Proposal to scrap Guernsey's zero-10 tax system

Deputy Charles Parkinson will lodge an amendment to upcoming proposals on tax reform

A former Treasury minister has proposed scrapping Guernsey's zero-10 tax regime as part of an ongoing review.

The system means some companies pay no corporation tax and others pay 10%.

But Deputy Charles Parkinson has suggested moving to a territorial tax of 10% for most businesses to help plug a hole in the government's finances.

He will lodge an amendment to upcoming proposals on tax reform, which are due to be published on 28 November.

"There is no moral reason some businesses in Guernsey should be paying some tax while others are paying 20%," he told BBC Radio Guernsey.

"This is just inequitable and the zero rate damages our reputation internationally."

The BBC has contacted the Policy and Resources Committee for comment.

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