Guernsey Hotels | Guernsey information In connection with sub-paragraphs

La Pointe Farm, Rue du Lorier, St Pierre du Bois, Guernsey. GY7 9JU
Tel 07781 434752 Fax 01481 268217 Email res@lelorier.com

The one and only establishment in Guernsey offering nightly terms on five star accommodation
Why settle for a hotel room when you can have a whole suite for your stay in Guernsey

	Hotel Apartments 'Le Lorier' & 'La Hougette' have been awarded the coveted 'five star' grade which is a guarantee of 1st class accommodation, and we are the only establishment in Guernsey that will offer five star accommodation on a nightly basis
Apartment 'Le Lorier' is on the first floor, please click here for a full description Apartment 'La Hougette' is on the ground floor, please click here for a full description	The hotel apartments are situated in the countryside parish of St Pierre du Bois, offering pleasant walks through country lanes that surround us, yet within five minutes drive you will find restaurants, bars, cinema etc. etc. And only twenty minutes drive to St Peter Port, the islands main town and financial district.
Our aim is to offer the visiting business executive an alternative to the normal hotel room/suite, more a home from home, with all the facilities one would be used too - Guernsey Hotels

81. In connection with sub-paragraphs (c) and (d) of paragraph 78 the option is available of excluding any income or proceeds, as applicable, from undertakings for collective investment established in the Island where the investment and debt claims of the type referred to in paragraph 78(a) held by such entities, directly or indirectly, does not exceed 15% of their assets. This minimum threshold option will be exercised.

82. In the case of life interest and similar trusts (see paragraph 50) it will be acceptable, subject to the trustees’ power to allocate trust expenses between capital and income, to offset a just, reasonable and proportionate element of the income expenses first against investment income for each period prior to accounting to the Life Tenant. Trustees therefore will have discretion to decide whether to apply the retention tax to the relevant savings income gross or net of a set fee for the services rendered on the understanding that where a net payment is made only a just, reasonable and proportionate element of the overall trust fee should be applied against the savings income identified. Avoidance of Double Taxation

83. The Agreements provide for the avoidance of double taxation. However, as this involves the tax authority of the jurisdiction in which the beneficial owner is resident for tax purposes the beneficial owner may prefer to avoid any retention of tax by a Guernsey paying agent by choosing a voluntary disclosure option (see paragraph 37). Alternatively, double taxation can be avoided, and the benefit of the decision of the Island authorities to adopt the retention tax rather than engage in the exchange of information retained, by the paying agent exercising discretion in taking advantage of the following courses of action –
• Where the relevant savings income that is to be paid to an individual resident in an EU Member State is itself received from an EU Member State and is net of withholding tax which is at a rate equal to or higher than the rate of retention tax, the paying agent may treat the Member State’s withholding tax already paid as satisfying the retention tax liability (such that no further retention tax is required to be deducted).
• Where relevant savings income that is to be paid to an individual resident in an EU Member State is received after the deduction of withholding tax from a jurisdiction other than an EU Member State the retention tax should be applied to the interest payment net of the withholding tax deducted (e.g. US source savings income that has suffered US WHT of 30% would be liable to the retention tax on the remaining 70% and not the original 100%). However, if the practice of the EU Member States applying the withholding tax is shown to be to give full credit for the WHT paid so that no retention tax liability arises if the former is greater than the latter, the same practice may be adopted by Guernsey paying agents. The position of collective investment undertakings

84. Exclusion from the definition of paying agent: the Agreements provide that certain types of entity established in a contracting party to which interest is paid or for which interest is secured for the benefit of the beneficial owner shall not be considered the paying agent upon such payment or securing of such payment (see paragraph 55). This includes an entity that is a UCITS recognised in accordance with Directive 85/611/EEC of the Council or is an equivalent undertaking for collective investment established in the Island.

85. There may be certain circumstances where a UCITS or an equivalent undertaking is the last link in the chain in the payment of eligible interest (see paragraph 78) in which case such an undertaking might be a paying agent as defined for the purposes of the Agreements (see paragraph 49). However, where eligible interest payments received from a UCITS or equivalent undertaking that is within the scope of the retention tax are made by a bank (but see paragraph 53 for when a bank would not be the paying agent), registrar, custodian or other financial institution and not by the collective investment undertaking itself the latter will not be the last link in the chain and will not be called upon to retain tax.

