Ratificatn ofthe Agremnts forthe ExchofInfoRltngtoTaxMattersbetwentheSoJ&theNordiccountries

STATES OF JERSEY

RATIFICATION OF THE AGREEMENTS FOR THE EXCHANGE OF INFORMATION RELATING TO

TAX  MATTERS BETWEEN THE STATES  OF JERSEY AND THE NORDIC  COUNTRIES (DENMARK,

THE  FAROES, FINLAND, GREENLAND, ICELAND, NORWAY AND SWEDEN)

Lodged au Greffe on 10th February 2009 by the Chief Minister

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to r a tify the agreements for the exchange of information relating to tax matters between the States of

Jersey and the  Nordic countries of Denmark,  the Faroes, Finland,  Greenland,  Iceland,  Norway and Sweden as set out in the Appendix to the Report of the Chief Minister dated 1st December 2008.

CHIEF MINISTER

REPORT

Agreements  to  be  entered  into  with  Denmark,  the Faroes,  Finland,  Greenland,  Iceland,  Norway  and Sweden for the exchange of information relating to tax matters

1. T h e States are askedto ratify the signed agreements to be entered into with Denmark,theFaroes,Finland, Greenland, Iceland,NorwayandSweden for the exchange of information relating to tax matters attached as an Appendix to this report.

Background

2. I n February 2002 Jersey entered into a political commitment to supporttheOECD's tax initiative on transparency and information exchange through the negotiationof tax information exchangeagreements with eachof the OECDMember States.
3. T h e Council of Ministers current negotiating strategy in respect of tax information exchange agreements is –

to build up good political and economic relationships with individual countries, particularly those in the European Union;

to obtain general support for the Island where matters affecting the Island are being considered within international fora;

to obtain the removal of key barriers to market access, such as black lists;

to recognise that all the Island's wishes may not be achieved to the outset, and establish a platform from which to build in securing further benefits in the future;

to press for action to be taken by the OECD Member States against the non-committed/non-co- operative jurisdictions who may otherwise be gaining advantage from that position.

4. T h e Councilof Ministers have alsoseenthe negotiation of tax information exchange agreementsasone of balance between –

the impact on business arising from the perception that Jersey is ahead of its competitors on transparency;

the impact on business of negative action taken by OECD/EU Member States against non-co- operative jurisdictions, if they should decide that Jersey is in that category;

the impact on business of the positive action taken by OECD/EU Member States when they recognise Jersey as a co-operative jurisdiction.

5. T h e action the Island has taken in signing tax information exchange agreements has been recognised by the international community.On21stOctober 2008 at a Conferenceon the Fight against International Tax Evasion and Avoidance:ImprovingTransparency and Stepping Up the Exchangeof Information on Tax Matters, held in Paris, theSecretary General of the OECD,commented favourably onthe action taken byJerseyinnegotiating tax information exchangeagreementsand stated that whatisnowrequired is "aclear political recognition beinggiven to thoseoffshore financial centres that have madeprogress". In the Summary of Conclusions of the Paris Conference it is stated that the participating countries

"recognise the efforts made by certain jurisdictions [such as Jersey] that have set out a new direction for their

financial  centres  and  have  signed  tax  information  exchange  agreements,  which  constitute  effective instruments of fighting international tax fraud and evasion".

