Jersey: TIEAs In Haven

Last Updated: 26 February 2014

Article by Javier E. Ayuso (Partner, Bruchou, Fernandez Madero & Lombardi) and Carl O'Shea (Partner, Hatstone Lawyers/Hatstone Abogados)


Javier Ayuso and Carl O'Shea consider Argentina's new white list and what this means for Argentinean clients and their advisers and whether it will create any new opportunities for jurisdictions such as Jersey and Panama.


After more than a decade of fighting against international financial centres (popularly referred to as "tax havens" by governments and the media), mainly through the imposition of the adverse discriminatory treatment of Argentine residents making use of offshores structures and vehicles from jurisdictions set out in a lengthy list,1 Argentina has recently enacted a liberal white list based predominately on the existence of tax information exchange mechanisms in place or being negotiated.2

From the offshore perspective this is a much-welcomed move by Argentina as it is acknowledgment of the hard work being undertaken by jurisdictions such as Jersey and Panama for increasing transparency and cooperation.


Argentina's Income Tax Act's ("ITA") enabling Decree No. 1344/1998 ('Decree 1344') sets out that the low and zero tax jurisdictions3 that will enforce their respective tax information exchange agreements ("TIEAs") signed with Argentina would be removed from the black list, provided that compliance with information requests being made by Argentina would not be prevented based on banking, stock exchange or confidentiality regulations.

Despite the widely-publicized policy of actively seeking to enter into TIEAs, doubts arose as to whether their becoming operative would result in the offshore contracting state being automatically removed from Argentina's black list, or whether it would be necessary for the offshore jurisdiction to take subsequent steps in order to secure this expected positive outcome. It is generally anticipated by a contracting offshore jurisdiction that by executing such an agreement it would be removed from the black list.

On 28 July 2011 Jersey and Argentina entered into a TIEA that came into effect on 9 December 2011 and was published in the Argentine official gazette on 10 January 2012. According to a 1st February 2011 letter sent by the Argentine tax authorities to the Jersey Treasury and Resources Minister, the official position of the Argentine Government was that the coming into effect of such TIEA would not be sufficient in order to exclude Jersey from Argentina's black list, as an amendment to the ITA's enabling decree would also be required. In the letter Argentina committed to amending the decree and removing Jersey from the black list once the TIEA came into force and importantly when there was 'strong evidence of its effective application with respect to banking information'.

Decree No. 589/2013 was published on 31 May 2013 ('Decree 589') and it repealed the low or zero tax jurisdiction list which had been in force since November 2000 and announced its replacement with a 'white list,' which would include all jurisdictions or special regimes deemed as 'cooperative for fiscal transparency purposes.' The new system would apply as from the date in which the federal tax authority would publish the white list, which occurred on 7 January 2014.


During the last few years Argentina adopted a policy of actively seeking to enter into TIEAs with countries having low or zero tax rates.4 Eager to increase tax collections, Argentina expected TIEAs to assist in hunting down tax dodgers.

Accordingly, Decree 589 provided that the inclusion in the white list would depend on the execution (or initiation of negotiations towards the execution) of a TIEA with Argentina, or of a double taxation agreement containing a wide tax information exchange clause, provided that information exchange requests are actually satisfied.

The Argentine perspective coincides with that of the OECD in the sense that international cooperation is a key factor in ensuring the enforcement of countries' tax laws and the effective prosecution of persons engaged in cross border tax evasion. Predictably, the view has been taken that the primary incentive for the blacklisted international financial centres to enter into such agreements is to reach the OECD-magic number: 12 TIEAs.

At the time of writing Jersey has signed 34 TIEAs and 9 Double Taxation Agreements ("DTAs") whilst Panama has signed 19 TIEAs and 16 DTAs. A recent case in Jersey involving a request for information under a TIEA with Norway demonstrates how carefully Jersey trust companies and the Jersey courts will consider a notice to provide confidential information so as to avoid contracting countries simply applying a wide interpretation to the production provisions of the TIEA and thereby engaging in 'fishing expeditions'.

Argentina's White List

For all the good news that the enacting of Argentina's white list brings for previously blacklisted jurisdictions, a few doubts and concerns still remain. For one, outside the tax realm other regulations5 still refer to the original blacklist set out in Decree 1344, the relevant provisions of which have not been formally abrogated but just replaced for tax purposes with the new white list. While consistency would demand – in principle - an analogous treatment across different fields of law, a case by case analysis is advisable.

An additional source of concern is the stability of the new white list. Given that Decree 589 requires not only a tax information exchange mechanism, but also that information requests are actually met, this cooperation requirement subjects the white list to potential review by Argentina's revenue authority based on facts that are not likely to become public. The list was published electronically only and, thus, may be easily altered at any time with no prior notice. However, Argentina's revenue authority resolution No. 3576/2013 has clarified that, for income tax purposes, the white list applicable in any given fiscal year will be the one in effect at the beginning of such period, which provides some certainty to an otherwise unstable scenario.

