Arrangement

SCHEDULE 1  8

SCHEDULE 2  17

SCHEDULE 3  27

SCHEDULE 4  36

SCHEDULE 5  42

THE STATES, in pursuance of Taxation (Implementation) (Jersey) Law 2004, and having regard to Projet 94 of 2009, adopted by the States on 16th July 2009, Projet 160 of 2009, adopted by the States on 18th November 2009, Projet 108 of 2010, adopted by the States on 29th September 2010, Projet 178 of 2010, adopted by the States on 20th January 2011, Projet 195 of 2010 and Projet 196 of 2010, both adopted by the States on 16th February 2011, Projet 7 of 2011, adopted by the States on 15th March 2011, Projet 8 of 2011, adopted by the States on 16th March 2011, Projet 101 of 2011, adopted by the States on 20th July 2011, Projet 137 of 2011, adopted by the States on 16th September 2011, Projet 138 of 2011 and Projet 139 of 2011, both adopted by the States on 2nd November 2011, Projet 13 of 2012, Projet 14 of 2012 and Projet 15 of 2012, all adopted by the States on 17th April 2012, and Projet 33 of 2012, Projet 34 of 2012 and Projet 35 of 2012, all adopted by the States on 16th May 2012, have made the following Regulations –

“ ‘request’ means a request that is made by the competent authority for the United States of America under the Tax Information Exchange Agreement signed in Washington on 4th November 2002 for and on behalf of the governments of the States of Jersey and the United States of America, for tax information regarding a person and that complies with the requirements of that Agreement;”;

“ ‘tax information’ has the meaning given in Regulation 1A;

‘taxpayer’ means a person who is the subject of a request;

‘third party notice’ shall be construed in accordance with Regulation 3(1) and (2);”;

“1A   Tax information

(1)     For the purposes of these Regulations, ‘tax information’ means information that is foreseeably relevant to the administration and enforcement of the domestic laws of the United States of America concerning any federal tax of the United States of America, including information that is foreseeably relevant to –

(a)     the determination, assessment, enforcement or collection of the tax with respect to a person subject to the tax; or

(b)     the investigation or prosecution of criminal matters in relation to such a person.

(2)     Tax information may be –

(a)     information within an individual’s knowledge or belief; or

(b)     information recorded in a document or any other record in any format that a person has in his or her possession, custody or control.”.

“(1)    Where the Comptroller decides that it is reasonable to respond to a request concerning a taxpayer, the Comptroller may require the taxpayer to provide tax information that the Comptroller reasonably requires for that purpose.”;

“3      Provision by other persons of tax information about taxpayer

(1)     Where the Comptroller decides that it is reasonable to respond to a request concerning a taxpayer, the Comptroller may require a third party, being a person other than the taxpayer, to provide tax information that the Comptroller reasonably requires for that purpose.

(2)     A requirement under paragraph (1) shall be made by notice in writing.

(3)     Where a third party notice does not name the taxpayer to whom it relates, it must provide an account number or other, similar, identification for the tax information required.

(4)     Subject to paragraphs (6) and (8), the Comptroller shall, within the time required by paragraph (5), give to the taxpayer to whom a third party notice relates the following information –

(a)     a copy of the third party notice; and

(b)     a written summary of the reasons of the Comptroller for the giving of the notice.

(5)     The information must be given –

(a)     in a case where, at the time the third party notice is given, the Comptroller does not know the taxpayer’s name and address – as soon as is practicable after the third party has provided to the Comptroller the tax information required by the third party notice; or

(b)     in any other case – as soon as is practicable after the third party notice is given.

(6)     The Comptroller is not required to give to the taxpayer the information described in paragraph (4) if –

(a)     its disclosure would or might identify a person who has provided information that the Comptroller takes into account in deciding whether to give the third party notice;

(b)     the Comptroller is satisfied that there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence; or

(c)     the Comptroller is satisfied that disclosure of information of that description would prejudice the assessment or collection of tax.

(7)     Where –

(a)     the Comptroller, pursuant to paragraph (6), does not give the taxpayer the information described in paragraph (4); or

(b)     at the time the third party notice is given, the Comptroller does not know the taxpayer’s name and address,

the third party notice may impose a requirement that the third party shall not inform the taxpayer of the third party notice.

(8)     In a case where the third party notice does not name the taxpayer to whom it relates the Comptroller may, after the third party has provided the tax information required by the third party notice, apply to the Bailiff for the Bailiff to waive the requirement to give the taxpayer the information described in paragraph (4) –

(a)     on the ground that the Comptroller –

(i)      does not know the taxpayer’s name and address, and

(ii)      has taken all reasonable steps to ascertain the information described in clause (i); or

(b)     on the ground that –

(i)      its disclosure would or might identify a person who has provided information that the Comptroller took into account in deciding whether to give the third party notice,

(ii)      there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence, or

(iii)     disclosure of information of that description would prejudice the assessment or collection of tax.

(9)     The third party who provided the tax information shall be notified of, and have a right to make representations to the Bailiff regarding, an application made under paragraph (8).

(10)    The Bailiff may, before deciding whether to grant an application made on the ground in paragraph (8)(a), direct the Comptroller to take such further reasonable steps as the Bailiff specifies in order to ascertain the taxpayer’s name and address.

(11)    Subject to paragraph (12), the Comptroller shall not provide to the competent authority for the United States of America the tax information provided by the third party unless the taxpayer has been given the information required by paragraph (4) and either –

(a)     the taxpayer’s right of appeal against the third party notice has expired; or

(b)     the taxpayer’s appeal has been withdrawn or dismissed.

(12)    In a case where the requirement to give the taxpayer the information described in paragraph (4) does not apply by virtue of paragraph (6) or is waived under paragraph (8) –

(a)     paragraph (11) shall not apply; and

(b)     the taxpayer shall not have a right of appeal under Regulation 14(1)(c).

(13)    In this Regulation, a reference to the taxpayer’s address is a reference to any address at which the taxpayer may be given information.”.

“(2)    If this Regulation applies, the Royal Court may make an order that the taxpayer must provide to the Comptroller, within such time as the order specifies, the tax information required under Regulation 2 or so much of that information as is specified in the court order.”.

“8      Court order for provision of tax information by third party

(1)     This Regulation applies if the Royal Court is satisfied, on the application of the Comptroller –

(a)     that a person to whom a third party notice has been given has failed to comply with the notice; or

(b)     that there are reasonable grounds for suspecting that the person will not comply with a third party notice.

(2)     If this Regulation applies, the Royal Court may make an order that the person must provide to the Comptroller, within such time as the order specifies, the tax information required under Regulation 3 or so much of that information as is specified in the court order.”.

