Jersey Evening Post 25.8.2010

Warning from finance

The finance industry has warned against

making significant changes to the Island's

current business tax regime. A survey of the

heads of 50 businesses reveals that 65%

think that a change to the zero-ten tax regime

would have an adverse effect on Jersey's status

as an International finance centre. Four out of

ten believe that moving from the zero-ten regime

would have a negative effect on their company.

Full report to follow.

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Turkeys vote against Christmas again.

Dear Editor,

What a ridiculous statement from the finance industry in tonight's edition headed 'Warning from Finance'.

The warning is against making significant changes to the current Island's business tax regime which is based on the ridiculous and

EU-unpopular 0/10 system, which allows off Island registered companies like Normans, L'Horizon, The Grand, The Radisson, Burtons, Boots, British Home Stores to name but a few who are making money in competition with Jersey companies to pay exactly 0% tax, whilst the shrinking finance industry only has to pay 10%. Of course they do not wish to change such a money-making arrangment. It's 'Turkeys voting against Christmas' again but they omit to mention the big negative, that this brainwave has plunged Jersey into a £100 million debt!

Well, blame the so-called recession and divert interest from 0/10. In any case, just introduce jolly old GST (Goods and Services Tax) and make it up from robbing the people, especially all those who can least afford yet more expense. If you are rich then 3,5,10,15% GST makes not a jot of difference.

Spin the message that if 0/10 is interfered with some companies might be inclined to leave!! But where to? And, if they are not paying any tax now, then what difference would it make if they left? If, say, 30% left who were paying no tax, then 70% would now be paying tax, and the self-induced so-called black hole would not be necessary! Oh dear, is this too simple?

Yours faithfully,

John Heys