Tulip Siddiq – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Tulip Siddiq on 2016-05-03.

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 18 April 2016 to Question 32849, which 90 countries will provide automatic offshore account and trust data to the UK; which responsible authorities in the UK will be able to access that data; and whether the 90 countries referred to will also be able to access automatic offshore account and trust data held by the UK.

Mr David Gauke

The UK expects to receive information from the following jurisdictions under the automatic exchange of information agreements it has, or will soon have, in place.

*The United States has committed to move to full reciprocation of data exchange under the Inter-Governmental Agreement of 12 September 2012. The domestic legislation required in the US for this to happen has not yet been put in place and we have no indication of when this will happen. Until then the UK will continue to receive limited information collected by the Internal Revenue Service under existing regulations –this pertains to interest bearing financial accounts, but not trusts.

The use of the information received is governed by the international agreements under which it is exchanged. As these are international agreements concerned with taxation matters, the information is restricted in its use to the administration, assessment, and collection of taxes covered by the agreement in question for each jurisdiction. As these are functions of HM Revenue and Customs (HMRC), only HMRC can use the information without further recourse to the sending jurisdiction and the primary use must be the functions of HMRC. Sharing the information found to be relevant to other Government Agencies with those other Agencies is only permitted where the international agreement allows it, and the sending jurisdiction gives express permission that it can be so shared by HMRC. HMRC will always seek to share the information where relevant and possible, and it is our policy to ensure that new agreements and amendments to existing agreements allow such sharing.

The UK expects that most of the automatic exchange agreements with the jurisdictions listed above will be reciprocal. However, not all jurisdictions require information from the UK and in those cases the UK will receive information but send nothing the other way.