Tax Information Exchange Agreement with France

23 March 2009

Jersey’s Chief Minister has signed a Tax Information Exchange Agreement with France, as part of the island’s ongoing commitment that began with Jersey’s first TIEA, signed with the USA in 2002.

Chief Minister, Senator Terry Le Sueur, signed the TIEA with the French Minister of Finance, Christine Lagarde. Senator Le Sueur says: “These agreements to co-operate over tax matters highlight the mutual respect between jurisdictions. Our continuing programme of signing agreements with jurisdictions across the globe demonstrates our willingness to comply with international standards of financial regulation, anti-money laundering, and combating the financing of terrorism.

“As France has said, the signing of the TIEA allows both parties to realise their shared intention to implement the principles advocated by the OECD and to have, in the future, an effective instrument for fighting international tax fraud and evasion.

“Last year the OECD Secretary General referred to the fact that Jersey has signed a number of Tax Information Exchange Agreements, and called for clear political recognition for those offshore financial centres that have made this kind of progress. We hope to see this reflected in the outcome of the G20 Summit in London on April 2 and that there will be greater pressure put on those countries, including some OECD members, who have not yet shared Jersey’s commitment to transparency and co-operation.”

On signing a similar agreement with the UK, the Financial Secretary to the Treasury, Stephen Timms, said: “Exchange of information and transparency between countries and territories is vital in combating tax avoidance and evasion. More countries and territories must now follow Jersey’s example. In coming weeks we will be working with G20 partners to boost global co-operation to address tax evasion. I urge those who have not yet met international standards to think again and start work on the necessary reforms immediately”.

Jersey is close to signing a TIEA with Ireland and negotiations are well-advanced with Australia and New Zealand. Discussions are also underway with Spain and Italy and Jersey is more than willing to extend such agreements to all other jurisdictions, including OECD countries, when they are ready to engage.