Guernsey's Finance Industry Asked To Comment On Savings Tax Options

by Carla Johnson, Investors Offshore.com

17 February 2003

States Supervisor, Mike Brown revealed last week that Guernsey's authorities have been outlining the pros and cons of automatic information exchange and retention (or withholding) tax in the context of the European Union's savings tax directive.

'The [Advisory and Finance] committee is determined to keep industry involved in this process,' he explained to finance centre representatives last week, adding that: 'It is only really through your involvement that the committee can make a properly considered judgement.'

According to a report in the Guernsey Press and Star, more than 200 people representing all sectors of the finance industry attended a KPMG seminar in order to hear the various options facing the jurisdiction outlined. Speaking at the meeting, KPMG tax partner Jonathon Hooley stressed that the EU directive is a framework for legislation rather than the legislation itself.

'This means that there are likely to be differences in the way in which its provisions are interpreted by individual member states, he explained.

Speaking in late January, Peter Marchant and Peter Rose, heads of the Committee of Guernsey Retail Banks and the Association of Guernsey banks respectively, expressed their support for the withholding tax option with voluntary information exchange, arguing that this course of action would give banking clients the option of choosing for themselves.

A comprehensive report on the OECD, FATF and other 'offshore' initiatives, including the EU's Savings Tax Directive, is available in the Tax News Reports Shop at http://www.tax-news.com/reportshop

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