International Tax Compliance Regulations 2014
Earlier this month (March) the UK Government implemented the agreements signed in October 2013 with the Isle of Man, Gibraltar, Jersey and Guernsey to improve international tax compliance. The agreements will now come into force when the respective internal procedures have been completed; at present we have no indication when this will be.
The agreements provide for the mutual exchange of information with the Isle of Man, Gibraltar, Jersey and Guernsey providing information on UK tax payers who hold accounts in their jurisdiction and the UK providing reciprocal information to those authorities on their taxpayers who hold accounts with UK financial institutions.
The information provided by the UK institutions will automatically be provided to the other competent authority each year. The effect of the agreement is to require UK financial institution to obtain details of the country of residence of their account holders and maintaining the accuracy of that information.
Certain exemptions apply to low value accounts of less than USD50,000 and eased reporting requirements on firms with up to 20 employees and those at lower risk of evasion.
The supporting Explanatory Memorandum states that the fully reciprocal agreements ‘are part of a wider push for greater international cooperation to tackle tax evasion…..and form part of the UK Government’s efforts to combat tax evasion by UK tax residents.’ The Agreements build on the September 2012 UK-US Agreement and mirrors the provisions in an effort to minimise the administrative and financial burden on financial institutions and the respective tax authority.
For further information we refer you to our news item entitled “US FATCA, UK FATCA, G5 Exchange of Information Forum” to be found at:
http://www.rosemont-int.com/news/05-12-2013-us-fatca-uk-fatca-g5-exchange-of-information-forum/