Guernsey Press

Budget clouds avoidance issue

THE difference between tax avoidance and tax evasion has been further clouded after the UK Budget announcement, according to local tax expert Tony Mancini.

Published
UNFAIR criticism continues to be levelled at Guernsey as a finance centre, according to KPMG tax partner Tony Mancini (pictured).
UNFAIR criticism continues to be levelled at Guernsey as a finance centre, according to KPMG tax partner Tony Mancini (pictured).

THE difference between tax avoidance and tax evasion has been further clouded after the UK Budget announcement, according to local tax expert Tony Mancini.

The KPMG executive director (pictured) told around 160 delegates at a breakfast briefing that the Budget included almost 100 tax measures.

Not all affected Guernsey's financial services sector, but the issue of what does and what does not now constitute tax evasion certainly would.

'This government has introduced this concept of unacceptable tax avoidance where what you are doing is legal, but still considered to be wrong because you are not paying enough tax.

'It's a worrying trend and seems to be going unchallenged by the press and politically.'

Chancellor Alistair Darling has said he expects to raise an extra £1bn by blocking unspecified tax avoidance loopholes, but many commentators claim this is going to lead to great confusion and in many cases was unfair because avoidance was perfectly legal.

Mr Mancini agreed. 'It's all well and good saying you have to adhere to the spirit of the law, but that then becomes much more subjective and therefore much more difficult to know what you should or should not be doing.'

Sorry, we are not accepting comments on this article.