Guernsey's Chief Minister, Lyndon Trott, has been
reinforcing the Island's position as a leader in tax
transparency during meetings with leading officials in
The Chief Minister last week met with Michael Mundaca, Assistant
Secretary of the US Treasury Department, to discuss the continuing
cooperative efforts of the two jurisdictions on tax transparency
and information exchange.
Appointed by President Barack Obama in March 2010, Secretary
Mundaca is the senior executive officer in the US government
responsible for tax policy. The meeting builds on similar meetings
between the two jurisdictions that began almost a decade ago and
produced Guernsey's first-ever Tax Information Exchange
Agreement (TIEA) in 2002.
Secretary Mundaca observed that in the year since Guernsey was
placed on the OECD white list for meeting internationally agreed
tax standards, many jurisdictions have been trying to catch up by
signing TIEAs. He acknowledged however that these latecomers still
have plenty of work ahead to make their TIEAs as effective as
Guernsey's. Secretary Mundaca predicted that Guernsey will
again stand out positively as the OECD's Peer Review Group
evaluates countries that have implemented the internationally
agreed tax standard.
The Chief Minister said: "I am delighted that Secretary
Mundaca recognises and praises Guernsey's role as a leader in
the implementation of international standards on tax transparency
and information exchange.
"We have an excellent relationship with the United States
which I believe will continue to grow and flourish during the
Secretary Mundaca reiterated his aversion to using outdated
lists to blacklist jurisdictions in US legislation and noted that
the inclusion of Guernsey on such lists demonstrates their
unreliability. The US Congress recently enacted offshore tax
enforcement legislation that does not use a blacklist approach.
The meeting with Secretary Mundaca followed talks with Robert
Roach of the Senate Permanent Subcommittee on Investigations. It is
commonly referred to as the 'PSI' and conducts extensive
investigations and hearings on the business practices of
corporations and their compliance with US regulations, laws, tax
and accounting policies and general ethical business practices.
The Chairman of the PSI is Michigan Senator Carl Levin, who has
held the top position on the PSI for more than 10 years and is the
lead sponsor of the Stop Tax Haven Abuse Act. Guernsey is working
hard and successfully to ensure that the US Authorities understand
the facts about business carried out in Guernsey.
Mr Roach is Chief Investigator at PSI, where he has worked since
1997. The Chief Minister has met Mr Roach on several occasions
starting in 2007 to discuss legislation proposed by Chairman Levin
to enhance offshore tax compliance by US taxpayers. From the start,
these discussions have been open, engaging and informative for both
sides. This year, the Chief Minister asked Mr Roach to visit
Guernsey and meet with the Island's financial services
community to share his thoughts and experiences working in the US
The Chief Minister added: "I hope Bob is able to find time
to visit Guernsey in the future. He is a key man in Washington and
both understands and respects Guernsey's world-class financial
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