Its huge backlog, affecting thousands of taxpayers, was more than a decade in the making and was made much worse by the introduction of independent taxation. It could take until late in 2028 to clear.
The backlog has so far cost the States £2.73m. in supplemental payments for delayed rebates alone.
They were just some of the revelations contained in a report from the director of operations at the Revenue Service, Jean Mehers, which was released yesterday by the Policy & Resources Committee, which is responsible for the service.
But she also reported that the service was now improving rapidly, with the number of outstanding work items having been reduced from about 166,000 to 106,000 between March and August this year.
‘There has been a backlog within the Revenue Service for more than 12 years. That is unacceptable, and the service provided over that period has too often fallen short of the standard people have every right to expect. It is important that we acknowledge that plainly rather than trying to soften the message,’ said States chief executive Boley Smillie.
‘However, I have a high level of confidence in the new leadership of the Revenue Service and, in particular, the author of this report.
‘In less than a year, she has brought greater clarity to the scale of the challenge and, importantly, the position has stopped getting worse and is now improving.
‘There is a great deal still to do, but I have every confidence in the approach she is taking and she has my full support.’
The report painted a bleak picture of an earlier transformation programme at the service, concluding that it tried to secure financial benefits too soon by reducing the workforce before electronic systems were in a fit state to allow that to happen. Problems then spiralled out of control, including growing staff turnover, which peaked at 13.3% last year.
The introduction of independent taxation in 2023 increased the backlog of annual returns by approximately 12,000, adding considerable workload and complexity without an adequate increase in resources.
At the current rate of progress, the backlog would not be fully cleared until October 2028.
But Mrs Mehers, who has been with the service less than a year, pledged that she and her colleagues would do everything possible to bring that forward.
‘I recognise the impact these delays have had on customers waiting for assessments, repayments and responses to enquiries, and I am sorry for the frustration and uncertainty this has caused,’ she said.
‘I also want to acknowledge the commitment of our staff, who have continued to support customers while managing significant operational challenges. We now have recovery arrangements in place, are making measurable progress, and are tackling both the backlog itself and the issues that contributed to it.’
In another encouraging sign, staff turnover fell to 2.5% during the first eight months of 2026.
P&R president Lindsay de Sausmarez welcomed the report.
‘The fact there have been systemic problems has been obvious to the many people affected, but what has surprised me is the length of time over which the backlog has accumulated, and the true scale and complexity of the challenges,’ said Deputy de Sausmarez.
‘This report is an honest and accurate appraisal of the situation and an important first step in earning islanders’ confidence that the problems have been understood and the solutions are starting to work.’
Anyone waiting for assessments or repayments is urged not to contact the Revenue Service, as that would create extra work without speeding up the process.
Updates on progress will be published every four weeks at www.gov.gg/recovery where the report released yesterday can also be read in full.
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