Deputies vote out 'deemed distribution' part of zero-10

AN ELEMENT of Guernsey's corporate tax regime, seen as a harmful anti-avoidance measure by the EU, has been scrapped.

Deputies unanimously voted for the removal of 'deemed distribution', which was dubbed discriminatory by an EU code of conduct group, to bring the island's zero-10 regime back in line with European expectations at yesterday's States debate.

But some members urged Treasury and Resources minister Deputy Gavin St Pier to come up with a plan to address the £3m.-£4m. revenue hole the change is set to leave.

Deputy St Pier, who presented his maiden report to the States, said he would have felt like a proud father on the occasion if it were not for the fact he was moving to scrap something that had lost Guernsey its EU code compliance status.

In the end the motion was carried unanimously with 45 votes backing its removal with two absentees.