.

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