Following on from numerous representations made to the Italian authorities, neither Guernsey nor Jersey will be listed on any Italian 'black list' from 1 January 2016. In addition Guernsey and Jersey will be included on a 'white list' for the purposes of tax treatment of interest from Government bonds and listed companies when that list is updated in early 2016 by Ministerial Decree.
The changes approved by the Italian Parliament on 22 December 2015 under its Stability Law 2016 revise Italy's rules on corporate taxation and Control Foreign Companies ("CFC") and abolish its so called 'black lists' with effect from 1 January 2016.
Given the level of co-operation extended on tax information exchange, both on request and automatically, by Guernsey and Jersey, together with their well-developed and robust regulatory regimes governing the provision of financial services, the continued inclusion of Guernsey and Jersey on Italy's 'black lists' could not be justified. Accordingly, the changes announced by the Italian authorities at the start of 2016 are warmly welcomed by governments and industry alike.
*NOTE The inclusion on a black list of third countries by certain EU Member States became a significant issue when the EU Commission published last year a list which purported to identify on a pan-European basis third countries which were deemed to be non-cooperative by virtue of inclusion on certain national lists. As a result of representations made in response to the Commission's list, including by the UK Government and the OECD, the validity and usefulness of that list was questioned and indeed in September last year, the Commission agreed to review the future of the pan-EU list. The removal of Guernsey and Jersey from Italy's black list supports Guernsey's and Jersey's view that inclusion on such lists is "unjustified, unwarranted and plainly wrong" (Guernsey's Chief Minister, 6 July 2015).
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