IoM And Channel Islands To Present 'United Front' On EU Tax

by Jason Gorringe, Tax-News.com, London

21 May 2003

Representatives from the Isle of Man, Jersey and Guernsey met last week to discuss the implications of the EU Savings Tax Directive. It was decided that the three jurisdictions should present an united front on any official communication with the EU regarding the issue.

The conference was held last week at London's Gatwick Airport, and had been in the pipeline for some time. It was expected that the meeting would be held the day after EU ministers finally closed negotiations on the savings tax legislation, but this has been further delayed until June, as the Italian milk quota issue continues to stall agreement.

Commenting on the discussions, Isle of Man Chief Minister Richard Corkill said: "We are beginning to see what the final EU package is in regard to the tax package and this was a good opportunity, given that Guernsey has made an announcement on its preference for a witholding tax, to meet with them and examine the reasons and reaction to the announcement," according to the Isle of Man Online.

Mr Corkill continued: "In terms of dialogue with Jersey, we compared notes on the consultation process with the industry and their consultation with their industry. That process is good and I think industry expects it to be co-ordinated. We are expecting now to present a co-ordinated response from the three islands, at the same time being subject to the Ecofin decision."

However, Mr Corkill stressed that the three jurisdictions' responses would not necessarily be the same, and that the Isle of Man has yet to make its official announcement regarding the withholding tax/exchange of information option.

Nevertheless, The Chief Minister told the IoM Online that the consultation process is nearing a conclusion, and there will soon be a need to inform both the Council of Ministers and the Tynwald on the outcome of these consultations.

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