The Channel Island of Guernsey, a major captive domicile, has welcomed its ‘white listing’ by the OECD as a result of the G20 summit in London.
Chief Minister Lyndon Trott said that the Island’s inclusion on a white list with some of the world’s top financial centers cemented Guernsey’s position as an internationally compliant and transparent low tax jurisdiction.
“It has been a long and hard process to get where we are today. Recognition as a jurisdiction which has substantially implemented the internationally-agreed tax standard is nothing more than we deserve,” he stated in the announcement. “We are a well-regulated, transparent, co-operative jurisdiction and the international community appears to have embraced that message. I see the news as a massive boost for business in Guernsey and the Island’s economy.”
The bulletin noted that “Guernsey has signed 13 Tax Information Exchange Agreements and is preparing to sign more as an indication of its commitment to international recognition.” The OECD put four countries on a “blacklist,” for failing to provide such information (see related article).
Trott added: “We have made it clear throughout the international banking crisis that we did not export instability, we were subjected to it. I believe this validation of Guernsey by the OECD is an opportunity to prosper.”
“This puts to bed, once and for all, the myth that the Island of Guernsey is a tax haven. It is not. It is a low-tax jurisdiction which embraces the best of international standards. The stigma of tax haven status should be gone forever.”
Source: Guernsey Finance – www.guernseyfinance.com
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