The Tax Information Exchange Agreement (Taxes on Income) (Jersey) Order 2005

Made: 7th May 2005

At the Court at Buckingham Palace, the 7th day of May 2005Present,The Queen’s Most Excellent Majesty in Council

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Citation

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Declaration about exchange of information

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SCHEDULE

PART 1 — AGREEMENT ON THE TAXATION OF SAVINGS INCOME BETWEEN JERSEY AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

WHEREAS:

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Article 1 — Retention of Tax by Paying Agents

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Article 2 — Reporting of Information by Paying Agents

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Article 3 — Exceptions to the Retention Tax Procedure

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Article 4 — Basis of assessment for retention tax

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Article 5 — Definition of beneficial owner

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Article 6 — Identity and residence of beneficial owners

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Article 7 — Definition of paying agent

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Article 8 — Definition of interest payment

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Article 9 — Retention Tax Revenue sharing

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Article 10 — Elimination of double taxation

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Article 11 — Transitional provisions for negotiable debt securities

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Article 12 — Mutual agreement procedure

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Article 13 — Confidentiality

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Article 14 — Transitional Period

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Article 15 — Entry into force

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Article 16 — Termination

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Article 17 — Application and suspension of application

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Annex: — List of related entities referred to in Article 11

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ENTITIES WITHIN THE EUROPEAN UNION:

INTERNATIONAL ENTITIES:

• European Bank for Reconstruction and Development

• European Investment Bank

• Asian Development Bank

• African Development Bank

• World Bank / IBRD / IMF

• International Finance Corporation

• Inter-American Development Bank

• Council of Europe Social Development Fund

• EURATOM

• European Community

• Corporación Andina de Fomento (CAF) (Andean Development Corporation)

• Eurofima

• European Coal & Steel Community

• Nordic Investment Bank

• Caribbean Development Bank

The provisions of Article 11 are without prejudice to any international obligations that the Contracting Parties may have entered into with respect to the above mentioned international entities.

ENTITIES IN THIRD COUNTRIES:

CONDITIONS FOR AMENDING THE PRESENT ANNEX:

PART II — Exchange of Notes

Note from Her Majesty’s Government

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I have the honour to refer to the texts of respectively the “Proposed Model Agreement between each of Guernsey, Isle of Man, and Jersey and each individual EU Member State that is to apply automatic exchange of information” and the “Proposed Model Agreement between each of Guernsey, Isle of Man, and Jersey and each individual EU Member State that is to apply the withholding tax in the transitional period”, that resulted from the negotiations with the Island Authorities on a Savings Tax Agreement, and that were annexed, respectively as Annex I and Annex II, to the Outcome of Proceedings of the High Level Working Party of the Council of Ministers of the European Union of 12 March (Doc.7408/04 FISC 58).

In view of the above mentioned agreed texts, and respecting the constitutional relationship between the United Kingdom of Great Britain and Northern Ireland and Jersey, I have the honour

• to propose to you the agreements as contained in the “Agreement on the taxation of savings income” at Appendix 1 to this letter;

• to propose that the said agreements may come into effect on 1st January 2005, or the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, whichever is later subject to the notification to each other that internal constitutional formalities for the coming into effect of these agreements are completed;

• to propose our mutual commitment to comply at the earliest date with our said internal constitutional formalities and to notify each other without delay through the formal channels when such formalities are completed.

I have the honour to propose that, if the above is acceptable to the Government of Jersey, this letter together with its Appendix 1 and your confirmation shall together constitute our mutual acceptance and making of the agreements between the United Kingdom of Great Britain and Northern Ireland and Jersey.

Please accept, Sir, the assurance of our highest consideration,

Note from the States of Jersey

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I have the honour to acknowledge receipt of your letter of 18th May 2004, which reads as follows:

Sir, I have the honour to refer to the texts of respectively the “Proposed Model Agreement between each of Guernsey, Isle of Man, and Jersey and each individual EU Member State that is to apply automatic exchange of information” and the “Proposed Model Agreement between each of Guernsey, Isle of Man, and Jersey and each individual EU Member State that is to apply the withholding tax in the transitional period”, that resulted from the negotiations with the Island Authorities on a Savings Tax Agreement, and that were annexed, respectively as Annex I and Annex II, to the Outcome of Proceedings of the High Level Working Party of the Council of Ministers of the European Union of 12 March (Doc.7408/04 FISC 58). In view of the above mentioned agreed texts, and respecting the constitutional relationship between the United Kingdom of Great Britain and Northern Ireland and Jersey, I have the honour - to propose to you the agreements as contained in the “Agreement on the taxation of savings income” at Appendix 1 to this letter; - to propose that the said agreements may come into effect on 1st January 2005, or the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, whichever is later subject to the notification to each other that internal constitutional formalities for the coming into effect of these agreements are completed; - to propose our mutual commitment to comply at the earliest date with our said internal constitutional formalities and to notify each other without delay through the formal channels when such formalities are completed. Please accept, Sir, the assurance of our highest consideration.

I am able to confirm that Jersey has agreed to make Bilateral Agreements with each EU Member State and that this letter constitutes our mutual acceptance and making of the “Agreement on the Taxations of Savings Income between Jersey and the United Kingdom of Great Britain and Northern Ireland” as set out in Appendix 1 of your letter dated 18th May 2004 and appended to this letter.

Please accept, Sir, the assurance of my highest consideration.

For Jersey

Signed

A K Galloway — Clerk of the Privy Council

Explanatory note

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Footnotes

[^f00001]: 1988 c. 1. Section 815C was inserted by section 146(1) of the Finance Act 2000 (c. 17) and amended by section 88(2) of the Finance Act 2002 (c. 23) and section 198 of the Finance Act 2003 (c. 14).

Editorial notes