Bite the bullet and tax funds
I have been following the recent comments on our island’s financial predicament with some interest, and I wholeheartedly agree with Lord Digby Jones on the many sensible things he says.
I am one of the first to advocate that we should all pay our fair share of taxes to support the existence of the society in which we wish to enjoy a high standard of living.
This is a fundamental requirement of human civilisation.
In the Bailiwick, that fair share now appears to be heading on the road towards oblivion.
Guernsey offers and provides a globally renowned, well-regulated haven for many international funds which chose to use the island to carry on their business because, unlike other parts of the world, it is both safe and respectable.
The businesses managing those funds make profits here and rightly pay their taxes.
What doesn’t seem to happen, however, is an acknowledgment of the value derived from creating a safe place to hold and manage those substantial amounts of money.
The States could credibly justify imposing a levy on the funds held here on Guernsey because it has built and provided the structural framework which allows the finance industry to function in a highly trusted environment.
This idea may not sound too exciting to those who are in the industry, but if a tiny fraction of less than 0.001% were to be levied upon the value of funds managed here in the Bailiwick, the investors would be contributing towards supporting the cost of a system which provides the safety and security for their huge wealth.
The islands would also have a reasonable tax take to help offset their massive shortfalls. One solution towards solving our numerous problems.
Obviously this is bound to be contentious, but is it not time to bite the bullet and begin asking some difficult questions?
Michael Smith