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Tax planned for offshore bank accounts?

A United Kingdom newspaper is speculating a levy for depositors might be suggested in the review planned for the offshore financial centres, such as the Isle of Man.

It would be designed to cover the cost of compensation claims.

Business Editor John Moss reports:

The claim, which the Times says is been discussed by "Industry experts", is that depositors here and elsewhere in other "tax havens", such as Guernsey, could be forced to pay a tax on offshore bank accounts.

This might be achieved by overseas banks withholding a certain amount of interest.

It is just speculation, but one tax head has said "I would not be surprised".

If it happened, it would add to threats to the competitiveness of the offshores.

The reports also add to the picture painted by the UK, and vigorously denied by the offshores, that the Kaupthing Singer and Freidlander affair resulted in the Isle of Man going cap in hand to the UK for a bail out.

The Manx point out it was only the freezing of funds by the UK that resulted in KSF being threatened with liquidation. That hasn't happened yet and there will be a further court appearance in January.

(Picture: John Moss in Manx Radio's news studio).


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