Guernsey's Zero-Ten Workshops Declared A Success

by Jason Gorringe, Tax-News.com, London

26 November 2007

Senior figures from Guernsey's Treasury and Resources Department have visited Alderney to bring the series of 'Zero-Ten' workshops to an end.

Two sessions on the island, which attracted more than 50 people, have taken the total number of attendees at the workshops to over 500, the government of Guernsey has announced.

Under the 'Zero-Ten' regime, from 1st January 2008 the standard rate of income tax on company profits will be 0%, with only a limited number of specific banking activities being taxed at 10%.

As part of this Zero-Ten regime, the profits of regulated activities of utility companies, that is companies such as Guernsey Electricity and Guernsey Post, will continue to be taxed at 20%, in addition to the income from Guernsey property which arises to any Guernsey or overseas company.

Treasury and Resources minister, Lyndon Trott chaired and presented every seminar with senior officers from the Income Tax Office and Reg Avery, director of client services at the department, who is leading the reform of tax on real property.

Deputy Trott explained that: "The States has engaged with all sectors of our community throughout the five years leading to the introduction of Zero-Ten. This final stage has been the most rewarding because of the very positive manner in which essential change has now been embraced."

The government of Guernsey began an information campaign on the new tax strategy earlier this year when, according to then Chief Minister Laurie Morgan, it became "increasingly obvious" that there was a "knowledge gap" among the general public as to what the Economic and Taxation Strategy meant for them.

The latest seminar was aimed at small local businesses to help their understanding of how Zero-Ten will directly impact on their tax affairs. The seminars covered issues including distribution of company profits, property issues, interest relief, and Social Security matters.

Recommended