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

Min. Night 12 °C

Features & Analysis

  • Martin Gardner as a young manThink hard

    Was this man the world's greatest puzzle master?

  • Carved pumpkinTrick or treat

    What did a riot at a pumpkin festival show about race in US?

  • A woman puts on a surgical mask during hospital Ebola training in Alabama.'Dark continent'

    Is prejudice fuelling Ebola outbreak hysteria in the US?

  • Oscar de la Renta and Oprah WinfreyIn pictures

    The life and work of Oscar de la Renta

Elsewhere on the BBC

  • FutureThe future is now

    Get the latest updates and biggest ideas from BBC Future’s World-Changing Ideas Summit


  • Smart glassesClick Watch

    Smart spectacles go into battle – the prototypes looking to take on Google Glass

BBC © 2014 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.