Guernsey reaffirmed its commitment to international tax co-operation by joining 66 other countries in an Organisation for Economic Cooperation and Development tax treaty.
States of Guernsey Chief Minister Gavin St Pier was in Paris to sign the ground-breaking agreement, which will improve the operation of over 1,100 tax treaties globally.
The OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting was developed through negotiation with over 100 countries and jurisdictions, including Guernsey, in order to help governments close gaps in international tax rules in line with the OECD’s base erosion and profit shifting (BEPS) project.
Deputy St Pier said the signing of the agreement evidenced once again that Guernsey is at the forefront of international tax co-operation.
It is an honour to sign this OECD agreement on behalf of Guernsey alongside so many other countries, including the major global economies. We were one of only four smaller jurisdictions invited to participate in the group that drafted this treaty, which is a real testament to our expertise in this area and the regard in which Guernsey is held.
The agreement is also the first multilateral agreement that Guernsey has signed itself in line with the development of our international personality as envisaged by the Constitutional Investigation Committee during the last States’ term.
The signing provided an opportunity to discuss international tax matters with a number of finance ministers from around the world.