Guernsey has signed further bilateral Tax Information Exchange
Agreements (TIEAs) with Canada and Romania, taking the total number
of TIEAs signed by the Island to 21.
On 19 January 2011 a bilateral TIEA was signed with Canada by
Guernsey's Chief Minister, Lyndon Trott.
The Chief Minister said: "In view of the historical
connections between Guernsey and Canada, I was delighted to welcome
His Excellency Mr James R Wright, High Commissioner for Canada, to
Guernsey, to sign the Agreement. While in the Island, His
Excellency took the opportunity to meet with industry
representatives with business connections in Canada.
"The signing of this TIEA, and the ongoing negotiations
that Guernsey has with many other countries, clearly demonstrates
the continued commitment to the OECD's principles of effective
exchange of information, originally made in 2002. Guernsey remains
in the premier league of tax transparency, an extremely important
factor in a competitive global economy."
His Excellency, the High Commissioner, said: "The Channel
Islands are really important for Canadian business and Canadian
companies are very important to Guernsey because of the employment
and revenues they generate for the Island. We believe this Tax
Information Exchange Agreement will help our businesses based here
grow, which will in turn benefit the local economy. Both Guernsey
and Canada are committed to meeting the highest international
standards of financial regulation and the agreement we signed today
is proof of that."
Under the terms of a TIEA, Guernsey will, on request, exchange
bank and other information relating to both criminal and civil tax
matters. Signature of the TIEA with Canada will result in the tax
exemption available in Canada for dividends received in Canada out
of active business income earned by foreign affiliates applying to
foreign affiliates of Canadian companies resident in Guernsey. It
will also prevent the income of foreign affiliates resident in
Guernsey becoming liable to tax in Canada as they are earned.
In view of the significance of the TIEA with Canada, the signing
ceremony was also attended by Paul Patterson, Global Head of Trust,
RBC Wealth Management; and Alan Pearce, Managing Director of RBC
Trustees (Guernsey) Limited.
The bilateral TIEA with Romania was signed by the Chief Minister
on 17 January 2011.
The Chief Minister said: "I am delighted to have signed
this TIEA with Romania. Guernsey has now signed 11 TIEAs with
Member States of the EU. As we already have Agreements relating to
savings income with all EU Member States, having TIEAs with the
same countries is a logical progression. Guernsey has also
completed TIEA negotiations with a further five EU Member
Deputy Trott added:"In addition Guernsey has 13 further
TIEAs, which have been finalised and are awaiting signature, or are
very near conclusion, including most recently conclusion of the
text of a TIEA with Japan. I hope it will be possible for all of
these TIEAs to be signed during the course of 2011. In addition,
Guernsey has negotiations at various stages ongoing with 14 further
Guernsey has now signed Tax Information Exchange Agreements
(TIEAs) with 21 territories: Australia, Canada, China, Denmark,
Faroe Islands, Finland, France, Germany, Greece, Greenland,
Iceland, Ireland, Netherlands, New Zealand, Norway, Portugal,
Romania, San Marino, Sweden, United Kingdom and the United States
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).