John Riva, of KPMG, also predicted that the hole in Treasury Minister Philip Ozouf’s budgets in future could be bigger than predicted, as fewer firms may be paying tax at the full 20 per cent rate.
Mr Riva, head of tax for the firm’s Channel Islands practices, made the comments during a recent KPMG seminar entitled Surviving the Storm.
Speaking about Island tax issues, he welcomed the final European approval of the zero-ten tax package and praised the swift action of the States in ditching the parts of the package which had previously proved to be a stumbling block.
But he warned that Jersey was not quite out of the woods and that the States needed to look seriously at plugging gaps, given that there may be fewer businesses paying at the 20 per cent rate in future.
