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Approval of the Memorandum of Understanding between the Government of Jersey and Her Majesty’s Revenue and Customs of the United Kingdom of Great Britain and Northern Ireland relating to co-operation in tax matters.

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STATES OF JERSEY

APPROVAL OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF JERSEY AND HER MAJESTY'S REVENUE AND CUSTOMS OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND RELATING TO CO-OPERATION

IN TAX MATTERS

Lodged au Greffe on 30th April 2013 by the Chief Minister

STATES GREFFE

2013   Price code: C  P.55

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to approve the Memorandum of Understanding between the Government of Jersey and Her Majesty's Revenue and Customs of the United Kingdom of Great Britain and Northern Ireland relating to co-operation in tax matters, as set out in the Appendix to the report of the Chief Minister dated 18th April 2013.

CHIEF MINISTER

REPORT

On Wednesday 20th March 2013 it was announced that Jersey had agreed a package of tax measures with the UK Government that reflected both the Island's special relationship with the UK and the longstanding commitment to engage in the global action to combat tax evasion. Included in the package is a Disclosure Facility which gives relevant UK residents an opportunity to come forward voluntarily to regularise their tax affairs prior to information on their accounts in Jersey being subject to automatic exchange under the provisions of an intergovernmental agreement which is also to be part of the package.

A Memorandum of Understanding has been signed by tax officials in Jersey and the UK,  to  which  the  details  of  the  Disclosure  Facility  are  attached.  It  includes  the agreement of the Jersey authorities that they will require financial intermediaries in Jersey to contact their current clients who are relevant persons to advise them of the Facility, and to remind them of the Facility in the 6 months prior to its withdrawal in September 2016.

Under the Taxation (Implementation) (Jersey) Law 2004, Regulations to implement a tax  agreement  or  obligation  can  only  be  made  if  the  States  have  approved  the agreement or obligation concerned. If the Memorandum of Understanding attached as an  Appendix  to  this  report  is  approved,  the  States  will  be  asked  immediately thereafter to adopt the necessary Regulations (see P.56/2013).

There is no other requirement placed on the Jersey authorities. How the financial intermediaries contact their current clients will be for each intermediary to decide and each of the clients contacted will decide for themselves whether to take advantage of the Facility.

Financial and manpower implications

There  are  no  financial  or  manpower  implications  for  the  States  arising  from  the approval and implementation of the Memorandum of Understanding.

18th April 2013

APPENDIX