Hot on the heels of the Isle of Man and Guernsey, Jersey has agreed to sign an automatic exchange of information agreement with the UK, after having secured special reporting arrangements for non-doms and a disclosure facility to enable UK tax payers who have undeclared money in the Island to regulate their affairs prior to the information exchange regime beginning.
Although practitioners remain worried about the costs of compliance and that the new regime will drive away entirely legitimate and good business from the Island to lower cost (and less regulated) jurisdictions, those in the industry hope that by having agreed to this route the UK will stop its relentless attacks on the Island's finance industry and support its involvement in appropriate tax mitigation and the free movement of capital. One of the early tests of this will be the UK's approach to renegotiating the existing Double Taxation Agreement, which it has committed to reconsider as part of the overall agreement with the Islands.
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