Guernsey Hotels | Guernsey information The European Union

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

1. The European Union, on 3rd June 2003, formally adopted Council Directive 2003/48/EC on the Taxation of Savings Income in the form of interest payments. The preamble to that Directive states that its ultimate aim is to enable savings income in the form of interest payments made in one EU Member State to beneficial owners who are individuals resident in another EU Member State to be made subject to effective taxation in accordance with the lawsof the latter Member State.

2. The EU Member States were concerned that so long as the United States of America, Switzerland, Andorra, Liechtenstein, Monaco, San Marino and the relevant dependent or associated territories of the EU Member States did not all apply measures equal to, or the same as, those provided for by the Directive, capital flight towards these countries or territories could imperil the attainment of the Directive’s objectives. For this reason the European Union sought to conclude agreements with the countries and territories concerned that provide for the objectives of the Directive to be met within those countries and territories from the same date as within the EU Member States.

3. The Directive allows three Member States to adopt a withholding tax for a transitional period whilst the other twenty two Member States adopt automatic exchange of information. The same option was extended to the non-EU jurisdictions referred to in paragraph 2 above, including the Crown Dependencies of Guernsey, the Isle of Man and Jersey.

4. The Crown Dependencies worked extremely closely together in reaching agreement with the EU Member States and this cooperation was reflected in the strength of their representations during the negotiations. The negotiations with the EU High Level Group on Taxation and the EU Presidency also enabled the Crown Dependencies to better establish their international personality in negotiating and concluding such agreements.

5. The outcome of the negotiations was two Model Agreements, one between each of the Crown Dependencies and those EU Member States that have opted for automatic exchange ofinformation and one between each of the Crown Dependencies and the three EU Member States that have opted for a withholding tax (Austria, Belgium and Luxembourg). These two Model Agreements have been approved by each of the Crown Dependencies’ legislatures and have been the basis for the individual Agreements ("the Agreements") signed between each of the Crown Dependencies and each of the EU Member States and the specific insular legislation required to bring the Agreements into effect being the Foreign Tax (Retention Arrangements) (Guernsey and Alderney) Law, 2005, under which the States by Ordinance, and in respect of technical matters the Department by Regulations, will erect and administer the Retention Tax regime. The principal Ordinance – entitled the Foreign Tax (Retention Arrangements) (Guernsey and Alderney) Ordinance, 2005 was enacted by the States of Guernsey on 29th June 2005.

6. The text of the Agreements follows that of the EU Directive in large part but with appropriate adaptations and the inclusion of additional safeguards in the provisions in the Agreements for the suspension or termination of the Agreements if certain events come to pass. In addition, to distinguish the Island from the EU Member States, to reflect the fact that the Island is not a part of the European Union and is not subject to the EU Directive, the term"retention tax" is used rather than "withholding tax". What is the purpose of the Guidance Notes?

7. The Agreements inevitably leave questions to be answered on points of interpretation. The Crown Dependencies working together have therefore agreed these Guidance Notes to accompany their respective insular legislation that is required to bring into effect the Agreements with each of the EU Member States.

8. It should be emphasised however that this Guidance is intended simply to offer practical assistance to those who are subject to the Agreements. The Guidance is not a legal document and does not replace the need to obtain proper legal advice. The Notes are being issued in the name of the Commerce and Employment Department which has overall responsibility for the Finance Industry and which, in appropriate circumstances, will be taken into account by theAdministrator of Income Tax who will have responsibility for administering the Legislation required to bring the Agreements into effect.

9. The Notes are intended to help the reader answer for themselves questions such as whether they are a paying agent, whether they are a person to whom interest payments are made and whether the interest payments made or received are subject to the retention tax. Primarily the Guidance Notes are aimed at those who will be considered paying agents within the Island and will have responsibility for deducting the retention tax from interest payments made to individuals resident in an EU Member State. The Notes are not cast in stone and can be expected to be amended and added to in the light of experience.

10. The Guidance Notes should have relevance for banks, registrars, custodians and other financial institutions that make interest payments, or distributions from certain collective investment schemes, to individuals in the EU Member States. They may also be of interest to financial dealers and securities houses which purchase money debts or units in collective investment schemes from individuals subject to the retention tax, businesses which redeem money debts or units in collective investment schemes held by individuals and stockbrokers and others who act for individuals in the sale of such investments. They may also be relevant for those (such as accountants, solicitors or nominee companies) who hold or administer money debts and investments in collective investment schemes on behalf of individuals.

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