Guernsey Plans Further Tax Consultations

By Editorial 16 May, 2013

The Guernsey Government confirmed on May 13, 2013, that it has completed half of the intended consultations being held to consider a comprehensive overhaul of the island's individual income tax, pensions and benefits systems.

Gavin St Pier, the island's Minister for the Treasury and Resources Department, said: "We received an excellent turnout to the two earlier public information evenings and in the light of the enthusiastic response we have organized two additional meetings: one in the north of the island and one in Alderney."

"The issues covered by this review will affect everyone in our community and it is, therefore, important that we engage with as wide an audience as possible. These public meetings allow us to communicate the background of the review and provide an overview of the consultation. It also provides an opportunity for the public to ask us any questions they may have on the consultation documentation and the issues presented. The feedback from the earlier events has been both varied and informative and I trust these additional evenings will prove just as valuable."

According to the Government, the objective of the review is to ensure the long term sustainability of public finances and services, and to ensure that the systems of taxation and benefits are fair, efficient and simple, rewarding hard work and providing support to those who need it.

Guernsey authorities seek input on potential enhancements to the island's personal tax regime and welfare system; and to gauge public opinion on what is considered to be the appropriate amount of public spending on services, pensions and welfare to help assess what contribution should be required from individual income earners.

As well as general questions on the appropriate levels of tax, the consultation presents two hypothetical changes to Guernsey's regime. The first option outlines ways the States could make the tax regime fairer or more efficient without changing the amount of revenue generated. The second sets out ways in which the States could raise additional revenues from the personal tax system to fund the increase in expenditure required to provide pensions and healthcare in the future given the additional demand on these services which may result from the aging population and demand for new services. The Government has underscored that no proposals are under immediate consideration.

The two forthcoming meetings will be held in Island Hall, Alderney on May 28, 2013, and Les Capelles community center, Guernsey, on May 29, 2013, ahead of the conclusion of the consultation process on May 31, 2013.

The meetings will involve a short presentation covering the background and principles of the review and an overview of the content of the consultation document, followed by a period set aside for questions.

Tags: Individuals | Expatriates | Compliance | Tax | Business | Pensions | Tax Compliance | Fiscal Policy | Banking | International Financial Centres (IFC) | Guernsey | Offshore | Offshore Banking | Tax Rates | Alderney | Individual Income Tax | Services |


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