Allan Bell Agrees Savings Tax Directive 'A Fudge'

by Jason Gorringe, Tax-News.com, London

28 February 2003

Speaking at the recent Deloitte & Touche Budget Breakfast, Isle of Man Treasury Minister, Allan Bell agreed with D&T tax director, Nick Williamson that the EU's Savings Tax Agreement had been a 'fudge'.

'It is a very confused situation and what we have ended up with is totally illogical,' he observed, continuing: 'There is no fairness and only a nominal tilt towards a level playing field, but it is a set of circumstances we have got to live with. It is not what we would have wished but we have to accept it.'

According to the Isle of Man Online news service, which reported on the event, Mr Bell told the audience that the Manx authorities were still consulting with the finance sector and gathering information, and that therefore no definitive answer would yet be forthcoming:

'Although I would love to be able to stand up here today and say we had the solution, be it automatic exchange or withholding tax or whatever, we are biding our time at the moment until we know exactly what is the outcome.'

'This is a hugely sensitive issue for the Isle of Man. If we get it wrong, or make a premature declaration at this stage, I don't think it would do anyone any good. I would rather hold off until we know exactly what's what,' he explained.

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