‘Review focused on the wrong taxes’
A FORMER Treasury minister has accused the architects of the tax review of downplaying the opportunities for corporate tax, and has said he will be laying an amendment again to push harder on corporate taxation.
Deputy Charles Parkinson battled then-Treasury minister Deputy Lyndon Trott over the introduction of the zero-10 tax system in 2006 and 2007, and was foremost in pushing the States to pursue corporate opportunities to fund the ongoing structural deficit.
But he is disappointed in the final report, and has said it is focused on the wrong taxes.
‘They downplay the chance to introduce a corporate tax system,’ he said.
‘That emphasis is completely wrong. We need a new territorial corporate income tax of between 10 to 15%.
‘We don’t know exactly what this would raise. P&R have said only £20m. but that is transparent nonsense. I believe that is what we should do first, see where that leaves us before we act further.
‘P&R said they want to see what the other Crown Dependencies do first, but they have less motivation to make the first move. The Isle of Man already has 20%VAT. They think they don’t need it [corporation tax]. Unless we want 20% VAT, we do.’
Deputy Parkinson stated in his 2020 election manifesto that he was against GST, and that all companies doing business on Guernsey should be paying tax at 10% on their Guernsey-sourced income.
‘Hopefully the amendment will succeed,’ he said. ‘If unsuccessful I will vote against the GST proposals.’
Deputy Parkinson is currently vice-president of the States’ Trading Supervisory Board. He was deputy Treasury and Resources minister from 2004 to 2007, and then became the Treasury and Resources minister between 2008 and 2012. He has also served as president of Economic Development in the previous term.