The Governments of Guernsey, Jersey and the Isle of Man are today, Tuesday 9 October 2012, simultaneously announcing their intention to negotiate partnership agreements with the United States of America to implement FATCA.
These agreements will follow the model intergovernmental agreement published by the US Government on 26 July 2012 and will be similar in form to the agreement between the United Kingdom and the USA signed on 12 September 2012. This follows consultation with industry representatives, who have given their support for the proposed course of action.
Discussions have taken place at official level between the Crown Dependences jointly and the USA, and formal negotiations will now take place with the intention of concluding intergovernmental agreements rapidly. Once signed, they will be subject to ratification by each of the Island parliaments. Implementation of the agreements will be through the domestic legislative procedures relevant to each of the three jurisdictions.
Jersey’s Chief Minister, Senator Ian Gorst, said “Implementing FATCA is necessary for our finance industry to remain competitive and doing so through an intergovernmental agreement is considered to be the best course to adopt. It is our intention to negotiate this with the US Government, in partnership with Guernsey and the Isle of Man .
“This is also the course being adopted by many other countries, and it has industry support. This announcement is intended to provide certainty for our industry as they prepare for FATCA. Entering into this type of arrangement will also highlight and confirm our commitment, as a well-regulated jurisdiction, to the international principles of tax transparency and exchange of information.
“It is particularly pleasing to me that the three Crown Dependencies have worked, and are continuing to work, together, and have adopted a common position on this issue.”