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EU will not review Guernsey's tax strategy

28 May 10 18:10 GMT

Some of the pressure to revise Guernsey's tax strategy quickly has been eased as the European Union announces it will no longer review it.

The zero-ten policy was set to be scrutinised after concerns it was not compliant with the EU's code of conduct on tax matters.

In response the States said it would revise the strategy.

Guernsey's Chief Minister Lyndon Trott said the change in attitude was due to the island's "transparent approach".

He said: "Guernsey has through numerous public statements transparently communicated any revised regime must met five criteria.

"We have recently been advised that on the basis of Guernsey's transparent approach throughout this process the EU code of conduct group has decided not to review Guernsey's tax regime at this time."

He added that more information should be made public in the next few weeks.

The zero-ten policy saw corporate tax reduced to zero and the States had said it would base the revised strategy on the assumption that corporation tax would have to be introduced again.

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