Guernsey Expands Tax Cooperation Network

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Guernsey has confirmed the signing of its seventh double tax agreement since the beginning of 2012, with Luxembourg, adding to its network of agreements with provisions for the exchange of information on request in line with international best standards.
Guernsey's Treasury Minister, Gavin St Pier signed the agreement with Luxembourg's Charge d'Affaires to the UK, Beatrice Kirsch, and commented : "This is an important further component in Guernsey's network of tax agreements. Following on so closely from the signing of our double tax agreement with Hong Kong, it is further demonstration of Guernsey meeting the highest global standards of international tax co-operation."
Rob Gray, Director of Income Tax said : " This double tax agreement will create a mechanism for alleviating double taxation and exchanging tax information with Luxembourg relating to both corporate and personal incomes. It also means that Guernsey's network of agreements continues to cover the majority of EU Member States and G20 countries."
In addition to agreements with major international finance centers such as Luxembourg, Guernsey is also continuing to conclude tax information exchange agreements with developing economies in order to assist them in protecting their tax revenue. While in London, St Pier also signed a Tax Information Exchange Agreement with Botswana at the Botswana High Commission, and a further Tax Information Exchange Agreement - Guernsey's 43rd - with Swaziland is to be concluded shortly.
"Guernsey tax team has built strong relationship with Southern African Development Community ( SADC ) countries, including Botswana and Swaziland, over the past couple of years. The Organization for Economic Cooperation and Development's Global Forum has emphasized the importance of working with developing countries to share expertise on tax information exchange, thereby helping them to protect their tax revenues", continued St. Pier.
"In October 2011, Ron van der Merwe, the Chair of the Tax Agreements Working Group of the SADC, said that the negotiation of tax agreements between SADC Member States and Guernsey was a major step forward in creating the basis for exchange of information for SADC members."
Rob Gray added : "The conclusion of agreements with Botswana and Swaziland shows that Guernsey retains commitment to working with and sharing best practice with SADC members and other developing economies."