The EU Commission has confirmed its continued endorsement of
Guernsey as a cooperative jurisdiction following a meeting between
officials in Brussels.
This news was welcomed in Guernsey, which has a strong record in
meeting international standards as a cooperative and highly
transparent jurisdiction - including as an 'early adopter'
of the Common Reporting Standards ahead of some European
Responding to the news, Guernsey's Chief Minister, Jonathan
Le Tocq, has written to European Tax Commissioner Pierre Moscovici,
stating: "Guernsey welcomes the Commission's confirmation
at the meeting that it considers Guernsey to be a cooperative
jurisdiction. This recognises not only Guernsey's adherence to
the OECD and Global Forum international standards on transparency
and information exchange, but also that our corporate tax regime
has been assessed as compliant with the EU's Code of Conduct on
Corporate Taxation, and hence not containing harmful
The endorsement from the EU comes soon after the Commission
included Guernsey on a list that some commentators had misperceived
as a 'black list' of un-cooperative jurisdictions. The
list, published on 17 June, was widely criticised, including by the
OECD, for a lack of transparent and consistent methodology and has
subsequently had its name changed for clarity.
Dominic Wheatley, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry
internationally, said: "We welcome the EU's endorsement of
Guernsey as a cooperative jurisdiction which is fully consistent
with the findings of its Code of Conduct Group on Corporate
Taxation in 2012. This clarification should give full confidence to
all those looking to do business in Guernsey and enjoy the high
quality of the financial business environment here.
"While the confirmation of the Commission's view is
positive for Guernsey, the contribution that Guernsey makes to the
European economy should not be overlooked. Research published by
KPMG earlier this year showed that Guernsey funds have a total
population of £155.4 billion assets under administration and
that almost half of that is invested into continental (non-UK)
Europe, demonstrating Guernsey is also an important business
partner for the EU."
"It has also been welcome to have confirmation from
organisations such as the European Investment Fund that not only do
they also recognise that Guernsey was not in any way 'black
listed', but also that they are aware of the positive
recognition of Guernsey's track record by the OECD."
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