A complete and utter pickle to go with our mulled wine

Who has been telling fibs, and who has been telling the truth, we wonder?

Is it the Chief Minister, who assures that all will be well?

Or the UK’s Lord McNally, who seems to be warning that there will have to be changes?

Or the former Bailiff, Sir Philip Bailhache, who wants the Island to stand its ground?

Or the Tax Justice Network, who are blaming the Europeans?

And why does the UK Treasury want to change our zero-ten tax system? Aren’t they the main winners?

UK retailers used to pay 20% tax to the Jersey tax comptroller and then pay the UK tax man what was owing over and above that amount. But since zero-ten started last year every UK retailer (and any UK-based organisation operating here) now pays the UK Treasury all their tax on profits made in Jersey.

And pretty substantial profits they are too, comparatively, because, by and large, this population is fully employed and earning relatively high salaries.

Not forgetting, of course, that many of these UK high street shops also charge us VAT at the UK rate, even though they don’t have to pay that back to the UK Treasury – an injustice that the Jersey Consumer Council raised again this week.

This whole fiasco is starting to leave our government ministers with more than a little political egg on their faces, even in Guernsey (where they seem to have found their own way of dealing with the UK’s hostilities).

Because now it seems that the same UK Treasury that is benefiting from the scheme – and the same UK Treasury that was apparently supportive of zero-ten when it was mooted, and was so convincing as to allow the government to go ahead and put the scheme in place, and tell the population that everything was OK – is now saying no, no, no, you must try harder, little Jersey.

And if public humiliation were not enough, over two years down the line, nothing at all in concrete terms has been done to make these UK firms pay their way in this Island. Which is why, earlier this week, the former banker who now runs the community savings office down at the Town Hall was prompted to stand up and ask when Jersey will start asking these people for their share of tax.

To date, the most sensible suggestion to come from the finance industry – and which seems to have increasing support – is this so-called ‘territorial’ tax, whereby all companies that are making money in the Island would have to pay ten per cent.

Well, ten per cent is better than zero per cent. But it ain’t the 20% we used to get. So there will still be a black hole to fill. And the UK Treasury will still get the other ten per cent that used to go to Cyril Le Marquand House.

And meanwhile you and I are being asked to pay more GST, more social security, more personal tax, higher costs, and so forth.

As I said at the start, what a complete and utter pickle they are leaving us with, as we sup our mulled wine.