The recent case of Volaw Trust & Corporate Services Limited
and Larsen v Comptroller of Taxes [2013] JRC 095 is the first case
to decide on an appeal against a notice issued by the Comptroller
of Income Tax under the Taxation (Exchange of Information with
Third Countries) (Jersey) Regulations 2008 (the
"Regulations").
The notice was served against the backdrop of the Tax Information
Exchange Agreement ("TIEA") between Jersey and Norway
which had come into force on 7 October 2009. The notice
sought the production of specified documents in relation to the
Norwegian tax affairs of Mr Larsen as held by a third party, Volaw
Trust & Corporate Services Limited.
The Regulations give the Comptroller power to require production
of tax information from third parties when he has "reasonable
grounds for believing ... (a) that a tax payer may have failed to
comply ... with a domestic law of a third country concerning tax;
and (b) that any such failure has led, or is likely to lead to
serious prejudice to the proper assessment or collection of
tax." "Tax information" has to be
"foreseeably relevant to the administration and enforcement of
the domestic laws of a third country." The Comptroller
must give the tax payer affected a written summary of the reasons
behind his decision to issue a notice. Read more>
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