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Guernsey Tax Backlog Crisis: Redesign Needed?

Summary

  • Over 106,000 tax assessments and repayments are in backlog.
  • The backlog is not expected to clear until at least October 2028.
  • Delays cost businesses time and money, tying up credit balances.

A substantial backlog within Guernsey's Revenue Service, totaling over 106,444 outstanding pieces of work including tax assessments and repayments, has prompted the Guernsey Chamber of Commerce to question the current tax system. The chamber acknowledged the Revenue Service's honest account of the problem, noting that the effects have been felt by businesses and islanders for years.

Without additional investment, the backlog is projected to persist until at least October 2028. The Chamber of Commerce highlighted that these delays are imposing significant costs on businesses, with some facing tied-up credit balances and others expending considerable time chasing necessary information. Consequently, the organization is pressing the States to reveal its digital strategy for tax and whether more fundamental system changes are under consideration.

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