6. J e ff rey Owens, the Head of the OECD Centre for Tax Policy and Administration, said at the signing of the tax information exchangeagreements with the Nordiccountries in Helsinki on 28th October that "we at the OECD recognise the importance of the progress Jersey has madein signing TIEAs,andinreceiving clear political endorsement from OECDmember countries. To show that the choice Jersey has madeis the rightonewe recognise the need forfirm action to betaken with regard to those jurisdictions that are not showingthesamecommitment to tax information exchange". The G20SummitinWashington held on 15thNovember 2008 also issued a declarationwhich called upon national andregional authorities to implement national and international  measures  and  protect  the  global financial  system from  unco- operative and non-transparent jurisdictions that poserisksof illicit financial activity.
7. T  h e procedure adopted in respect of individual agreementsisfor industry to beconsultedandfor the viewsof industry to be taken into accountby the Councilof Ministers in decidingwhethertosupport the signing of a tax information exchangeagreement. If theCouncilofMinisters decide that it would bein the Island's best interests for anagreementtobe signed, both parties to the agreement then exchange signed  agreements which allows  both to  start  their  ratification  procedures  contemporaneously. Agreements are signed by the Chief Minister inaccordance 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 bythe States on 28th June2006.Subsequentto the signing by the Chief Minister, agreementsarepresentedto the States for ratification, are published, entered into the official record andregulations are madefor the agreements to enter into force when the domestic procedures oftheother party alsohavebeencompleted.
8. T h e States on 29th January2008adopted the Taxation (Exchangeof Information with Third Countries) (Jersey) Regulations 2008(R&O.23/2008).The Schedule tothese Regulations lists the ThirdCountries, and includesthe taxes covered by the Agreementsbeing entered into.As further agreements are entered into, the Regulations need tobeamendedto include in the Schedule the jurisdiction and taxes concerned. The necessary Regulations to provide for the inclusionin the Scheduleof the 7 Nordic countries and the relevant  taxes are  being presented  to the  States  for  adoption  subsequent to  the ratification  of the Agreements for the exchange of information relating to tax matters being entered into with thecountries concerned (seeP.21/2009).
9. T  h e Agreementsdonotcome into force until both of the parties concerned have completed their own domestic procedures.The date whenanagreement is to come into force isincludedin a forthcoming Schedule attached to the Regulations.

Agreements with the Nordic countries

10. T h e  negotiations  with  the  Nordic  countries  produced agreement on  the  following, attached as an Appendix to this report.

(a ) a t ax information exchange agreement which is consistent with the agreements signed previously

with  other  countries  such  as  the  United  States  of  America  in  2002,  the  Kingdom  of  the Netherlands in 2007 and the Federal Republic of Germany in 2008.

T h e ag r e e m e nt provides for the exchange of information on tax matters on request, however that

request has to be formulated in writing with the greatest detail possible. There can be no "fishing expedition". The agreements only come into force once the States have ratified them and have approved the necessary Regulations, and the other countries concerned have completed their own domestic procedures;

( b ) a n agreement for the avoidance of double taxation of individuals in respect of income from

employment, payments received by students for maintenance, education and training;

( c) a n agreement for the avoidance of double taxation in respect of enterprises operating ships or

aircraft in international traffic;

(d ) a n agreement on the access to mutual agreement procedures in connection with the adjustment of

profits of associated enterprises;

(e ) a p olitical declaration which –

recognises Jersey's commitment to comply with international standards and to

participate in international efforts to combat money laundering, terrorist financing, financial and other crimes including fiscal crime;

welcomes Jersey as a member of the community of nations committed to international co-operation and full and effective information exchange on tax matters, and wishes to

assure the government of Jersey that Jersey will be fully and equally treated as such; provides for a continued dialogue to examine what measures could be adopted to

further enhance and broaden the political and economic relationship including the further alleviation of elements of double taxation, discrimination and other undesired tax barriers and the further extension of the arrangements for information exchange.

The negotiation of the agreements has helped to establish a good relationship with the Nordic countries and has helped improve their understanding of and influence favourably their attitude towards the Island. The agreements are considered to enhance the Island's international personality and generally to lead to a more favourable response to the Island on a wide range of market access and other economic/political issues.

Financial/manpower implications

There are no implications for the financial or manpower resources of the States arising from the ratification and implementation of the agreements with the Nordic countries.

