Summary
The Montserrat Reporting of Savings Income Information Order 2005 implements Council Directive 2003/48/EC (the EU Savings Directive) in Montserrat, requiring paying agents and receiving agents to report savings income payments to the Inland Revenue Department. It defines key terms including 'savings income' (covering interest, certain investment fund income, and proceeds from sales/redemptions of collective investment fund shares), 'residual entity', 'relevant payee', and establishes identity verification requirements for individuals receiving savings income. The Order imposes reporting deadlines, record-keeping obligations, and penalties for non-compliance, while overriding banking confidentiality and confidential information laws to enable disclosure.
Reason
This regulation is an EU-derived measure implementing an EU directive in a British Overseas Territory, representing exactly the type of unscrutinised inherited legislation that should be reviewed post-Brexit. It imposes compliance costs on financial institutions through reporting and record-keeping requirements, overrides Montserrat's banking confidentiality laws, and creates bureaucratic burdens with no direct benefit to Montserrat's economy. Furthermore, the EU Savings Directive it implements has been superseded by later EU directives (DAC6) and the OECD Common Reporting Standard — keeping this outdated legislation maintains compliance costs for an obsolete framework. A territory seeking to restore its competitiveness as a financial centre should not be bound by rules designed to implement foreign (EU) tax directives that no longer apply to it.