Jersey Welcomes Savings Tax Agreement, Declines To Reveal Decision

by Philip Morton, Investors Offshore.com

06 June 2003

Following the agreement reached by the European Union this week over the taxation of non-resident savings interest, Jersey's Policy and Resources president, Senator Frank Walker welcomed the news.

According to a report from the Jersey Evening Post on Wednesday, Senator Walker declined to reveal whether the jurisdiction is likely to opt for the information exchange or withholding tax option, but explained that he would be making an announcement to the States on Tuesday, and hinted that the Isle of Man is also likely to unveil its decision next week.

Speaking with regard to the Code of Conduct on Business Taxation - in which Jersey won several concessions, including an extension of the deadline for the phasing out of its exempt company scheme from 2005 to 2008, and an extension of its international business company regime until 2011 - the P&R chief reportedly announced that:

'We are delighted that our proposals, which are of fundamental importance to the future of the finance industry, have been fully endorsed by the EU.'

He continued:

'This is the outcome of a lengthy series of negotiations which are of huge strategic importance for the future. We are particularly pleased to see the acceptance of our timetable for the implementation of our fiscal strategy. These are significant concessions that put us in a better position than many other finance centres.'

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