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The governments of the UK and Guernsey have signed a new tax information exchange agreement.
They have also agreed to amend the provisions of the 1952 arrangement between the two administrations for the avoidance of double taxation with respect to taxes on income.
The most notable changes were the addition if provisions on the taxation of income from pensions and a mutual agreement procedure.
The agreement – signed by Willy Bach, parliamentary under secretary of state for Justice, and Lyndon Trott, chief minister of Guernsey – will be laid in due course as schedules to a draft order in council, for consideration by the House of Commons. It will then also be available from the Stationery Office.
The financial secretary to the Treasury, Stephen Timms, said that the new tax information exchange agreement ‘represents a significant step in [the UK’s] efforts to counter and prevent tax evasion and avoidance’.
The agreement will enter into force as soon as both governments have completed the legislative procedures needed to give effect to the document.
