TOMORROW is T-Day in the States - and our tax system may never be the same again.
The biggest change for seven decades is on the cards as Members debate the move to a corporate tax structure in which businesses pay no tax except for finance-related firms who will pay 10 per cent.
The result, if it is approved, will be a hole in the annual tax take of up to £100 million a year - a hole which will be filled by new taxes hitting every Islander.
It is highly likely that will involve the arrival for the first time of a type of VAT, but Finance and Economics have put off a decision on that until next year.
Tomorrow, their target is to get backing for the fundamental move without endangering it by linking it to the highly contentious issue of the goods and services tax.
Finance and Economics president Senator Terry Le Sueur says the move to zero-ten has painful consequences but is necessary to ensure the Island meets tougher international rules on tax competition and remains competitive.
He says there is no choice and no room for any delay and he will try to persuade Members to vote against a proposal by Senator Stuart Syvret for a ‘transparent inquiry’ into taxation policy.
Article posted on 5th July, 2004 - 12.00am
Most Commented: