EU found abolished tax measure harmful

Thu, 24 Feb 2011

The EU's tax watchdog has confirmed it found part of the Island's business tax system harmful.

The Code of Conduct on Business Taxation Group met last week, and has indicated that it wasn't happy with the Attribution Regime for Individuals.

Treasury Minister Anne Craine removed the regime during last week's budget, having been aware that the anti-avoidance measure was under scrutiny.

It's now believed the EU has no reason to be concerned by the zero-10 business tax system on the Island.

The Treasury says it's not in the Island's interests to have a tax system which causes difficulties within the EU.