It is interesting that the British Government was quite happy to collect up to 40% tax on the interest income from the IceSave accounts, a privilege the Icelandic Government did not enjoy. The British government collected all the revenue but demanded that the Icelandic taxpayer should absorb the risk. In contrast to this, the U.K. government does not guarantee bank deposits in subsidiaries of a British bank operating in the Isle of Man and Guernsey. Its argument was that the U.K. did not receive tax revenue on those operations.

From Arsaell Valfells in Forbes

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