Guernsey has signed a Model I intergovernmental agreement with
the US Government in relation to the Foreign Account Tax Compliance
It was signed on Friday 13 December by Guernsey's Chief
Minister, Peter Harwood, at the US Embassy in London with the US
Ambassador to the UK, His Excellency Michael Barzun.
Guernsey's Chief Minister said: "Guernsey has been
committed to exchanging tax information since it signed its first
Tax Information Exchange Agreement (TIEA) with the US authorities
in 2002. Today we have enhanced those arrangements, and in doing so
we have further enhanced our reputation and our leadership position
on tax transparency.
"This is a further step in the direction we have been
travelling for a decade or more. FATCA is shaping the new global
standards in information exchange and once again Guernsey has shown
its commitment to meeting those new global standards decisively and
at the earliest possible juncture.
"This is an important agreement for our finance sector. It
gives them the long-term sustainability and stability that they
have asked for clearly and consistently."
Jersey and the Isle of Man also signed similar agreements with
the US Government at the same time as Guernsey.
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry, said:
"I am very pleased that Guernsey has signed this FATCA
agreement with the US. It builds on the TIEA we have had with the
US since 2002, our adoption of automatic exchange of information
under measures equivalent to the EU Savings Tax Directive in 2011
and the package of tax measures we signed with the UK Government in
"The OECD has continually reaffirmed that Guernsey adopts
international standards of tax transparency and exchange of
information and this FATCA agreement with the US further
demonstrates our continued fight against tax evasion."
The FATCA agreement was concluded 48 hours after Guernsey's
parliament gave its unanimous approval and committed Guernsey to
continuing to meet the highest standards of tax transparency. At
the same time, the Island's parliament also agreed to request
the extension to Guernsey of the OECD Multilateral Convention on
Mutual Administrative Assistance in Tax Matters.
Probably the most significant change from previous practice in Guernsey law under the Companies (Guernsey) Law 2008, which came into effect on the 1 July 2008, was the consignment to history of the concept of capital maintenance, which was discarded in favour of a solvency model as the basis of a company’s ability to pay distributions and dividends.
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