GAINING support for a global bank tax at the G20 summit in June will be difficult, according to tax expert Graham Parrott.

Prime Minister Gordon Brown suggested last week that the world’s leading economies were close to agreeing a global bank tax and that a deal on it could be concluded at the summit in Canada.

But Ernst & Young partner Mr Parrott (pictured) doubted it would be that straightforward, despite Mr Brown believing other world leaders now back such a move.

‘History tells us that trying to get any harmonious tax across borders is very difficult. Just like when they put forward ideas for a worldwide minimum corporation tax rate at the G20 last year, it proved to be a non-starter.

‘What seems more likely is bringing in a form of levy such as a Tobin tax. That seems more achievable as it’s a transactional tax. However, that has its own problems as the US don’t like it. The other question is that if it’s a worldwide transaction levy, who gets the money?’

Mr Parrott said Guernsey should watch developments closely because any sweeping changes would have to be followed locally.

• Read the full story in the Guernsey Press. See below for subscription details.