Guernsey To Delay Discussions On New Tax Regime
The Guernsey government has decided to postpone discussions on the future of
the jurisdiction's corporate tax regime whilst policy experts continue to consider
responses from the public and businesses to a recent consultation on the matter. The centrepiece of Guernsey's Future Taxation Strategy is a 'zero/ten' rate
of corporate tax, under which Guernsey's businesses and corporate entities will
be subject to income tax at 0% from the 2008 tax year. However, businesses regulated by the Guernsey FSC will be taxed at 10%.
Around 500 responses have been received to a recently-concluded consultation
issued by the the Fiscal & Economic Policy Steering Group setting out “a
strategy to safeguard the future economic well being of the Island.” Many
of these responses contain suggestions on how Guernsey should best make good
the estimated GBP48 million shortfall caused by the elimination of corporate
tax. The volume of responses to the consultation means that a debate on the jurisdiction's
future tax strategy due to be held in February will be postponed, and a recently
commissioned study on the issue is unlikely to be completed before March, according
to the BBC. Deputy Charles Parkinson has also recently voiced concern that the States were
not ready to discuss the issue because there was a lack of information available
on the economic impact of the tax plans. .
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