Bermuda MPs Interested In Jersey's Tax System

by Mike Godfrey, Tax-News.com, Washington

05 September 2002

The Bermuda Royal Gazette reported on Tuesday that, in the wake of the revelations regarding the government's tax review, several PLP MPs have expressed an interest in examining the tax system of Jersey, with a view to finding answers to Bermuda's tax problems.

The possibility of imposing a flat rate income tax similar to that levied in the Channel Island jurisdiction was first put forward in 1994 by former UBP stalwart, the late Sir John Plowman. Sir John argued at the time that the imposition of such a tax would allow the government to slash customs duties by around 60%.

Quizzed by the local newspaper as to whether Bermudians should be obliged to pay tax on their income, PLP backbencher, Dale Butler admitted that: 'I would not be in favour of it, but it does raise the question of how we deal with the...tremendous disparity of income in this country, where we have got people earning $400,000 in an office with people earning $40,000.'

He admitted to the Royal Gazette that he was 'intrigued' by Jersey's tax system, but suggested that due to the controversial nature of the topic, Parliament is unlikely to establish a committee to examine Bermuda's tax code any time soon:

'That's our responsibility but no one is prepared to table a motion because you are going to be tainted for it. And the media is, unfortunately, not as objective as it should be.'

Bermuda Industrial Union leader and Progressive Labour Party MP, Derrick Burgess echoed Mr Butler's sentiments, dubbing the current tax system in Bermuda as 'cumbersome'.

'I think we have to look at our tax system within the next five years. I just don't think the system we have is the greatest,' he told the Royal Gazette, continuing: 'I would certainly like us to look at what they do in the Channel Islands but I don't want income tax like they have in the US and the UK.'

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