Jersey tax reform worries

There are concerns Jersey may not be able to afford to reduce its corporation tax to zero following a heavy reliance on income tax as a source of government revenue, according to the Isle of Man government. Both Guernsey and Jersey are set to reduce their corporation tax to 0%. The Isle of Man government said earlier this year it would reduce income tax for business by 1 January 2006. Jersey is expected to implement the policy by 2007 this year and Guernsey in 2008. According to Mort Mirgha-vameddin, general manager at Investec Bank Channel Islands, Jersey has a high budget defici...