Tax Information Exchange Agreement with Republic of Austria

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.

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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
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

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 14 September 2012:

Decision Reference: MD-C-2012-0088
Decision Summary Title :	Tax Information Exchange Agreement between the States of Jersey and the Republic of Austria		Date of Decision Summary:	12th September 2012
Decision Summary Author:	Project and 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 between the Government of Jersey and the Government of the Republic of Austria on the Exchange of Information relating to Tax Matters		Date of Written Report:	11th September 2012
Written Report Author:	Adviser – International Affairs		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Ratification of the Agreement between the Government of Jersey and the Government of the Republic of Austria on the Exchange of Information relating to Tax Matters
Decision(s): The Deputy Chief Minister agreed to lodge ‘au Greffe’ the Report and Proposition inviting the States to ratify the Agreement for the exchange of information relating to tax matters between the Government of Jersey and the Government of the Republic of Austria.
Reason(s) for Decision: The Agreement entered into with the Government of the Republic of Austria is a continuation of the ongoing programme of entering into tax agreements to the international standard with EU, OECD and G20 member jurisdictions. Great importance is attached to maintaining a good relationship with the EU Member States and this Agreement is seen as a significant further strengthening of that relationship which will help to facilitate greater market access. The Agreement is now being presented to the States for ratification, following which it will be published and entered into the official record. The agreement will enter into force when the domestic procedures of both parties have been completed.
Resource Implications: There are no resource implications.
Action required: The Greffier of the States is requested to arrange for the Report and Proposition to be lodged ‘au Greffe’ for States debate at the earliest opportunity.
Signature:		Position: Senator B.I. Le Marquand Deputy Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Tax Information Exchange Agreement with Republic of Austria

Ratification of the Agreement between the Government of Jersey and the Government of the Republic of Austria on the Exchange of Information relating to Tax Matters.

PROPOSITION

The States are asked to decide whether they are of opinion-

To ratify the Agreement between the Government of Jersey and the Government of the Republic of Austria on the exchange of information relating to tax matters, as set out in the appendix to the report of the Chief Minister dated 11th September 2012.

CHIEF MINISTER

REPORT

Background

1. In February 2002, Jersey entered into a political commitment to support the OECD tax initiative on transparency and information exchange through the negotiation of tax information exchange agreements to an agreed international standard.

2. In September 2009, the Global Forum on Transparency and Information Exchange for Tax Purposes, a body of which some 110 jurisdictions are now 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, Jersey and Singapore.

3. 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 EU, OECD and G20 member jurisdictions. This has served to enhance the Island’s international personality, and generally has helped to engender a more favorable view of the Island amongst the international community.

4. The international tax information exchange standard can be met through either a Tax Information Exchange Agreement (TIEA) or a Double Tax Agreement (DTA). The advantage of a DTA is that it offers benefits to individuals and the business community through the avoidance of double taxation or reduced rates of withholding tax, in addition to providing for exchange of information to the international standard. However, the majority of jurisdictions with whom the island has sought to negotiate an agreement have not been prepared to consider a DTA on the grounds that they would derive little, if any, benefit from such an agreement because Jersey is a zero tax jurisdiction.

6. The latest position in respect of the programme of negotiating tax agreements in attached as an appendix to this report. A total of twenty nine TIEAs and four DTAs have now been signed of which twenty three TIEAs and two DTAs are in force. Almost without exception the delay in bringing agreements into force is due to the length of time taken by the other parties to the agreements to complete their domestics procedures for the ratification of the agreements.

7. As a Vice Chair of the Global Forum Peer Review Group, Jersey has been determined to lead by example, and has attached particular importance to entering into agreements with the EU, OECD and G20 member jurisdictions. Agreements have been signed, or negotiations have been completed or are well advanced, with twenty five of the twenty seven EU member states, thirty two of the thirty four OECD members and seventeen of the nineteen G20 countries(the 20th member of the G20 is the European Union) .

8. Jersey is party to the Peer Review process of assessment of compliance with the international standards, and a report of the assessment of Jersey was published at the end of October 2011. The review concluded that Jersey’s domestic laws provide a satisfactory framework for the exchange of relevant information. The assessors said “overall, this review of Jersey identifies a legal and regulatory framework for the exchange of information which generally functions effectively to ensure that the required information will be available and accessible….. Jersey practices to date have demonstrated a responsive and co-operative approach”

The Agreement with the Government of the Republic of Austria

9. The Agreement entered into with the Government of the Republic of Austria (“the Agreement”) is a continuation of the ongoing programme of entering into tax agreements to the international standard with EU, OECD and G20 member jurisdictions. Austria is a member of the EU and the OECD.

10. The Agreement is attached as an appendix to this report. The Agreement is in line with the OECD Model TIEA and provides for the exchange of information on tax matters on request. It is consistent with agreements signed previously with other jurisdictions and which the States have ratified.

11. Great importance is attached to maintaining a good relationship with the EU Member States and this Agreement is seen as a significant further strengthening of that relationship which will help to facilitate greater market access.

Procedure for signing and ratifying the Agreement

12. The Jersey signing of the Austrian alternates was undertaken by the Treasury and Resources Minister in the presence of the Austrian Ambassador on the 7th September 2012. The Jersey alternates which were sent previously to Austria for signing by the Austrian Minister of Finance were signed by the Acting Chief Minister . In both cases the signing was 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 the 28th June 2006. The Council of Ministers authorised the Chief Minister to delegate the Acting Chief Minister and the Treasury and Resources Minister to sign on behalf of the Government of Jersey.

13. The Agreement is now being presented to the States for ratification, following which it will be published and entered into the official record. The agreement will enter into force when the domestic procedures of both parties have been completed.

14. The States on the 29th 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. The necessary Regulations to provide for the inclusion in the Schedule of the Republic of Austria, and the relevant taxes covered, are being separately presented to the States for adoption.

Financial and manpower implications

15. There are no implications expected for the financial and manpower resources of the States arising from the ratification and implementation of the Agreement.

11th September 2012