Guernsey has agreed in principle to a tax disclosure deal with the UK that will help the government clamp down on offshore account holders.
The Channel Island has agreed to terms that will improve information reporting between itself and the UK, a revised double-taxation agreement and an automatic disclosure facility.
The agreement is still subject to the approval from the Channel Island’s parliament.
Last month a similar tax deal was struck with the UK and the Isle of Man, giving UK residents with assets concealed on the island until September 2016 to disclose details to the taxman and pay any tax owed to the HMRC. HMRC offered no guarantees that evaders would not be prosecuted.
Guernsey’s chief minister Peter Harwood said the move will ‘reinforce Guernsey’s commitment to tax transparency’.
Andrew Watt, co-founder and partner at Watt Busfield Tax Investigations, warned further arrangements will be put in place by the UK.
He said: ‘This is life now. There will be a succession of these deals to follow over the next five or ten years. It’s a sign of the times, and life is going to get much harder for people concealing assets offshore.’
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