“unless the Royal Court is satisfied –

(i)      that compliance with this Regulation would seriously prejudice the investigation of a relevant criminal offence, or

(ii)      that there is a serious risk that the tax information sought will be altered, concealed, destroyed or otherwise disposed of if this Regulation is complied with.”.

“10A Restrictions regarding requirement to provide tax information

(1)     Nothing in these Regulations requires a person to provide to the Comptroller information that is subject to legal professional privilege.

(2)     The answers given or a statement or deposition made by an individual in compliance with a notice given under Regulation 2 or 3 or an order of the Royal Court under Regulation 7 or 8 may not be used in evidence against the individual in any criminal proceedings, except proceedings under Regulation 15(2).

(3)     Notwithstanding any other enactment (whenever passed or made) or the terms of any contract (whenever made), a person required to provide information under Regulation 3 or by a court order under Regulation 8 shall not incur any civil or criminal liability by reason of disclosing the information in compliance with the requirement.

10B   Manner of provision of tax information

(1)     Where tax information is information within an individual’s knowledge or belief, an individual required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall do so by answering questions, or by making a statement or deposition in a form that would be receivable in evidence according to the law of the United States of America.

(2)     Where tax information is information recorded in electronic or magnetic form, the person required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall provide the information in a form in which it is visible and legible.

(3)     Where tax information is information recorded in a document or any other record, the person required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall, as further required –

(a)     provide a copy of the document, authenticated in such manner that the copy would be receivable in evidence according to the law of the United States of America; or

(b)     produce the original, for the purpose of the Comptroller making a copy authenticated as described in sub-paragraph (a).

10C   Keeping of records

(1)     A person who is liable to pay tax in the United States of America shall keep any document that contains tax information relevant to the person’s liability.

(2)     A person who provides financial services to a person described in paragraph (1), shall keep any document created in the provision of those services that contains tax information relevant to the liability of the person described in paragraph (1).

(3)     A person required by paragraph (1) or (2) to keep a document shall do so for a period of 6 years beginning at the end of the year in which the tax information was recorded in the document.

(4)     A person who, without reasonable excuse, fails to comply with this Regulation shall be guilty of an offence and liable to a fine of level 4 on the standard scale.

(5)     In paragraph (2), ‘financial services’ has the same meaning as in Article 1(1) of the Financial Services Commission (Jersey) Law 1998[7].”.

“(3)    Despite paragraph (2), but subject to Regulation 10C, the person may alter, destroy or otherwise dispose of tax information to which the notice or application relates –

(a)     with the leave of the Royal Court; or

(b)     with the written permission of the Comptroller.

(4)     Without prejudice to Regulation 10C, paragraph (2) shall cease to apply –

(a)     where the person was given notice of the requirement under Regulation 2 or 3, upon –

(i)      the person complying with the requirement, or

(ii)      the person’s appeal against the requirement being granted;

(b)     where the person was given notice of the Comptroller’s intention to apply for an order under Regulation 7 or 8, upon –

(i)      the application being abandoned or dismissed, or

(ii)      following the grant of the application, the person complying with the order under Regulation 7 or 8.”.

“(2A) A warrant issued on the ground described in paragraph (1)(b) cannot authorize the entry of any part of premises that are occupied as a dwelling.

(3)     An application for the issue of a warrant under paragraph (1) may be made by –

(a)     where the application is on the ground in paragraph (1)(a), a police officer;

(b)     where the application is on the ground in paragraph (1)(b), a designated tax officer.

(4)     A warrant issued under this Regulation shall –

(a)     remain in force for 14 days and shall then cease to have effect; and

(b)     authorize the person executing it to enter and search the premises specified in it and, for that purpose, take with him or her such other persons as are reasonably necessary.

(5)     On entering the premises under the authority of the warrant, the person executing it may seize and remove anything found there if –

(a)     in the case of a warrant issued on the ground in paragraph (1)(a), the person has reasonable grounds to believe that it may be required as evidence for the purposes of criminal proceedings under these Regulations;

(b)     in the case of a warrant issued on the ground in paragraph (1)(b), the person has reasonable grounds to believe that it is a thing specified in the warrant.”;

“(6A) Where any thing is seized and removed in exercise of a warrant issued on the ground described in paragraph (1)(b), the person executing it shall pass it to the Comptroller.

(6B)   Notwithstanding any other enactment (whenever passed or made) a person required by paragraph (6A) to pass any thing to the Comptroller shall not incur any civil or criminal liability by reason of complying with the requirement.”.

“(b)    a person, against a third party notice given to the person;

(c)     a taxpayer, against a third party notice which relates to the taxpayer.”;

“(3A) On hearing an appeal by a taxpayer under paragraph (1)(c) against a third party notice in a case where the appeal is heard after the information has been provided by the third party, the Royal Court may authorize the provision by the Comptroller to the competent authority for the United States of America of all or any of the information or order its restitution or disposal, and may make such order as to the costs of the appeal as it thinks fit.”;

“15    Offences

(1)     A person who, knowingly and without reasonable excuse, contravenes Regulation 11(2) is guilty of an offence.

(2)     An individual who, being required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide information by answering questions or by making a statement or deposition –

(a)     knowingly or recklessly gives an answer or makes a statement or deposition which is false, misleading or deceptive in a material particular; or

(b)     knowingly or recklessly withholds any information the omission of which makes the information provided misleading or deceptive in a material particular,

is guilty of an offence.

(3)     A person who, knowingly and without reasonable excuse, fails to comply with a requirement imposed under any of Regulation 2, 3, 7 or 8 is guilty of an offence.

(4)     A person who, knowingly and without reasonable excuse, obstructs a person who is executing a warrant under Regulation 12 is guilty of an offence.

(5)     A person guilty of an offence against this Article is liable to imprisonment for a term of 12 months and a fine.”.

“16A Confidentiality of information received under tax information exchange agreement

(1)     Information received by the Comptroller from the Secretary of the Treasury of the United States of America, or his or her delegate, pursuant to the agreement referred to in the definition ‘request’ in Regulation 1(1) shall be disclosed only to persons, and used only for the purposes, described in that agreement.

(2)     A person who knowingly contravenes paragraph (1) commits an offence and is liable to a fine.”.

“ ‘competent authority’ means, in relation to Jersey, the Minister for Treasury and Resources or his or her authorized representative and, in relation to a third country, the person named as the competent authority for that country in the tax information exchange agreement between it and Jersey;”;

“ ‘request’ means a request that is made by the competent authority for a third country under a tax information exchange agreement for tax information regarding a person and that complies with the requirements of that agreement;”;

“ ‘tax’, in relation to a request, means any tax listed in the third column in the Schedule opposite the entry for the third country making the request;

‘tax information’ has the meaning given in Regulation 1A;”;

“ ‘taxpayer’ means the person who is the subject of a request;”;

“ ‘third party notice’ shall be construed in accordance with Regulation 3(1) and (2).”.

