Guernsey Hotels | Guernsey information In approaching the implementation of the Agreements

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

11. In approaching the implementation of the Agreements it should be noted that the Island has agreed to assist the European Union in ensuring that individuals resident in the EU Member States do not escape from a liability to tax, in circumstances where such a liability properly arises in the EU Member States, by moving their funds to the Island. In deciding on whether the retention tax should be applied to interest payments made to an individual resident in an EU Member State it is appropriate that regard is had for the tax status of the individual, if it is known to the paying agent.

12. Individuals resident in an EU Member State, who are in receipt of interest payments that are subject to the retention tax, may if they so wish avoid the imposition of the tax by opting for voluntary disclosure of information to the relevant authority of the EU Member State in which they are resident for tax purposes, or by obtaining a certificate from their tax authority (see paras 37-44 for further information on these options). To satisfy data protection legislation it is important that the disclosure is voluntary; that is, it is with the express authorisation of the individual.

13. When the retention tax is applied no details of the individual concerned will be received from the paying agent by the Island’s tax authorities. No information on the individual tax payer therefore will be passed to the tax authorities of the EU Member State of residence. If an individual who is in receipt of an interest payment that has been subject to the retention tax wishes to obtain credit for that tax from his home tax authority he or she can seek to take advantage of the article in the Agreements that provides for the elimination of double taxation. However, if an individual intends to pursue this course of action a simpler arrangement might be to opt for the voluntary disclosure and avoid the retention tax in the first place (see also paragraph 83). What have the Crown Dependencies agreed to do?

14. The Crown Dependencies have decided to follow the EU Member States of Austria, Belgium and Luxembourg – in common with the named third countries of Switzerland, Andorra, Liechtenstein, Monaco and San Marino and the dependent or associated territories of British Virgin Islands, Netherlands Antilles and Turks and Caicos – in adopting, during what is referred to as the ‘transitional’ period (see para 21), what is referred to in the EU Directive as a "withholding tax" but which in the Islands is referred to as a "retention tax". For the purposes of the Agreements between each of the Crown Dependencies and the individual EU Member States the two terms "withholding" and "retention" are to be read coterminously and have the same meaning. How are the Agreements to be brought into effect?

15. The Model Agreements upon which the bilateral Agreements with each Member State are based have been approved by the Island’s legislature. The individual bilateral Agreements have been signed by the parties and are brought into effect by the specific insular legislation (see paragraph 5) 16. Article 17 of the Agreements also provides that their coming into effect is conditional on the adoption and implementation by all the Member States of the European Union, by the United States of America, Switzerland, Andorra, Liechtenstein, Monaco and San Marino, and by all the relevant dependent and associated territories of the Member States of the European Community, respectively, of measures which conform with or are equivalent to those contained in the Directive or in the Agreements, and providing for the same dates of implementation. The date of implementation is 1st July, 2005. What will happen if there is evidence that the playing field is not level after the Agreements come into effect?

17. The Island has agreed to apply a retention tax with effect from the same date as the EU Member States apply the Directive, provided the EU Member States have adopted the laws, regulations and administrative provisions necessary to comply with the Directive, and the requirements set out in Article 17 of the Agreements have generally been met.

18. Article 16 of the Agreements provides for their termination by notice being given in writing specifying the circumstances leading to the giving of such a notice. In such a case the Agreement(s) shall cease to have effect twelve months after the serving of notice.

19. Article 17 of the Agreements provides for their suspension. This can occur should the Directive cease to be applicable either temporarily or permanently in accordance with European Community Law or in the event that an EU Member State should suspend the application of its implementing legislation. Suspension can also occur in the event that one of the third countries, or dependent or associated territories, referred to in the Directive should subsequently cease to apply the measures referred to in the Directive or the supporting Agreements. What will happen at the end of the transitional period referred to in Article 14 of the Agreements?

20. Article 14 of the Agreements provides that at the end of the transitional period as defined in Article 10 of the EU Directive the Island will cease to apply the retention tax and apply automatic exchange of information in the same manner as is provided for in Chapter II of the Directive.

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