TABLE OF CONTENTS Introduction 7 Scope of the EU Savings Tax Directive 8 Its objectives and key terms 8 “Savings income in the form of interest payments” 8 “Beneficial owners who are individuals” 9 “Resident for tax purposes in another Member State” 10 Timing of implementation 12 Attitude of offshore providers 14 What effect are offshore providers anticipating from the Directive? 14 How does it compare to other competitive pressures? 15 Should customers be told of its implications? 17 Approaches to mitigating its effects 19 Augmenting the existing product portfolio 19 Developing trust and company structures 22 Managing assets from other jurisdictions 24 Appendix 29 Data tables 29 Offshore Market Leaders Survey 31 Further reading 32 SPP Team 34
LIST OF TABLES Table 1: Geographical scope of the EU Savings Tax Directive 11 Table 2: What will be the biggest threat to offshore revenues in your jurisdiction in the next two years? 29 Table 3: What will make it hardest for competitors in your jurisdiction to gain more offshore clients in the next two years? 30 Table 4: What impact do you think the EU Savings Tax Directive will have on your jurisdiction? 30 Table 5: Have you formally communicated the EU Savings Tax Directive and its implications to your clients? 31 Table 6: If you have not yet communicated the EU Savings Tax Directive and its implications to your clients, do you plan to do this formally? 31
LIST OF FIGURES Figure 1: Aim of the EU Savings Tax Directive 8 Figure 2: Offshore providers overwhelmingly expect the EU Savings Tax Directive to have a negative impact on their jurisdictions 15 Figure 3: The EU Savings Tax Directive is widely recognised as the biggest threat to offshore business in the next two years among those jurisdictions directly affected 16 Figure 4: Very few competitors in jurisdictions directly affected by the EU Savings Tax Directive intend not to formally communicate its implications to their clients 17 Figure 5: Timeline of recent major competitor news within Singapore private banking, Sept 2004 26