1st December 2008

APPENDIX

DENMARK

AGREEMENT BETWEEN JERSEY AND DENMARK FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS

W  h e reas Jersey and Denmark ("the parties") have long been active in international efforts in the fight against financial and other crimes, including the targeting of terrorist financing;

W  h e reas it is acknowledged that Jersey under the terms of its Entrustment from the UK has the right to negotiate, conclude, perform and, subject to the terms of this Agreement, terminate a tax information exchange agreement with Denmark;

W  h e reas Jersey on 22 February 2002 entered into a political commitment to the OECD's principles of effective exchange of information;

W  h e reas the parties wish to enhance and facilitate the terms and conditions governing the exchange of information relating to taxes;

N o w  , therefore, the parties have agreed to conclude the following Agreement which contains obligations on the part of Denmark an Jersey only:

Article 1

Scope of the Agreement

T h e parties shall provide assistance through exchange of information that is foreseeably relevant to the administration  and  enforcement  of  the  domestic  laws  of  the  parties  concerning  the  taxes  covered  by  this Agreement, including information that is foreseeably relevant to the determination, assessment, recovery and enforcement or collection of tax with respect to persons subject to such taxes, or to the investigation of tax matters or the criminal prosecution of tax matters in relation to such persons. A requested party is not obliged to provide information which is neither held by its authorities nor in the possession of or obtainable by persons who are within its territorial jurisdiction. The rights and safeguards secured to persons by the laws or administrative practice of the requested party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

Article 2

Taxes Covered

1 .  T h i s Agreement shall apply to the following taxes imposed by the parties: (a ) in the case of Jersey:

(i ) t h e i ncome tax;

(i i) t h e g oods and services tax;

(b ) in the case of Denmark:

(i ) t h e i ncome tax to the State (indkomstskatten til staten),

(i i) t h e i ncome tax to the municipalities (den kommunale indkomstskat), and (i ii ) v a l u e added tax (merværdiafgift).

2 .  T h i s Agreement shall apply also to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes.  This Agreement shall apply also to any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes, if the parties so agree. The competent authority of each party shall notify the other of substantial changes in laws which may affect the obligations of that party pursuant to this Agreement.

Article 3

Definitions

1 .  I n t his Agreement:

(a ) "J e rsey" means the Bailiwick of Jersey, including its territorial sea;

( b ) " D enmark" means the Kingdom of Denmark including any area outside the territorial sea of

Denmark which in accordance with international law has been or may hereafter be designated under Danish laws as an area within which Denmark may exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed or its subsoil and the superjacent waters and with respect to other activities for the exploration and economic exploitation of the area; the term does not comprise the Faroe Islands and Greenland;

( c) " c ompany" means any body corporate or any entity that is treated as a body corporate for tax

purposes;

(d ) " c ompetent authority" means, in the case of Jersey the Treasury and Resources Minister or his

authorised representative; in the case of Denmark, the Minister for Taxation or his authorized representative;

(e ) " c riminal laws" means all criminal laws designated as such under domestic law, irrespective of

whether such are contained in the tax laws, the criminal code or other statutes;

(f ) " cr iminal tax matters" means tax matters involving intentional conduct whether before or after the

entry into force of this Agreement which is liable to prosecution under the criminal law of the requesting party;

(g ) "i n formation gathering measures" means laws and administrative or judicial procedures enabling a

requested party to obtain and provide the information requested;

(h ) "i n formation" means any fact, statement, document or record in whatever form;

(i ) " p e rson" means a natural person, a company or any other body or group of persons;

( j) " p u blicly traded company" means any company whose principal class of shares is listed on a

recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

( k ) " p rincipal class of shares" means the class or classes of shares representing a majority of the

voting power and value of the company;

(l ) " p u blic collective investment scheme" means any scheme or fund, in which the purchase sale or

redemption of shares or other interests is not implicitly or explicitly restricted to a limited group of investors;

(m ) " r ecognised stock exchange" means any stock exchange agreed upon by the competent authorities

of the parties;

(n ) "r e quested party" means the party to this Agreement which is requested to provide or has provided

information in response to a request;

(o ) " re questing party" means the party to this Agreement submitting a request for or having received

information from the requested party;

(p ) "t a x" means any tax covered by this Agreement;

2 .  A  s regards the application of this Agreement at any time by a party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the laws of that party, any meaning under the applicable tax laws of that party prevailing over a meaning given to the term under other laws of that party.

