'Non-doms' kept out of tax information deal with UK

GUERNSEY is set to agree a tax information reporting agreement with the UK along the lines of the US Foreign Account Tax Compliance Act.

Chief Minister Peter Harwood expected some dissenting voices to a tax information reporting agreement with the UK, but said that it was essential to maintain the island’s commitment to combating tax evasion. (Picture by Steve Sarre, 1310230)
Chief Minister Peter Harwood expected some dissenting voices to a tax information reporting agreement with the UK, but said that it was essential to maintain the island’s commitment to combating tax evasion. (Picture by Steve Sarre, 1310230)

GUERNSEY is set to agree a tax information reporting agreement with the UK along the lines of the US Foreign Account Tax Compliance Act.

The island will exchange individuals’ financial information with the UK on UK taxpayers, but has managed to carve out separate arrangements for so-called ‘non-doms’, who live in the UK but do not pay tax there.

Negotiations have been under way for some months following the UK’s agreement of an inter-governmental agreement with the US over the original Fatca.

The UK suggested that the Crown Dependencies should secure their own agreements – which means that information will be reported to the local tax office rather than direct to the US – and then proposed a similar Fatca arrangement with the UK and the islands.

Fine detail of the Guernsey deal has still to be confirmed – the States will go out to consultation on its proposals – and deputies will have to approve both US and UK Fatca agreements, likely to be later this year.

Comments for: "'Non-doms' kept out of tax information deal with UK"

Dave Jones

The Guernsey Press cannot state with any accuracy that "Guernsey is set to agree"

The States have not even debated the issue yet.

Simon Jones

Dave, you could have ended your post a bit sooner:

"The Guernsey Press cannot state with any accuracy" would have sufficed!

Cegulatory Rapture

Must be the FT that's wrong too, Deputy Jones:

http://www.ft.com/home/uk

The story is about half way down the front page, but behind a paywall.

"Treasury seals Guernsey tax deal

Assets will need to be declared in clampdown on evasion"

It looks like the GEP has slightly rewritten the FT article.

Politicians can debate all they like, but regulatory capture of Guernsey politics by the finance and legal industries is clearly exampled here, as with most laws that come out. You'll be waving this one through soon enough.

GM

I agree. There is 0% chance that this will not go through.

Its a good deal for the island. The non-dom deal is hugely important. Exchange of information is the way the world is going whether we like it or not. Those who have nothing to hide have nothing to fear.

Jersey can fight it all they like. Its a battle that they cannot win.

Dave Jones

Cegulatory Rapture

I don't disagree that it will be passed but my previous post was accurate, it aint over till its over as anyone who sat though the debate on the proposed incinerator will tell you.

GM

Did anybody hear the pathetic attempts by Richard Murphy on BBC Guernsey to criticise Guernsey despite the announcement of this deal? That bloke is an ignorant moron who will never be satisfied. It beggars belief that the local media continue to view him as remotely credible. His debating style gets worse each time. If he and Peter Harwood had been in the same studio then the fur would have really flown. Lyndon would have probably landed one on him!

Just take a look at his Tax Research blog today. He's having a real go at us again on there.

Herman

Doesn't matter, we all know the states will stuff it up anyway. Might as well forget it and start celebrating Oktoberfest now!

guernseysim

looks like another loop hole coming on . i cant see Guernsey telling the whole truth . just a few to keep the uk sweet .

soph

Well, a step in the direction hoping potholes will be avoided!

concerned

Who is this guy again? Oh yeah thats right, he's our chief minister. Hadn't heard from him in so long I'd forgotten who he was.

Terry Langlois

people criticised Trott for being attention seeking and power-hungry, and now Peter Harwood gets criticised for quietly going about his business.

they can't win.

concerned

Fair point. I just thought recently he had taken "quietly going about his business" a bit too far.

Gavin St Pier

For anyone interested, the link to the full Press Release on gov.gg is at:

http://www.gov.gg/article/106337/Guernsey-to-agree-package-of-tax-measures-with-the-UK

Also, I have posted some comments by Audioboo at:

http://audioboo.fm/boos/1268699-guernsey-uk-proposed-tax-agreement

Dave Jones

GM

Murphy is basically a communist but he is also a hypocrite, look in Amazon books and you will see the drivel that Murphy writes up for sale, strange when Amazon is one of the companies that has come under heavy criticism for not paying enough corporation tax and has been accused by Osborn of “moral tax evasion” whatever that is.

He also never understood that Tax competition is healthy in a global economy; it stops profligate governments from keeping their citizens in fiscal slavery.

Illustrated by this quote from Gary Becker (Gary Becker, "What's Wrong with a Centralised Europe? Plenty," Business Week, June 29, 1998.)

Who observed that "…competition among nations tends to produce a race to the top rather than to the bottom by limiting the ability of powerful and voracious groups and politicians in each nation to impose their will at the expense of the interests of the vast majority of their populations."

Several Nobel Prize winners have commented on tax competition.

James Buchanan points out that "…tax competition …is an objective to be sought in its own right."

Milton Friedman writes, "Competition among national governments in the public services they provide and in the taxes they impose is every bit as productive as competition among individuals or enterprises in the goods and services they offer for sale and the prices at which they offer them."

All these people quoted, have intellects far above the bitter and twisted views of Richard Murphy and his band of odd bods at TJN.

As for his blog it is used by him to spout the rubbish he does but as i have told him on several occasions we will still be here and prosperous long of TJN and Murphy are a distant memory.