Government of Jersey published the TIEA it recently concluded with the Republic of Korea

The Government of Jersey has published the Agreement between the Government of Jersey and the Government of the Republic of Korea on the Exchange of Information Relating to Tax Matters (hereafter: the TIEA), which was signed on July 21, 2015. Although signed, the TIEA has not yet entered into force. For the TIEA to enter into force, the respective ratification procedures have to have been finalized in both countries.

The TIEA arranges for the exchange of information upon request.

Paragraph 1 of Article 3 of the TIEA states the following:
“The taxes which are the subject of this Agreement are taxes of every kind and description imposed by the laws of the Contracting Parties at the date of signature of the Agreement.”

Paragraph 2 of Article 3 of the TIEA arranges that the Agreement shall also apply to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. Furthermore this paragraph arranges that the Agreement shall also apply to any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes if the competent authorities of the Contracting Parties so agree.

Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request. Paragraph 5 of Article 5 of the TIEA contains regulations regarding the information to be included in the request for information.

Article 6 of the TIEA contains regulations regarding the Possibility of Conducting Tax Examinations Abroad.

Article 7 of the TIEA contains regulations regarding the Possibility of Declining a Request. Based on Paragraph 1 of Article 7 the competent authority of the requested Party may decline to assist:

a. where the request is not made in conformity with the TIEA;
b. where the requesting Party has not pursued all means available on its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or
c. where the disclosure of the information requested would be contrary to the public policy of the requested Party.

In addition Paragraph 5 of Article 7 of the TIEA contains a non-discrimination clause.

Article 10 of the TIEA contains regulations regarding a Mutual Agreement Procedure.