Big retailers may have to pay corporation tax

14405673
Senator Alan Maclean

LARGE retailers in Jersey could be forced to pay corporation tax within two years as ministers consider the introduction of a so-called ‘Tesco tax’ in the Island.

If proposals lodged as part of next week’s Budget are approved, retail companies making large profits could face a ten or twenty per cent corporate tax rate as soon as 2018, providing that the move does not put the Island’s zero-ten tax regime at risk.

Under the current system, both local and UK retail firms pay no corporation tax in Jersey, while certain businesses such as finance, utility and quarrying companies are subject to either a ten or 20 per cent rate.

Ahead of his 2017 budget, Treasury Minister Alan Maclean yesterday proposed changes to three amendments lodged by backbench politicians aiming to revise the Island’s tax system.

The budget is due to be debated on 13 December.

 

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Comments for: "Big retailers may have to pay corporation tax"

Island Strife

It's madness in this tighter financial climate post 2006, that this hasn't been introduced years ago.

How much profit have these companies generated over the last decade while the public have suffered pay freezes, cost of living increases, GST and tax hikes.

Sick of reading how businesses have "suffered" while the public have born the brunt of out dated financial policies stacked in favour of big businesses.

Wilson Riou

Most of the big retailers in Jersey are U.K. companies and so in theory - under that double tax arrangement - the company will be no better off during the time zero tax in Jersey applied as it will pay full tax in U.K.

During zero/10 HMRC was the winner and Jersey government the loser. The effect on the company is largely neutral.

Overpopulated

Business have also had a massive cut in their costs by the introduction of zero hours, minimum wage contracts - who would have thought in 2006 that so many people would be unable to earn a decent living?

Squawkie L Pelican

Pull your finger out clanger.

Oldwoman

That boys full of ideas the trouble is none of them are his!! I think he gets them from The Daily Mail. Useless person.

JeanD

Anything to put a halt on Costa Coffee. They are taking over Jersey like they have the UK, they are a disease. It's appalling to see somebody like them in St Aubin, they totally ruin the village

Rex

Blame Sandpiper !!

Realist Human

Well you may as well close Town down retailers are struggling with rents and online shopping you are Mad!!

S2

So legislate against the greedy landlords at the same time. Practically the whole town is owned by just five people and they don't care if the space is rented or not, plus they'll get struggling tenants on fixed 25 year contracts with built in 'I can raise the rent as much as I like' clauses. Parasites.

Wilson Riou

S2

"the whole town is owned by just five people"

Are you sure? Sounds pretty unlikely. Can you name these five?

S2

I can name two, but heard from many sources its' 'the big five.'

Wilson Riou

S2

Well of course the most reliable source would be the St Helier rates database. The majority of the bigger retailers are in King Street where the ownership has historically been in Jersey families and off the top of my head I believe for example that Boots, the old BHS building, Voisins, M&S and de Gruchy are all under different ownership.

There are a handful of property developers who have built offices predominantly on the esplanade. That might be what your "many sources" are referring to as the big five but that's not retail which is what this thread is about.

Shadow

Will this extend to banking "retail" branches? leave the investment side alone. See HSBCr@p and JPMongs have been fined (once again) for fixing the euro rate. I hope I get the banking system from santa this xmas. It's so unbelievably fair.

We need to take down these banks. They are robbing you blind!