Guernsey

Concerns over Guernsey's future corporate tax strategy

The turnout at seminars on Guernsey's future corporate tax strategy shows how concerned local businesses are, a financial expert has claimed.

The States is currently reviewing the current zero-10 system after criticism from the European Union.

After the first seminar on the subject was a sell-out, a bigger venue had to be found for the second.

Graham Parrott, Ernst and Young's tax partner, said the interest showed how concerned the business community was.

He said a lot of business people wanted to understand the implications, both locally and internationally, of any changes to the system.

The zero-10 tax regime was introduced in January 2008, after criticism of the island's tax strategy.

However Guernsey agreed to review the system after criticism from the EU's code of conduct group on business taxation, which said the corporate tax rate of 0% did not meet with the spirit of the code.

Mr Parrott said: "We're being told to change and of course one of the problems is if we change and get it wrong again we'll be in a bigger mess."

A consultation on the possible options runs until 27 August.

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