Senior adviser Colin Powell
THE fall in bank interest rates last year as a result of the global financial crisis has cost the Island £5 million.
The amount of tax returned to the States Treasury on interest paid to EU nationals who hold bank accounts in Jersey fell from £8.91 million in 2008 to £2.95 million last year.
The ‘retention’ tax was, according to senior adviser to the Chief Minister’s department, Colin Powell, seen as something of a windfall to the Treasury here. ‘They know it is a variable so I don’t think they would have already allocated it for spending before they knew how much was coming,’ he said.
Article posted on 29th July, 2010 - 3.00pm
8 Article Comments
“THE fall in bank interest rates last year as a result of the global financial crisis has cost the Island £5 million”
That’s nothing, Baggins and his mates have cost us much more than that. Put up taxes or parking charges to cover the shortfall, or withdraw essential services from the old/disabled/infirm/young.
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Same old duplicitous spin!
What about ‘normal’ Jersey people who are paying much more tax because the mortgage interest relief has gone down because of the interest rate cuts.I’m sure that’s much greater than the £5M ‘lost’.
Probably this is just another ’soften up the proles’ as with lifeguards, diabetics, education psychologist etc etc.
Do you think we are stupid or something!
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I wonder how much will come in next year and the year after when in January the retention tax goes up to 35 percent I’m sure all the EU depositors will be happy to keep there money here as we are so well regulated
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yes 35% retention tax next year for EU account holders
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no. 2, my thoughts exactly. Mr Powell, please tell us that figure as well, how much more did you get from us because of our reduced interest relief. As always with the states, we only get half the story.
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What about “Think Local, Buy Local” and the States practicing what they preach and encouraging or in fact forcing each department to follow suit wherever possible.
They seem to forget that for every contract award to outside contractors, that is tax revenue going out of the island.
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variable like the euro debacle
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A
Have you noticed that Guernsey has just decided to adopt automatic exchange of information from 2011 instead of levying the 35% withholding tax? Very hard to see how Jersey can avoid following suit.
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