Guernsey to disclose tax affairs

Guernsey plans to finalise a draft agreement on a proposed tax package with the UK, reports small business accountants Harris & Co.

The package comprises an agreement in principle to enhanced reporting of tax information along Foreign Account Tax Compliant Act (FATCA) principles through an inter-governmental agreement (IGA) with the UK, including alternative reporting arrangements for non-domiciled UK tax residents (non-doms), a revised double taxation agreement and a new disclosure facility.

The announcement comes as Guernsey moves towards agreement with the US on FATCA.

Guernsey’s chief minister 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 a very strong platform to compete on the world stage against weaker, less transparent and compliant jurisdictions.

The final details of the enhanced reporting agreement and the alternative non-dom reporting arrangements will be published shortly and will be subject to consultation. The plan is to publish the US and UK IGA concurrently to provide for a streamlined consultation and implementation process.

Both IGAs will be presented to the Guernsey parliament for approval later this year.