Mark Colver Tax Update TAX UPDATE

Tax Update – GUERNSEY – FIRSTLY SOC SECURITY INDIV & CO SPECIFICS – THEN THE TAX REVIEW – LOOK AT WHATS GOING IN THE UK – AND FINALLY SOME WIDER AREAS AND COUNTRY SPECIFICS

Social Security Pension age increasing so i.e. me 66 Those with D.o.b from 1964 = 67 Shrinking population Groups and dividends from holding companies Non exec directors if only one appointment = not self employed Still a charge after pension age reached Tax Update

Guernsey Income Tax Reminders re 0-10 No longer deeming Remember distribution returns / statements / div vouchers Individual caps Employees seconded here < 90 days Tax Update

Guernsey Income Tax Duty for property companies Mortgage interest relief cap - £15,000 < £50 savings interest exempt Married allowances only if both locally resident Property income added to tax caps Tax Update

Company changes for 2015 Exempt fee £600 to £1,200 in 2015 Filing requirements for overseas companies Extensions of 10% - trust companies & local Insurance 2012 Fund administrators 2015 still o/s details New billet (admin & accy) Certified accounts Residence statement Tax Update

Guernsey tax compliance Raised £1.8m in 2014 Re £7.1m of adjustments BIRD & EMIRD closed March 2015 Tax Update

Started consultation in spring 2013 The purpose of the review is to ensure that we have sustainable public services and revenues in the long term and to ensure that we have the right balance of fairness, efficiency and sustainability in our personal tax, benefits and old-age pensions systems. This review is about planning for the future and, in particular, coping with the challenges presented by the ageing population. We all know the demographic issues – there are likely to be around twice as many pensioners in 30 years’ time than there are today. Not part of FTP, nor a 010 review Tax Update Personal Tax, Pensions & Benefits review

“ Planning for a Sustainable Future - Personal Tax, Pensions & Benefits review ” 1.Long-term control of government spending; 2.Managing long-term expenditure pressures; 3.Targeting benefits expenditure; and 4.Establishing a sustainable tax base recommendations Tax Update Billet March 2015

17 “reviews” No later than 2025 Cap revenues to 28% of GDP Pension age to 70 (by 2049) Family allowances? Prescription charges for those > 64 G S T (Consumption tax) + linking revenue away from direct tax Mortgage interest relief, Personal allowances, Independent taxation. Tax Update Billet March 2015

Tax Improvement – new committee for “have your say” feedback 58 TIEAs 12 full DTAs And now 12 Partial DTAs Beneficial ownership consultation Tax Update Guernsey Miscellaneous

Andorra, Liechtenstein, Guernsey, Monaco, Mauritius, Liberia, Seychelles, Brunei, Hong Kong, Maldives, Cook Islands, Nauru, Niue, Marshall Islands, Vanuatu, Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Grenada, Montserrat, Panama, St Vincent and the Grenadines, St Kitts and Nevis, Turks and Caicos, US Virgin Islands. Tax Update The recent EU Blacklist

ATED New CGT for non-residents on all residential property “Triple tax lock policy” – “The UK Treasury have promised that there will be no rises in income tax rates, VAT rates or national insurance rates from individuals, employees and employers” if one could see rises in council tax, duties or business rates. Tax Update UK matters

A tax avoidance scheme is a set of arrangements that try to use tax legislation to gain a tax advantage that is not intended by the legislation. HMRC will send a factsheet to taxpayers because they have used a tax avoidance scheme, and will then ask for a payment of the amount that relates to your use of the scheme. Tax Update UK approach to tax avoidance

UK FATCA Where Are We Now? Classifications should by now be complete are you an FFI vs NFFE, effectively piggy backs off of US FATCA status. No requirement to register as an FFI. IGOR reporting gateway fully operational and requires separate registration. First reporting deadline 30 June 2016, will include information for 2014 & 2015 for new and pre-existing account holders. High value (+$1m) pre existing account searches to be complete by 30June 2015, including the need for paper based searches if electronic systems do not support full indicia search. Low value ($50k - $1m) pre existing account searches to be complete by 30 June ARR election deadline now passed for period ended 5 April Tax Update F A T C A

US FATCA Where Are We Now? Classifications should by now be complete are you an FFI vs NFFE. IRS registration system fully operational. IGOR reporting gateway fully operational and requires separate registration. First reporting deadline 30 June 2015 approaching, will include new US accounts holders for the period 1 July 2014 to 31 December 2014 and possibly US pre-existing account holders depending on when searches carried out. High value (+$1m) pre existing account searches to be complete by 30 June 2015, including the need for paper based searches if electronic systems do not support full indicia search. Low value ($50k - $1m) pre existing account searches to be complete by 30 June Tax Update F A T C A

Multilateral Competent Authority Oct 2014 Now 61 countries for early adoption to exchange in 2017 re 2016 But remember it also affects us both ways (re crown dependencies exchanges) Tax Update CRS

Diverted profits Tax - DPT Base Erosion and Profit Sharing - B E P S Tax Update Others

Russian De-Offshorisation Switzerland Ireland Spain & Canary Islands Tax Update Other countries –some examples

Mark Colver Director, Tax T : +44 (0) Tax Update Questions?