The scrapping of Guernsey’s corporation tax in 2008 in favour of finance
industry growth to help make up a projected £50m shortfall is nothing more than
a state subsidy for the banking industry, according to a tax expert.
Richard Murphy, of the Tax Justice Network, called the move a ‘strange
economic policy’ and described it as ‘probably the largest state subsidy that
has been created by any territory in the world for a particular industry’.
‘To spend £50m to basically subsidise the banking industry and its already
very rich clients – let’s be candid, that’s what they are – is a very strange
economic policy,’ he told the BBC.
Guernsey’s Treasury minister Lyndon Trott disagreed, saying the move was in
the island’s best interest and urged people to rally behind the measures.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states