“1A   Tax information

(1)     For the purposes of these Regulations ‘tax information’ means information that is foreseeably relevant to the administration and enforcement, in the case of the person who is the subject of a request, of the domestic laws of the third country whose competent authority is making the request concerning any tax listed in the third column in the Schedule opposite the entry for that third country, including information that is foreseeably relevant to –

(a)     the determination, assessment and collection of such taxes;

(b)     the recovery and enforcement of such taxes;

(c)     the recovery and enforcement of tax claims; or

(d)     the investigation or prosecution of tax matters.

(2)     Tax information may be –

(a)     information within an individual’s knowledge or belief; or

(b)     information recorded in a document or any other record in any format, that a person has in his or her possession, custody or control.”.

“(1)    Where the competent authority for Jersey decides that it is reasonable to respond to a request concerning a taxpayer, the competent authority for Jersey may require the taxpayer to provide tax information that the competent authority for Jersey reasonably requires for that purpose.”;

“3      Provision by other persons of tax information about taxpayer

(1)     Where the competent authority for Jersey decides that it is reasonable to respond to a request concerning a taxpayer, the competent authority for Jersey may require a third party, being a person other than the taxpayer, to provide tax information that the competent authority for Jersey reasonably requires for that purpose.

(2)     A requirement under paragraph (1) shall be made by notice in writing.

(3)     Where a third party notice does not name the taxpayer to whom it relates, it must provide an account number or other, similar, identification for the tax information required.

(4)     Subject to paragraphs (6) and (8), the competent authority for Jersey shall, within the time required by paragraph (5), give to the taxpayer to whom a third party notice relates the following information –

(a)     a copy of the third party notice; and

(b)     a written summary of the reasons of the competent authority for Jersey for the giving of the notice.

(5)     The information must be given –

(a)     in a case where, at the time the third party notice is given, the competent authority for Jersey does not know the taxpayer’s name and address – as soon as is practicable after the third party has provided to the competent authority for Jersey the tax information required by the third party notice; or

(b)     in any other case – as soon as is practicable after the third party notice is given.

(6)     The competent authority for Jersey is not required to give to the taxpayer the information described in paragraph (4) if –

(a)     its disclosure would or might identify a person who has provided information that the competent authority for Jersey takes into account in deciding whether to give the third party notice;

(b)     the competent authority for Jersey is satisfied that there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence; or

(c)     the competent authority for Jersey is satisfied that disclosure of information of that description would prejudice the assessment or collection of tax.

(7)     Where –

(a)     the competent authority for Jersey, pursuant to paragraph (6), does not give the taxpayer the information described in paragraph (4); or

(b)     at the time the third party notice is given, the competent authority does not know the taxpayer’s name and address,

the third party notice may impose a requirement that the third party shall not inform the taxpayer of the third party notice.

(8)     In a case where the third party notice does not name the taxpayer to whom it relates the competent authority for Jersey may, after the third party has provided the tax information required by the third party notice, apply to the Bailiff for the Bailiff to waive the requirement to give the taxpayer the information described in paragraph (4) –

(a)     on the ground that the competent authority for Jersey –

(i)      does not know the taxpayer’s name and address, and

(ii)      has taken all reasonable steps to ascertain the information described in clause (i); or

(b)     on the ground that –

(i)      its disclosure would or might identify a person who has provided information that the competent authority for Jersey took into account in deciding whether to give the third party notice,

(ii)      there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence, or

(iii)     disclosure of information of that description would prejudice the assessment or collection of tax.

(9)     The third party who provided the tax information shall be notified of, and have a right to make representations to the Bailiff regarding, an application made under paragraph (8).

(10)    The Bailiff may, before deciding whether to grant an application made on the ground in paragraph (8)(a), direct the competent authority for Jersey to take such further reasonable steps as the Bailiff specifies in order to ascertain the taxpayer’s name and address.

(11)    Subject to paragraph (12), the competent authority for Jersey shall not provide to the competent authority for the third country the tax information provided by the third party unless the taxpayer has been given the information required by paragraph (4) and either –

(a)     the taxpayer’s right of appeal against the third party notice has expired; or

(b)     the taxpayer’s appeal has been withdrawn or dismissed.

(12)    In a case where the requirement to give the taxpayer the information described in paragraph (4) does not apply by virtue of paragraph (6) or is waived under paragraph (8) –

(a)     paragraph (11) shall not apply; and

(b)     the taxpayer shall not have a right of appeal under Regulation 14(1)(c).

(13)    In this Regulation, a reference to the taxpayer’s address is a reference to any address at which the taxpayer may be given information.”.

“(2)    If this Regulation applies, the Royal Court may make an order that the taxpayer must provide to the competent authority for Jersey, within such time as the order specifies, the tax information required under Regulation 2 or so much of that information as is specified in the court order.”.

“8      Court order for provision of tax information by third party

(1)     This Regulation applies if the Royal Court is satisfied, on the application of the competent authority for Jersey –

(a)     that a person to whom a third party notice has been given has failed to comply with the notice; or

(b)     that there are reasonable grounds for suspecting that the person will not comply with a third party notice.

(2)     If this Regulation applies, the Royal Court may make an order that the person must provide to the competent authority for Jersey, within such time as the order specifies, the tax information required under Regulation 3 or so much of that information as is specified in the court order.”.

“unless the Royal Court is satisfied –

(i)      that compliance with this Regulation would seriously prejudice the investigation of a relevant criminal offence, or

(ii)      that there is a serious risk that the tax information sought will be altered, concealed, destroyed or otherwise disposed of if this Regulation is complied with.”.

“10A Restrictions regarding requirement to provide information

(1)     Nothing in these Regulations requires a person to provide to the competent authority for Jersey information that is subject to legal professional privilege.

(2)     The answers given or a statement or deposition made by an individual in compliance with a notice given under Regulation 2 or 3 or an order of the Royal Court under Regulation 7 or 8 may not be used in evidence against the individual in any criminal proceedings, except proceedings under Regulation 15(2).

(3)     Notwithstanding any other enactment (whenever passed or made) or the terms of any contract (whenever made), a person required to provide information under Regulation 3 or by a court order under Regulation 8 shall not incur any civil or criminal liability by reason of disclosing the information in compliance with the requirement.

