TAX NEWS - June 2010

Guernsey Tax: Savings and company tax leave a hole

Increased corporate taxation and savings from the Financial Transformation Programme are unlikely to cover the multi-million pound deficit in States finances.

The warning came in the Fiscal and Economic Policy Group's consultation document on the review of the zero-10 tax strategy that was published yesterday.

While it was not yet possible to estimate accurately the continuing structural fiscal imbalance – the States is forecast to run a £40m. deficit this year – it was probable that additional revenue-raising measures would be required over and above savings and the new corporate tax regime.