Progress on Tax Information Exchange Agreements

Media Release: 12 October 2005


Senator Frank Walker, President of Policy and Resources, today provided a progress report on the Island ’s programme of Tax Information Agreements with major overseas nations. These negotiations have been in progress for some time and arise from the OECD project on information exchange in which Jersey is participating, subject to level playing safeguards.

Talks are furthest forward with the Netherlands, an important OECD member state and a founder member of the European Union. In addition, negotiations are also very well advanced with Germany and the Republic of Ireland and are in progress with France, Spain, Italy, Australia, New Zealand, Canada and the United Kingdom. Jersey signed a Tax Information Exchange Agreement with the United States in 2002 which is expected to enter into force in 2006.

Senator Walker said:  "Jersey has long indicated its willingness to conclude Tax Information Exchange Agreements but has also demanded that all countries, including those which compete in the international financial services market such as Switzerland and Singapore, should be held to the same standard. Furthermore, the Island has still been prepared to consider Agreements if a significant package of economic and other benefits are available to compensate for the absence of the required level playing field position."

In the case of the Netherlands, the negotiations  combine with a package of economic benefits. The proposed agreement will be considered by the P&R Committee at its next meeting. If they approve it, the proposed agreement will be presented to the States early in 2006,  and the Assembly will be asked to decide on its benefit for Jersey in developing its international position and enhancing its economic integration with the Netherlands and with OECD countries in general. Over the coming weeks it is also intended that the Island's finance industry is consulted on the proposed agreement and associated benefits.

Commenting on the progress made in respect of the Netherlands and other ongoing negotiations, Senator Walker said: “The opportunity to conclude an information exchange treaty with the Netherlands and gain access to specific benefits for Jersey is a welcome one which merits our serious consideration. We will be helped by consultation with the industry but in principle the proposal is considered to fit well with our strategic aims of greater economic  integration with major countries and gaining increasing international recognition for Jersey’s high regulatory standards and developing reputation as a co-operative but competitive jurisdiction.”