Agreement between United States of America and Jersey on International Tax Compliance: Ratification

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A decision made on 1 May 2014:

Decision Reference: MD-C-2014-0065
Decision Summary Title :	Ratification of the Agreement between the Government of the United States of America and the Government of Jersey to Improve International Tax Compliance and to Implement FATCA.		Date of Decision Summary:	31 March 2014
Decision Summary Author:	External Relations		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Ratification of the Agreement between the Government of the United States of America and the Government of Jersey to Improve International Tax Compliance and to Implement FATCA.		Date of Written Report:	31 March 2014
Written Report Author:	Law Draftsman / Law Officers Department		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Ratification of the Agreement between the Government of the United States of America and the Government of Jersey to Improve International Tax Compliance and to Implement FATCA.
Decision(s): The Chief Minister decided to lodge ‘au Greffe’ a Report and Proposition entitled ‘Ratification of the Agreement between the Government of the United States of America and the Government of Jersey to Improve International Tax Compliance and to Implement FATCA’ for States debate at the earliest opportunity.
Reason(s) for Decision: This Intergovernmental Agreement (IGA) between the Government of the United States of America and the Government of Jersey improves international tax compliance and implements FACTA (The Foreign Account Tax Compliance Act), creating an information reporting and withholding tax regime for payments made to certain foreign financial institutions and other foreign entities. Accordingly, the States Assembly is being asked to ratify the IGA and, in order to bring the IGA into full effect, to ratify the Protocol amending the Agreement between Jersey and the USA for the exchange of information relating to tax matters (the TIEA), signed in 2002, so that the provisions of that Agreement on procedures and confidentiality can apply equally to the automatic and spontaneous exchange of tax information.
Resource Implications: The resource implications are detailed in the main Report. It is difficult at this stage to quantify the financial or manpower implications. However, given the commitments entered into with the G20 and the international community generally, the specific commitments to join in the fight against tax evasion to which the IGA relates, and the loss of business that would occur if FATCA is not complied and the 30% withholding tax is applied, it is considered that the financial and manpower costs to be incurred are unavoidable.
Action required: The Greffier of the States to be asked to lodge ‘au Greffe’ the Report and Proposition for debate at the same time as the Taxation (Implementation) (International Tax Compliance) (United States of America) (Jersey) Regulations 201- (MD-C-2014-0079) at the earliest opportunity.
Signature:		Position: Chief Minister of Jersey
Date Signed:		Date of Decision (If different from Date Signed):