Limited BEPS Response Necessary For Guernsey
by Amanda Banks, Lowtax.net, London
30 March, 2016
Amid EU and OECD efforts to tackle base erosion and profit shifting, Guernsey says it already has an appropriate tax and regulatory framework, with few, if any, changes required in response.
The finding came from a working party, established in December 2015, which included representatives from the Guernsey Government, the Guernsey Financial Services Commission, and tax professionals from the Institute of Directors and the Guernsey Society of Certified and Chartered Accountants.
Looking at the finance sector in particular, it concluded that Guernsey is already largely compatible with the BEPS agenda, due to its long-standing focus on business substance. Further, Guernsey's business model does not center on facilitating profit shifting, it found.
It said Guernsey businesses are already actively considering how to respond to the new global standards that the BEPS agenda will establish, and Guernsey, through further consultation with industry, will actively play its part in putting in place appropriate legislation and regulatory policies.
The working party's work will continue during the next few months to undertake a comprehensive review of the impact of the OECD's recommendations and the EU's new anti-avoidance directive on Guernsey.
The island's Treasury Minister, Gavin St Pier, said: "Guernsey is already in a leadership position on tax transparency, and we are also well-placed on the emerging new BEPS international standards. As these standards begin to be implemented, we are confident that we will be able to meet them while providing stability, competitiveness, and opportunities for our finance sector."
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