Jersey, Bermuda Removed From French Tax Blacklist
by Jason Gorringe, Lowtax.net, London
26 December, 2013
The French government announced on December 20, 2013 that it has removed Jersey and Bermuda from its list of jurisdictions deemed to be non-cooperative in the exchange of tax information.
As a result of being removed from the blacklist Jersey and Bermuda will no longer be subject to a withholding tax on French payments to businesses operating within their jurisdictions.
Jersey and Bermuda have both taken measures to ensure greater tax transparency this year. Jersey has sought to show its commitment to Tax Information Exchange Agreements (TIEAs) by amending its laws to make it more difficult for those who are issued with a TIEA request to appeal against it. Bermuda, meanwhile, signed up to the Organization for Economic Cooperation and Development's Multilateral Convention on Mutual Assistance in Tax Matters to combat tax avoidance and evasion and otherwise facilitate tax cooperation between jurisdictions. It also signed an intergovernmental agreement with the United States on the implementation of the Foreign Account Tax Compliance Act.
Jersey's minister for external relations, Senator Sir Philip Bailhache, said: "Ministers and officials from the Chief Minister's and Treasury Departments have made great efforts to meet the concerns of French Ministers. I am very pleased that these efforts have borne fruit. We have always seen ourselves as a cooperative jurisdiction, a view shared by the organizations responsible for setting international standards, and we have been confident that we would be able to convince the French Government to share this view."
Bermuda's finance minister, Bob Richards, commented: "We were confident that any entry on France's list would be very short-lived as Bermuda is globally recognized as complying with the highest international standards on tax transparency and compliance."
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