I published Jersey’s nonsensical press release on the EU Code of Conduct yesterday.
It seems only right I do the same for Guernsey. They say:
November, 23rd, 2010, The Policy Council confirms that it has received confirmation that, at its most recent meeting (19th November, 2010), the EU Code of Conduct on Business Taxation (â€šÃ„Ã²Code Group’) agreed with unanimity that the zero/10 corporate tax regimes have harmful effects. It is understood that, whilst the formal assessment process has not technically been concluded, the expectation is that the Crown Dependencies will be required to introduce revised corporate tax regimes.
Although Guernsey’s zero/10 regime has not been subject to review by the Code of Conduct Group the implications of last Friday’s conclusion by the Code Group will need to be thoroughly reviewed and assessed.
Hang on a minute. Jersey said:
The Group considered a paper prepared by Commission officials that was concerned solely with whether the deemed distribution provision and the combined effect of taxation at company and shareholder levels came within the scope of the Code as business taxation.
With the exception of that provision, the 0/10 tax structure has not been formally addressed by the Commission or the Code Group. Therefore, with the exception of this anti-avoidance measure, nothing has been conveyed to the Island authorities that would indicate that the present 0/10 tax structure is in conflict with the Code criteria. This is fully in accord with the view expressed by the Island authorities to the Code Group and the Commission.
So Guernsey says for all practical purposes zero / ten is dead and jersey says there’s been a minor technical hiccup.
Who is telling the truth?
Guernsey, of course.
Philip Ozouf makes a fool of himself, again, as a result. You almost feel that Guernsey was saying so, but surely not?