The UK signed agreements of automatic exchange of tax information with Jersey and Guernsey

25.10.2013

On the 22^nd day of October, 2013 the United Kingdom signed agreements of automatic exchange of tax information with Guernsey and Jersey. These agreements will allow Her Majesty’s Revenue and Customs to whittle down all attempts of tax avoidance. Now financial information containing a list of taxpayers of the UK holding accounts in Jersey and Guernsey’s banks will be transferred to Her Majesty’s Revenue and Customs automatically.

Similar agreement was signed between the UK and Man on the 10^th day of October, 2013. Summing up what has been said, all British Crown Dependency enter into agreements of automatic exchange of tax information with the United Kingdom. Also all these territories indicated their willingness to take participation in multilateral agreement of G5 in tax information exchange.

Based on:www.hmrc.gov.uk

Expert’s opinion

The UK twists and tightens bolts and nuts of the native taxpayers very quiet. The signing of automatic exchange of information agreements with offshore states means a lot. Yes, they are the former Crown Colonies. However currently they live on their own. Yes, they grant tax exemptions. What is left for little islands to do? How to survive? How to provide all citizens with job?

On the other hand, you live in London and earn your first million pound of sterling fairly. But taxes are high and it is really hard to part with your own money. This and other reasons make millions of entrepreneurs to solve their problems by themselves and “forget to notice” tax bodies.

Now it is impossible and the UK must gain automatic exchange of information of open accounts in offshores.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)