WHEN it was introduced not long ago, Sark’s Property Transfer Tax was seen by many – although never officially described as such – as being a bit of a panacea in terms of how it would make a beneficial difference to the island’s finances.
Most of the property transactions taking place here involve the sale of leases rather than freeholds – of which there are comparatively few – and in broad terms the tax was intended to raise four per cent of the purchase price of those leases of 20 years or more which changed hands.
In the nine years or so that I have lived here, the turnover of such properties has been fairly rapid. Our closest neighbouring property is currently on the market and awaiting its fourth occupant since 2003. Another nearby is awaiting its third, while two others are each on their second.
That means that the exchequer taking a four per cent slice of the bulk of the financial consideration for each lease assignment would become what Arthur Daley of Minder fame might have described as ‘a nice little earner’.
Unfortunately for the exchequer, I hear that it appears those who read the Property Transfer Tax Law closely – the small print, in common parlance – have found ways and means by which payment of this small and relatively painless tax can be avoided.
I hope my critics note that I said avoided, rather than evaded, because as most people know, avoidance is lawful whereas evasion is not.
I understand that those from Chief Pleas who have responsibilities in this area will soon be getting round a table – presumably with legal advisers – in an attempt to deal properly with whatever loopholes might exist.
In the meantime, I understand that some who have paid the tax are contemplating questioning their legal obligation to have done so, so the sooner this matter is sorted, the better off the island – and personal taxpayers in particular – will be. No matter where it comes from, services provided by Chief Pleas have to be paid for. As I have remarked frequently, governments don’t have any money of their own – they always use ours.
Talking of people getting round a table to sort out problems, something an increasing number of Sark residents are beginning to say doesn’t happen anywhere near often enough, an example of what can be achieved has been brought to every resident’s attention in a most unusual fashion – with our electricity bills.
Sark Electricity’s David Gordon-Brown and former Sark Shipping director Robert Taylour have negotiated a fuel-supply contract, which will benefit both organisations. Customers were informed this week.
Sark Shipping uses about half the fuel Sark Electricity does and pays more per litre for it. By joining forces, they have started a contract with a new supplier that, according to David, will not only noticeably reduce the shipping company’s fuel bill, but will also marginally reduce Sark Electricity’s. As he remarked in his letter to customers, the people of Sark will benefit from both.
‘We have invited Brecqhou to join us when we renegotiate next year and adding their volume will hopefully further reduce prices for us all,’ wrote Mr Gordon-Brown, adding that Brecqhou and Sark Shipping putting aside their commercial differences was a ‘great example to us all’.
It seems to me that it’s often only when politicians get involved that things go pear-shaped.
I wonder what Guernsey’s Deputy Dave Jones will have to say about that. Despite his onerous workload as Housing minister, he sometimes finds time to cast a benevolent eye over the welfare of Sark residents.
The email address for comment is fallesark@sark.net.
Article posted on 30th October, 2009 - 10.00am
Most Commented: