Guernsey Hotels | Guernsey information Another issue may arise in respect

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

31. Another issue may arise in respect of an interest payment made after 1st July, 2005 in respect of a period covering the whole or part of a period prior to 1st July, 2005. In these cases, on the assumption that it is possible to apportion the interest payments, the retention tax need only apply to the payments that arise in respect of the period after 1st July, 2005. For example, if interest is paid at the end of August, 2005 in respect of the preceding six month period, the retention tax need be applied on a pro rata basis only in respect of the two months of July and August, 2005; that is, to two sixths of the interest payment. This apportionment, which is at the paying agent’s discretion, can also be adopted where the voluntary disclosure option is chosen. If the paying agent’s systems cannot provide for any apportionment the full interest payment would be subject to the retention tax.

32. In deciding to whom the retention tax will need to be applied the focus should be on the ultimate aim of the Agreements which is to enable savings income in the form of interest payments made in the Island to beneficial owners who are individuals resident in an EU Member State to be made subject to effective taxation in accordance with the laws of the latter Member State. The emphasis should be on individuals, and also on those individuals who are not only resident in an EU Member State but are persons subject to effective taxation in accordance with the laws of the EU Member State. It is therefore consistent with the aims of the Agreements into which the Island has entered that the retention tax will not apply to interest payments made to – • a legal person; • an entity which is taxed under the general arrangements for business taxation; • a trust (but see paragraphs 50-52 for the position of trustees) • an unincorporated association or society; • an individual where the interest payment arises from negotiable securities issued before 1st March 2001; (see paragraphs 73-76) • an individual where it is known to the paying agent that the individual benefits in their Member State of residence from an exemption from income tax; or where because of the non remittance of interest to the individual’s Member State of residence no liability to income tax arises in that country of residence.

33. For the purposes of the implementation of the Agreements domestic partnerships, foreign partnerships and limited partnerships or equivalent entities are considered to be entities which are taxed under the general arrangements for business taxation.

34. The sixth bullet point in paragraph 32 leaves open the question how the paying agent is expected to know that an individual benefits from exemption from income tax etc. For some existing customers, the paying agent may have an understanding of and/or documentary evidence confirming the customers tax status. Reliance on self-certification by a customer also may be appropriate, where the paying agent has no contrary evidence and where the assertion is consistent with the paying agent’s understanding of the customer’s circumstances. In other cases the customer may have in their possession documentation from a tax authority or other source which would assist in confirming their tax status or they might be asked to provide a letter confirming that status endorsed by a professional third party such as a lawyer or accountant. The ultimate responsibility will rest with the paying agent. It will be for the paying agent to decide whether they have sufficient information in order for them to know that no tax liability arises.

35. Another guiding principle in the application of the Agreements will be the wish to avoid unnecessary bureaucracy and cost to those who are required to implement the Agreements.

36. These Guidance Notes will not cover every case where the retention tax should not apply. In the light of experience, further guidance may be provided but it is important to again emphasise that this guidance will not take the form of legal advice. Will there be any exceptions to the application of the retention tax?

37. Under Article 3 of the Agreements there is provision for the use of one of the following procedures in order to ensure that beneficial owners may request that no tax be retained. (a) a procedure which allows the beneficial owner expressly to authorise the paying agent to report information on the interest payments to the appropriate body in the Island. Such voluntary authorisations will cover all interest payments made to the beneficial owner by that paying agent; (b) a procedure which ensures that retention tax shall not be levied where the beneficial owner presents to his paying agent a certificate drawn up in his name by the competent authority of his EU Member State of residence for tax purposes in accordance with the arrangements set out in paragraph 43;

38. Authorisation to report information in accordance with subparagraph 37(a) can be in such form as the paying agent will require, but can normally be expected to take the form of a written agreement, letter or other document between the parties. Individual beneficial owners will be regarded as giving express authorisation by adopting a course of conduct in accordance with such documents. The collection of retention tax is a legislative requirement that flows from the Agreements and involves no disclosure by a paying agent of personal data about an individual client to the authorities in that individual’s Member State of residence. Whilst it is open to any paying agent to decide that they will not, for administrative reasons, collect retention tax it is a requirement of data protection legislation to obtain the consent of the beneficial owner to the information exchange option.

39. For existing investors, the paying agent should notify all beneficial owners that, under the legislation that flows from the Agreements, exchange of information is optional and subject to the express authorisation of the individual client. Such an authorisation should normally take the form of a written agreement i.e. a positive opt-in and the paying agent should not infer any such authorisation from a failure to respond to that notification.

40. It is sufficient in the case of new contractual relationships for the paying agent to include a clear notice in the terms and conditions of the account, fund or other relevant instrument that information will be disclosed to the appropriate authorities detailing the interest payments received by beneficial owners resident in an EU Member State from that investment. What information will the Paying Agent disclose to the Administrator of Income Tax?

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