Indonesia signs tax agreement with Guernsey

The TIEA was signed in Guernsey by the island's chief minister, Lyndon Trott and the Republic of Indonesia's UK ambassador, His Excellency Yuri O Thamrin.

Guernsey has now signed a total of 23 TIEAs and a further 15 are ready for signature or very near completion.

"I hope that the signing of this Tax Information Exchange Agreement will further improve economic ties between Guernsey and Indonesia," said Mr Trott.

"Indonesia is a member of the G20 and signing TIEAs with such prominent countries remains a priority for Guernsey. The text of the TIEA with Indonesia recognises that Guernsey has long been active in international efforts in the fight against financial and other crimes, including the targeting of terrorist financing and has a history of exchanging information in criminal tax matters."

Mr O Thamrin said his country welcomed the signing with Guernsey as it was the first TIEA signed by the Indonesian Government.

"The signing of the TIEA with Guernsey, which will be followed by seven other TIEAs in the future, demonstrates Indonesia's commitment as a G20 member country to promote transparency and greater cooperation in tax information exchange and will contribute to the efforts to address criminal tax matters, counter money laundering and strengthen the international financial system," he said.

Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.

Jersey's chief minister, Terry Le Sueur and international affairs adviser, Colin Powell visited Guernsey so that Jersey could also conclude a TIEA with Indonesia.

Earlier this year Guernsey signed its 22nd TIEA with South Africa, which was also the first TIEA signed by that country.