Tax information exchange – Guernsey
HMRC have announced a new tax information exchange agreement between the Governments of the UK and Guernsey. The agreement was signed on 20 January 2009 and covers two main areas.
Firstly, an agreement to exchange information relating to tax matters and to prosecutions of criminal tax matters. The agreement covers income tax, corporation tax, capital gains tax, inheritance tax and VAT in the UK. In Guernsey the agreement covers income tax and the dwellings profit tax.
Secondly the agreement amends existing rules introduced in 1952 for the avoidance of double taxation with respect to taxes on income. The main changes relate to pensions and procedural changes.
Welcoming the new arrangement, the Financial Secretary to the Treasury commented “This new tax information exchange agreement represents a significant step in our efforts to counter and prevent tax evasion and avoidance. I welcome the willingness of the States of Guernsey to implement these high standards of transparency and exchange of information”.
The arrangement will be in force from 6 April 2009 for income tax (1 April 2009 for Corporation Tax) in the UK and from 1 January 2010 in Guernsey.