Alternative Investment Management Association
The EU Savings Directive was introduced in June 2003 and took effect on 1 July 2005.
The principal purpose of the Directive is to allow a taxpayer’s local tax authority to identify that the taxpayer is in receipt of savings income which may otherwise not be declared. The Directive ensures that ‘paying agents’ in one EU Member State either report interest income received by taxpayers resident in another Member State or (in certain jurisdictions) levy a withholding tax on that income.
In November 2008, the European Commission proposed a revised Directive, with amendments for ‘closing existing loopholes and eliminating tax evasion’. Changes proposed would affect many AIMA members - hedge fund managers, administrators and other paying agents and individual investors resident in the EU.
AIMA participates in the Commission’s Expert Group that is reviewing operation of the EUSD; its mandate has now been extended until 30 June 2014 and now includes expertise on FATCA and with respect to implementing the Directive on administrative cooperation in direct taxation.
it may be some time before any amended Directive comes into effect. The Commission remains concerned over the 2011 Swiss-UK information-sharing agreement (considered to undermine the Directive). At the Group’s meeting on 26 September 2012, it was apparent that (a) there is pressure to progress an Amending Proposal and mandates on negotiating with third countries and (b) on FATCA, intergovernmental agreements (IGAs) will be negotiated unilaterally; the Commission noted issues raised by AIMA and others (eg, no industry consultation on developing Model IGA(s), multiple IGAs and regulations).
Council Directive - 2003/48/EC (June 2003)
European Commission Impact Assessment SEC/2008/2767 (November 2008)
European Commission Summary of Impact Assessment SEC/2008/2768 (November 2008)
European Commission's FAQs MEMO/08/704 (November 2008)