Guernsey agrees to amend DTA with UK
17 March 2016
Guernsey has supported a UK step to remove one of the loopholes from its own tax system.
In the UK Budget papers yesterday, the UK's Chancellor of the Exchequer set out that a loophole which could enable some non-UK property developers to circumvent the payment of UK taxes would be closed.
In a statement, HM Treasury said: "A Protocol amending the Double Taxation Agreement (DTA) between the UK and Guernsey has been entered into by an exchange of letters between the Governments of Guernsey and the United Kingdom. The amendments remove a potential loophole that may have allowed non-UK resident property developers to avoid income tax or corporation tax in the UK in certain circumstances and are effective from 16 March 2016. The agreement of this protocol demonstrates the UK's and Guernsey's joint commitment to working together to counter tax avoidance and evasion."
Guernsey's Treasury & Resources Minister, Deputy Gavin St Pier, confirmed that Guernsey, along with other jurisdictions including Jersey and the Isle of Man, had been willing to assist.
"We have always maintained that it is for the UK to make its own tax system as robust as possible - but where it falls to us to assist them in that, then we will. In agreeing to this amendment to the existing DTA with the UK, we have done so in accord with our long-standing policy of partnership with the HM Treasury and HM Revenue & Customs to prevent the use of Guernsey for aggressive tax avoidance, tax fraud and tax evasion.
"The amendment incorporates into the existing DTA wording that is in the OECD's Model DTA, and which we would expect to be in any new DTA that emerges from the renegotiation of our existing DTA, shortly to commence. This step is also consistent with the OECD BEPS principles, to which Guernsey has previously indicated that it is generally committed."Back to News
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