A new dawn for Tax Information Exchange Agreements

09 Dec 2013

Bedell Cristin is currently advising a number of trust companies and individuals in relation to requests under Tax Information Exchange Agreements ("TIEAs").

On 6 November 2013, the Taxation (Exchange of Information with Third Countries) (Amendment No. 7) (Jersey) Regulations 2013 came into force (after only having been circulated in draft 2 weeks prior), introducing a number of substantive and material amendments to the Regulations.  These changes will have a very real impact on individuals and entities dealing with requests for information under TIEAs:

  • the scope for challenging the notices is narrowed to a Judicial Review test (i.e. establishing that the Comptroller was acting illegally, irrationally, unreasonably or his decision making was procedurally improper).
  • the Comptroller is no longer required to provide the taxpayer (or therefore any third party served with a notice) with his "reasons" for issuing the notice.
  • recipients of notices only have 15 days to provide the information requested (rather than 30 days previously).
  • challenges to notices must be made within 14 days of receipt of the notice (rather than 21 days previously).
  • even where parties are challenging the notices, they are still required to provide the information requested.
  • there is no right of appeal to Jersey's Court of Appeal: if an application for judicial review is unsuccessful, an appeal can only be made to the Privy Council, provided that leave to appeal is granted. 

For more information on the changes and the procedure for compliance with or challenging notices issued by the Comptroller, please contact the team.