Channel Islands suspend all forms of tax cooperation with Russia

The decision follows a similar announcement made by the UK Government today (17 March). Credit: PA.

The Channel Islands are suspending all forms of tax cooperation with Russia immediately.

It follows a similar announcement made by the UK Government today (17 March).

Jersey, Guernsey and Russia are part of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. It allows tax authorities to provide help to other tax authoritieis elsewhere.

Guernsey's Deputy Mark Helyar, Treasury Lead for the Policy & Resources Committee said: “The Bailiwick of Guernsey is in lockstep with the UK in respect of measures being applied to Russia.

"This decision to cease the exchange of tax information is an extension of Guernsey’s existing policy. 

"The exchange of information for tax purposes is a tool used to combat tax evasion and profit shifting and to risk assess 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.

"Guernsey’s decision is an appropriate part of the international response to the invasion of  Ukraine. 

"Guernsey will, of course, continue to meet all of its other commitments to international standards and agreements on tax transparency and the exchange of information with all other partner jurisdictions.”

Jersey's Minister for External Relations and Financial Services, Senator Ian Gorst, added: “At a time when Jersey has imposed economic sanctions on Russia, we should not be providing the Russian government with information which it can use to increase its tax revenues.  In this we are aligned with the approach taken by the UK Government.”