Thursday 12 May 2022
EY has been appointed, following a competitive tender process, to carry out a review of corporate tax options, as part of the wider Tax Review which looks at how essential services will be funded in the future.
Guernsey and Alderney are seeing a major change in the make-up of their population, putting increased demand on public funds, particularly in areas such as health care and pensions. An annual shortfall in funding for essential services of £85m has been identified, after accounting for significant economic growth and around £10m being delivered in annual savings through the reform of the public service.
The Tax Review is looking at what revenue raising measures should be introduced to ensure essential services can be safeguarded for future generations. The Policy & Resources Committee has committed to exploring all options, including options for raising more revenue from businesses, mindful that Guernsey must also remain a competitive business environment which continues to attract employers and provide jobs for Islanders.
EY will report back in the summer, with the Policy & Resources Committee aiming to bring forward a policy letter to the States towards the end of 2022.
EY were appointed because they can offer locally-based professionals with an excellent understanding of the Islands and the situation they currently face, together with global EY expertise in tax policy, economics and a deep understanding of the current international tax framework.
The review will cost £200,000 which the Policy & Resources Committee has approved.