Some Overseas News

TAX AGREEMENTS ‒ Jersey and Guernsey agree automatic reporting to UK

Banks in Jersey and Guernsey will soon begin automatically reporting client information to the UK tax authorities, probably starting next year. As with the earlier Isle of Man agreement, UK residents are now being invited to disclose previously undeclared offshore accounts to HM Revenue and Customs with reduced penalties, though without guaranteed immunity from prosecution.

TAX AGREEMENTS ‒ UK to demand automatic reporting from overseas territories

The UK government has published an offshore evasion strategy document under the title ‘No Safe Havens’. It reveals plans to conclude bilateral automatic information exchange agreements with the British Overseas Territories and other high-priority jurisdictions. The Cayman Islands has already announced its intention to comply.

FRANCE ‒ Immediate tax charges on overseas interest and dividends

French residents who earn more than EUR50,000 must now notify the authorities and pay an immediate 21-24 per cent tax charge on dividends or interest they receive outside France and that are subject to French income tax. The first monthly notification was due by 15 March 2013, though foreigners taking up French residence this year are exempt until 1 January 2015, and special rules apply to US citizens.

SPAIN ‒ Overseas assets must be declared by end of April

Spanish residents, including expatriate foreigners, are risking large fines if they fail to declare overseas properties and savings worth over EUR50,000 to the Madrid authorities by 30 April