AGREEMENT BETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF JERSEYFOR THE EXCHANGE OF INFORMATIONFOR THE PURPOSE OF THE PREVENTION OF FISCAL EVASION
AND THE AVOIDANCE OF DOUBLE TAXATIONWITH RESPECT TO TAXES ON INCOME OF INDIVIDUALSThe Government of Japan and the Government of Jersey,
the Government of Jersey having the right under the termsof its Entrustment from the Government of the United
Kingdom of Great Britain and Northern Ireland to negotiate
and conclude a tax information exchange agreement with theGovernment of Japan,
Desiring to conclude an Agreement for the exchange of
information for the purpose of the prevention of fiscal
evasion and the avoidance of double taxation with respect
to taxes on income of individuals,
Have agreed as follows:
Chapter 1
GENERAL PROVISIONS
Article 1
GENERAL DEFINITIONS
1.
For the purposes of this Agreement, unless the context
otherwise requires:(a)the term “Japan”, when used in a geographicalsense, means all the territory of Japan,
including its territorial sea, in which thelaws relating to Japanese tax are in force,and all the area beyond its territorial sea,
including the seabed and subsoil thereof, overwhich Japan has sovereign rights in accordancewith international law and in which the laws
relating to Japanese tax are in force;(b)

the term “Jersey”, when used in a geographicalsense, means the Bailiwick of Jersey, including
its territorial sea;(c)

the term “Contracting Party” means Japan or
Jersey as the context requires;(d)the term “competent authority” means:

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(i)

in the case of Japan, the Minister ofFinance or his authorised representative;
and

(ii)

in the case of Jersey, the Treasury andResources Minister or his authorised
representative;(e)the term “person” includes an individual, acompany and any other body of persons;(f)the term “company” means any body corporate or
any entity that is treated as a body corporate
for tax purposes;(g)the term “publicly traded company” means any
company whose principal class of shares is listed
on a recognised stock exchange provided its
listed shares can be readily purchased or sold by
the public. Shares can be readily purchased orsold “by the public” if the purchase or sale ofshares is not implicitly or explicitly restricted
to a limited group of investors;(h)the term “principal class of shares” means theclass or classes of shares representing amajority of the voting power and value of acompany;(i)the term “recognised stock exchange” means:(i)any stock exchange established by a
Financial Instruments Exchange or an
approved-type financial instruments firms
association under the Financial Instruments
and Exchange Law (Law No. 25 of 1948) ofJapan;(ii)

the Channel Islands Stock Exchange; and(iii)

any other stock exchange agreed upon by thecompetent authorities of the Contracting
Parties;2

(j)the term “collective investment fund or scheme”
means any pooled investment vehicle, irrespectiveof legal form. The term “public collective
investment fund or scheme” means any collective
investment fund or scheme provided the units,
shares or other interests in the fund or scheme
can be readily purchased, sold or redeemed by the
public. Units, shares or other interests in thefund or scheme can be readily purchased, sold orredeemed “by the public” if the purchase, sale orredemption is not implicitly or explicitly
restricted to a limited group of investors;(k)

the term “Requesting Party” means the Contracting
Party requesting information;(l)the term “Requested Party” means the Contracting
Party requested to provide information;(m)the term “information gathering measures” means
laws and administrative or judicial proceduresthat enable a Contracting Party to obtain andprovide the information requested; and(n)the term “information” means any fact, statement
or record in any form whatever.

2.
As regards the application of this Agreement at any
time by a Contracting Party, any term not defined thereinshall, unless the context otherwise requires, have themeaning that it has at that time under the laws of thatContracting Party, any meaning under the applicable tax
laws of that Contracting Party prevailing over a meaning
given to the term under other laws of that Contracting
Party.

