Guernsey minister calls for change to Zero-10 tax regime

Deputy Gavin St Pier Deputy St Pier said the changes could cost Guernsey £3-4m

Related Stories

The European Union would leave Guernsey alone if the island changed its corporate tax regime, said the States' Treasury and Resources minister.

A motion to repeal parts of Guernsey's Zero-10 tax regime will be put to States members in June.

Deputy Gavin St Pier said: "If the States pass this measure, we will repeal the regime from 1 January 2013."

The Zero-10 system was introduced in 2008, but was deemed harmful by an EU review in April 2012.

The system allows some corporations in Guernsey to pay no tax, while others - such as banks - pay 10% tax.

Deputy St Pier said the EU Code of Conduct Group had given its formal assessment of Zero-10 to the States earlier in the week.

He said the main change made to the system would be to the "deemed distribution" of business profits.

Deputy St Pier said this element treated profits as belonging to businesses' shareholders, despite not actually being distributed.

He acknowledged that there may be a financial cost to the island of changing the Zero-10 system, and said: "Our best estimates at the moment are around £3-4m per year."

Jersey and the Isle of Man have similar corporate tax systems, and were also required to make changes to bring them in line with EU guidelines.

More on This Story

Related Stories

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

BBC Guernsey

Weather

Guernsey Airport

20 °C 17 °C

Features & Analysis

Elsewhere on the BBC

Programmes

  • A person taking a photo of fireworks on a smartphoneClick Watch

    A look at the latest gadgets which could make it easier to take the perfect night-time picture

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.