EU Savings Directive

Posted 26/02/2009 - 11:13 by Larocadalbera

It is perhaps not generally known that EU-resident KSFIOM (as well as other IOM bank) depositors are subject to a withholding tax according to the European Savings Directive. This tax is then passed by the IOM authorities to the treasury of the country of residence (we anyway declare interest accrued to the tax authorities in our (EU) country of residence). Maybe Mr. Darling and Mr. (Gordon) Brown, with their hostile attitude to IOM depositors, do not even know that they are receiving this tax! They should therefore be made aware of the fact that they indeed have a financial interest in the IOM. They should also realise that many EU and other residents have opted for the Isle of Man, not to evade tax, but in order to avoid the problem of double taxation, i.e. paying tax on the interest accrued in the country of source and again in the country of residence, as well as the additional task of completing tax returns in both countries. These arguments should be used by the IOM authorities to put much more pressure on the UK government to ensure the return of the 550 million pound deposit with KSFUK to its rightful place with KSFIOM, so that the bank’s depositors can be fully refunded.

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