Tax: Exchange of Information Agreement between the Governments of Jersey and Poland

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

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
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 28 November 2011:

Decision Reference: MD-C-2011-0145
Decision Summary Title :	Signing of the agreement between Jersey and the Republic of Poland for the exchange of information relating to tax matters.		Date of Decision Summary:	28 November 2011
Decision Summary Author:	International Affairs		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Signing of the agreement between Jersey and the Republic of Poland for the exchange of information relating to tax matters.		Date of Written Report:	28 November 2011
Written Report Author:	International Affairs		Written Report : Public or Exempt?	Public
Subject: Signing of the agreement between Jersey and the Republic of Poland for the exchange of information relating to tax matters.
Decision(s): The Chief Minister agreed to sign the Tax Information Exchange Agreement between Jersey and the Republic of Poland.
Reason(s) for Decision: The signing of this Agreement is a continuation of the ongoing programme of signing tax information exchange agreements with Organization and Economic Cooperation and Development (OECD) member countries. The Chief Minister is authorised to sign the Agreement in accordance with the provisions of Article 18(2) of the States of Jersey Law 2005 and paragraph 1.8.5 of the Strategic Plan 2006-2011 adopted by the States on 28 June, 2006.
Resource Implications: There are no manpower or resource implications associated with this decision.
Action required: The Agreement will be signed and subsequently presented to the States for ratification.
Signature:		Position: Senator Ian Gorst, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Tax: Exchange of Information Agreement between the Governments of Jersey and Poland

Decision Summary

SIGNING OF THE AGREEMENT BETWEEN JERSEY AND THE REPUBLIC OF POLAND FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS

Ministerial Decision Report

Purpose of Report

1. To recommend that the Chief Minister agrees to sign the tax information exchange agreement between Jersey and the Republic of Poland.

Background

In February 2002, Jersey entered into a political commitment to support the Organization for Economic Cooperation and Development’s (OECD) tax initiative on transparency and information exchange through the negotiation of tax information exchange agreements to an agreed international standard.

Successive G20 Summits have encouraged jurisdictions to make progress in agreeing, implementing and abiding by the necessary international agreements for information exchange. In response, Jersey has maintained an active programme of negotiating agreements with G20, OECD and European Union (EU) member countries. This has served to enhance the Island’s international personality, and generally has helped to engender a more favourable view of the Island amongst the international community.

In September 2009, the Global Forum on Transparency and Information Exchange for Tax Purposes, a body of which more than one hundred jurisdictions are members, agreed a peer review process to assess compliance with the international standard. To oversee this process, a Peer Review Group was set up chaired by France, with four vice-chairs from India, Japan, Singapore and Jersey.

As a Vice-Chair of the Global Forum Peer Review Group Jersey has led by example and has now signed, initialled, or is in an advanced stage of negotiating, agreements with twenty-six out of the thirty-four members of the OECD.

A total of 25 tax information exchange agreements (TIEAs) and two double taxation agreements (DTAs) have now been signed, of which 18 TIEAs and one DTA are in force.

The Agreement with the Republic of Poland

Poland is a member of the OECD and the signing of this Agreement is continuation of Jersey’s ongoing programme of signing tax information exchange agreements with OECD member countries.

Negotiations with the Republic of Poland have produced:

a) a tax information agreement which is consistent with the agreements signed previously with all other countries;

b) a supplementary administrative agreement for the avoidance of double taxation on individuals;

c) a supplementary administrative agreement for the avoidance of double taxation with respect to enterprises operating ships or aircraft in international traffic.

Procedure for Signing and Ratifying the TIEA

The TIEA with the Republic of Poland is due to be signed by the Chief Minister, on 2 December 2011, in accordance with the provisions of Article 18(2) of the States of Jersey Law 2005 and paragraph 1.8.5 of the Strategic Plan 2006-2011 adopted by the States on 28 June 2006.

Following the signing stage, the TIEA will be presented to the States for ratification, following which it will be published and entered into the official record. In due course regulations will be made for the Agreement to enter into force when the domestic procedures of both parties have been completed.

The States, on 29 January 2008, adopted The Taxation (Exchange of Information with Third Countries (Jersey) Regulations 2008. The schedule to these Regulations lists the Third Countries, and includes the taxes covered by the agreements being entered into. As further agreements are entered into, the Regulations are amended to include in the schedule the jurisdiction and the taxes concerned. The necessary regulations to provide for the inclusion in the schedule of the Republic of Poland and the relevant taxes will be presented to the States for adoption in due course subsequent to the signing and ratification of the Agreement.

Recommendation

The Chief Minister is recommended to agree to sign the aforementioned Agreement between Jersey and the Republic of Poland.