Guernsey's Statement to US Senate
At a hearing held on 3rd May entitled 'Offshore Tax Evasion; Stashing Cash Overseas' the United States Senate Finance Committee considered how it could overcome the problem of US taxpayers evading local tax by placing their assets 'offshore'. Information exchange was seen as one of the solutions suggested that could help the US treasury close that 'tax gap'.
In the course of the hearing, testimony submitted made particular reference to the use of 'tax havens'. As Guernsey has been included in a list of 'offshore secrecy jurisdictions' and as a 'tax haven country' in bills currently being promoted before the US Senate, it was considered important that the Committee should be made fully aware of Guernsey's status as a well-regulated, well-respected financial centre, and of the considerable steps it has taken, and continues to take, in cooperating in the fight against international financial crime.
The Chief Minister has therefore submitted a written testimony on behalf of the Island in response to the opportunity given by the Committee for Guernsey to state its position.
The Chief Minister's testimony sets out in detail the international standards to which the Island adheres and the many positive reports from international organisations such as the IMF which Guernsey has received over the last few years.
The Chief Minister commented: "Given that the main purpose of the hearing was to consider how the problem of US taxpayers evading local tax by placing assets overseas might be overcome this was an important opportunity for Guernsey to set the record straight. I made it very clear that we are in no way a so called 'tax haven' but a responsible international finance centre maintaining the highest regulatory standards and that a Tax Information Exchange Agreement has been in place with the United States since 2002. This is particularly relevant, given that the hearing highlighted information exchange as being a key solution in dealing with the problem."
This Agreement, signed in 2002 came into force in 2006 enabling information to be exchanged between the Island and the US Government in matters of civil proceedings and augments the long standing processes for criminal matters through which information can be exchanged between the 2 jurisdictions.
"The testimony also enabled me to comment on the 2 United States Bills recently introduced by Senators Levin and Dorgan and to refute their additional suggestions that Guernsey is a so called 'tax haven'. It appears that the 'tax haven' label has been taken from an OECD list published in 2000 which is now out of date as Guernsey was declared a co-operative jurisdiction by the OECD in 2002. I have suggested in the strongest possible terms that Guernsey's name should not appear on any list of non cooperative jurisdictions which might in the future be formulated by the US Treasury Department which is a potential outcome if these Bills are successful in the Senate", the Chief Minister added.
Categories
Channel Islands0 TrackBacks
Listed below are links to blogs that reference this entry: Guernsey's Statement to US Senate.
TrackBack URL for this entry: http://www.offshorenet.com/cgi-bin/on_mt/mt-tb.cgi/561
Leave a comment