The TIEA was signed in March by Chief Minister Terry Le Sueur and the French finance minister, Christine Lagarde.
Although the main thrust of the agreement is to establish a formal pathway for tax information exchange it also changes the status of Island residents with assets in France.
As a result a French tax levy of three per cent per annum on offshore companies and trusts with over 50% of assets in French property should no longer be applicable, once both jurisdictions have ratified the TIEA in their respective parliaments.
Tax practitioners are being warned, however, that in order to benefit from the new arrangements they must have paperwork up to date. The deadline for filing and paying the tax was 16 May but overdue forms and payments should be sent in as soon as possible.