10B   Manner of provision of tax information

(1)     Where tax information is information within an individual’s knowledge or belief, an individual required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall do so by answering questions, or by making a statement or deposition in a form that would be receivable in evidence according to the law of the third country making the request.

(2)     Where tax information is information recorded in electronic or magnetic form, the person required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall provide the information in a form in which it is visible and legible.

(3)     Where tax information is information recorded in a document or any other record, the person required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide that information shall, as further required –

(a)     provide a copy of the document, authenticated in such manner that the copy would be receivable in evidence according to the law of the third country making the request; or

(b)     produce the original, for the purpose of the competent authority for Jersey making a copy authenticated as described in sub-paragraph (a).

10C   Keeping of records

(1)     A person who is liable to pay tax in a third country shall keep any document that contains tax information relevant to the person’s liability.

(2)     A person who provides financial services to a person described in paragraph (1), shall keep any document created in the provision of those services that contains tax information relevant to the liability of the person described in paragraph (1).

(3)     A person required by paragraph (1) or (2) to keep a document shall do so for a period of 6 years beginning at the end of the year in which the tax information was recorded in the document.

(4)     A person who, without reasonable excuse, fails to comply with this Regulation shall be guilty of an offence and liable to a fine of level 4 on the standard scale.

(5)     In paragraph (2), ‘financial services’ has the same meaning as in Article 1(1) of the Financial Services Commission (Jersey) Law 1998[9].”.

“(3)    Despite paragraph (2), but subject to Regulation 10C, the person may alter, destroy or otherwise dispose of tax information to which the notice or application relates –

(a)     with the leave of the Royal Court; or

(b)     with the written permission of the competent authority for Jersey.

(4)     Without prejudice to Regulation 10C, paragraph (2) shall cease to apply –

(a)     where the person was given notice of the requirement under Regulation 2 or 3, upon –

(i)      the person complying with the requirement, or

(ii)      the person’s appeal against the requirement being granted;

(b)     where the person was given notice of the competent authority for Jersey’s intention to apply for an order under Regulation 7 or 8, upon –

(i)      the application being abandoned or dismissed, or

(ii)      following the grant of the application, the person complying with the order under Regulation 7 or 8.”.

“(2A) A warrant issued on the ground described in paragraph (1)(b) cannot authorize the entry of any part of premises that are occupied as a dwelling.

(3)     An application for the issue of a warrant under paragraph (1) may be made by –

(a)     where the application is on the ground in paragraph (1)(a), a police officer;

(b)     where the application is on the ground in paragraph (1)(b), a designated tax officer.

(4)     A warrant issued under this Regulation shall –

(a)     remain in force for 14 days and shall then cease to have effect; and

(b)     authorize the person executing it to enter and search the premises specified in it and, for that purpose, take with him or her such other persons as are reasonably necessary.

(5)     On entering the premises under the authority of the warrant, the person executing it may seize and remove anything found there if –

(a)     in the case of a warrant issued on the ground in paragraph (1)(a), the person has reasonable grounds to believe that it may be required as evidence for the purposes of criminal proceedings under these Regulations;

(b)     in the case of a warrant issued on the ground in paragraph (1)(b), the person has reasonable grounds to believe that it is a thing specified in the warrant.”;

“(6A) Where any thing is seized and removed in exercise of a warrant issued on the ground described in paragraph (1)(b), the person executing it shall pass it to the competent authority for Jersey.

(6B)   Notwithstanding any other enactment (whenever passed or made) a person required by paragraph (6A) to pass any thing to the competent authority for Jersey shall not incur any civil or criminal liability by reason of complying with the requirement.”.

“(b)    a person, against a third party notice given to the person;

(c)     a taxpayer, against a third party notice which relates to the taxpayer.”;

“(3A) On hearing an appeal by a taxpayer under paragraph (1)(c) against a third party notice in a case where the appeal is heard after the information has been provided by the third party, the Royal Court may authorize the provision by the competent authority for Jersey to the competent authority for the third country of all or any of the information or order its restitution or disposal, and may make such order as to the costs of the appeal as it thinks fit.”;

“15    Offences

(1)     A person who, knowingly and without reasonable excuse, contravenes Regulation 11(2) is guilty of an offence.

(2)     An individual who, being required by notice under Regulation 2 or 3 or by order of the Royal Court under Regulation 7 or 8 to provide information by answering questions or by making a statement or deposition –

(a)     knowingly or recklessly gives an answer or makes a statement or deposition which is false, misleading or deceptive in a material particular; or

(b)     knowingly or recklessly withholds any information the omission of which makes the information provided misleading or deceptive in a material particular,

is guilty of an offence.

(3)     A person who, knowingly and without reasonable excuse, fails to comply with a requirement imposed under any of Regulation 2, 3, 7 or 8 is guilty of an offence.

(4)     A person who, knowingly and without reasonable excuse, obstructs a person who is executing a warrant under Regulation 12 is guilty of an offence.

(5)     A person guilty of an offence against this Article is liable to imprisonment for a term of 12 months and a fine.”.

“(1)    These Regulations, apart from Regulation 16B, apply to tax information in respect of a tax that is specified in the Schedule from the date on which a tax information exchange agreement in respect of that tax comes into force.”.

“16B Confidentiality of information received under tax information exchange agreement

(1)     Information received by the competent authority for Jersey from the competent authority for a third country pursuant to a tax information exchange agreement shall be disclosed only to persons, and used only for the purposes, described in that agreement.

(2)     A person who knowingly contravenes paragraph (1) commits an offence and is liable to a fine.”.

“ ‘request’ means a request that is made by the competent authority for a third country under a DTA for tax information regarding a person and that complies with the requirements of the DTA;”;

‘tax’, in relation to a request, means the tax in respect of which the request is made;”;

“ ‘tax information’ has the meaning given in Regulation 1A;

‘taxpayer’ means the person who is the subject of a request;”;

“ ‘third party notice’ shall be construed in accordance with Regulation 7(1) and (2).”.

“1A   Tax information

(1)     For the purposes of these Regulations, ‘tax information’ means information that is foreseeably relevant to the administration or enforcement of the domestic laws of the third country whose competent authority is making the request under a DTA concerning taxes of the third country that may be the subject of the exchange of information under the DTA.

(2)     Tax information may be –

(a)     information within an individual’s knowledge or belief; or

(b)     information recorded in a document or any other record in any format, that a person has in his or her possession, custody or control.”.

“(1)    Where the competent authority for Jersey decides that it is reasonable to respond to a request concerning a taxpayer, the competent authority for Jersey may require the taxpayer to provide tax information that the competent authority for Jersey reasonably requires for that purpose.”;

“7      Provision by other persons of tax information about taxpayer

(1)     Where the competent authority for Jersey decides that it is reasonable to respond to a request concerning a taxpayer, the competent authority for Jersey may require a third party, being a person other than the taxpayer, to provide tax information that the competent authority for Jersey reasonably requires for that purpose.

