It is looking increasingly likely that financial services companies in Guernsey could soon find themselves having to pay 10% tax.
Earlier this year the EU Code of Conduct Group approved Guernsey's zero-10 tax regime, following the Island agreeing to scrap "deemed distribution" rules to which the EU had earlier objected. The scrapping of the deemed distribution rules has, however, left a significant hole in the Island's finances and one way of addressing that issue would be to require financial services businesses to pay tax at 10%, rather than at the 0% rate which is currently applicable. This would bring the Island into line with Jersey, which already levies 10% tax on financial services businesses, and therefore there is a good degree of confidence that the move would not lead to a loss of business to the Island.
Treasury and Resources minister Gavin St Pier has confirmed that extending the scope of 10% taxation had been widely discussed in various circles. Although he refused to be drawn on whether this will be included in his budget proposals, it would be a brave man who bet against it.
No comments:
Post a Comment