Explanatory note

These Regulations amend the International Tax Compliance (Crown Dependencies and Gibraltar) Regulations 2014 which give effect to four agreements to improve international tax compliance. The agreements are those made between the Government of the United Kingdom of Great Britain and Northern Ireland, and each of the Government of the Isle of Man (signed on 10th October 2013), the States of Guernsey (signed on 22nd October 2013), the Government of Jersey (signed on 22nd October 2013) and the Government of Gibraltar (signed on 21st November 2013).

These Regulations amend the definition of “reporting financial institution” to better reflect the definitions in the agreements, remove the requirement to make nil returns, introduce a requirement for electronic returns, insert provisions for a daily default penalty and an increased daily default penalty and make amendments which are consequential to these changes.

A Tax Information and Impact Note covering the International Tax Compliance (Crown Dependencies and Gibraltar) Regulations 2014 was published on 12th December 2013 alongside a draft of those regulations and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.