(2)     A requirement under paragraph (1) shall be made by notice in writing.

(3)     Where a third party notice does not name the taxpayer to whom it relates, it must provide an account number or other, similar, identification for the tax information required.

(4)     Subject to paragraphs (6) and (8), the competent authority for Jersey shall, within the time required by paragraph (5), give to the taxpayer to whom a third party notice relates the following information –

(a)     a copy of the third party notice; and

(b)     a written summary of the reasons of the competent authority for Jersey for the giving of the notice.

(5)     The information must be given –

(a)     in a case where, at the time the third party notice is given, the competent authority for Jersey does not know the taxpayer’s name and address – as soon as is practicable after the third party has provided to the competent authority for Jersey the tax information required by the third party notice; or

(b)     in any other case – as soon as is practicable after the third party notice is given.

(6)     The competent authority for Jersey is not required to give to the taxpayer the information described in paragraph (4) if –

(a)     its disclosure would or might identify a person who has provided information that the competent authority for Jersey takes into account in deciding whether to give the third party notice;

(b)     the competent authority for Jersey is satisfied that there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence; or

(c)     the competent authority for Jersey is satisfied that disclosure of information of that description would prejudice the assessment or collection of tax.

(7)     Where –

(a)     the competent authority for Jersey, pursuant to paragraph (6), does not give the taxpayer the information described in paragraph (4); or

(b)     at the time the third party notice is given, the competent authority does not know the taxpayer’s name and address,

the third party notice may impose a requirement that the third party shall not inform the taxpayer of the third party notice.

(8)     In a case where the third party notice does not name the taxpayer to whom it relates the competent authority for Jersey may, after the third party has provided the tax information required by the third party notice, apply to the Bailiff for the Bailiff to waive the requirement to give the taxpayer the information described in paragraph (4) –

(a)     on the ground that the competent authority for Jersey –

(i)      does not know the taxpayer’s name and address, and

(ii)      has taken all reasonable steps to ascertain the information described in clause (i); or

(b)     on the ground that –

(i)      its disclosure would or might identify a person who has provided information that the competent authority for Jersey took into account in deciding whether to give the third party notice,

(ii)      there are reasonable grounds for suspecting that the taxpayer has committed a relevant criminal offence, or

(iii)     disclosure of information of that description would prejudice the assessment or collection of tax.

(9)     The third party who provided the tax information shall be notified of, and have a right to make representations to the Bailiff regarding, an application made under paragraph (8).

(10)    The Bailiff may, before deciding whether to grant an application made on the ground in paragraph (8)(a), direct the competent authority for Jersey to take such further reasonable steps as the Bailiff specifies in order to ascertain the taxpayer’s name and address.

(11)    Subject to paragraph (12), the competent authority for Jersey shall not provide to the competent authority for the third country the tax information provided by the third party unless the taxpayer has been given the information required by paragraph (4) and either –

(a)     the taxpayer’s right of appeal against the third party notice has expired; or

(b)     the taxpayer’s appeal has been withdrawn or dismissed.

(12)    In a case where the requirement to give the taxpayer the information described in paragraph (4) does not apply by virtue of paragraph (6) or is waived under paragraph (8) –

(a)     paragraph (11) shall not apply; and

(b)     the taxpayer shall not have a right of appeal under Regulation 18(1)(c).

(13)    In this Regulation, a reference to the taxpayer’s address is a reference to any address at which the taxpayer may be given information.”.

“(2)    If this Regulation applies, the Royal Court may make an order that the taxpayer must provide to the competent authority for Jersey, within such time as the order specifies, the tax information required under Regulation 6 or so much of that information as is specified in the court order.”.

“12    Court order for provision of tax information by third party

(1)     This Regulation applies if the Royal Court is satisfied, on the application of the competent authority for Jersey –

(a)     that a person to whom a third party notice has been given has failed to comply with the notice; or

(b)     that there are reasonable grounds for suspecting that the person will not comply with a third party notice.

(2)     If this Regulation applies, the Royal Court may make an order that the person must provide to the competent authority for Jersey, within such time as the order specifies, the tax information required under Regulation 7 or so much of that information as is specified in the court order.”.

“unless the Royal Court is satisfied –

(i)      that compliance with this Regulation would seriously prejudice the investigation of a relevant criminal offence, or

(ii)      that there is a serious risk that the tax information sought will be altered, concealed, destroyed or otherwise disposed of if this Regulation is complied with.”.

“14A Restrictions regarding requirement to provide tax information

(1)     Nothing in these Regulations requires a person to provide to the competent authority for Jersey information that is subject to legal professional privilege.

(2)     The answers given or a statement or deposition made by an individual in compliance with a notice given under Regulation 6 or 7 or an order of the Royal Court under Regulation 11 or 12 may not be used in evidence against the individual in any criminal proceedings, except proceedings under Regulation 19(2).

(3)     Notwithstanding any other enactment (whenever passed or made) or the terms of any contract (whenever made), a person required to provide information under Regulation 7 or by a court order under Regulation 12 shall not incur any civil or criminal liability by reason of disclosing the information in compliance with the requirement.

14B   Manner of provision of tax information

(1)     Where tax information is information within an individual’s knowledge or belief, an individual required by notice under Regulation 6 or 7 or by order of the Royal Court under Regulation 11 or 12 to provide that information shall do so by answering questions, or by making a statement or deposition in a form that would be receivable in evidence according to the law of the third country making the request.

(2)     Where tax information is information recorded in electronic or magnetic form, the person required by notice under Regulation 6 or 7 or by order of the Royal Court under Regulation 11 or 12 to provide that information shall provide the information in a form in which it is visible and legible.

(3)     Where tax information is information recorded in a document or any other record, the person required by notice under Regulation 6 or 7 or by order of the Royal Court under Regulation 11 or 12 to provide that information shall, as further required –

(a)     provide a copy of the document, authenticated in such manner that the copy would be receivable in evidence according to the law of the third country making the request; or

(b)     produce the original, for the purpose of the competent authority for Jersey making a copy authenticated as described in sub-paragraph (a).

14C   Keeping of records

(1)     A person who is liable to pay tax in a third country shall keep any document that contains tax information relevant to the person’s liability.

(2)     A person who provides financial services to a person described in paragraph (1), shall keep any document created in the provision of those services that contains tax information relevant to the liability of the person described in paragraph (1).

