In addition to the extension of the convention, Guernsey has recently signed further Tax Information Exchange Agreements (TIEA) with Austria, Belgium, Costa Rica, Montserrat and the Turks and Caicos Islands, which takes the total to 55.

Guernsey has also signed a double taxation arrangement with Monaco, which means that it has now put in place counter-avoidance agreements with 11 countries.

Fiona Le Poidevin, chief executive of Guernsey Finance said: ‘Having the Convention extended to Guernsey means that we will be meeting the highest international standards of tax transparency and in doing so, will continue to lead the global fight against tax evasion.’

The move reinforces the island’s stance on tax transparency as it ‘helps us enter into constructive dialogue with other jurisdictions that might have, unjustifiably, looked at us less favourably in the past,’ added Le Poidevin.

Guernsey’s chief minister Jonathan Le Tocq said: ‘I am aware that we need to do more than just talk the talk on tax transparency. Our network of tax agreements demonstrates how we want to ensure that what we do match what we say, and paves the way for the extension of the convention.’