Article 4

Exchange of Information Upon Request

1 .  T h e competent authority of the requested party shall provide upon request by the requesting party information for the purposes referred to in Article  1. Such information shall be exchanged without regard to whether the requested party needs such information for its own tax purposes or the conduct being investigated would constitute a crime under the laws of the requested party if it had occurred in the territory of the requested party. The competent authority of the requesting party shall only make a request for information pursuant to this Article when it is unable to obtain the requested information by other means, except where recourse to such means would give rise to disproportionate difficulty.

2 . I f the information in the possession of the competent authority of the requested party is not sufficient to enable it to comply with the request for information, the requested party shall use at its own discretion all relevant information gathering measures necessary to provide the requesting party with the information requested, notwithstanding that the requested party may not need such information for its own tax purposes.

3 . If specifically requested by the competent authority of the requesting party, the competent authority of the requested party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4 .  E  ac h party shall ensure that it has the authority, subject to the terms of Article  1, to obtain and provide, through its competent authority and upon request:

(a ) in f ormation held by banks, other financial institutions, and any person, including nominees and

trustees, acting in an agency or fiduciary capacity;

(b ) (i ) i n fo rmation regarding the legal and beneficial ownership of companies, partnerships and

other persons, including in the case of collective investment schemes, information on shares, units and other interests;

(i i ) i n th e case of trusts, information on settlors, trustees, protectors and beneficiaries; and in

the case of foundations, information on founders, members of the foundation council and beneficiaries.

P r o v ided that this Agreement does not create an obligation for a party to obtain or provide ownership information with respect to publicly traded companies or public collective investment schemes, unless

such information can be obtained without giving rise to disproportionate difficulties.

5 .  A  n y request for information shall be formulated with the greatest detail possible and shall specify in writing:

(a ) th e identity of the person under examination or investigation; (b ) th e period for which the information is requested;

(c ) th e nature of the information requested and the form in which the requesting party would prefer to

receive it;

(d ) th e tax purpose for which the information is sought;

( e ) t h e reasons for believing that the information requested is foreseeably relevant to tax

administration and enforcement of the requesting party, with respect to the person identified in subparagraph  (a) of this paragraph;

(f ) g ro unds for believing that the information requested is present in the requested party or is in the

possession of, or obtainable by, a person within the jurisdiction of the requested party;

(g ) to the extent known, the name and address of any person believed to be in possession of or able to

obtain the information requested;

( h ) a statement that the request is in conformity with the laws and administrative practices of the

requesting party, that if the requested information was within the jurisdiction of the requesting party then the competent authority of the requesting party would be able to obtain the information under the laws of the requesting party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(i ) a st atement that the requesting party has pursued all means available in its own territory to obtain

the information, except where that would give rise to disproportionate difficulty.

6 .  T  h e competent authority of the requested party shall acknowledge receipt of the request to the competent authority of the requesting party and shall use its best endeavours to forward the requested information to the requesting party as soon as possible.

Article 5

Tax Examinations Abroad

1 . W ith reasonable notice the requesting party may request that the requested party allow representatives of the competent authority of the requesting party to enter the territory of the requested party, to the extent permitted under its domestic laws, to interview individuals and examine records with the written consent of the individuals or other persons concerned. The competent authority of the requesting party shall notify the competent authority of the requested party of the time and place of the intended meeting with the individuals concerned.

2 .  A  t the request of the competent authority of the requesting party, the competent authority of the requested party may permit representatives of the competent authority of the requesting party to attend a tax examination in the territory of the requested party.

