Switzerland signed its first tax information exchange agreement with the Isle of Man on August 28, 2013.
In principle, DTAs and TIEAs are equivalent instruments for concluding an administrative assistance clause in accordance with the international standard. Unlike DTAs, which are aimed primarily at avoiding double taxation and therefore contain other material provisions, TIEAs merely govern the exchange of information upon request.
The agreements with Guernsey and with Jersey require parliamentary approval before they can enter into force and are subject to an optional referendum. The Swiss cantons and business associations concerned have already expressed their support for the accords.
Jersey Finance pointed out that this is Jersey's 32nd TIEA, which meets the OECD tax standards on tax transparency and information exchange, and the 25th such agreement Jersey has signed with an OECD country.
Geoff Cook, Chief Executive of Jersey Finance, said: "This latest agreement with Switzerland enhances our relationship with another major IFC, with whom Jersey already has a good and strong business relationship, particularly in the areas of wealth management and banking."
"With 32 such agreements now signed and a further dozen either initialed or where negotiations are well under way, Jersey continues to make great strides in extending its network of tax information exchange agreements and playing a key role in the global drive towards greater transparency and cooperation in tax matters."
One of the Vice Chairs of the OECD's Peer Review Group, Jersey has also recently given its full support to the G20 Action Plan, and agreed to join the Multilateral Convention on Mutual Administrative Assistance on Tax Matters, the European Union (EU) G5 project on automatic exchange of information based on the Foreign Account Tax Compliance Act (FATCA), and to automatic exchange of information under the EU Savings Directive.