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Chapter 2
EXCHANGE OF INFORMATION
Article 2
OBJECT AND SCOPE
The competent authorities of the Contracting Parties
shall provide assistance through exchange of informationthat is foreseeably relevant for the carrying out of thisAgreement or to the administration or enforcement of thelaws of the Contracting Parties concerning taxes referred
to in Article 4. Such information shall include
information that is foreseeably relevant to thedetermination, assessment and collection of such taxes,
the recovery and enforcement of tax claims, or theinvestigation or prosecution of tax matters. Information
shall be exchanged in accordance with the Agreement andshall be treated as confidential in the manner provided in
Article 8. When the Requested Party obtains and provides
information under the Agreement, the procedural rights andsafeguards secured to persons by the laws or administrative
practices of the Requested Party remain applicable, to theextent that they do not unduly prevent or delay effective
exchange of information.
Article 3
JURISDICTION
The Requested Party is not obligated to provide
information which is neither held by its authorities nor
in the possession or control of persons who are within its
territorial jurisdiction.
Article 4
TAXES COVEREDThis Chapter shall apply to taxes of every kind anddescription imposed on behalf of a Contracting Party orof its political subdivisions or local authorities.
Article 5
EXCHANGE OF INFORMATION UPON REQUEST
1.
The competent authority of the Requested Party shallprovide upon request information for the purposes referred
to in Article 2. Such information shall be provided
without regard to whether the conduct under examination
would constitute a crime under the laws of the Requested
Party if such conduct occurred within the territorial
jurisdiction of the Requested Party.

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2.
If the information in the possession of the competentauthority of the Requested Party is not sufficient toenable it to comply with the request for information,
the Requested Party shall use all relevant information
gathering measures necessary to provide the Requesting
Party with the information requested, notwithstanding that
the Requested Party may not need such information for its
own tax purposes.
3.
If specifically requested by the competent authorityof the Requesting Party, the competent authority of theRequested Party shall provide information under this
Article, to the extent allowable under its laws, in theform of authenticated copies of original records.
4.
Each Contracting Party shall ensure that its competentauthority for the purposes specified in Article 2, has theauthority to obtain and provide upon request:(a)information held by banks, other financial
institutions, and any person, including nominees
and trustees, acting in an agency or fiduciary
capacity; and(b)information regarding the ownership of companies,
partnerships and other persons including, within
the constraints of Article 3, ownership
information on all such persons in an ownershipchain. Such information includes:(i)in the case of trusts, information on
settlors, trustees, protectors andbeneficiaries; and(ii)

in the case of foundations, information on
founders, members of the foundation council
and beneficiaries.

5.
This Agreement does not create an obligation on
the Contracting Parties to obtain or provide ownership
information with respect to publicly traded companies or
public collective investment funds or schemes unless suchinformation can be obtained without giving rise todisproportionate difficulties.
6.
The competent authority of the Requesting Party
shall provide the following information to the competentauthority of the Requested Party when making a request
for information under this Agreement to demonstrate theforeseeable relevance of the information sought to therequest:5

(a)the identity of the person under examination;(b)a statement of the information requested
including its nature and the form in which
the Requesting Party wishes to receive theinformation from the Requested Party;(c)the tax purposes for which the information
requested is sought;(d)grounds for believing that the information
requested is held by the Requested Party or isin the possession or control of a person who is
within the territorial jurisdiction of theRequested Party;(e)to the extent known, the name and address of any
person believed to be in possession or control of
the information requested;(f)a statement that the request is in conformity
with the laws and administrative practices of
the Requesting Party, that the Requesting Party
would be able to obtain the information under thelaws or in the normal course of administrative
practices of the Requesting Party in similar
circumstances and that the request is inconformity with the Agreement; and(g)a statement that the Requesting Party has pursued
all means available within its territorial
jurisdiction to obtain the information requested,
except those that would give rise todisproportionate difficulties.
Article 6
TAX EXAMINATIONS ABROAD

1.
At the request of the competent authority of theRequesting Party, the competent authority of the Requested
Party may allow representatives of the competent authorityof the Requesting Party to be present at the appropriate
part of a tax examination in the Requested Party.