3 .  I f t he request referred to in paragraph  2 is granted, the competent authority of the requested party conducting the examination shall, as soon as possible, notify the competent authority of the requesting party of the time and place of the examination, the authority or person authorised to carry out the examination and the procedures and conditions required by the requested party for the conduct of the examination. All decisions regarding the conduct of the examination shall be made by the requested party conducting the examination.

Article 6

Possibility of Declining a Request

1 .  T h e competent authority of the requested party may decline to assist:

(a ) w h ere the request is not made in conformity with this Agreement;

(b ) w h ere the requesting party has not pursued all means available in its own territory to obtain the

information, except where recourse to such means would give rise to disproportionate difficulty; or

( c ) w h ere the disclosure of the information requested would be contrary to public policy ("ordre

public").

2 .  T h i s Agreement shall not impose upon a requested party any obligation to provide items subject to legal privilege, or any trade, business, industrial, commercial or professional secret or trade process, provided that information described in Article  4(4) shall not by reason of that fact alone be treated as such a secret or trade process.

3 .  A   r equest for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

4 .  T h e requested party shall not be required to obtain and provide information which if the requested information was within the jurisdiction of the requesting party the competent authority of the requesting party would not be able to obtain under its laws or in the normal course of administrative practice.

5 .  T h e requested party may decline a request for information if the information is requested by the requesting party to administer or enforce a provision of the tax law of the requesting party, or any requirement connected therewith, which discriminates against a national or citizen of the requested party as compared with a national or citizen of the requesting party in the same circumstances.

Article 7 Confidentiality

1 .  A  ll information provided and received by the competent authorities of the parties shall be kept confidential.

2 . S u ch information shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the purposes specified in Article 1, and used by such persons or authorities only for such purposes, including the determination of any appeal. For these purposes, information may be disclosed in public court proceedings or in judicial decisions.

3 .  S u c h information may not be used for any purpose other than for the purposes stated in Article  1 without the express written consent of the competent authority of the requested party.

4 .  T h e information provided to a requesting party under this Agreement may not be disclosed to any other jurisdiction.

Article 8 Costs

U n l e ss the competent authorities of the parties otherwise agree, ordinary costs incurred in providing assistance shall be borne by the requested party, and extraordinary costs in providing assistance (including costs of engaging external advisers in connection with litigation or otherwise) shall be borne by the requesting party. The respective competent authorities shall consult from time to time with regard to this Article, and in particular the competent authority of the requested party shall consult with the competent authority of the requesting party if the costs of providing information with respect to a specific request are expected to be significant.

Article 9

Mutual Agreement Procedures

( 1 ) W here difficulties or doubts arise between the parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall use their best efforts to resolve the matter by mutual agreement.

(2 ) In addition to the agreements referred to in paragraph 1, the competent authorities of the parties may mutually agree on the procedures to be used under Articles  4, 5 and 8.

(3 ) F o rmal communications, including requests for information, made in connection with or pursuant to the provisions of the Agreements entered into will be in writing directly to the competent authority of the other party at such address as may be notified by one party to the other from time to time. Any subsequent communications regarding requests for information will be either in writing or verbally, whichever is most practical, between the earlier mentioned competent authorities or their authorised representatives.

Article 10 Entry into force

T h is Agreement shall enter into force on the thirtieth day after the latter of the dates on which each of the Parties has notified the other in writing that the procedures required by its law have been complied with. The Agreement shall have effect:

(a ) fo r criminal tax matters on that date; and

(b ) fo r all other matters covered in Article  1 on that date, but only in respect of any tax year beginning

on or after the first day of January of the year next following that in which this Agreement enters into force or, where there is no tax year, all charges to tax arising on or after that date.

Article 11

Termination

1 .  T h i s Agreement shall remain in force until terminated by a Party.