Jersey And Panama's Expectations

In general terms, international financial centres have an important role to play in asset protection, cross border transactions and bringing investment in a structured way to their 'onshore' friends. With regard to Argentina, it is reported that for the brave and aggressive investor there are currently interesting investment opportunities in Argentina and therefore, at this early stage of the new white list, for jurisdictions such as Jersey and Panama it is hoped that they will be positively welcomed by the Argentina authorities and advisers whilst simultaneously being able to assist locals and potential non-resident investors achieving their required objectives in an efficient, advantageous and compliant way.

Overall, removing a good number of jurisdictions from a blacklist is welcomed and should provide advisers and potential clients with more choice. However, taking a slightly different view, bearing in mind it is often stated that further change is still required in Argentina, it will be a little while longer before jurisdictions such as Jersey and Panama see a significant increase of activity involving new Argentinean residents or international investors wishing to use offshore structures in respect of Argentinean assets.


1 For a review of such treatment based on Argentina's previous blacklist, see Ayuso, J. E. and Lipovetzky, E., 'Argentina's Treatment of Investment from Offshore Financial Centers,' Practical Latin American Tax Strategies, June 2011, vol. 14, Nbr. 6, ps. 3 to 7.

2 Argentina's current white list as of 7 January 2014 comprises the following jurisdictions: Albania, Andorra, Angola, Anguilla, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, Belgium, Belize, Bermuda, Bolivia, Brazil, BVI, Cayman Islands, Canada, Chile, China, Czech Republic, Colombia, Costa Rica, Croacia, Cuba, Curaçao, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Feroe Islands, Finland, France, Georgia, Germany, Ghana, Greece, Greenland, Guatemala, Guernsey, Haiti, Holland, Honduras, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Kazakhstan, Kenia, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Macedonia, Malta, Marruecos, Mauritius, Mexico, Moldova, Monaco, Montenegro, Montserrat, Nicaragua, Nigeria, New Zealand, Norway, Panama, Paraguay, Peru, Philipines, Poland, Portugal, Qatar, Rumania, Russia, San Marino, Saudi Arabia, Sint Maarten, Singapore, Slovaquia, Slovenia, Spain, South Africa, South Corea, Sweden, Switzerland, Tunisia, Turks and Caicos, Turkmenistan, Turkey, UK, Ukraine, Uruguay, USA, Vatican City, Venezuela and Vietnam.

3 The following jurisdictions were blacklisted pursuant to Section 21, § 7, of Decree 1,344 indistinctly as 'tax havens,' 'offshore financial centers' or 'low or nil tax jurisdictions': Anguilla, Antigua and Barbuda, Netherlands Antilles, Aruba, Ascension, the Bahamas, Barbados, Belize, Bermuda, Brunei Darussalam, Campione D'Italia, Gibraltar, Dominica, the United Arab Emirates, Bahrain, Grenada, Puerto Rico, Kuwait, Qatar, Saint Kitts and Nevis, Luxembourg -regime applicable to Holding Corporations pursuant to the Law of 31 July 1929-, Greenland, Guam, Hong Kong, Azore Islands, Channel Islands, Cayman Islands, Christmas Island, Keeling Islands, Cook Islands, Isle of Man, Norfolk Island, Turks and Caicos Islands, Pacific Islands, Solomon Islands, Saint Pierre et Miquelon, Qeshm Island, British Virgin Islands, US Virgin Islands, Kiribati, Labuan, Macau, Madeira, Montserrat, Niue, Patau, Pitcairn, French Polynesia, Andorra, Liechtenstein, Monaco, Uruguay -regime applicable to Financial Corporations, Law 11073-, Tonga, Jordan, Swaziland, Albania, Angola, Cabo Verde, Cyprus, Djibuti, Guyana, Panama, Trinidad and Tobago, Liberia, Seychelles, Mauritius, Tunisia, Maldives, Marshall Islands, Nauru, Sri Lanka, Vanuatu, Yemen, Malta, Saint Helena, St. Lucia, St. Vincent and the Grenadines, American Samoa, Western Samoa, San Marino, Oman, Svbalbard, Tuvalu, Tristan Da Cunha, Trieste (Italy), Tokelau Islands, Ostrava Free Zone (Czech Republic).

4 For an analysis of the constitutional regime applicable to, and other aspects of the TIEAs executed by Argentina, see Ayuso, J. E., Lipovetzky, E. and Rey, D., 'Argentina's Network of Tax Information Exchange Agreements with Low-Tax Jurisdictions,' Bulletin For International Taxation, October 2012, Vol. 66, Nbr. 10, ps. 553 to 555.

5 See Ayuso and Lipovetzky, 'Argentina's Treatment of Investment from Offshore Financial Centers,' op. cit.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
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).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions