EU savings directive targets undeclared overseas income

The Government is required to implement the European Directive on the taxation of savings by January 2005. It has just issued a consultation draft of the proposed legislation “The Reporting of Savings Income Information Regulations 2003”.

This will require institutions, businesses and professionals like custodians, trustees, lawyers and stockbrokers (‘paying agents’) who make savings income payments to, or collect savings income payments for, individuals resident overseas, to make an annual return to the Revenue of those payments made to such individuals giving details of their identity and residence.

It is aimed at curbing cross border tax evasion within the EC. Obviously the main issue for UK taxpayers will be that any income they receive from investments in other EC countries should be reported by those EC tax authorities to the UK Revenue.

For details of the draft legislation see here:

Draft legislation

Be warned it's heavy going!