Guernsey has agreed a tax reporting arrangement with the UK that is modeled along the lines of the US Foreign Account Tax Compliance Act's (Fatca) intergovernmental agreement (IGA).
Guernsey has agreed a tax reporting arrangement with the UK that is modeled along the lines of the US Foreign Account Tax Compliance Act’s (Fatca) intergovernmental agreement (IGA).
The deal includes alternative reporting arrangements for non-domiciled UK tax residents.
At the same time, Guernsey is moving towards signing an IGA with the US. Both IGAs will be put to the Guernsey parliament later this year. The jurisdiction argues that they will improve the island’s position as a “tax transparent, co-operative jurisdiction and will best position Guernsey’s finance sector for long term growth opportunities.”
Guernsey’s chief minister Peter Harwood (pictured) said: Guernsey is fully committed to combating tax evasion and the principle of automatic exchange and our twin IGA approach to US / UK reporting will provide our industry with a very strong platform to compete on the world stage against weaker, less transparent and compliant jurisdictions.”
“The agreement that we are working towards with the UK will be consistent with our belief that Guernsey’s long-term sustainable economic future is best served by safeguarding our position and reputation as a respected, well regulated, tax transparent jurisdiction. With such a UK agreement, automatic exchange under the EU Savings Directive and importantly an IGA arrangement with the US for Fatca now almost concluded, we believe Guernsey business will have both certainty and a competitive advantage.”