Channel Islands suspend Russia tax co-operation

Guernsey, Jersey and Russia are part of an international framework which exchanges information for tax purposes

The Channel Islands have suspended all forms of tax cooperation with Russia, with immediate effect.

Guernsey, Jersey and Russia are all part of an international framework for exchanging information for tax purposes between tax administrations.

The move would "ensure that the Russian government cannot use that information to increase its tax revenues", a government spokesperson said.

The decision follows a similar announcement by the UK on Thursday.

The exchange of information for tax purposes as part of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) is a tool used to combat tax evasion and profit shifting and to assess risk for potential tax avoidance.

Suspending the ability for Russia to receive such information from Guernsey ensures that the Russian government cannot use that information to increase its tax revenues, a States of Guernsey spokesperson said.

Deputy Mark Helyar, treasury lead for the policy and resources committee, said: "Guernsey's decision is an appropriate part of the international response to the invasion of Ukraine."

Jersey's minister for treasury and resources, deputy Susie Pinel, said: "This unprecedented decision reflects the extent to which the Russian government has isolated itself from the global community by its actions in Ukraine."

Follow BBC Guernsey on Twitter and Facebook and follow BBC Jersey on Twitter and Facebook. Send your story ideas to [e-mail].