Tax exchange agreement is signed

Jersey has signed an agreement to share tax information with the Faroe Islands.

The agreement will allow the two jurisdictions to share information if there is a compelling case that tax evasion could be taking place.

Jersey already has a Tax Information Exchange Agreement (TIEA) with a number of with other countries, including the Netherlands, Denmark and the US.

It is also believed the TIEA could help prevent any potential financing of terrorism.

The Faroe Islands, in the North Atlantic, are an autonomous region of Denmark, with a local parliament which looks after islands' affairs.

Chief Minister Frank Walker said the exchange agreements also allow tax authorities to track where money goes more easily.