The tax pressure is on again

GUERNSEY faces increasing pressures as both the UK and the US tackle taxes, according to a local expert.

The Obama administration unveiled plans this week for a fresh assault on international tax avoidance to help reduce America's deficit from $1,556bn this year.

And in the UK, ministers have warned that high-earners will cost the public purse hundreds of millions as they seek to avoid the new 50p rate of income tax.

However, Ernst & Young partner Graham Parrott (pictured) said the news could be seen as positive in some regards.

Looking first at the news from America, Mr Parrott said the tax issues had been put on hold while President Obama focused on the country's health bills debate, but now the focus was back on.

'Those jurisdictions that are closer to the US are more likely to come under the cosh than we are, so in a way it is good to see that they will be facing the same sorts of challenges as we are from the EU,' he said.

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