Kovács: increased co-operation
EU pressures
member states
to adopt tax
evasion policies
by daniel judge
The European Union is
urging member states to
adopt newly drawn up tax
evasion policies, including
promoting the Saving
Tax Directive to non-members
nations and imposing
OECD-approved sanctions
against tax havens.
The European Commission
has called on members
to promote “good
governance” in tax matters,
including what it calls
“fair tax competition”,
greater transparency and
co-operation.
László Kovács, Commissioner
for Taxation and
Customs, said: “EU member
states cannot afford to act
alone when designing policies
to prevent their tax revenues
disappearing to tax
havens or non-co-operative
jurisdictions. If they do not
co-operate with each other,
including in international
fora, their actions to protect
their revenues will not produce
effective results.”
He added that by
improving good governance
within the EU,
external states would be
more inclined to take
similar steps.
Kovács said member
states should adopt a raft of
recent proposals designed
to combat tax evasion,
including the extension of
the Savings Tax Directive
to trusts, foundations and
certain types of investments,
primarily struc-
tured products.
UK resident non-doms flirt
with “high risk” remittance
by daniel judge
UK resident non-domiciled
individuals seeking
to remit money tax free to
the UK may be encouraged
to use a “high risk strategy”
being discussed by lawyers
and accountants.
The technique, doing the
rounds among advisers to
wealthy foreigners since the
£30,000 remittance charge
system came into force this
year, involves a resident
by helen burggraf
Funds under management
and administration in the
Isle of Man fell 25% during
the second half of 2008,
after touching an all-time
high at the end of June.
Although exact figures
have not yet been released,
the decline is understood
to have continued in the
first three months of 2009,
albeit at a slower pace than
during the final six months
of last year.
IoM funds officials add
that they are cautiously
optimistic the industry will
rebound in line with the
global recovery elsewhere,
and benefit strongly from
new government funding
that has already begun to
enable them to market the
non-domiciled person borrowing
money offshore,
then repaying the loan from
existing offshore income
or gains. According to the
strategy, the borrowed
money could be remitted
to the UK the following
year tax free because it is
classed as a loan.
The strategy was one
of a number of possible
non-dom tax solutions discussed
at a recent presentation
for accountants and
NEWS
lawyers advising non-dom
clients.
However, it is labelled
“high risk” for good reason.
Colin Rhead, tax director
for BDO Stoy Hayward,
said: “It will look like it
has just been done to get
round the rules, so the
circumstances in which
it might work are hard
to foresee.”
He added it was not a
strategy BDO was recommending
people use.
Isle of Man funds under management fall by 25%
FPI reports 11% drop in 2009 Q1 sales
Friends Provident International
(FPI) has reported
an 11% drop in 2009 first
quarter sales compared
to 2008.
Lombard, its high net
worth and ultra high net
worth Europe-focused,
Luxembourg-based insurer,
saw a 16% drop over the
same period.
Rocco Sepe, managing
director of FPI, said the
results reflected the “tough”
market conditions faced by
many companies globally.
IoM fds under mgt
Date Total under
mgt $bn
31 dec ’08 43.0
30 Sep ’08 52.2
30 july ’08 57.7
31 Mar ’08 53.8
31 dec ’07 53.2
30 Sep ’07 53.3
30 jul ’07 50.1
31 Mar ’07 44.5
Source: isle of Man finance
jurisdiction aggressively
for the first time in centres
such as London and
New York.
Among the reasons
assets have continued to
drop since January is that
many funds that had been
closed to redemptions are
now healthy enough to
“It is tougher in the markets
in which we operate.
Many are going through
difficult times.”
Sepe added, for example,
that life and pensions
sector business in Hong
Kong had dropped 75%
over the period, according
to industry figures, which
put FPI’s approximate fall of
50% into a better context.
He added business in
Singapore rose over the
period, though the figure
was small in the overall
permit them, according to
Ita McArdle, the recentlynamed
chairman of the
IoM’s Fund Management
Association (FMA). “Which
is good, because it means
liquidity is back. If investors
want their money back
and are getting it, that is
how it should be,” she
said.
Falling asset valuations
are also contributing to the
declining numbers, added
McArdle, with people
tending to “write down”
assets whose value they
are uncertain about.
David McGarry, a senior
partner at KPMG, says the
island is also beginning to
see “a significantly enhanced
level of enquiries” regarding
the establishing of new
funds on the island.
Asian picture, which is
dominated by Hong Kong.
Elsewhere, business in
the Middle East remained
largely static, with first
quarter sales in 2009 experiencing
a small drop of
£200,000 compared to 2008.
The UK was down by more
than two thirds, to £1.1m
and Europe from £8.3m in
2008 to £7.2m this year.
“In general, we are
pleased with our progress
given the economic backdrop,”
said Sepe.
NEWS
IN BRIEF
Pru adds options to
its Portfolio Account
Prudential International
has added a selection of
Investec deposit-based
investment options to
its Portfolio Account.
They offer various
time horizons, with a
bull and bear option
for each, based on the
FTSE 100. The options
close on 29 May.
Alun Evans climbs on
board at Christchurch
Alun Evans has
joined Christchurch
Investment Management,
doubling the
size of its international
division, where he will
join Tony Shah. Evans
had been advising
clients for more than
15 years at Rensburg
Sheppards.
Guernsey unveils legal
resources website
Guernsey has launched
a legal resources
website, www.guernsey
legalresources.gg. The
site provides access
to a large database
of Guernsey’s legal
material, including
Guernsey laws,
unreported judgments,
Law Reports, and other
similar matter.
Skandia offers 107%
allocation in markets
Skandia International
is offering a special
offer of up to 107%
enhanced allocation
across all of its
key markets. New
investments into its
Managed Savings &
Pensions accounts and
the Skandia Ireland
European Savings
Account qualify for the
offer, which runs until
the end of May.
For the current and all
previous editions, with
full news archive, go to
www.international-adviser.com
May 2009 [www.international-adviser.com] INTERNaTIONaL aDVISER 11 3
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