Guernsey Advisory And Finance Committee Comments On Jersey Savings Tax Move

by Amanda Banks, Tax-News.com, London

17 May 2002

In a statement released on Wednesday, Guernsey's Advisory and Finance Committee, chaired by Deputy Laurie Morgan, responded to the news that Jersey has agreed in principle to make some concessions to the European Union on its savings tax directive.

A Jersey Evening Post report published on Tuesday revealed that Jersey's Policy and Resources President, Senator Pierre Horsfall anounced earlier this week that the Island will agree to an exchange of information on the savings income of EU residents, although no decision has yet been reached on the more controversial aspect of the directive - the Code of Conduct on Business Taxation.

Clearly keen not to be seen as uncooperative on this issue, the Guernsey authorities released a statement detailing the progress made so far in negotiations with the United Kingdom and EU soon after Senator Horsfall's announcement:

'The Advisory and Finance Committee has been examining for some time the EU tax package as a whole, which includes the draft directive, within the context of our own review of fiscal policies and tax structures. Guernsey has had independent discussions with the UK government on the principles contained within the package,' the statement explained, continuing: 'These discussion continue to proceed well and have proved to be constructive, although unlike Jersey, we have reached no final conclusions at this stage.'

The Advisory and Finance Committee reassured the jurisdiction's financial sector that it will continue to push for a level playing field on the directive, and will only act in Guernsey's long-term interests.

It concluded: 'The Committee is therefore monitoring closely any progress by the EU on discussions with third countries, such as Switzerland, regarding the draft directive.'

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