The 2015 budget has come at a time when focus on public finances is very much to the fore. In that context the budget’s measures to raise revenue whilst avoiding any significant impact on Guernsey as a place to do business strikes a necessary balance.
There is no further mention of GST and one wonders whether the revenue raising measures introduced make GST less likely for the foreseeable future.
Personal income tax allowances have been frozen but the main thrust of any reforms in this area will be derived from the personal tax, pensions and benefits review which is scheduled for debate in early 2015.
The idea of a States of Guernsey bond is a welcome one and is a commendably victimless way to have a positive impact on the State’s finances.
The expansion of the 10% rate to fund administrators has long been mooted and brings us more in line with Jersey. Apart from the obvious tax hit this change will also equate to a time cost for administrators in tax compliance.
Ultimately our course will be heavily influenced by outside factors such as the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. However, part of our focus has to be on making sure our own house is in order and this budget takes some steps towards that.
This link provides a high level overview. If you would like any further information or clarification on any of the measures announced, please do not hesitate to contact a member of our team whose details appear alongside.