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Peter, I do have a good accountant. Up until 2011 all Guernsey bank interest payable to ex-pats had 20% deducted at source. The remaining balance was then taxed by, in my case, the French tax authorities. Since that time 20% retention tax has been abolished by Guernsey, but any other income created in Guernsey is taxed by Guernsey and the residual amount is then, once again, taxed by the French. Hope this clears it up for you....perhaps you should see someone about your inflexible sceptical syndrome.