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2.
If the request referred to in paragraph 1 isacceded to, the competent authority of the Requested Party
conducting the examination shall, as soon as possible,
notify the competent authority of the Requesting Party
about the time and place of the examination, the authority
or official designated to carry out the examination and theprocedures and conditions required by the Requested Party
for the conduct of the examination. All decisions withrespect to the conduct of the examination shall be madeby the Requested Party conducting the examination.
Article 7
POSSIBILITY OF DECLINING A REQUEST
1.
The Requested Party shall not be required to obtain orprovide information that if the information requested waswithin the territorial jurisdiction of the Requesting Party
the competent authority of the Requesting Party would not
be able to obtain under the laws or in the normal course ofadministrative practices of the Requesting Party.
2.
The competent authority of the Requested Party may
decline to assist:(a)where the request of the Requesting Party is notmade in conformity with this Agreement;(b)where the Requesting Party has not pursued
all means available within its territorial
jurisdiction to obtain the information requested,
except where recourse to such means would giverise to disproportionate difficulties; and(c)where the disclosure of the information requested
would be contrary to public policy (ordre public)of the Requested Party.

3.
This Agreement shall not impose on a Contracting Party
the obligation to supply information which would disclose
any trade, business, industrial, commercial or professionalsecret or trade process. Such information includes
information relating to communications between attorneys,
solicitors or other admitted legal representatives intheir role as such and their clients to the extent that thecommunications are protected from disclosure under the lawsof each Contracting Party. Notwithstanding the foregoingsentences, information of the type referred to in paragraph
4 of Article 5 shall not be treated as such a secret or
trade process merely because it meets the criteria in thatparagraph.

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4.
A request for information shall not be refused on the
ground that the tax claim giving rise to the request is
disputed.
Article 8
CONFIDENTIALITY
1.
All information provided and received by the competentauthorities of the Contracting Parties under this Agreement
shall be kept confidential.
2.
The information referred to in paragraph 1 shall be
disclosed only to persons or authorities (including courts
and administrative bodies) in the Contracting Parties
concerned with the purposes referred to in Article 2, andused by such persons or authorities only for such purposes,
including the determination of any appeal. For these
purposes, the information may be disclosed in public court
proceedings or in judicial decisions.
3.
The information referred to in paragraph 1 may not be
used for any purpose other than for the purposes referred
to in Article 2 without the express written consent of thecompetent authority of the Requested Party.
4.
The information referred to in paragraph 1 may not be
disclosed to persons or authorities in non-Contracting
Parties.
Article 9
COSTS
Incidence of costs incurred in providing assistanceshall be agreed by the competent authorities of theContracting Parties.
Chapter 3
AVOIDANCE OF DOUBLE TAXATION
Article 10
PERSONS COVEREDThis Chapter shall apply to individuals who areresidents of one or both of the Contracting Parties.
Article 11
TAXES COVERED1.

This Chapter shall apply to the following taxes:(a)in the case of Japan:(i)

the income tax; and

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(ii)

the local inhabitant taxes(in this Chapter referred to as “Japanese tax”);
and(b)

in the case of Jersey, the income tax(in this Chapter referred to as “Jersey’s tax”).

2.
This Chapter shall apply also to any identical or
substantially similar taxes that are imposed after the dateof signature of this Agreement in addition to, or in placeof, those referred to in paragraph 1. The competentauthorities of the Contracting Parties shall notify eachother of any significant changes that have been made in
their respective tax laws.
Article 12
RESIDENT1.
For the purposes of this Chapter, the term “residentof a Contracting Party” means any individual who, under thelaws of that Contracting Party, is liable to tax therein byreason of his domicile, residence or any other criterion ofa similar nature. This term, however, does not include any
individual who is liable to tax in that Contracting Partyin respect only of income from sources in that Contracting
Party.
2.
Where by reason of paragraph 1 an individual is a
resident of both Contracting Parties, then his status shallbe determined as follows:(a)he shall be deemed to be a resident only of theContracting Party in which he has a permanent
home available to him; if he has a permanent homeavailable to him in both Contracting Parties, heshall be deemed to be a resident only of theContracting Party with which his personal andeconomic relations are closer (centre of vitalinterests);(b)

if the Contracting Party in which he has his
centre of vital interests cannot be determined,
or if he has not a permanent home available tohim in either Contracting Party, he shall bedeemed to be a resident only of the Contracting
Party in which he has an habitual abode;

