Guernsey

Guernsey tax strategy 'may not need to change'

Lyndon Trott
Image caption Deputy Trott said the island had been right to introduce the regime in 2008

Guernsey's zero-10 tax strategy may not have to change, according to the island's chief minister.

It follows news a European Union panel accepted proposals put forward by Jersey and the Isle of Man.

Guernsey avoided being investigated by the panel after agreeing changes were needed and to possibly introducing a corporation tax of up to 10%.

Deputy Lyndon Trott said the panel's decision meant the changes may no longer be necessary.

He said: "The roll-back provisions that Jersey introduced effectively brought their corporate tax regimes closer to ours."

He added: "Clearly we were right all along to introduce zero-10 when we did.

"It has proved a resounding success in terms of keeping this economy strong and keeping inflation low."

Under Zero-10, which was introduced in 2008, the standard rate of income tax for companies is 0%, with some specific banking activities being taxed at 10%.

The tax regime proposals for Jersey and the Isle of Man still face scrutiny from the Economic and Financial Affairs Council, which is made up of the economics and finance ministers of the EU member states.

Deputy Trott said after it meets in December, there should be more certainty about the future.

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