In this interview for Lexis®PSL Tax, Head of Tax Frank Strachan discusses the UK’s new tax treaties with Jersey, Guernsey and the Isle of Man, and the implications for high-net-worth individuals and businesses.
What is the background to the negotiation of these treaties and why now?
In July 2014, following various global initiatives towards greater transparency in the financial and tax arenas, the Organisation for Economic Co-operation and Development (OECD) issued its Standard for Automatic Exchange of Financial Account Information regarding the exchange of information aimed at tackling offshore tax evasion using greater openness and cooperation. It did so after consultation and discussion with the G20 countries. The US Foreign Account Tax Compliance Act (FATCA) acted as the catalyst for this and there have been further initiatives, such as the process generating the current OECD Model Tax Convention. This includes measures to address base erosion and profit shifting (BEPS), which is often considered to be protected by a lack of transparency.
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