(3)     A person required by paragraph (1) or (2) to keep a document shall do so for a period of 6 years beginning at the end of the year in which the tax information was recorded in the document.

(4)     A person who, without reasonable excuse, fails to comply with this Regulation shall be guilty of an offence and liable to a fine of level 4 on the standard scale.

(5)     In paragraph (2), ‘financial services’ has the same meaning as in Article 1(1) of the Financial Services Commission (Jersey) Law 1998[12].”.

“(3)    Despite paragraph (2), but subject to Regulation 14C, the person may alter, destroy or otherwise dispose of tax information to which the notice or application relates –

(a)     with the leave of the Royal Court; or

(b)     with the written permission of the competent authority for Jersey.

(4)     Without prejudice to Regulation 14C, paragraph (2) shall cease to apply –

(a)     where the person was given notice of the requirement under Regulation 6 or 7, upon –

(i)      the person complying with the requirement, or

(ii)      the person’s appeal against the requirement being granted;

(b)     where the person was given notice of the competent authority for Jersey’s intention to apply for an order under Regulation 11 or 12 upon –

(i)      the application being abandoned or dismissed, or

(ii)      following the grant of the application, the person complying with the order under Regulation 11 or 12.”.

“(2A) A warrant issued on the ground described in paragraph (1)(b) cannot authorize the entry of any part of premises that are occupied as a dwelling.

(3)     An application for the issue of a warrant under paragraph (1) may be made by –

(a)     where the application is on the ground in paragraph (1)(a), a police officer;

(b)     where the application is on the ground in paragraph (1)(b), a designated tax officer.

(4)     A warrant issued under this Regulation shall –

(a)     remain in force for 14 days and shall then cease to have effect; and

(b)     authorize the person executing it to enter and search the premises specified in it and, for that purpose, take with him or her such other persons as are reasonably necessary.

(5)     On entering the premises under the authority of the warrant, the person executing it may seize and remove anything found there if –

(a)     in the case of a warrant issued on the ground in paragraph (1)(a), the person has reasonable grounds to believe that it may be required as evidence for the purposes of criminal proceedings under these Regulations;

(b)     in the case of a warrant issued on the ground in paragraph (1)(b), the person has reasonable grounds to believe that it is a thing specified in the warrant.”;

“(6A) Where any thing is seized and removed in exercise of a warrant issued on the ground described in paragraph (1)(b), the person executing it shall pass it to the competent authority for Jersey.

(6B)   Notwithstanding any other enactment (whenever passed or made) a person required by paragraph (6A) to pass any thing to the competent authority for Jersey shall not incur any civil or criminal liability by reason of complying with the requirement.”.

“(b)    a person, against a third party notice given to the person;

(c)     a taxpayer, against a third party notice which relates to the taxpayer.”;

“(3A) On hearing an appeal by a taxpayer under paragraph (1)(c) against a third party notice in a case where the appeal is made after the information has been provided by the third party, the Royal Court may authorize the provision by the competent authority for Jersey to the competent authority for the third country of all or any of the information received in compliance with the requirement, or order its restitution or disposal, and may make such order as to the costs of the appeal as it thinks fit.”;

“19    Offences

(1)     A person who, knowingly and without reasonable excuse, contravenes Regulation 15(2) is guilty of an offence.

(2)     An individual who, being required by notice under Regulation 6 or 7 or by order of the Royal Court under Regulation 11 or 12 to provide information by answering questions or by making a statement or deposition –

(a)     knowingly or recklessly gives an answer or makes a statement or deposition which is false, misleading or deceptive in a material particular; or

(b)     knowingly or recklessly withholds any information the omission of which makes the information provided misleading or deceptive in a material particular,

is guilty of an offence.

(3)     A person who, knowingly and without reasonable excuse, fails to comply with a requirement imposed under any of Regulation 6, 7, 11 or 12 is guilty of an offence.

(4)     A person who, knowingly and without reasonable excuse, obstructs a person who is executing a warrant under Regulation 16 is guilty of an offence.

(5)     A person guilty of an offence against this Article is liable to imprisonment for a term of 12 months and a fine.”.

“SCHEDULE 3

(Regulation 2(3))

estonia

PART 1

dta WITH ESTONIA

AGREEMENT BETWEEN JERSEY AND THE REPUBLIC OF ESTONIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Article 1

PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Parties.

Article 2

TAXES COVERED

1.       This Agreement shall apply to taxes on income imposed on behalf of a Party or its local authorities, irrespective of the manner in which they are levied.

2.       There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3.       The existing taxes to which the Agreement shall apply are in particular:

(a)     in the case of Jersey, the income tax;

(b)     in the case of Estonia, the income tax.

4.       The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Parties shall notify each other of any significant changes that have been made in their respective taxation laws.

Article 3

GENERAL DEFINITIONS

1.       For the purposes of this Agreement, unless the context otherwise requires:

(a)     the term ‘Jersey’ means the Bailiwick of Jersey, including its territorial sea;

(b)     the term ‘Estonia’ means the Republic of Estonia; and, when used in the geographical sense, means the territory of Estonia and any other area adjacent to the territorial waters of Estonia within which, under the laws of Estonia and in accordance with international law, the rights of Estonia may be exercised with respect to the sea bed and its sub-soil and their natural resources;

(c)     the terms ‘a Party’ and ‘the other Party’ mean Jersey or Estonia as the context requires; the term ‘Parties’ means Jersey and Estonia;

(d)     the term ‘person’ includes an individual, a company and any other body of persons;

(e)     the term ‘company’ means any legal person or any entity that is treated as a legal person for tax purposes;

(f)      the term ‘enterprise’ applies to the carrying on of any business;

(g)     the terms ‘enterprise of a Party’ and ‘enterprise of the other Party’ mean respectively an enterprise carried on by a resident of a Party and an enterprise carried on by a resident of the other Party;

(h)     the term ‘international traffic’ means any transport by a ship or aircraft operated by an enterprise of a Party, except when the ship or aircraft is operated solely between places in the other Party;

(i)      the term ‘business’ includes the performance of professional services and of other activities of an independent character;

(j)      the term ‘competent authority’ means:

(i)      in the case of Jersey, the Treasury and Resources Minister or his authorised representative, and;

(ii)      in the case of Estonia, the Minister of Finance or his authorised representative;

(k)     the term ‘national’, in relation to a Party, means:

(i)      any individual possessing the nationality or citizenship of a Party, and;

(ii)      any legal person, partnership or association deriving its status as such from the laws in force in a Party.

2.       As regards the application of the Agreement at any time by a Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Article 4

RESIDENT

1.       For the purposes of this Agreement, the term ‘resident of a Party’ means any person who, under the laws of that Party, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that Party, any local authority thereof and any pension fund or pension scheme recognised by that Party. This term, however, does not include any person who is liable to tax in that Party in respect only of income from sources in that Party.

