Guernsey Banking Sector Unaffected By Savings Tax Directive

by Jason Gorringe, Tax-News.com, London

16 September 2005

According to a recent statement from GuernseyFinance, it would appear as if speculation that the EU Savings Tax Directive would impact on balances held offshore has so far proved unfounded.

Peter Niven, GuernseyFinance's chief executive, revealed that recently issued banking statistics showed that bank deposit levels held in Guernsey to the year ending June 2005 had increased by £4.2bn on the total in June 2004, an increase of 6.1%.

"This is a healthy increase across the board and there's every indication that it is set to continue," he observed, continuing:

"Some media reports that balances would reduce as a result of the EU Savings Tax Directive have proved incorrect at this stage and most banks have reported that losses have been minimal - with many customers opting for "Exchange of Information " as opposed to the Retention Tax currently set at 15%."

Mr Niven went on to add that he was upbeat about Guernsey's banking sector, which currently comprises some 50 banking operations.

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