This Is Guernsey

By Joel de Woolfson

Chief Minister Lyndon Trott, left, and States chief executive Mike Brown in Brussels. (0874055)

GUERNSEY escaped being discussed at a crucial European Union tax meeting yesterday.

It gives the island a better chance of putting its case across to member states about planned changes to zero-10 corporation tax.

Senior treasury ministers and officials from across the EU met yesterday to discuss the highly secretive Code of Conduct for Business Taxation.

The decision not to discuss the Crown Dependencies’ tax systems followed a meeting between Chief Minister Lyndon Trott and the European Commission Department of Taxation.

Ever since it was made clear that Guernsey’s corporate tax system would be under scrutiny from the Code of Conduct Group, regular representations have been made to the UK government and the European Commission, which plays a vital behind-the-scenes coordinating role in the group’s deliberations.

Deputy Trott and States chief executive Mike Brown were in Brussels from Sunday until last night to discuss matters of concern with key EU contacts.

Deputy Trott said the latest meeting with the commission had been the most constructive yet and built on previous conversations, including those in Mexico at the OECD Global Forum earlier this year.

‘The code group did not debate the Guernsey legislation today and we are confident that new ways forward are open to us to inform the group of our concerns before the legislation is placed under the spotlight,’ he said yesterday.

The visit continued the process of constructive engagement aimed at improving understanding and awareness of Guernsey, he added.

That includes the island’s constitutional position with the UK, its stance on taxation and its ambitions for increased market access for Guernsey financial services, similar to the island’s ongoing strategy in Westminster.

Numerous meetings during the three days included talks with high-ranking officials in the European Commission’s tax and internal market directorates and senior MEPs from leading European political parties, as well as Switzerland’s ambassador to the EU Jacques de Watteville.

Deputy Trott said it marked a major progression in consolidating the excellent relations that Guernsey is actively developing with influential contacts in Brussels and extended the range of policy makers and politicians that Guernsey can count on for support.

‘While there was much praise from all for what has been achieved so far by Guernsey, this is by no means a one-off process,’ he said.

‘Further work is necessary to keep up momentum and to build on this initial success. The advice received on this trip was supportive and encouraging and underlined the need and support for a permanent Brussels presence.’

Article posted on 19th November, 2009 - 2.30pm