Amendment 14

To delete Propositions 1 to 3 and substitute therefor:

“1.To agree that neither the proposed Goods and Services Tax nor the associated Income Tax and Social Security contribution reforms detailed in the Policy Letter shall be introduced as part of the Tax Reform Programme.

2.To agree that the proposed Transport Taxes shall proceed as set out in this Policy Letter at Paragraph 9.7 and as more specifically described therein.

3.To agree that the proposed Corporate Tax amendments shall proceed as set out in Paragraph 9.21 of this Policy Letter and as more specifically described therein, excepting that at the third bullet point of paragraph 9.21, the term “ISE” shall be substituted with “Corporate Levy” (and this substitution shall take effect wherever relevant).

4.To direct the Policy & Resources Committee to develop and bring before the States proposals, for implementation on the same timetable as the tax measures proposed in this Policy Letter where reasonably practicable, for the introduction of a Corporate Levy payable by registered Guernsey companies, having regard to the work previously undertaken by the Tax Review Sub-Committee, and including consideration of whether such levy should comprise:

• a fixed annual levy payable by each registered company;
• a levy differentiated according to the size or scale of the undertaking, including consideration of whether existing company classifications may provide an appropriate and proportionate basis for differentiation; or
• such other structure as the Committee considers best achieves the objectives of fairness, administrative simplicity and efficient revenue collection.

5.To direct the Committee for Economic Development, in consultation with the Policy & Resources Committee, to develop and bring before the States, on the same timetable where reasonably practicable, proposals for the introduction of a Visitor Levy in accordance with the extant States Resolution, with all revenues arising from such levy to be paid into the General Revenue Account and not hypothecated for expenditure by any particular Committee or industry sector.

6.To direct the Policy & Resources Committee to revise the implementation programme and associated implementation budget for Tax Reform to reflect the removal of the proposed Goods and Services Tax and associated Income Tax and Social Security contribution reforms, including the consequential reduction in implementation cost, implementation activity, systems development, staffing and administrative requirements.

7.To direct the Policy & Resources Committee to return to the States with:

1. a revised implementation programme;
2. a revised implementation budget;
3. revised estimates of one-off implementation costs;
4. revised estimates of ongoing administration costs;
5. revised estimates of annual recurring revenues; and
6. revised staffing assumptions,

reflecting the alternative package approved under this Proposition within a period that results in the States being capable of meeting the proposed implementation timetable as proposed within the Policy Letter.

8.To direct the Policy & Resources Committee to return to the States with an assurance review in 2030 as set out in section 12 of the Policy Letter, the scope of which shall be adjusted, where necessary, to take account of the removal of GST and Social Security measures from the package under these proposals and the application of those measures considered herein.”.