A delegation from China, headed by Xiao Jie, Commissioner of the State Administration of Taxation, people's Republic of China, has visited Guernsey to sign a Tax Information Exchange Agreement (TIEA).
The TIEA between the two jurisdictions was signed on Wednesday 27 October 2010 and is the 19th such agreement that Guernsey has finalised with another territory.
As a consequence of Guernsey's ongoing commitment to conclude TIEAs, the Island has been recognised as having substantially implemented the OECD Internationally Agreed Tax Standard on Exchange of Information.
Mr Jie confirmed China's wish to strengthen its economic and trading relationship with Guernsey. The signing of the TIEA with China reaffirms Guernsey's membership in the community of nations committed to establishing an international financial system based on co-operation, transparency and effective exchange of information in tax matters, all of which strengthen stability and the integrity of countries' tax systems, and China confirms that Guernsey will be treated accordingly by the Chinese authorities.
Mr Jie added that the signing of the TIEA lays a very solid foundation for extensive co-operation between the two tax administrations and looked forward to the closer working of the tax administrations.
Chief Minister Lyndon Trott signed the Agreement with Mr Jie.
Deputy Trott said: "I was delighted to welcome Mr Jie, and the rest of the delegation from China, to our Island, to sign this important Agreement. For some considerable time, Guernsey has been making new relationships in, and creating a better economic relationship with, China. Guernsey and China see the signing of the TIEA as another, but very significant, step on a journey strengthening the economic links between China and Guernsey. Indeed, to demonstrate this, in a few days time I leave Guernsey to participate in a visit to China, organised by Guernsey Finance, to develop, even further, these links."
During this visit to China in the coming weeks, the Chief Minister is expected to sign a Memorandum of Understanding (MoU) with the Shanghai Municipal Financial Services Office to promote exchange and cooperation in financial services between the two centres.
The delegation will also be continuing to seek approval for Guernsey companies to list on the Hong Kong Stock Exchange (HKEX), progress the signing of a MoU with the China Banking Regulatory Commission (CBRC) and move forward signing a similar MoU with the China Securities Regulatory Commission (CSRC).
Guernsey has now signed Tax Information Exchange Agreements (TIEAs) with 19 territories: Australia, China, Denmark, Faroe Islands, Finland, France, Germany, Greece, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Portugal, San Marino, Sweden, United Kingdom and the United States of America.
Guernsey has concluded negotiation of a further 12 TIEAs, which it expects to be able to sign in the near future. The Island is continuing to negotiate with a substantial number of other countries. Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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