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(c)

if he has an habitual abode in both Contracting
Parties or in neither of them, the competentauthorities of the Contracting Parties shallsettle the question by mutual agreement.
Article 13
PENSIONS

Subject to paragraph 2 of Article 14, pensions andother similar remuneration beneficially owned by a residentof a Contracting Party shall be taxable only in thatContracting Party.
Article 14
GOVERNMENT SERVICE
1.
Salaries, wages and other similar remuneration paidby a Contracting Party or a political subdivision or local
authority thereof to an individual in respect of services
rendered to that Contracting Party or political subdivisionor local authority shall be taxable only in thatContracting Party. However, such salaries, wages and othersimilar remuneration shall be taxable only in the other
Contracting Party if the services are rendered in that
other Contracting Party and the individual is a resident ofthat other Contracting Party who did not become a residentof that other Contracting Party solely for the purpose of
rendering the services.
2.
Notwithstanding paragraph 1, pensions and othersimilar remuneration paid by, or out of funds to which
contributions are made or created by, a Contracting Partyor a political subdivision or local authority thereof toan individual in respect of services rendered to thatContracting Party or political subdivision or local
authority shall be taxable only in that Contracting Party.
3.
Paragraphs 1 and 2 shall not apply to salaries, wages,
pensions, and other similar remuneration in respect ofservices rendered in connection with a business carried on
by a Contracting Party or a political subdivision or local
authority thereof.

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Article 15
STUDENTS
Payments which a student or business apprentice who isor was immediately before visiting a Contracting Party a
resident of the other Contracting Party and who is present
in the first-mentioned Contracting Party solely for the
purpose of his education or training receives for the
purpose of his maintenance, education or training shall not
be taxed in the first-mentioned Contracting Party, provided
that such payments arise from sources outside the firstmentioned Contracting Party. The exemption provided bythis Article shall apply to a business apprentice only fora period not exceeding one year from the date on which hefirst begins his training in the first-mentioned
Contracting Party.
Article 16
ELIMINATION OF DOUBLE TAXATION
1.
Subject to the provisions of the laws of Japan
regarding the allowance as a credit against Japanese tax
of tax payable in any country other than Japan, where aresident of Japan derives income from Jersey which may betaxed in Jersey in accordance with this Chapter, the amountof Jersey’s tax payable in respect of that income shall beallowed as a credit against the Japanese tax imposed onthat resident. The amount of credit, however, shall not
exceed that part of the Japanese tax which is appropriate
to that income.
2.
Subject to the provisions of the laws of Jersey
regarding the allowance as a credit against Jersey’s tax
of tax payable in any country other than Jersey, where aresident of Jersey derives income from Japan which may betaxed in Japan in accordance with this Chapter, the amountof Japanese tax payable in respect of that income shall beallowed as a credit against the Jersey’s tax imposed onthat resident. The amount of credit, however, shall not
exceed that part of the Jersey’s tax which is appropriate
to that income.

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Chapter 4
SPECIAL PROVISIONS
Article 17
MUTUAL AGREEMENT PROCEDURES
1.
Where a person considers that the actions of one orboth of the Contracting Parties result or will result for
him in taxation not in accordance with Chapter 3, he may,irrespective of the remedies provided by the laws of thoseContracting Parties, present his case to the competentauthority of the Contracting Party of which he is a
resident as determined pursuant to Article 12. The casemust be presented within three years from the first
notification of the action resulting in taxation not inaccordance with that Chapter.
2.
The competent authority of a Contracting Party shallendeavour, if the objection appears to it to be justified
and if it is not itself able to arrive at a satisfactory
solution, to resolve the case by mutual agreement with thecompetent authority of the other Contracting Party, witha view to the avoidance of taxation which is not inaccordance with Chapter 3. Any agreement reached shall be
implemented notwithstanding any time limits in the laws of
the Contracting Parties.
3.
The competent authorities of the Contracting Parties
shall endeavour to resolve by mutual agreement any
difficulties or doubts arising as to the interpretation
or application of this Agreement.
4.
The competent authorities of the Contracting Parties
may communicate with each other directly for the purposeof reaching an agreement in the sense of the preceding
paragraphs of this Article.
Chapter 5
FINAL PROVISIONS
Article 18
HEADINGS
The headings of the Chapters and the Articles of thisAgreement are inserted for convenience of reference onlyand shall not affect the interpretation of the Agreement.

