From the Guernsey Press yesterday:
THE three Crown Dependencies are in danger of going bankrupt, tax avoidance campaigner Richard Murphy claimed yesterday.
His comments follow an announcement that the Isle of Man will lose millions in its VAT subsidy after it was forced to change the terms of its agreement with the UK.
Mr Murphy said that the jurisdiction was now in a state of chaos, while Jersey had a deficit of around £80m. in 2010 and Guernsey was using its reserves with no prospect of growth.
‘This [the Isle of Man’s agreement] draws a line in the sand which says the game is over for the Crown Dependencies,’ said Mr Murphy.
‘Each of the islands’ politicians have to work out what they are going to do to sustain their economies and that can’t be on low rates of tax alone,’ he said.
But will they do that? That's the big question.
Or will it still be ostrich time?