Jersey's Deputy Chief Minister has confirmed the island's continued support for the automatic exchange of information, following the Isle of Man's announcement this week that it would move to automatic exchange from 1st July 2011.
Senator Philip Ozouf says: "Jersey supported the automatic exchange of information approach to the implementation of the EU Savings Directive (EUSD) when it was initially proposed. We introduced the option to pay a withholding tax when it was decided to allow the EU Member States of Belgium, Luxembourg and Austria a transition period during which to impose a withholding tax, when the Directive was introduced on 1st July 2005.
"Jersey remains ready to introduce automatic exchange of information as soon as the EU brings the transitional period to an end, and Austria, Belgium and Luxembourg move to automatic information exchange."
If conditions set out in the EUSD are met by the end of 2009, this should result in all relevant jurisdictions moving to the automatic exchange of information from 1st January 2011.
Jersey welcomes continued efforts to ensure that a level playing field is implemented both within the EU and by extension of this standard to other jurisdictions, including Switzerland.
Notes to Editors:
1. For further information, please contact Wendy Martin on 440435
Whilst all other EU Member States elected for automatic exchange of information, three countries, Austria, Belgium and Luxembourg, agreed a transitional arrangement due to their banking secrecy rules.
Under these transitional arrangements, tax is deducted at source from income earned by EU resident individuals on savings held in other EU or participating jurisdictions (the so called 'withholding tax option') which is forwarded to the relevant jurisdiction after the deduction of costs.
This transitional period closes at the end of the first full fiscal year if and when the EU enters into an agreement with Switzerland, Liechtenstein, San Marino, Monaco and Andorra to exchange information upon request, as defined in the OECD Model Agreement on Exchange of Information on Tax Matters.
Following discussions at G20, all these jurisdictions have now committed to meeting the OECD standard in the near future.
Alternatively, Austria, Belgium or Luxembourg may themselves elect to introduce automatic exchange of information during the transitional period.