The Policy & Resources Committee launched its new tax review sub-committee, headed by Charles Parkinson, with two parallel workstreams all aimed towards a final decision on tax reform before the end of June next year.
The sub-committee, which includes three off-island tax experts, all working at what seems to be less than market rate, will review corporate taxation and continue the work to implement the GST-plus package that was agreed by the States in November 2024.
Deputy Parkinson had been elected to the senior committee to do this job, and so it was no surprise to see him update the States yesterday.
‘I have been consistent for some considerable time in my view that corporate tax reform has the potential to play a significant role in addressing our fiscal difficulties,’ he said.
‘That is, of course, a personal view but one that I expressed throughout the election campaign, so I am pleased my colleagues on P&R have asked me to lead the work of the tax review sub-committee to review alternative options such as corporate tax.
‘While there continues to be healthy discussion and debate around the right solution, what should be beyond discussion at this stage is that there is an urgent need for tax reform to safeguard public finances in the years ahead.
‘This cannot be an issue that continues to be kicked down the road and that is a key test for this new States.
‘We want to make sure the Assembly has all the necessary information to allow them to make an informed final decision before the end of Quarter 2 next year.’
He also flagged that there will need to be a States debate early next year about whether to include GST on food – necessary at that time to allow the GST-plus package to be agreed on time if it is backed by deputies.
Deputy Gavin St Pier, a fellow member of P&R and of the sub-committee, said the decision to continue to pursue a GST option was in no way pre-judging its work.
‘At the start of this term we committed to reviewing other tax options, but we were also clear that work to prepare for the implementation of GST-plus should continue as planned, to avoid any delay in its introduction if the States ultimately decide it is the better solution to our financial challenges.
‘P&R is in no way pre-judging either our final recommendation to the Assembly, or its decision. Our focus must be on enabling the States to make a fully informed final decision on tax reform but also to enable the implementation of the final package as soon as possible.’
Deputy St Pier will take the committee’s first Budget to the States in November.
He said that P&R members were also committed to cutting spending or at least restraint.
A recent snapshot of U.S. wealth from the Federal Reserve depicts a nation where the top 50% of households controls 97.5% of the country’s assets — a lopsided distribution that experts say could
The US Securities and Exchange Commission (SEC) has taken steps to roll back its climate disclosure rule which would require publicly traded companies to disclose climate-related risks, a move that
The US Treasury Department has taken a significant step towards addressing the burgeoning world of Non-Fungible Tokens (NFTs) by recommending closer collaboration between the government, industry stakeholders,
Press Release from Carey Olsen, Friday 29 November, 2024. Carey Olsen has advised on an innovative captive assisted value share bulk purchase annuity (BPA) transaction with M&G plc (“M&G”).