UK ‘touting itself as low-tax’

Thursday 24th June 2010, 3:00PM BST.

Neil Oliver, tax director at Ernst & Young in Jersey

JERSEY can feel legitimately aggrieved over criticism of its neutral corporate tax system, given that the UK is trying to promote itself as a low-tax state following this week’s emergency budget.

Neil Oliver, tax director at Ernst & Young in Jersey, says that Chancellor George Osborne has announced that he intends to reduce corporate tax rates from 28 per cent to 24 per cent over the next four years to make the UK more attractive from an inward investment perspective.

Mr Oliver said: ‘Generally the UK is seeking to be a low tax country compared to others in the OECD and G20. Add in the territorial system for taxing branch profits and Jersey might be miffed at having its own neutral tax system criticised.’

Mr Oliver said that overall the UK Budget was important but would have less direct impact here than many originally considered. ‘This is to be welcomed, as we have enough problems of our own to resolve,’ he said.

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1
Phil

June 24, 2010 at 4:01 pm

Ironic really that the tax rates in the “tax shelter” will soon be higher than the UK, yet we still let the finance sector get away without making any meaningfull contribution.

Well we know what to do, cut States costs by 25%, start to levy the fiancial services industry, levy is a polite word for tax,and then reduce our income tax, perhaps as low as 10P in the £? – simples….

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2
Mac

June 24, 2010 at 6:18 pm

There are any number of other reasons apart from headline rates of tax that would make a UK critique of Jersey taxation valid.

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