Guernsey has signed further bilateral Tax Information Exchange Agreements (TIEAs) with Canada and Romania, taking the total number of TIEAs signed by the island to 21.
On 19 January 2011 a bilateral TIEA was signed with Canada by Guernsey’s Chief Minister, Lyndon Trott.
“In view of the historical connections between Guernsey and Canada, I was delighted to welcome His Excellency James R Wright, High Commissioner for Canada, to Guernsey, to sign the Agreement," says Trott (pictured with Wright). "While in the Island, His Excellency took the opportunity to meet with industry representatives with business connections in Canada.
“The signing of this TIEA, and the ongoing negotiations that Guernsey has with many other countries, clearly demonstrates the continued commitment to the OECD’s principles of effective exchange of information, originally made in 2002. Guernsey remains in the premier league of tax transparency, an extremely important factor in a competitive global economy.”
Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters. Signature of the TIEA with Canada will result in the tax exemption available in Canada for dividends received in Canada out of active business income earned by foreign affiliates applying to foreign affiliates of Canadian companies resident in Guernsey. It will also prevent the income of foreign affiliates resident in Guernsey becoming liable to tax in Canada as they are earned.
