Jersey government to share savings information

Information about money held in Jersey by EU residents could be shared with their government automatically under States plans.

Chief Minister, Senator Ian Gorst, said it would be mandatory for information to be automatically exchanged.

He said the change would be in place by January 2015.

Jersey currently holds 35% of the interest on money held in Jersey by foreign nationals as a "retention tax". This would stop under the new plans.

Before it becomes compulsory, people with savings in Jersey would have the option of switching from the retention tax to having information automatically sent to their home government.

'Level playing field'

Senator Gorst said now was the right time to make these changes. He said the G20 summit, where leaders demanded more transparency to combat tax evasion, helped him make the decision.

Geoff Cook, chief executive of Jersey Finance, the body tasked with promoting the finance industry, said he approved of the change.

He said: "It is pleasing to see progress from the European Union and wider G20 nations in supporting automatic exchange of information on a truly level playing field basis.

"Many clients are already choosing to take advantage of the option for voluntary disclosure."

EU Tax Commissioner Algirdas Semeta said automatic exchange of information was a cornerstone of the EU fight against tax evasion.

He said: "It is the best way of ensuring that every country can collect the revenues it is rightfully due. I welcome Jersey's decision to join the global move towards more openness and greater information exchange.

"This will help facilitate fairer and more effective taxation, in Europe and globally."