Some in the finance industry have been quick to condemn the amendment as harmful to the Guernsey economy. But deputies Tina Bury and Jayne Ozanne say they are keeping a manifesto promise.
‘This amendment is a matter of both principle and evidence. In terms of principle, we cannot as yet say to the community that every stone has been turned before asking them to pay GST, which is the commitment we both made during the election,’ they said.
‘The sub-committee explored corporate taxes, but its terms of reference were limited to only that and not the possible alternatives that our amendment covers.’
While the two States members accept that wealthy incomers do bring some benefits to the local economy, they also said that when future States assemblies are making choices over fiscal policy, it will be important for them to understand the size and nature of those benefits.
‘In terms of evidence, we are proposing an independent review to assess the full range of options for Guernsey. While high- net-worth residents make a valuable contribution to the island, it is important to independently assess both the economic benefits and the wider impacts, to ensure future policy is based on evidence rather than assumption.’
Some of those raising concerns about the proposal have said that just making it known that asset-based taxation was going to be considered would be enough to render Guernsey uncompetitive compared to other jurisdictions, such as Jersey, but deputies Bury and Ozanne feel those fears are overblown.
‘This is a cautious and measured amendment – it introduces no new tax, delays no part of the tax package, and prejudges no future decision. It would however ensure that these options are explored, and an evidence-based approach is taken to an area that is often anecdotal.
‘If we are genuinely committed to leaving no stone unturned, then we cannot begin by placing a large stone behind a “Do Not Disturb” sign.’
The proposer and seconder said that the work they were suggesting on possible wealth taxes was not about what the States would or would not approve this week, but more about understanding the options if further fiscal measures were needed over the years ahead.
‘If the P&R tax proposals are approved, approval of our amendment would ensure that before future assemblies are asked to consider increasing GST, or introducing further broad-based taxation, they have available robust evidence on whether wealth and asset-based taxation measures could form part of the solution.’
The amendment calling for wealth taxes to be examined has been put forward after the deadline for amendments to be received had passed, so it will only be considered if the States first vote to allow that debate to go ahead.
Locate Guernsey gave advice to almost 800 people interested in moving last year
Locate Guernsey gave advice to 799 people interested in moving to the island last year, according to an article in the Sunday Times yesterday.
Jo Stoddart, director of Locate Guernsey, told the newspaper that relocation inquiries had almost quadrupled in the past five years.
The newspaper article repeats almost all of the hooks that Locate Guernsey likes to reel off about the island, including safety, stability, natural beauty, a strong work-life balance and good restaurants. And, of course, contentiously at this present time, ‘a favourable tax environment’, including no wealth taxes.
A case study couple, with the wife hailing from Guernsey, have followed the classic path of having two young children and then wanting to get out of London.
They praised the beauty of the island and 10 minutes from school pick-up to the beach.
‘This is not a cheap place to live,’ the family said. 'But overall, the tax rates balance out a higher cost of living and we spend considerably less because there are many good things to do for free. A good day out on Guernsey does not have to be an expensive one.’