HM REVENUE AND
CUSTOMS News Release (Ref:NAT 21/09) issued by COI News Distribution
Service. 10 March 2009
Jersey is to join
other Crown Dependencies and Overseas Territories as a signatory
to a Tax Information Exchange Agreement (TIEA) with the UK. TIEAs
play a vital role in HM Revenue & Customs (HMRC) drive against
offshore avoidance and evasion.
The Financial Secretary to the Treasury, the Rt. Hon Stephen
Timms MP said:
"Exchange of information and transparency between countries
and territories is vital in combating tax avoidance and evasion.
Jersey's decision to embrace this principle is very welcome
and a crucial step in the right direction.
"More countries and territories must now follow
Jersey's example. In coming weeks we will be working with G20
partners to boost global co-operation to address tax evasion. I
urge those who have not yet met international standards to think
again and start work on the necessary reforms immediately".
HMRC Permanent Secretary for Tax, Dave Hartnett said:
"The importance of this TIEA with Jersey should not be
under-estimated. It will enable us to obtain the information we
need to ensure that the days when putting assets off shore
provided an unfair tax advantage are well and truly over."
The text of the agreement will be accessible on the HMRC website
by following the link below: http://www.hmrc.gov.uk/international/jersey-eol.pdf
and will in due course be laid as Schedules to a draft Order in
Council for consideration by the House of Commons. It will then
also be available from the Stationery Office.
Notes for editors
1. A tax information exchange agreement (TIEA) between the United
Kingdom and Jersey will be signed in London on 10 March 2009 by
the Rt. Hon. Stephen Timms MP, Financial Secretary to the Treasury
and Terry Le Sueur, Chief Minister of Jersey.
2. TIEAs allow governments to enforce their domestic tax laws by
exchanging, on request, information relevant to a tax matter
covered by the agreement.
3. This will be the fifth comprehensive TIEA signed by the UK.
The text broadly follows the OECD Model Agreement on Exchange of
Information on Tax Matters. The UK already has a TIEA in place
with Bermuda and signed TIEAs with the Isle of Man, the British
Virgin Islands and Guernsey. To date, Jersey has signed TIEAs
with the United States, the Netherlands, Germany, Denmark,
Finland, Greenland, Iceland, Norway, Sweden and the Faroes.
4. Jersey and the UK will also agree to amend the provisions of
the 1952 arrangement between the two governments for the avoidance
of double taxation with respect to taxes on income, notably to add
provisions on the taxation of income from pensions and a mutual
agreement procedure.
5. The two agreements will enter into force as soon as both
governments have completed the legislative procedures needed to
give them effect.
Issued by HM Revenue & Customs Press Office
Press
enquiries only please contact:
Helen Jones
Tel: 020 7147
2328
E-mail: helen.a.jones@hmrc.gsi.gov.uk
Website http://www.hmrc.gov.uk