Jersey Finance has welcomed the signing of a base erosion and profit shifting (BEPS) multilateral convention as a demonstration of the Island's position as an international finance centre of substance and excellence.

Representatives of more than 60 jurisdictions, including Jersey's Chief Minster, Senator Ian Gorst, signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, at the OECD headquarters in Paris yesterday.

The objective of the BEPS Project is to help governments prevent tax planning strategies that artificially shift profits and minimise tax liabilities. The convention signed yesterday ensures that existing bilateral tax agreements become BEPS-compliant and allows Jersey to strengthen its tax treaty network more effectively.

Jersey Finance CEO Geoff Cook said: "The purpose of BEPS is to ensure profits are taxed where the economic activity that generates the profits is carried out, and where value is created. Jersey's finance industry adds real value to its clients' business.

"The signing of the BEPS multilateral convention demonstrates Jersey's commitment to ensuring that we maintain our leading position as a jurisdiction which complies with international standards on financial regulation."

Jersey became a BEPS Associate on 16 June 2016 and is a member of the BEPS Inclusive Framework, which brings together 85 countries and jurisdictions – including G20 and EU Member States, as well as many developing countries. As such, Jersey is able to contribute to the overall development of the project and demonstrates Jersey's active participation in the development of international standards and will further Jersey's reputation as a responsible international finance centre.

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