International Tax Agreements – New tax information exchange agreement with JerseyMonday, March 23rd, 2009
On 10 March, the UK and Jersey jointly signed a Tax Information Exchange Agreement (TIEA) that will, when it comes into force, allow the respective governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the agreement.
This will be the fifth comprehensive TIEA signed by the UK. The UK already has a TIEA in place with Bermuda and signed TIEAs with the Isle of Man, the British Virgin Islands and Guernsey. To date, Jersey has signed TIEAs with the United States, the Netherlands, Germany, Denmark, Finland, Greenland, Iceland, Norway, Sweden and the Faroes.
Jersey and the UK have also agreed to amend the provisions of the 1952 arrangement between the two governments for the avoidance of double taxation with respect to taxes on income, notably to add provisions on the taxation of income from pensions and a mutual agreement procedure.
The two agreements will enter into force as soon as both governments have completed the legislative procedures needed to give them effect.
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