Guernsey's zero-10 tax regime 'could be acceptable'

Related Stories

A Guernsey tax expert said the island's zero-10 tax regime could be considered acceptable, if changes are made.

Graham Parrott, a tax partner from Ernst and Young, said by following the lead of the other crown dependencies, Guernsey could benefit.

Jersey's corporate tax regime was approved by an EU code of conduct panel after some minor changes were made.

Mr Parrott did warn, however, that such changes could lead to Guernsey losing millions of pounds in tax revenue.

Zero-10, introduced in January 2008, meant the standard rate of income tax for companies was set at 0%, with some specific banking activities taxed at 10%.

Personal income tax

A review into Guernsey's corporate tax regime was restarted in October 2011 by the European Union Code of Conduct Group, after it was placed on hold in May 2010.

Concerns were raised by the UK Treasury in 2009 over the island's zero-10 tax not being compliant with the EU code, and in May 2010 the States gave assurances it would revise the strategy.

The similar regimes of Jersey and the Isle of Man have undergone reviews, which in September 2011 found they would be compliant with the EU code if deemed distribution (in Jersey) and attribution regime for individuals (in the Isle of Man) were removed.

Both mean residents who are shareholders of island companies pay personal income tax on any unallocated company profits.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Guernsey


Guernsey Airport

9 °C 7 °C

Features & Analysis

  • Cartoon of women chatting on the metroChat wagon

    The interesting things you hear in a women-only carriage

  • Replica of a cargo boxSpecial delivery

    The man who posted himself to the other side of the world

  • Music scoreFinal score Watch

    Goodbye to NYC's last classical sheet music shop

  • Former Secretary of State Hillary Rodham Clinton checks her Blackberry from a desk inside a C-17 military plane upon her departure from Malta, in the Mediterranean Sea, bound for Tripoli, Libya'Emailgate'

    Hillary gets a taste of scrutiny that lies ahead

Elsewhere on the BBC

  • Audi R8Best in show

    BBC Autos takes a look at 10 of the most eye-catching new cars at the 2015 Geneva motor show


  • A robotClick Watch

    The latest in robotics including software that can design electronics to solve problems

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.