‘We can’t plan to get rid of deficit until corporate tax is decided’
Monday 20th September 2010, 1:00PM BST.
IT IS impossible to plan how to get rid of the Budget deficit without knowing what Guernsey’s new corporate tax strategy will be, according to the Treasury minister.
Deputy Matt Fallaize has submitted an amendment to the States Strategic Plan that would, if passed, compel the Policy Council to come up with a timetable for returning to a balanced Budget by July next year.
But minister Charles Parkinson (pictured) said doing that would be difficult before they knew what would replace zero-10.
‘Without having a new corporate tax strategy in place we don’t know what the standardised deficit will be. To try and put in place a strategy by July next year may be a bit tricky.’
- Read the full story in the Guernsey Press. See below for subscription details.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
Shouldn’t they be setting corporate tax at a level that would fill the deficit?After all its bringing in zero 10 that caused it in the first place.
Report abuse
Mr Le Page,
Imagine you are the Chief Financial Officer of a major corporation. You are based in Frankfurt and you are an Italian citizen. Your company has offices throughout the world and it has thousands of employees. You have only ever met a handful of them. One morning n email lands in your inbox. It is from the Managing Director of the Guernsey Office. You struggle to place where Guernsey is but you have a vague recollection that it is near England. The email tells you that from January 1st 2012 the Guernsey operation will move from zero local tax to 10%. The MD forecasts that the Guernsey operation will move from no tax to about £200,000 per annum. That doesn’t immediately worry you because £200,000 is not a significant figure. But, being an accountant you turn that into £2 million over 10 years. You pull up on the intranet details of the Guernsey office. You see a picture of the MD and dimly remember talking to him at a cocktail party in Salzburg a few years ago. A very dull man. You note that there are 100 staff. You also note that the business could just as easily be run out of a dozen other locations. You quickly decide to forward the e-mail to the Chief Executive Officer with a brief note that says “FYI – I suggest we close down Guernsey and consolidate the business in Cayman. This will save at least £2 million over the next 10 years. Plus by consolidating the business we will make significant staffing and operating savings. I note that we own the Guernsey building and we can release a significant amount of equity. Best. Mario”
It could happen!
Report abuse
At least Guernsey would get tax from the companies that are left,and stop being labelled as a tax haven.
Report abuse
We would have to hope that the tax from the companies that are left will more than compensate for the loss of income tax and increased unemployment payments due to the large numbers of Islanders losing their jobs.
Report abuse
We will still be lower taxes than the UK,dont believe that many would leave.
Report abuse