Jersey's Finance Industry Supports EU Savings Concessions, Says Report

by Jason Gorringe, Tax-News.com, London

21 May 2002

A report in Friday's Jersey Evening Post has revealed that the decision to concede to information exchange on the savings interest of EU residents has received the support of the jurisdiction's finance industry.

Although no decision has yet been made on the more contentious European Union Code of Conduct on Business Taxation, it is hoped that this recent move will appease the UK government, which was fiercely opposed to the alternative - a withholding tax on savings interest.

Several prominent figures within the finance sector spoke to the JEP on Friday, observing that if a compromise had to be reached on the issue of banking secrecy - as it became increasingly clear last month was the case - the path chosen by the Policy and Resources Committee is the correct one.

'The vast majority of the industry wanted clarity and preferred exchange of information, on condition that we have a level playing field with other jurisdictions, including Switzerland and the USA,' Jersey Finance Chief Executive, Phil Austin, explained to the Evening Post, adding that: 'They said that if Jersey had to go down any route, this was the one they were more comfortable with.'

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