86. What is meant by established in the island when applied to collective investment undertakings (see also paragraphs 53 & 84)? It is not intended that "established" in the Island should restrict the exclusion of a collective investment undertaking from being a paying agent to collective investment undertakings formed in the Island. Collective investment undertakings formed elsewhere that are being "administered" in the Island would also be covered; that is, the word "established" in the Agreements should, where it refers to an undertaking for collective investment, be read as including "administered".

87. What is an "equivalent" undertaking? The position on collective investment undertakings established in the Island is complicated by the fact that the Directive refers to a UCITS which is an undertaking for collective investment in transferable securities authorised in accordance with the UCITS Directive (Council Directive of 20th December, 1985 (85/611/EE of Laws, Regulations and Administrative Provisions Relating to Undertakings for Collective Investment and Transferable Securities). The recitals to the Agreements confirm that the Island has legislation that is equivalent in its effect to Directive 85/611/EEC. The equivalent legislation in the Island is that governing "recognised" funds and other retail funds that are regulated effectively to the same standard as "recognised" funds. This is what is to be interpreted as an "equivalent" undertaking.

88. In respect of a retail fund which is marketed in Europe but which is not a recognised fund there can be a further test to apply in determining whether such a collective investment undertaking established in the Island should be considered within the scope of the Agreements. Attention should be first focussed on the equivalent legislation in the Island and then (if the collective investment undertaking is within that legislation) the focus moves to determining whether the collective investment undertaking would be considered (by the law, regulation or practice of any EU Member State or competent regulatory body in any such Member State) to be outside of the scope of Directive 85/611/EEC. The Agreements will not be applicable to a collective investment undertaking established (as defined in paragraph 86) unless the collective undertaking concerned would be regarded as within Directive 85/611/EEC in each and every Member State.

89. What is a collective investment undertaking? A non-EU fund, which will include a fund which is not an equivalent fund established in the islands, should only be regarded as an undertaking for collective investment if the following features are present:
• the fund is operated by way of business;
• investments in the funds are pooled;
• investors are not involved in its day to day management; and
• the fund is open ended (i.e. its capital varies with investments and withdrawals by investors like that of an authorised unit trust or an authorised open ended investment company) not closed ended (i.e. its capital is fixed like that of an investment trust). Paying agents resident in the island making relevant payments, including for example in a nominee capacity, in respect of a collective investment undertaking established in an EU Member State, one of the named third countries or one of the relevant dependent and associated territories may apply the "home country rule". That is the paying agent may determine whether the undertaking is within or outside the scope of the Agreements according to the treatment of the undertaking in the jurisdiction in which it is established

90. What is meant by a payment of interest? In considering what is meant by a payment of interest reference should be made to paragraphs 78 to 82. With specific reference to collective investment undertakings a payment of interest for the purposes of the Agreements will include – • income deriving from interest payments directly, distributed by (i) a UCITS authorised in accordance with EC Directive 85/611/EEC of the Council; or (ii) an equivalent undertaking for collective investment established in the Island; or (iii) entities which qualify for the option under Article 7(3) of the Agreements; or (iv) other undertakings for collective investment established outside the territory to which the Treaty establishing the European Community applies by virtue of Article 299 thereof and outside the Islands;
• income realised upon the sale, refund or redemption of shares or units in the following undertakings and entities if they invest directly or indirectly via other undertakings for collective investment or entities referred to below more than 40% of their assets in debt claims as defined for the purposes of the Agreements – (i) UCITS authorised in accordance with Directive 85/611/EEC; or (ii) an equivalent undertaking for collective investment established in the Islands; or (iii) entities which qualify for the option under Article 7(3) of the Agreements; or (iv) other undertakings for collective investment established outside the territory to which the treaty establishing the European Community applies by virtue of Article 299 thereof and outside the Islands. However the option exists of including the income above in the definition of interest only to the extent that such income corresponds to gains directly or indirectly deriving through interest payments within the meaning of paragraphs (1)(a) and (b) of Article 8 of the Agreements. This option is exercised at the discretion of the fund manager.

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