2 .  E i t her Party may terminate the Agreement by giving written notice of termination at least three months before the end of any calendar year. In such event, the Agreement shall cease to have effect on taxes chargeable for any tax year beginning on or after the first day of January of the year next following the end of the three month period. All requests received up to the effective date of termination will be dealt with in accordance with the terms of this Agreement.

3 .  I f t he Agreement is terminated the Parties shall remain bound by the provisions of Article  7 with respect to any information obtained under this Agreement.

In witness whereof the undersigned being duly authorised in that behalf by the respective parties, have signed the Agreement.

Done at Helsinki, this 28th day of October, 2008, in duplicate in the English language.

For the Government of Jersey For the Government of Denmark

FOR THE AVOIDANCE OF DOUBLE TAXATION ON INDIVIDUALS

T h e G overnment of Jersey and the Government of Denmark, desiring to supplement the Agreement for the exchange of information relating to tax matters concluded on 28th October 2008 by concluding an Agreement for the avoidance of double taxation on individuals with respect to taxes on income,

h av e agreed as follows:

Article 1

Individuals Covered

T h is Agreement shall apply to individuals who are residents of one or both of the Parties.

Article 2

Taxes Covered

T h e e xisting taxes to which the Agreement shall apply are:

(a ) in the case of Jersey:

in c o m  e t ax

(h e r e in a f te r r eferred to as "Jersey tax").

(b ) in the case of Denmark:

(i ) t h e i ncome tax to the State (indkomstskatten til staten),

(i i) t h e i ncome tax to the municipalities (den kommunale indkomstskat)

(h e r e inafter referred to as "Danish tax").

2 . T h e Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Parties shall notify each other of any significant changes that have been made in their taxation laws concerning individuals.

Article 3

General Definitions

F o r th e purposes of this Agreement, unless the context otherwise requires:

(a ) th e term "a Party" means Jersey or Denmark, as the context requires; the term "Parties" means

Jersey and Denmark;

(b ) th e term "Jersey" means the Bailiwick of Jersey, including its territorial sea;

(c ) th e term "Denmark" means the Kingdom of Denmark including any area outside the territorial sea of Denmark which in accordance with international law has been or may hereafter be designated

under Danish laws as an area within which Denmark may exercise sovereign rights with respect

to the exploration and exploitation of the natural resources of the sea-bed or its subsoil and the superjacent waters

and with respect to other activities for the exploration and economic exploitation of the area; the term does not comprise the Faroe Islands and Greenland;

(c ) th e term "competent authority" means:

(i ) i n t h e case of Jersey, the Treasury and Resources Minister or his authorised representative; (i i) i n D  enmark, the Minister for Taxation or his authorized representative;

(e ) th e term "enterprise" applies to the carrying on of any business;

(f ) th e term "international traffic" means any transport by a ship or aircraft operated by an enterprise

of a Party, except when the ship or aircraft is operated solely between places in the other Party.

2 .  A  s regards the application of the Agreement at any time by a Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Article 4 Resident

1 . F o r the purposes of this Agreement, the term "resident of a Party" means in respect of an individual any individual who, under the laws of that Party, is liable to tax therein by reason of his domicile, residence or any other criterion of a similar nature. This term, however, does not include an individual who is liable to tax in that Party in respect only of income from sources in that Party.

2 .  W  h ere by reason of the provisions of paragraph  1 an individual is a resident in both Parties, then his status shall be determined as follows:

(a ) h e shall be deemed to be a resident only of the Party in which he has a permanent home available

to him; if he has a permanent home available to him in both Parties, he shall be deemed to be a resident only of the Party with which his personal and economic relations are closer (centre of vital interests);

(b ) if the Party in which he has his centre of vital interests cannot be determined, or if he has not a

permanent home available to him in either Party, he shall be deemed to be a resident only of the Party in which he has an habitual abode;

(c ) if he has a habitual abode in both Parties or in neither of them, the competent authorities of the

Parties shall settle the question by mutual agreement.

