Guernsey's New Mandatory Disclosure Rules Regulations

The Income Tax (Approved International Agreements) (Implementation) (Mandatory Disclosure Rules) Regulations, 2020 (the "Regulations") were passed by Guernsey on 11 March 2020 with a commencement date yet to be announced. The Regulations introduce new duties to disclose information in respect of certain structures. This note briefly sets out the background and effect of these Regulations, and will be of interest to accountants, lawyers, fiduciaries, fund promoters and administrators operating in Guernsey.

MDR

Follwing public consultation in 2018, Guernsey committed to introducing Mandatory Disclosure Rules on CRS Avoidance Arrangements and Opaque Offshore Structures ("MDR") in reponse to the EU Code of Conduct Group's investigation of the tax policies of third countries to the European Union. Similar commitments were given by other Crown Dependencies with which Guernsey is currently cooperating to develop a common approach. Technically, the Regulations