Chamber asks about future of Guernsey tax system

The Guernsey Chamber of Commerce has questioned whether the island's tax system needs to be redesigned following the publication of the scale of the Revenue Service backlog.

A report published by the Revenue Service revealed there were 106,444 outstanding pieces of work, including tax assessments, repayments and bereavement cases.

The chamber welcomed the States' decision to publish what it described as a "full and honest account" of the problem, but said businesses and islanders had been experiencing its effects for years.

The organisation has now asked the States to set out its longer term digital strategy for tax and whether more fundamental changes to the system are being considered.

The backlog is not expected to be cleared until at least October 2028 without more investment.

The chamber said delays were costing businesses time and money. Some have had credit balances tied up, while others have spent time chasing information.

It also criticised a previous tax transformation programme. It said it had used "years and resources" without delivering the promised improvements.

It now wants the States to explain its long-term plans for the tax system.

One option could be personal self-assessment, with taxpayers submitting their own assessments. Revenue staff could then focus on compliance and more complex cases.

The group - the island's largest and oldest business organisation - also wants taxpayers and agents to have clearer information about payments, credits and money owed.

For businesses, it questioned whether changes to corporate tax had simply shifted more work onto accountants and taxpayers.

It said accounting and tax software should be able to connect directly with States systems.

It said future changes should make the system easier for taxpayers and agents, not just the Revenue Service.

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