JERSEY’S politicians are being asked to approve a tax pact with Germany.

The Tax Information Exchange Agreement was signed in Berlin in July, but has to be ratified by the States  before it can take effect. The TIEA is broadly the same as other agreements recently signed with the seven Nordic countries and exisiting agreements with the United States and the Netherlands.

In addition to exchanging information on request, both parties agree to avoid double taxation relating to occupational pensions, grants to students, and business subsidiaries.

There is also a joint political declaration stating that negotiations will continue with a view to further co-operation, that Germany recognises Jersey’s commitment to comply with international standards on money laundering, terrorist financing and financial regulation, and that subject to a positive outcome of the current International Monetary Fund review, Germany will ‘use its best endeavours’ to ensure that Jersey will be treated ‘fairly and favourably’ in relation to assessment of equivalent compliance with EU standards, ie be put on the so-called ‘white list’. The States are due to debate the proposals on 20 January.