(October 2, 2015)

On September 23, 2015 the States of Guernsey and the Government of the Republic of Korea signed an Agreement for the Exchange of Information relating to Tax Matters (Hereafter: TIEA). Although signed, the TIEA has not yet entered into force. For the TIEA to enter into force, the respective ratification procedures have to have been finalized in both countries.

 

The TIEA arranges for the exchange of information upon request.

 

Below we will discuss a selection of provisions included in the TIEA of which we feel our readers might be interested in.

 

According to Article 3, Paragraph 1 of the TIEA (“Taxes Covered”), the TIEA shall apply to the following taxes imposed by the Parties:

 

(a)   in the case of the Republic of Korea:

i)             the income tax;

ii)           the corporation tax;

iii)          the inheritance tax;

iv)          the gift tax;

v)           the value added tax;

vi)          the individual consumption tax;

vii)         the local income tax.

(b)   in the case of Guernsey:

i)             the income tax;

ii)            the dwellings profits tax.

 

Article 3, Paragraph 2 of the TIEA subsequently arranges that the TIEA shall also apply to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes or any substantially similar taxes if the Parties so agree.

 

Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request. Paragraph 5 of Article 5 of the TIEA contains regulations regarding the information to be included in the request for information.

 

Article 6 of the TIEA contains regulations regarding the Possibility of Conducting Tax Examinations Abroad.

 

Article 7 of the TIEA contains regulations regarding the Possibility of Declining a Request. Based on Paragraph 1 of Article 7 the competent authority of the requested Party may decline to assist:

(a)    where the request is not made in conformity with this Agreement;

(b)    where the requesting Party has not pursued all means available in its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or

(c)    where the disclosure of the information requested would be contrary to public policy.

 

In addition Paragraph 5 of Article 7 of the TIEA contains a non-discrimination clause.

 

Article 12 of the TIEA contains regulations regarding a Mutual Agreement Procedure.

 

Click here to be forwarded to the text of the TIEA as available on the website of the Government of the States of Guernsey, which will open in a new window.

 

 

Copyright – internationaltaxplaza.info

 

 

Stay informed: Subscribe to International Tax Plaza’s Newsletter!

 

and

 

Follow International Tax Plaza on Twitter (@IntTaxPlaza)

 

 

Submit to FacebookSubmit to TwitterSubmit to LinkedIn
INTERESTING ARTICLES