12Article 19
ENTRY INTO FORCE
1.
This Agreement shall be approved in accordance withthe legal procedures of each of the Contracting Parties andshall enter into force on the thirtieth day after the dateof exchange of notes indicating such approval.
2.
This Agreement shall be applicable for taxes levied on
or after the date on which the Agreement enters into force.
3.
Notwithstanding paragraph 2, Chapter 3 shall beapplicable:(a)with respect to taxes withheld at source, foramounts taxable on or after 1 January in thecalendar year next following that in which thisAgreement enters into force; and(b)with respect to taxes on income which are notwithheld at source, for income for any taxable
year beginning on or after 1 January in thecalendar year next following that in which thisAgreement enters into force.
Article 20
TERMINATION

1.
This Agreement shall remain in force until terminatedby a Contracting Party. Either Contracting Party may
terminate the Agreement by giving notice of termination inwriting at least six months before the end of any calendar
year beginning after the expiry of five years from the dateof entry into force of the Agreement. In such event, theAgreement shall cease to have effect:(a)with respect to taxes withheld at source, foramounts taxable on or after 1 January in thecalendar year next following that in which thenotice is given;(b)with respect to taxes on income which are notwithheld at source, as regards income for any
taxable year beginning on or after 1 January inthe calendar year next following that in which
the notice is given; and(c)with respect to other taxes, as regards taxes
levied on or after 1 January in the calendar year
next following that in which the notice is given.

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2.
If this Agreement is terminated, each Contracting
Party shall remain bound by Article 8 with respect toany information provided and received by the competentauthority of the Contracting Party under the Agreement.
IN WITNESS WHEREOF the undersigned, being duly
authorised thereto by their respective Governments, havesigned this Agreement.
DONE in duplicate at London this second day ofDecember, 2011, in the Japanese and English languages, eachtext being equally authentic.

For the Governmentof Japan:

For the Governmentof Jersey:

Keiichi Hayashi

Ian Gorst

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PROTOCOLAt the signing of the Agreement between the Governmentof Japan and the Government of Jersey for the exchange of
information for the purpose of the prevention of fiscal
evasion and the avoidance of double taxation with respect
to taxes on income of individuals (hereinafter referred
to as “the Agreement”), the Government of Japan and theGovernment of Jersey, the Government of Jersey having
the right under the terms of its Entrustment from theGovernment of the United Kingdom of Great Britain andNorthern Ireland to negotiate and conclude a tax
information exchange agreement, have agreed upon thefollowing provisions, which shall form an integral partof the Agreement.
With reference to Article 5 of the Agreement, thecompetent authority of the Requested Party shall forward
the information requested as promptly as possible to theRequesting Party. To ensure a prompt response, thecompetent authority of the Requested Party shall:(a)confirm receipt of a request in writing to thecompetent authority of the Requesting Party andshall notify the competent authority of theRequesting Party of deficiencies in the request,
if any, within sixty days of the receipt of therequest; and(b)

if the competent authority of the Requested
Party has been unable to obtain and provide theinformation within ninety days of the receipt of
the request, including if it encounters obstacles
in furnishing the information or it refuses tofurnish the information, immediately inform thecompetent authority of the Requesting Party,
explaining the reason for its inability, thenature of the obstacles or the reasons for its
refusal.

IN WITNESS WHEREOF the undersigned, being duly
authorised thereto by their respective Governments, havesigned this Protocol.

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DONE in duplicate at London this second day ofDecember, 2011, in the Japanese and English languages, eachtext being equally authentic.

For the Governmentof Japan:

For the Governmentof Jersey:

Keiichi Hayashi

Ian Gorst

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