Guernsey's zero-ten tax strategy receives royal assent

Guernsey's tax strategy has been given approval by the Privy Council, three years after its introduction.

Ministry of Justice officials have confirmed that the relevant laws were approved by the council on 16 March.

The strategy, which allows some companies to pay no corporate tax, came into force in January 2008 and is to be reviewed following EU objections.

However it emerged in February's States meeting that the legislation had not yet been officially accepted.

Deputy Charles Parkinson, the island's Treasury and Resources Minister, said: "While work continues on the development of a revised system of corporate tax to replace the zero-ten regime, receiving royal assent removes any uncertainty about the island's current system of corporate tax.

"It ensures that there will be no unintended consequences when that system is eventually replaced."