The amending protocol to the 2009 income tax treaty between Guernsey and Ireland was signed on 8 December 2021. The protocol is the first to amend the treaty and includes the following changes:
- The preamble is replaced in line with OECD BEPS standards;
- Article 9 (Mutual Agreement Procedure) is amended to provide that a person may present a case to the competent authority of either Contracting State (under the original treaty, may only present to the competent authority of the State of which the person is a resident);
- Article 9A (Entitlement to Benefits) is added, providing that a benefit under the treaty shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the treaty.
The protocol will enter into force once the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.