THE chairman of the Guernsey International Business Association, Robin Fuller, has welcomed the Policy Council’s stance on the EU directive on taxation of savings income. ‘We welcome the comments, particularly from Laurie Morgan, in relation to the consultation which took place with the industry on the decision to opt for a retention tax,’ he said.

‘It was extensive and definitely our preferred route. It is particularly important for flexibility for some sectors, particularly fiduciary, which is a growing part of the island’s business, to retain this option.’

Mr Fuller said it was essential that a level playing field was in operation across all countries and territories involved.

‘This will happen but whether it is in time for January 2005 is very debatable,’ he added.

‘But clearly as a jurisdiction we shouldn’t be seen to be holding up the process.’

Mr Fuller said that the directive was important for the local finance industry but did not have massive ramifications in terms of business transacted.

‘The amount of business done here for EU nationals and residents is very small,’ he said.

‘It will mean a lot of effort for a very small outcome, but it is a case of being a good citizen.’

The local proposals will be published early next month before a special States debate on Monday 21 June.