Amendment 'may threaten tax plan'

Next week, the States will debate a package of measures for making up lost funds if Corporation Tax is scrapped as the government hopes to do in 2008.

Only one amendment has been officially placed, but there are more being planned by some States members.

Minister Lyndon Trott said many groups supported the planned strategy.

Budget deficits

Guernsey States is planning to abolish corporation tax in 2008 to keep the island competitive as an off-shore banking centre in its Future Economic and Taxation Strategy.

The strategy also proposes ways to fill projected budget deficits of up to £50m caused by scrapping the tax.

Deputy Trott said too much tinkering with the strategy could cause problems.

He said: "It is a package that needs to be taken in its entirety, and all the major representative groups in the island - the Chamber of Commerce, the Institute of Directors and such like - have all suggested that the States does precisely that."

Amendments being drawn up by States members include one by Deputy Charles Parkinson, a long-time critic of the strategy.

Last week, he said that the Policy Council still had not considered some complicated situations which could arise from businesses exploiting possible loopholes.

One more public meeting about the strategy is still due to be held on 22 June.

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