Expert forecasts changes to Guernsey tax laws

Guernsey is likely to bring its tax rules into line with Jersey, the Isle of Man and other offshore banking business centres.

Graham Parrott, tax partner at accountancy giants Ernst & Young, believes that it is only a matter of time before the island signs up to the Tax Information Agreement, the Guernsey Press and Star reports.

This would mean more public disclosure of tax information for those who have invested their money in Guernsey.

The move as part of international governments’ wider bid to improve transparency in the offshore private banking sector.

World leaders agreed to give special priority to the issue during this year’s London G20 summit.

Speaking to the newspaper, Mr Parrott commented: ’If we don’t follow the same stance as the others, it will be counterproductive. We will make a bit less money.

’It’s a few million pounds and some people will probably move their funds. It’s so easy to move your money around.’

Both Jersey and the Isle of Man are scheduled to have a full system of automatic disclosure in place by 2011.ADNFCR-2318-ID-19249485-ADNFCR