Scrutiny to Review Prior Year Tax Reform Proposals
11th September 2020
The Corporate Services Scrutiny Panel is commencing a review into the Prior Year Basis (PYB) Tax Reform proposals being put forward by Minister for Treasury and Resources.
Deputy Susie Pinel, Minister for Treasury and Resources, is currently proposing that:
- all taxpayers' 2020 tax liability would be paid on a current-year basis (calculated in 2021 following receipt of the 2020 tax return);
- the Prior Year Basis taxpayers' 2019 liability would be suspended and would be repayable over a period of years under a range of payment options.
Prior Year Basis (PYB) Tax Reform originally formed part of the Government Plan 2020 – 2023 however, the Minister for Treasury and Resources has since proposed the acceleration of this work as a post-pandemic support measure.
The Panel will assess overall appropriateness and deliverability against strategic priorities and ensure due consideration has been given to the impact of affected taxpayers with fairness and transparency.
Corporate Services Scrutiny Panel Chair, Senator Kristina Moore, commented: "Whilst these proposals could be beneficial in the short term, the Panel will look at how the financial implications will impact on the taxpayer and public finances in the longer term as the 2019 tax still needs to be paid. The Panel will also review if the proposals are fair and transparent and will confirm they meet the criteria of the Government Plan 2020 – 2023 as presented".
To inform its work, the Panel intends to hold public hearings with the Minister for Treasury & Resources and the Chief Minister. It will also seek the views of industry experts and the general public to collect evidence in relation to the proposed tax reform.
The review is expected to last until October, and the Panel will publish a report on its work, including any findings and recommendations for the Minister for Treasury and Resources to take into consideration as she embarks on this proposed reform.
Islanders have already begun to share their views with the panel and members of Corporate Services encourage others to get involved by commenting via the States Assembly social media pages, via the 'Get involved' form on the States Assembly website or by emailing email@example.com.
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