Ten per cent tax for all?

THE Channel Islands should consider moving away from having a zero rate of corporate tax and look toward a ‘fairer and simpler’ system, according to the presidents of the Jersey and Guernsey Chambers of Commerce.

Allan Leighton, the former chief executive of Asda and former chairman of the Royal Mail
Allan Leighton, the former chief executive of Asda and former chairman of the Royal Mail

THE Channel Islands should consider moving away from having a zero rate of corporate tax and look toward a ‘fairer and simpler’ system, according to the presidents of the Jersey and Guernsey Chambers of Commerce.

David Warr ‘floated’ the idea of having a flat rate of ten per cent tax for companies and individuals when he spoke at the Chamber’s monthly lunch at the Pomme d’Or Hotel on Wednesday.

Mr Warr said that tax law should be ‘simple and fair’ and asked if it was fair that businesses did not pay corporate tax.

He said he had been talking about the current zero-ten tax regime over lunch with his Guernsey counterpart, Rupert Dorey.

‘We felt that ten per cent would be fair and we thought that it would be worth floating the idea out there to see what people think,’ he said.

He said that the recently published States Budget included 50 pages of new tax law and made the comments while introducing the main speaker, renowned business leader Allan Leighton, the former chief executive of Asda and former chairman of the Royal Mail.

Full story in Friday's JEP

Comments for: "Ten per cent tax for all?"

noah

Let me be the first to say that I agree.

Its the first time I have heard any sense from

Mr Warr.

Jane

How is charging 10% tax for all fair? The system currently in place takes into account people's circumstances and affordability levels. There will be many homes on the island who just can't afford this. The man's gone mad!!!

kram lafar

He's talking about tax that companies pay not personal income tax. Thanks to Ozouf they currently pay nothing at all which means that we all have to pay more personal tax to compensate.

Sam

Jane,

I think he is just talking about corporation tax not general tax.

Zig

He's talking about corporate tax, not income tax

luap

I thought he meant both

"David Warr ‘floated’ the idea of having a flat rate of ten per cent tax for companies and individuals when he spoke at the Chamber’s monthly lunch at the Pomme d’Or Hotel on Wednesday"

Income support would sort out your issues Jane or thresholds would probably still stay in place for the lower earners.

luap

I can think of two words that describe why this wont stand a chance of coming to fruition...."simple" and "fair"!

Pea Tarty

Agree!

But why not take it further and make it 1% for all above the £600,000 ish limit for 1,1Ks on all income. That would give high earning local people a level footing and companies a major incentive to increase profitability.

The current arrangements are crass and iniquitous.

AB

Great stuff - the Isle of Man stays at zero 10 and mops up. Happy days!

Sam

I doubt very much, in fact i would say they are more likely to follow into the 10%. They and jersey are suffering just as much. Zero/10 was the worst thing that happened to the islands.

Mo

Yes about time ... some business are doing extremely well, receiving cash in hand which no doubt is NOT declared on their Business Income Tax Returns. These business are profiting all the time where as us have to pay as we earn so I believe all is fair with 10% for all ....

brian cant

Err, so any company administered in Jersey will pay 10% tax. Really? Every collective investment fund? Every company owned by a trust? Every SPV?

If the aim is to shut down the finance industry in 10 minutes this hits the spot.

acelawyer

Such a measure would undoubtedly result in a huge loss of finance industry business. There are other countries, like Ireland, which have low corporate tax rates and make a success of it but the crucial difference is that they have a large double tax treaty network and we don't, and such networks take decades to put in place. The companies who currently pay zero percent tax obviously contribute nothing to the Islands by way of direct tax take, but a huge amount in terms of employment in the finance industry and indirect benefits. The 10% idea sounds good in principle, but in practice it would be doomed to failure.

MrBean

10% tax, Yes please.

Sam

What a common sense simple statement. let Guernsey take the lead on this one introduce it as soon as possible. That means at the speed our States move, sometime in the next 10 years.

Stephen P. jerseyman ci

FLAT TAX? JUST PLAIN FLAT WRONG, & FLATLY UNEQUAL.

This flat tax age old ruse, and Trojan horse, gift wrapped in subterfuge from the corporate & wealth & pound mongers, Which at the end on the day! Is only about the corporate & wealthy ducking all society’s needed taxes, that support schools , police protections, drug educations, hospital care,(and all your pensions you have already paid for by you all, and you all are owner of).

Regarding Individuals in different circumstances regarding taxes supposed 'unfair'

Here’s but just one example: say both Mr. Average and Mr Richley both earn £31,200 a year. However Mr Average is a young man with few assets who relies upon his personal savings/earnings to finance a family or start a small business, and Mr Richley is an old or a richer man who has already built up or inherited £500.000+ or more in assets. There is no clear reason why it is 'fair' for them to both pay the same rate of taxation despite their vastly different circumstances and the effect that the tax would have upon each of them, as Mr Richley’s built-up wealth is protected, but Mr Average’s ability to build up assets and support a family, or even start a business in the first place is undermined, their differing circumstances(over which they may have little control),

Need I mention that a twenty pound note in the real world does have a different actual value in the pocket of the poor or fixed income, or soon to be pensioners, and /or average income persons, then to a fortunate corporation, or person of means (just ask, what a simple parking ticket on a car window’s impact to an average worker / family means, as opposed to a bmw or Mercedes owner impact means.?

Ladies & gentlemen, please don’t fall for this “packaged ruse”.

Your truly, Stephen P. Jerseyman ci

UK Student

As 10% of £31,200 is far less than 10% of £500,000 this is perfectly fair!

GM

Is the man completely deranged? Does he not understand the finance industry? The entire fiduciary industry is built on clients with structures which pay no tax at corporate level. Why pay 10% when you can pay 0% in every other offshore jurisdiction?

Sanity

In very simplistic terms everything we consume, from cars, fuel, food, clothing, building materials etc. has to be imported and paid for and we currently have only one profitable export which is Financial Services. All our other sectors, tourism, farming, retail, health and building are all either subsidised by, or predominantly rely on, the Finance Industry. Technically this would be classed as a no brainer although it seems that the term “no brainer” in this instance has been applied a little too literally.

syd st peter

I think he meant 10% rate for all TAXPAYERS

Gino Risoli

It is difficult to argue against fairness.

Gino risoli

It's odd that the wealthy think there funds have come from outer space.