'Further Investigations' Into Corporate Tax

Guernsey's Policy and Resources Committee says it has commissioned independent analysis of corporate taxation as part if of its ongoing Tax Review.

P&R says corporate tax is being 'further investigated'.

The committee says it is commissioning 'independent analysis'.

"Having some detailed independent work to separate out which options are plausible, and which are not, can only help this crucial discussion about how we safeguard the future of essential services.” - Deputy Mark Helyar, Treasury Lead for Policy & Resources.

It says already in its latest consultation on how to find an extra £85 million a year it's had many questions about whether offshore taxation can play a larger part - whilst ensuring the finance sector remains competitive.

P&R is working on the assumption an additional £10 million will come from corporate taxes  - but says it's ongoing work will 'give the community confidence that it has exhausted all options and investigated every opportunity'.

Deputy Helyar says a package of reforms that includes GST remains the best option.

“I promised last year that we would leave no stone unturned before committing to any final recommendations in relation tax changes. A package of tax reforms which includes a Goods and Services Tax combined with social security reform to increase allowances and improve pensions and benefits, still remains the best option on the table for raising the significant revenues needed to protect essential services while creating a more progressive tax system that would see those on low incomes pay less overall compared to now.

But we are still listening and examining every other possible option to see how we can minimise the impact of raising additional revenues on the public and the wider economy.

This includes other workstreams being carried out by the States such as the population review, looking at maximising the proportion of the population that is economically active, improving efficiency through Public Service Reform and looking at all other options for cutting costs across all States Committees.

Of course the Tax Review should also look at corporate income tax and how we tax companies more widely. However, it is critical that we don’t lose business, and ultimately lose jobs, to other jurisdictions." - Deputy Helyar.