As reported previously, hundreds of Islanders with NS&I accounts were last month sent letters asking them for copies of passports and confirmation of residency from the Income Tax Department, even though the Policy and Resources Department had advised that the request should only apply to those with accounts opened after 1 January 2004.
Jersey residents who phoned National Savings were initially told they needed to provide full information, regardless of when their accounts were set up.
The requests for information had been prompted by the introduction on 1 July of the new European Union savings tax directive, which means that EU residents must either declare any interest on savings in another EU member state or associated jurisdiction or pay withholding tax.
Although Jersey is not part of the European Union the Island authorities have agreed to comply with the directive, so details of any savings in the UK will be reported to the UK Revenue and Customs who will then inform the Jersey tax authorities.
