EcoFin ready to give go ahead to savings directive

In Short:

A long-awaited agreement to include Switzerland, Monaco and other offshore tax havens is on the cards. If agreed, it will finally pave the way for the EU savings directive.
Brief News:

The EcoFin Council on 12 April said it was "convinced" that all will be in place for the EU Savings Directive to come into force as planned on 1 July 2005.

The directive assures that information about income from savings held by EU citizens in accounts outside their country of residence will be passed on to the citizen’s own tax authorities.

However, sanction for the measure was given on the condition that it also applied to dependent territories of member states such as the Isle of Man and Guernsey, and non-EU states Monaco, Switzerland, Liechtenstein, Andorra and San Marino.

Concerned about protecting the confidentiality of their banking systems, some countries, including Belgium, Luxembourg and Austria, will initially withhold an automatic 15% tax instead of passing on account details.

EcoFin ready to give go ahead to savings directive