Guernsey, Jersey and the Isle of Man to sign US tax deal

Guernsey, Jersey and the Isle of Man have announced plans to sign an agreement aimed at preventing tax evasion by US citizens.

The island's governments are jointly negotiating a tax compliance agreement with the United States of America.

Last month the UK signed up to the Foreign Account Tax Compliance Act.

It forces US taxpayers to declare financial assets held overseas and overseas financial institutions to report on assets owned by US taxpayers.

Any agreement signed with the US would need to be ratified separately by each of the islands' parliaments.

Jersey's Chief Minister Ian Gorst said: "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 the Foreign Account Tax Compliance Act.

"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."

Guernsey's Chief Minister Peter Harwood said: "Entering into this type of arrangement highlights the cooperative approach of the Crown Dependencies to international tax matters and confirms Guernsey's commitment to being a well-regulated, internationally co-operative tax transparent jurisdiction."