Guernsey Welcomes Lord Chancellor's Savings Tax Comments

by Philip Morton, Investors Offshore

30 April 2003

Speaking earlier this week, John Bridle, Chairman of the Guernsey Promotional Agency welcomed remarks made by the UK's Lord Chancellor, Derry Irvine, during a recent visit to the Island.

Lord Irvine reportedly spoke on the EU Savings Tax Directive, and on Guernsey's decision to implement a retention tax if and when agreement is reached on the issue within the EU itself.

'We are completely understanding of the Guernsey position, that where three other countries, Austria, Luxembourg and Belgium, opted for withholding (retention) tax arrangements - that Guernsey in the interests of the level playing field should have done so,' he observed, adding that:

'I don't see in the foreseeable future that there is any risk to Guernsey's current status and I don't think there is any fact or circumstance that you could actually point to that should show that the United Kingdom government was moving in any different direction.'

In a statement, Mr Bridle commented that:

'When the customers of international finance centres like Guernsey are looking for clarity and reassurance on key issues such as taxation and confidentiality, Lord Irvine's remarks are a welcome reminder that the future remains bright for the Island's finance sector.'

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