‘Keep an eye on tax directive’

Friday 3rd April 2009, 3:00PM BST.

JERSEY needs to keep a close eye on changes to the European Savings Tax Directive, say specialists.

John Riva, executive director at KPMG Channel Islands, told a seminar audience this week that proposed changes had ‘the potential to affect the Island greatly’, as it could extend the current scope of the directive to trusts, all funds, and the beneficial owners of Jersey companies.

Mr Riva said that France and Germany in particular were keen to push the changes forward, although it had taken 14 years for the EU members to agree to the current directive and the number of member countries had since increased to 27.

The EU legislation, which came into force in 2006, requires EU resident individuals with savings in other jurisdictions to pay tax on the interest of their savings in their home countries.

• Jason Laity and John Riva of KPMG Picture by Richard Wainwright (00658504)

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