Guernsey enlists OECD in fight to clear its name with EC

The Channel Island government announced that the OECD, the leading international standards-setter for tax transparency and cooperation, has 'underlined' Guernsey's reputation as a cooperative jurisdiction. The island's marketing team were delighted to reveal that Monica Bhatia, Head of the Secretariat of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, said: "I am very surprised that Guernsey has been included in a list of non-cooperative jurisdictions. We are very pleased with the cooperation Guernsey has shown as a very active member of the Global Forum." Ms Bathia is also reported to have said: "It [Guernsey] has demonstrated its commitment to upholding the highest standards of transparency and exchange of information. This is evident through its rating on its peer review and the fact that it has committed to the new global standard on automatic exchange of information as an early adopter. We look forward to continuing this close and cooperative relationship with Guernsey."hidePascal Saint-Amans, the OECD's Head of Global Tax Policy, reportedly said: "Guernsey is in the leading group of jurisdictions that are active in the practical implementation of tax transparency and cooperation. Their adherence to the internationally accepted standards developed by the OECD means that there is clear and demonstrable criteria against which the OECD can consider them as a cooperative jurisdiction. The fact that Guernsey has been peer reviewed as part of the Global Forum illustrates that other jurisdictions also consider Guernsey transparent and cooperative against those international standards." There are 30 jurisdictions on the EC blacklist including Bermuda, which is also working hard to clear its name. The list, that will be updated annually, names any jurisdiction that appears on the uncooperative blacklists of 10 or more EU member states. Guernsey was particularly upset by its inclusion because it claims that it was incorrectly identified as being on the black lists of 11 member states when actually it was on the lists of nine at the time the lists were consolidated in December 2014. The EC erroneously reported Poland and Latvia as having blacklisted Guernsey at that time. Both countries have confirmed they had not to the Guernsey government. Guernsey points out that both the Isle of Man and Gibraltar, neither of which were on the EC consolidated list, were also blacklisted by nine countries. Another cause of Guernsey's anger and confusion over this whole rather messy affair is that only two months ago European tax commissioner, Pierre Moscovici, met Jonathan Le Tocq , Guernsey's chief minister, and was very positive about the island. The latest statement issued by Guernsey to help clear its name reported that, after the meeting, Commissioner Moscovici said: "I very much welcome the active engagement of the Channel Islands in the key initiatives involved in the fight against tax evasion, fraud and abusive tax avoidance in which they are important partners of the EU. Their commitment to the adoption of the Common Reporting Standard on automatic exchange of information, alongside the EU member states, is particularly positive." Mr Le Tocq added: "Guernsey meets every international standard of tax transparency and cooperation, and we are by any objective or evidence-based set of criteria a cooperative jurisdiction. It is important that is recognised internationally, and the clear view of the OECD will help ensure that is the case." Mr Le Tocq continued by adding that it also had the backing of the UK government in its protest against the EC's 'arbitrary' action. "The European Commission shoehorned Guernsey onto an arbitrary list of so-called non-cooperative jurisdictions three weeks ago. Since then the UK government has made it clear to the Commission that Guernsey should not be on any list of non-cooperative jurisdictions, and now the OECD has done the same," he said. "The Commission should either withdraw the list, or remove Guernsey from it. I have written to Commissioner Moscovici to that effect. The fact remains that Guernsey leads and exceeds a number of EU member states on tax transparency and cooperation, and we will be partners of the EU in the automatic exchange of information under the Common Reporting Standard. Guernsey's place on the list is unjustified, unwarranted and plainly wrong."

Guernsey enlists OECD in fight to clear its name with EC

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