GUERNSEY is to sign tax agreements with seven Nordic countries.
Chief Minister Lyndon Trott (pictured) will sign the four separate agreements, including tax information exchange agreements, with Denmark, Finland, Greenland, Iceland, Norway, Sweden and the Faroe Islands in Helsinki in October.
The related agreements will provide relief from double taxation in a number of specific areas. Double-tax agreements open up countries to do business with Guernsey because people would no longer be required to pay tax twice.
‘These agreements reinforce our independent status on tax matters and our status in a global financial services industry,’ said Deputy Trott.
‘Securing the best available benefits in these negotiations is important for the island’s competitive position and we believe it will open up some real economic advantages for certain sectors of our economy.’
Signing the agreements will create the opportunity for Guernsey to negotiate further agreements to avoid double taxation, combined with further information exchange agreements, with each of the Nordic countries in the relatively near future.
Guernsey and the other signatories will on request exchange bank and other information relating to both criminal and civil tax matters.
On criminal tax matters, information can be exchanged to aid investigations into conduct before or after the coming-into-force of the agreement.
For civil tax matters, the exchange can apply only in respect of taxable periods beginning when or after the agreement takes effect.
Article posted on 18th July, 2008 - 2.29pm
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