2.       Where by reason of the provisions of paragraph 1 an individual is a resident of both Parties, then his status shall be determined as follows:

(a)     he shall be deemed to be a resident only of the Party in which he has a permanent home available to him; if he has a permanent home available to him in both Parties, he shall be deemed to be a resident only of the Party with which his personal and economic relations are closer (centre of vital interests);

(b)     if the Party in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Party, he shall be deemed to be a resident only of the Party in which he has an habitual abode;

(c)     if he has an habitual abode in both Parties or in neither of them, he shall be deemed to be a resident only of the Party of which he is a national;

(d)     if he is a national of both Parties or of neither of them, the competent authorities of the Parties shall settle the question by mutual agreement.

3.       Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Parties, the competent authorities of the Parties shall settle the question by mutual agreement having regard to such factors as the place of effective management and the place of incorporation.

Article 5

PERMANENT ESTABLISHMENT

1.       For the purposes of this Agreement, the term ‘permanent establishment’ means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2.       The term ‘permanent establishment’ includes especially:

(a)     a place of management;

(b)     a branch;

(c)     an office;

(d)     a factory;

(e)     a workshop, and

(f)      a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3.       A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.

4.       Notwithstanding the preceding provisions of this Article, the term ‘permanent establishment’ shall be deemed not to include:

(a)     the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b)     the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c)     the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d)     the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

(e)     the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;

(f)      the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5.       Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent status to whom paragraph 6 applies, is acting on behalf of an enterprise and has, and habitually exercises, in a Party an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Party in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

6.       An enterprise of a Party shall not be deemed to have a permanent establishment in the other Party merely because it carries on business in that Party through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ from those which would have been made between independent enterprises, he will not be considered an agent of an independent status within the meaning of this paragraph.

7.       The fact that a company which is a resident of a Party controls or is controlled by a company which is a resident of the other Party, or which carries on business in that other Party (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

1.       Income derived by a resident of a Party from immovable property (including income from agriculture or forestry) situated in the other Party may be taxed in that other Party.

2.       The term ‘immovable property’ shall have the meaning which it has under the law of the Party in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, any rights of claim in respect of immovable property, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3.       The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4.       The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.

Article 7

BUSINESS PROFITS

1.       The profits of an enterprise of a Party shall be taxable only in that Party unless the enterprise carries on business in the other Party through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Party but only so much of them as are attributable to that permanent establishment.

2.       Subject to the provisions of paragraph 3, where an enterprise of a Party carries on business in the other Party through a permanent establishment situated therein, there shall in each Party be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3.       In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Party in which the permanent establishment is situated or elsewhere.

4.       Insofar as it has been customary in a Party to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Party from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.

5.       No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

6.       For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

7.       Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1.       The profits of an enterprise of a Party from the operation of ships or aircraft in international traffic shall be taxable only in that Party.

2.       The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1.       Where

(a)     an enterprise of a Party participates directly or indirectly in the management, control or capital of an enterprise of the other Party, or

(b)     the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Party and an enterprise of the other Party,

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

2.       Where a Party includes in the profits of an enterprise of that Party, and taxes accordingly, profits on which an enterprise of the other Party has been charged to tax in that other Party and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Party if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other Party shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Parties shall if necessary consult each other.

Article 10

DIVIDENDS

1.       Dividends paid by a company which is a resident of a Party to a resident of the other Party and beneficially owned by that resident of the other Party shall be taxable only in that other Party.

2.       The term ‘dividends’ as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares by the laws of the Party of which the company making the distribution is a resident.

3.       The provisions of paragraph 1 shall not apply if the beneficial owner of the dividends, being a resident of a Party, carries on business in the other Party of which the company paying the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

4.       Where a company which is a resident of a Party derives profits or income from the other Party, that other Party may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Party or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other Party, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other Party.

Article 11

INTEREST

1.       Interest arising in a Party and beneficially owned by a resident of the other Party shall be taxable only in that other Party.

2.       The term ‘interest’ as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purposes of this Article.

3.       The provisions of paragraph 1 shall not apply if the beneficial owner of the interest, being a resident of a Party, carries on business in the other Party in which the interest arises, through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

4.       Interest shall be deemed to arise in a Party when the payer is a resident of that Party. Where, however, the person paying the interest, whether he is a resident of a Party or not, has in a Party a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Party in which the permanent establishment is situated.

5.       Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Party, due regard being had to the other provisions of this Agreement.

Article 12

ROYALTIES

1.       Royalties arising in a Party and beneficially owned by a resident of the other Party shall be taxable only in that other Party.

2.       The term ‘royalties’ as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

3.       The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Party, carries on business in the other Party in which the royalties arise through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

4.       Royalties shall be deemed to arise in a Party when the payer is a resident of that Party. Where, however, the person paying the royalties, whether he is a resident of a Party or not, has in a Party a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Party in which the permanent establishment is situated.

5.       Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Party, due regard being had to the other provisions of this Agreement.

Article 13

CAPITAL GAINS

1.       Gains derived by a resident of a Party from the alienation of immovable property referred to in Article 6 and situated in the other Party may be taxed in that other Party.

2.       Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Party has in the other Party, including such gains from the alienation of such a permanent establishment, may be taxed in that other Party.

3.       Gains derived by an enterprise of a Party operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that Party.

4.       Gains derived by a resident of a Party from the alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Party may be taxed in that other Party.

5.       Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Party of which the alienator is a resident.

Article 14

INCOME FROM EMPLOYMENT

1.       Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Party in respect of an employment shall be taxable only in that Party unless the employment is exercised in the other Party. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party.

2.       Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Party in respect of an employment exercised in the other Party shall be taxable only in the first-mentioned Party if:

(a)     the recipient is present in the other Party for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and

(b)     the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party, and

(c)     the remuneration is not borne by a permanent establishment which the employer has in the other Party.

3.       Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Party, may be taxed in that Party.

Article 15

DIRECTORS’ FEES

Directors’ fees and other similar payments derived by a resident of a Party in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Party may be taxed in that other Party.

Article 16

ARTISTES AND SPORTSMEN

1.       Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Party as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Party, may be taxed in that other Party.

2.       Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Party in which the activities of the entertainer or sportsman are exercised.

3.       The provisions of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Party by an entertainer or a sportsman if the visit to that Party is wholly or mainly supported by public funds of one or both of the Parties or local authorities thereof. In such case, the income shall be taxable only in the Party of which the entertainer or a sportsman is a resident.

Article 17

PENSIONS

Pensions paid to a resident of a Party shall be taxable only in that Party.