Article 5

Income from Employment

1 .  S u b ject to the provisions of Articles 6, 7, 8 and 9, salaries, wages and other similar remuneration derived by a resident of a Party in respect of an employment shall be taxable only in that Party unless the employment is exercised in the other Party. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party.

2 .  N  o twithstanding the provisions of paragraph  1, remuneration derived by a resident of a Party in respect of an employment exercised in the other Party shall be taxable only in the first-mentioned Party if:

(a ) th e recipient is present in the other Party for a period or periods not exceeding in the aggregate

183  days in any twelve month period commencing or ending in the fiscal year concerned, and

(b ) th e remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party,

and

(c ) th e remuneration is not borne by a fixed place of business through which the business is wholly or

partly carried on which the employer has in the other Party.

3 .  P a r agraph  2 of this Article shall not apply to remuneration derived by a resident of a Party in respect of an employment exercised in the other Party and paid by, or on behalf of, an employer who is not a resident of that other Party if:

(a ) th e recipient renders services in the course of that employment to a person other than the employer

and that person, directly or indirectly, supervises, directs or controls the manner in which those services are performed, and;

(b ) th o se services constitute an integral part of the business activities carried on by that person.

4 .  N  o twithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Party, may be taxed in that Party. Where a resident of Denmark derives remuneration in respect of an employment exercised aboard an aircraft operated in international traffic by the air transport consortium Scandinavian Airlines System (SAS), such remuneration shall be taxable only in Denmark.

Article 6 Directors´ Fees

D i re c tors' fees and other similar payments derived by a resident of a Party in his capacity as a member of the board of directors or any other similar organ of a company which is resident of the other Party may be taxed in that other Party.

Article 7 Artistes and Sportsmen

1 .  I n c ome derived by a resident of a Party as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Party, may be taxed in that other Party.

2 .  W  h ere income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another individual or legal entity, that income may be taxed in the Party in which the activities of the entertainer or sportsman are exercised.

Article 8 Pensions

P e n si ons and other similar remuneration arising in a Party, payments under the social security legislation of a Party and payments under any other scheme out of funds created by a Party, may be taxed in that Party.

Article 9 Government Service

1 .( a )  S alaries, wages and other similar remuneration, other than a pension, paid by a Party or a political

subdivision or a statutory body or a local authority thereof to an individual in respect of services rendered to that Party or subdivision or body or authority shall be taxable only in that Party.

(b ) H o wever, such salaries, wages and other similar remuneration shall be taxable only in the other

Party if the services are rendered in that Party and the individual is a resident of that Party who did not become a resident of that Party solely for the purpose of rendering the services.

2 .  T h e provisions of Articles 5, 6 and 7 shall apply to salaries, wages, and other similar remuneration in respect of services rendered in connection with a business carried on by a Party or a political subdivision or a statutory body or a local authority thereof.

Article 10 Students

P a y m ents which a student or business apprentice who is or was immediately before visiting a Party a resident of the other Party and who is present in the first-mentioned Party solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that Party, provided that such payments arise from sources outside that Party.

Article 11 Elimination of Double Taxation

1 .  I n J ersey double taxation shall be avoided as follows:

S u b je ct to the provisions of the laws of Jersey regarding the allowances of credit against Jersey tax and tax payable in a territory outside Jersey (which will not affect the general principle hereof);

(i ) s u b ject to the provisions of sub-paragraph  (iii), where a resident of Jersey derives income which,

in accordance with the provisions of this Agreement, may be taxed in Denmark, Jersey shall allow as a credit from the Jersey tax on the income of that resident, an amount equal to the income tax paid in Denmark;

(i i ) s u ch deduction shall not, however, exceed that part of the income tax, as computed before the

credit is given, which is attributable to the income which may be taxed in Denmark;

( ii i)  w  here a resident of Jersey derives income which, in accordance with the provisions of this

Agreement shall be taxable only in Denmark, Jersey may include this income in the tax base, but shall allow as a credit from the Jersey tax that part of the income tax which is attributable to the income derived from Denmark.

