Revenue Service has 20,000 backlogged returns

Guernsey's revenue service has 20,000 backlogged tax returns, it has been revealed.

Treasury lead, Deputy Charles Parkinson told the States if the service was a school, in his view, it would be in "special measures".

The Revenue Service has struggled to keep up with demand since the Covid pandemic, with late rebates costing the States more than £260,000.

Parkinson said: "The service [has] fallen apart to some extent and it now needs to be rebuilt and stood up... that's a massive undertaking which staff are working very hard to achieve."

Parkinson said he was confident the revenue service would be in a position to implement it by 2028, if it was agreed.

"I have to be confident, that's certainly the plan," he said.

"Because if we can get the current system working properly by the end of 2027 then 2028 can be devoted to whatever changes in the tax system we make next month."

The comments came during a debate about the States 2025 accounts, where Parkinson told his colleagues Guernsey was "by no means broke".

In July politicians will debate whether to introduce new taxes, including a goods and services tax (GST) and an annual vehicle levy, to plug a projected £50m funding shortfall.

The Treasury lead said: "The States is in good health financially but there are some clouds on the horizon and that's what we'll be addressing next month.

"It's a sunny day today if you like but we can see that the difficulties that some difficulties do lie ahead."

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