Investec Chief Says Guernsey Must Offer Clients A Choice Over Savings Tax

by Jason Gorringe, Tax-News.com, London

10 February 2003

Speaking to the Guernsey Press and Star last week, chairman of the Investec Bank group, Hugh Herman urged the Island's authorities to allow finance centre clients to choose between information exchange and a withholding tax.

Although the Advisory and Finance Committee recently announced that Guernsey will be following Jersey's lead and refraining from making a decision on the EU savings tax agreement until after the code of business conduct has been discussed in March, many of the jurisdiction's financial services providers have come out in favour of the withholding tax option, arguing that it will give customers the choice to maintain banking secrecy.

This is the option Mr Herman supports, he revealed on Thursday. However, he stressed that just because a client seeks to maintain confidentiality, it does not mean that they are undesirable:

'It does not necessarily mean they have something to hide. It does not mean they are drug runners,' he told the Guernsey Press.

He added that the Channel Islands and the Isle of Man must take care to coordinate their responses, and must work together to ensure that the correct solution is reached for all three jurisdictions.

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