Tax Information Exchange Agreement between the States of Jersey and the Government of the People's Republic of China

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 30 November 2010 regarding: Tax Information Exchange Agreement between the States of Jersey and the Government of the People's Republic of China.

Decision Reference: MD-C-2010-0088
Decision Summary Title :	Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the People’s Republic of China		Date of Decision Summary:	25th November 2010
Decision Summary Author:	Project & Research Officer		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Ratification of the Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the People’s Republic of China		Date of Written Report:	25th November 2010
Written Report Author:	Adviser – International Affairs		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the People’s Republic of China.
Decision(s): The Chief Minister, acting on the recommendation of the Council of Ministers, agreed to lodge ‘au Greffe’ a report and proposition seeking ratification of the Agreement for the Exchange of Information Relating to Tax Matters between the Government of the People’s Republic of China and the States of Jersey.
Reason(s) for Decision: The tax information exchange agreement entered into with the Chinese Republic is a continuation of the ongoing programme of signing TIEAs or DTAs with all OECD and G20 member countries. Negotiations with the Government of the People’s Republic of China have produced an agreement on the following: (a) A tax information exchange agreement which is consistent with agreements signed previously with other countries. The agreement provides for the exchange of information on tax matters on request. The agreement will come into force once the parties to the agreement have ratified it, and any necessary legislative steps have been taken; (b) A joint declaration which recognises that the agreement constitutes a step forward in the global effort to establish an international financial system that is based on transparency and effective exchange of information in tax matters. The joint declaration also recognises Jersey’s “good neighbour” policy, and the Government of the People’s Republic of China has indicated that it will use its best endeavours to ensure that where EU Directives and Regulations concerning the Regulation of Financial Services include provisions referring to the position of third countries, particularly in relation to assessments of equivalence in compliance with EU standards and access to EU markets, Jersey will be treated as fairly and favourably as other third countries. Of particular interest is the statement in the joint declaration that following the entry into force of the TIEA, the Chinese Republic and Jersey will continue the dialogue to examine what measures could be adopted to further enhance and broaden their political and economic relationship including the further examination of undesired tax barriers, and the further extension of the arrangements for information exchange, namely through the negotiation of an agreement for the avoidance of double taxation with respect to certain income of individuals. (c) A memorandum of understanding between the competent authorities of the Chinese Republic and the Government of Jersey which refers to the allocation costs. Most importantly it also states that upon entry into force of the TIEA and in respect of taxes covered by the Agreement, the Chinese authorities shall exclude Jersey from the “list of countries, territories and regions with clearly more favourable tax regimes”, as approved by Ministerial Order No. 150/2004 of 13 February.
Resource Implications: There are no financial or manpower implications.
Action required: The Greffier of the States is requested to lodge ‘au Greffe’ the Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the People’s Republic of China, to be taken into consideration.
Signature:		Position: Senator Terry le Sueur, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):