Wednesday 07 June 2017

Today the President of the Policy & Resources Committee, Deputy Gavin St Pier signed a ground-breaking OECD tax treaty alongside over 67 other countries and jurisdictions in Paris.

The OECD Multilateral instrument to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting was developed through negotiation with over 100 countries and jurisdictions, including Guernsey, in order to help governments close gaps in international tax rules in line with the OECD’s Base Erosion and Profit Shifting (BEPS) project.  The Agreement will improve the operation of over 1,100 tax treaties globally.

Deputy St Pier said:

‘It is an honour to sign this OECD agreement on behalf of Guernsey alongside so many other countries, including the major global economies.  The agreement evidences again Guernsey’s leading position at the forefront of international tax co-operation.  We were one of only four smaller jurisdictions invited to participate in the group that drafted this treaty, which is a real testament to our expertise in this area and the regard in which Guernsey is held.

‘The agreement is also the first multilateral agreement that Guernsey has signed itself in line with the development of our international personality as envisaged by the Constitutional Investigation Committee during the last States’ term.  The signing has provided an opportunity to discuss international tax matters with a number of finance ministers from around the world.’

Whilst in Paris, Deputy St Pier also met with the British Ambassador to France, His Excellency Ed Llewellyn OBE, alongside the Chief Minister of Jersey, Senator Ian Gorst and the Treasury Minister from the Isle of Man, Alfred Cannan MHK.

Deputy St Pier added:

‘Our relationship with France is important, not just regionally, but as an important Member State within the EU. The meeting with the British Ambassador is timely following the change in Government in France and the importance of our relationship with France following the start of the UK’s exit from the EU.’