UK/Jersey Tax Information Exchange
The Government of Jersey have signed a Tax Information Exchange Agreement (TIEA) with the UK. This is the fifth TIEA which has been signed by the UK. The others are with Bermuda, the Isle of Man, the British Virgin Islands and Guernsey. The UK are hoping to add other countries and territories to the list as part of its aim to combat tax avoidance and evasion.
The signing of a TIEA allows the exchange of tax information between countries which is necessary to enforce domestic tax law. The main benefit of these agreements is to ensure that those with assets off shore do not have an unfair tax advantage.
As part of this process the UK and Jersey will also amend their 1952 double taxation agreement to add provisions relating to pensions and a mutual agreement procedure.
The agreements will take force once both governments have completed the necessary legislative procedures.