UK proposals to force banks to ring-fence their high-street banking operations from their investment banking arms in order to protect them from possible future banking crises have sparked concerns in the offshore banking industry, over the possible changes that these plans could force on the offshore subsidiaries and branches of British banks.
A FATCA partnership with the US may not be as frightening as it may sound at first to those in Guernsey and similar other smaller jurisdictions, a KPMG Guernsey tax expert says, noting that, in terms of scope and commitment, it could be relatively similar to the EU Savings Tax Directive (EUSD).
Total deposits held with Guernsey banks at the end of December fell almost 6%, or by £6.7bn, from the end of September, and 3.1% from a year earlier, as two banks surrendered their licences and the low interest rate environment continued to put people off of keeping money on deposit.
Guernsey’s income tax authorities are looking at whether the island should join the UK, France, Germany, Italy and Spain by joining forces with the US to exchange information on individuals with accounts within its borders, a Guernsey newspaper reported yesterday.
As the door shuts on the eight-week period during which HM Revenue & Customs was accepting comments on its plans to amend its QROPS regulations, Guernsey QROPS providers are pinning their hopes on the introduction of a new pensions scheme that would be open to islanders and non-residents alike.
The States of Guernsey is to introduce a completely new, one-size-fits-all pensions regime, open to islanders and non-residents alike, in an effort to ensure the survival of its thriving QROPS industry.
The association representing Guernsey pension providers on Wednesday submitted its response to a package of changes HM Revenue & Customs has proposed to make to the legislation governing QROPS, taking issue as expected on an element of the plan known as Condition 4.
Jerseys assistant chief minister, Philip Bailhache, has hinted at the possibility the island intends to open another joint Channel Islands office with Guernsey.
Pension providers and others in Guernseys pensions industry met yesterday to discuss a range of options the island is seen as having, as it seeks to accommodate recently-proposed changes to the UKs QROPS legislation.
The number of insurance licenses issued in Guernsey in 2011 increased by more than 50% compared to the previous 12 months, according to data from the Guernsey Financial Services Commission.
The association representing pension providers in Guernsey is understood to be working with officials there on changes to the islands tax regulations with respect to pensions, in an effort to ensure the survival of its QROPS industry.
Guernsey has signed a Tax Information Exchange Agreement (TIEA) with India, the 13th with a G20 member.