Article 18

GOVERNMENT SERVICE

1.       Salaries, wages and other similar remuneration, paid by a Party or a local authority thereof to an individual in respect of services rendered to that Party or authority shall be taxable only in that Party. However, such salaries, wages and other similar remuneration shall be taxable only in the other Party if the services are rendered in that Party and the individual is a resident of that Party who:

(a)     is a national of that Party; or

(b)     did not become a resident of that Party solely for the purpose of rendering the services.

2.       The provisions of Articles 14, 15 and 16 shall apply to salaries, wages and other similar remuneration in respect of services rendered in connection with a business carried on by a Party or a local authority thereof.

Article 19

STUDENTS

Payments which a student or business apprentice who is or was immediately before visiting a Party a resident of the other Party and who is present in the first-mentioned Party solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that Party, provided that such payments arise from sources outside that Party.

Article 20

OTHER INCOME

1.       Items of income of a resident of a Party, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that Party.

2.       The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Party, carries on business in the other Party through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Article 21

METHODS FOR ELIMINATION OF DOUBLE TAXATION

1.       In the case of Jersey, double taxation shall be avoided as follows:

(a)     when imposing tax on its residents Jersey may include in the basis upon which such taxes are imposed the items of income, which, according to the provisions of this Agreement, may be taxed in Estonia;

(b)     where a resident of Jersey derives income which, in accordance with the provisions of this Agreement, may be taxed in Estonia, Jersey shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Estonia. Such deduction in either case shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Estonia, and

(c)     notwithstanding the provisions of subparagraph b), where a company which is a resident of Jersey holds at least 10 percent of the capital of a company which is a resident of Estonia, Jersey shall exempt from tax the dividends paid to the company which is a resident of Jersey by the company which is a resident of Estonia.

2.       In the case of a resident of Estonia, double taxation shall be avoided as follows:

(a)     where a resident of Estonia derives income which, in accordance with the provisions of this Agreement, has been taxed in Jersey, Estonia shall, subject to the provisions of subparagraph b), exempt such income from tax, and

(b)     where in accordance with any provision of the Agreement income derived by a resident of Estonia is exempt from tax in Estonia, Estonia may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

Article 22

NON-DISCRIMINATION

1.       Nationals of a Party shall not be subjected in the other Party to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other Party in the same circumstances are or may be subjected.

2.       The taxation on a permanent establishment which an enterprise of a Party has in the other Party shall not be less favourably levied in that other Party than the taxation levied on enterprises of that other Party carrying on the same activities.

3.       Except where the provisions of paragraph 1 of Article 9, paragraph 5 of Article 11, or paragraph 5 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Party to a resident of the other Party shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned Party.

4.       Enterprises of a Party, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Party, shall not be subjected in the first-mentioned Party to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned Party are or may be subjected.

5.       The provisions of this Article shall not be construed as obliging a Party to grant to residents of the other Party any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

6.       The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

Article 23

MUTUAL AGREEMENT PROCEDURE

1.       Where a person considers that the actions of one or both of the Parties result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those Parties, present his case to the competent authority of the Party of which he is a resident, or if his case comes under paragraph 1 of Article 22, to that of the Party of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

2.       The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Party, with a view to the avoidance of taxation which is not in accordance with the Agreement. An agreement shall be reached within a period of two years after the question was formally raised by the competent authority and the agreement shall be implemented notwithstanding any time limits in the domestic law of the Parties.

3.       The competent authorities of the Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.

4.       The competent authorities of the Parties may communicate with each other directly, including through a joint commission consisting of themselves or their representatives for the purpose of reaching an agreement in the sense of the preceding paragraphs.

Article 24

EXCHANGE OF INFORMATION

1.       The competent authorities of the Parties shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes covered by this Agreement, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1.

2.       Any information received under paragraph 1 by a Party shall be treated as secret in the same manner as information obtained under the domestic laws of that Party and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

3.       In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Party the obligation:

(a)     to carry out administrative measures at variance with the laws and administrative practice of that or of the other Party;

(b)     to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Party;

(c)     to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).

4.       If information is requested by a Party in accordance with this Article, the other Party shall use its information gathering measures to obtain the requested information, even though that other Party may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Party to decline to supply information solely because it has no domestic interest in such information.

5.       In no case shall the provisions of paragraph 3 be construed to permit a Party to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

Article 25

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 26

ENTRY INTO FORCE

1.       Each Party shall notify the other Party of the completion of the procedures required by its laws for the bringing into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2.       The provisions of the Agreement shall have effect:

(a)     in respect of taxes withheld at source, on income derived on or after the first day of January next following the year in which the Agreement enters into force;

(b)     in respect of other taxes on income, for taxes chargeable for any fiscal year beginning on or after the first day of January next following the year in which the Agreement enters into force.

Article 27

TERMINATION

This Agreement shall remain in force until terminated by a Party but either Party may terminate the Agreement by giving to the other Party written notice of termination at least six months before the end of any calendar year. In such event, the Agreement shall cease to have effect:

(a)     in respect of taxes withheld at source, on income derived on or after the first day of January next following the year in which the notice is given;

(b)     in respect of other taxes on income, for taxes chargeable for any taxation year beginning on or after the first day of January next following the year in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.

DONE in duplicate at London, 21st of December 2010, in the English and Estonian languages, both texts being equally authentic. In case of divergence between the texts the English text shall prevail.

PART 2

TAXATION MODIFICATIONS FOR THE PURPOSES OF DTA WITH ESTONIA

1        1961 Law modified

Part 14 of the 1961 Law shall apply as if the DTA reproduced in Part 1 of this Schedule were an arrangement having effect under Article 111 of that Law.

SCHEDULE 4

(Regulation 2(3))

HONG KONG SPECIAL ADMINISTRATIVE REGION

PART 1

DTA WITH HONG KONG SPECIAL ADMINISTRATIVE REGION

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of Jersey and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:

PART 2

TAXATION MODIFICATIONS FOR PURPOSES OF DTA WITH HONG KONG SPECIAL ADMINISTRATIVE REGION

1        1961 Law modified

Part 14 of the 1961 Law shall apply as if the DTA reproduced in Part 1 of this Schedule were an arrangement having effect under Article 111 of that Law.

SCHEDULE 5

(Regulation 2(3))

qatar

part 1

dta with qatar

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of Jersey and the Government of the State of Qatar, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:

part 2

taxation modifications for the purposes of dta with qatar

1        1961 Law modified

Part 14 of the 1961 Law shall apply as if the DTA reproduced in Part 1 of this Schedule were an arrangement having effect under Article 111 of that Law.”.