Island's tax system has not failed, P&R says

BBC Guernsey States Chamber building St Peter Port. The building has large white oval windows and the exterior of the building is made from grey brick. There is a flag pole with the flag of Guernsey on it. The flag is white with a red cross and a gold cross within the red one.BBC
The Policy and Resources Committee acknowledged the "justifiable frustration" of people affected

Guernsey's top committee has rejected the suggestion there has been "chronic failure" in the island's tax system.

The Policy and Resources Committee (P&R) was quizzed by Deputy Mark Helyer, who questioned the delays in income tax collections due to unprocessed returns.

Recent figures showed just under half of tax returns from 2022 were still outstanding, with 11% from 2020 still waiting to be completed.

P&R rejected Helyer's suggestion the system had failed but acknowledged the "justifiable frustration" of people affected by delays.

'Better position'

A spokesperson for the committee said: "The committee believes that addressing the long-standing backlog requires the support and strengthening of service resources, not drastic and reactive changes in personnel."

P&R said the difficulties had been intensified by recruitment shortages which had worsened due to the criticism of the service.

It said it had since increased the number of final assessments issued, enhanced its organisational structure and continued to make improvements to its IT platform.

The spokesperson added: "Whilst improvements in the service will not remove the backlog overnight, the service is now in a better position.

"The committee expects to see the backlog reducing further over time."

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