(June 18, 2015)

On June 17, 2015 we already reported on the response of the Liechtenstein Government to the publication of the European Commission’s list of so-called “non-cooperative jurisdictions” (see our article of June 17, 2015). However, Liechtenstein is not the only country that has responded. According to a news release issued by the States of Guernsey on June 17, 2015, Guernsey's Chief Minister and its Commerce & Employment Minister expressed their “astonishment that Guernsey has been included on a list of 30 so-called 'non-cooperative' non-EU jurisdictions”.

According to the news release Deputy Jonathan Le Tocq, Guernsey's Chief Minister said: 

"The Commission appears to have hurriedly put together a list of so-called 'non-cooperative' non-EU jurisdictions using some very arbitrary criteria. It is this type of arbitrary and inconsistent use of "black lists" that international standards are supposed to be replacing, so this seems to me to run counter to what the Commission itself is trying to do on tax transparency. It also runs counter to Commissioner Moscovici's own positive views on Guernsey, which we discussed just over a month ago.

I have written to Commissioner Moscovici today to express Guernsey's disappointment and surprise that we are on this list, and to ask him to have Guernsey removed from it as soon as possible. The fact remains that we lead a number of EU Member States on tax transparency and cooperation, and we will be partners of the EU in the automatic exchange of information under the Common Reporting Standard. This means we are well ahead of the full EU 28 - and yet we have been erroneously placed on an arbitrarily defined blacklist. Our priority is to be removed from this list."

The news release furthermore states that Deputy Kevin Stewart, Minister for Commerce & Employment, added that the list is very odd since according to him Guernsey was only on nine lists rather than 11, which he states was confirmed by the Latvian and Polish governments (According to the European Commission a State has to be mentioned on the lists of least 10 EU-States, before it will be included in the list of 30 so-called 'non-cooperative' non-EU jurisdictions).

The news release also states that in including Guernsey on the list, the following factors in relation to Guernsey have been overlooked:

·        Voluntarily adopting the EU Savings Directive and moving to automatic exchange of information from 2011. This means that information relating to accounts held in Guernsey by individuals resident in an EU Member State is now automatically sent to their home jurisdiction each year

·        Voluntarily adhering to the principles of the Code of Conduct on Business Taxation, which has been formally endorsed by the Code Group

·        Being part of the Early Adopter Group of the Common Reporting Standard on automatic exchange of information, after signing the Multilateral Competent Authority Agreement in October 2014. This means that we will be able to exchange information for 2016 in 2017, unlike a full EU Member state such as Austria

·        Being assessed by the OECD's Global Forum on Tax Transparency and Exchange of Information for Tax Purposes as largely compliant with the international standards on exchange of information on request - a rating that is shared with the UK, Germany and the USA

·        Being a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters

·        At 1 May 2015, having 57 Tax Information Exchange Agreements in place (including 21 EU Member States and 16 G20 members) and 13 Double Taxation Agreements in place.

At the end of the news release the public views as expressed by the UK Government, the European Tax Commissioner and the OECD on Guernsey's record on tax transparency and cooperation are quoted. In this respect especially the remarks made by Commissioner Moscovici himself are very interesting. Since according to the press release just over a month ago on May 5, 2015 Mr. Moscovici has stated: "I very much welcome the active engagement of the Channel Islands in the key initiatives involved in the fight against tax evasion, fraud and abusive tax avoidance in which they are important partners of the EU. Their commitment to the adoption of the Common Reporting Standard on automatic exchange of information, alongside the EU Member States, is particularly positive."

To be forwarded to the press release as published by the States of Guernsey click here.

Copyright – internationaltaxplaza.info

Are you looking to hire a Tax Professional?

Then check out our very interesting anniversary treat!

Place 3 job ads for free in June and the rest against a 50% rate!