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Jersey EU Savings Tax Remittances Rise 15%

by Amanda Banks, Tax-News.com, London

16 October 2012


The Jersey government has reported that the territory has remitted a total of GBP4.6m (USD7.4m) in retention tax to European Union (EU) member states for the year 2011 in compliance with the Savings Tax Directive.

Under the terms of the EU's Savings Tax Directive, retention tax is applied by Jersey paying agents and passed to the island's Comptroller of Taxes in respect of eligible savings income that individuals resident in EU member states have received from the island.

Under the terms of the Directive, 75% of the tax retained (last year GBP4.6m) is sent to the individual member states and the remaining 25% (GBP1.5m) is retained by the Jersey Treasury.

The amount of tax retained in 2011 is 15% higher than in 2010 when GBP4m was sent to the member states and GBP1.3m was retained by the Treasury. The increase reflects the fact that for the second half of 2011 a higher rate of retention tax of 35% - up from 20% - was applied. The amount remitted continues to lag behind 2009 levels, when GBP8.85m was remitted, owing to lower interest rates globally.

The collection of retention tax relies on the co-operation of local paying agents, and the Acting Comptroller of Taxes, David Le Cuirot, said the process of exchanging information and the payment of retention tax is continuing to work effectively. Le Cuirot said: “I am extremely grateful once again for all the cooperation and help received from the paying agents, in particular the banks, who bear the greatest burden.”

The island's Treasury and Resources Minister, Philip Ozouf, added: “As part of our good neighbour policy we are pleased to continue voluntarily to lend support to the member states in the implementation of their Tax on Savings Income Directive.”

A comprehensive report in our Intelligence Report series, examining in depth the situation of offshore transparency and secrecy in a number of the most prominent jurisdictions, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report2.asp
TAGS: individuals | compliance | tax | investment | offshore confidentiality | tax compliance | interest | banking | international financial centres (IFC) | Jersey | offshore | agreements | offshore banking | withholding tax | European Union (EU) | Europe

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