Guernsey Expands Tax Cooperation Network

by Jason Gorringe, Tax-News.com, London

15 May 2013

Guernsey has confirmed the signing of its seventh double tax agreement (DTA) since the beginning of 2012, with Luxembourg, adding to its network of agreements with provisions for the exchange of information on request in line with international best standards.

Guernsey's Treasury Minister, Gavin St Pier signed the agreement with Luxembourg's Charge d'Affaires to the UK, Beatrice Kirsch, and commented: "This is an important further component in Guernsey's network of tax agreements. Following on so closely from the signing of our DTA with Hong Kong, it is further demonstration of Guernsey meeting the highest global standards of international tax co-operation."

Director of Income Tax, Rob Gray added: "This DTA will create a mechanism for alleviating double taxation and exchanging tax information with Luxembourg relating to both corporate and personal incomes. It also means that Guernsey's network of agreements continues to cover the majority of EU Member States and G20 countries."

In addition to agreements with major international finance centers such as Luxembourg, Guernsey is also continuing to conclude tax information exchange agreements with developing economies in order to assist them in protecting their tax revenue. While in London, St Pier also signed a Tax Information Exchange Agreement (TIEA) with Botswana at the Botswanan High Commission, and a further TIEA - Guernsey's 43rd - with Swaziland is to be concluded shortly.

St Pier continued: "Guernsey's tax team has built strong relationships with Southern African Development Community (SADC) countries, including Botswana and Swaziland, over the past couple of years. The Organization for Economic Cooperation and Development's Global Forum has emphasized the importance of working with developing countries to share expertise on tax information exchange, thereby helping them to protect their tax revenues."

"In October 2011, Ron van der Merwe, the Chair of the Tax Agreements Working Group of the SADC, said that the negotiation of tax agreements between SADC Member States and Guernsey was a major step forward in creating the basis for exchange of information for SADC members."

"The conclusion of agreements with Botswana and Swaziland shows that Guernsey retains a strong commitment to working with and sharing best practice with SADC members and other developing economies," added Gray.

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