2 . I n D enmark double taxation shall be avoided as follows:

( a ) S u bject to the provisions of sub-paragraph  (c), where a resident of Denmark derives income

which, in accordance with the provisions of this Agreement, may be taxed in Jersey, Denmark shall allow as a deduction form the income tax of that resident, an amount equal to the income tax paid in Jersey;

(b ) S u ch deduction shall not, however, exceed that part of the income tax, as computed before the

deduction is given, which is attributable to the income which may be taxed in Jersey;

( c) W  here a resident of Denmark derives income which in accordance with the provisions of this Agreement shall be taxable only in Jersey, Denmark may include this income in the tax base, but

shall allow as a deduction from the income tax that part of the income tax which is attributable to the income

derived from Jersey.

Article 12

Mutual Agreement Procedure

1 .  W  h ere an individual considers that the actions of one or both of the Parties result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those Parties, present his case to the competent authority of the Party of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

2 .  T h e competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Party, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Parties.

3 . T  h e competent authorities of the Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement.

4 .  T h e competent authorities of the Parties may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

Article 13 Entry into force

1 .  T h i s Agreement shall enter into force on the thirtieth day after the latter of the dates on which each of the Parties has notified the other in writing that the procedures required by its law have been complied with.

2 .  T h e Agreement shall have effect: (a ) in Jersey:

on t a x e s c h a rgeable for any tax year beginning on or after the first day of January of the year next following that in which this Agreement enters into force;

(b ) in Denmark:

on t a x e s c h a rgeable for any tax year beginning on or after the first day of January of the year next following that in which this Agreement enters into force.

3 .  N  o twithstanding paragraph  2 of this Article, the Agreement shall only be applicable when the Agreement signed on 28th October 2008 between Jersey and Denmark for the exchange of information relating to tax matters shall have effect.

Article 14 Termination

1 .  T h i s Agreement shall remain in force until terminated by a Party. Either Party may terminate the Agreement by giving written notice of termination at least six months before the end of any calendar year. In such case, the Agreement shall cease to have effect on taxes chargeable for any tax year beginning on or after the first day of January of the year next following the end of the six months period.

2 .  N  o twithstanding paragraph  1 of this Article, this Agreement will be terminated, without giving notice of termination, on the date of termination of the Agreement signed on 28th October 2008 between Jersey and Denmark for the exchange of information relating to tax matters.

In witness whereof the undersigned being duly authorised thereto have signed this Agreement.

Done at Helsinki, this 28th day of October 2008, in duplicate in the English language.

For the Government of Jersey For the Government of Denmark

AGREEMENT BETWEEN JERSEY AND DENMARK FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO ENTERPRISES OPERATING SHIPS OR AIRCRAFT IN INTERNATIONAL TRAFFIC

T h e Government of Jersey and the Government of Denmark, desiring to conclude an agreement for the avoidance of double taxation with respect to enterprises operating ships or aircraft in international traffic,

h av e agreed as follows:

Article 1

Definitions

1 .  F o r the purposes of this Agreement, unless the context otherwise requires:

(a ) th e terms "a Party" means Denmark or Jersey, as the context requires; the term "Parties" means

Denmark and Jersey;

(b ) th e term "Denmark" means the Kingdom of Denmark including any area outside the territorial sea

of Denmark which in accordance with international law has been or may hereafter be designated under Danish laws as an area within which Denmark may exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed or its subsoil and the superjacent waters and with respect to other activities for the exploration and economic exploitation of the area; the term does not comprise the Faroe Islands and Greenland;

(c ) th e term "Jersey" means the Bailiwick of Jersey, including its territorial sea;

(d ) th e term "person" includes an individual, a company and any other body of persons;

(e ) th e term "company" means any body corporate or any entity that is treated as a body corporate for