Following released by the EU’s Code of Conduct Group on Business Taxation, a States of Guernsey consultation is currently in progress in respect of creating local legislation to a standard that reassures the Code Group that activities in Guernsey are carried on with an appropriate level of local substance.
Effectively, what the law seems to seek is sufficient “substance over form” in Guernsey, a matter which we have always borne in mind in conducting business.
What is ultimately being looked at is:
– Are the Board exercising management and control from Guernsey?
– Are the Board sufficiently capable of making decisions about the business they are engaged in?
– Is there a sufficient operational presence in Guernsey for the organisation to truly have its substance in Guernsey?
The Board of each of our clients consists of an HR professional with decades of experience in the marine personnel and payroll field and a former Master Mariner with over twenty years in marine personnel management and directorship of manning companies.
In addition to this direct payroll/ personnel experience we have two highly-qualified individuals on the Board who are well-versed in the tax and regulatory environment from a corporate perspective as well as marine specialist areas such as MLC compliance, Quality Management, seafarer tax and social security amongst other things.
Operationally, we can demonstrate that our managed clients have a high level of resources based in Guernsey.
Between them Voyonic and ASPIRE, acting for our clients, have over 30 staff working on the maintenance of the client companies, processing their payroll, managing employees recruitment and other HR aspects including any required disciplinary matters as well as the accounting processes.
We have a range of staff with experience and qualifications in their area to appropriate levels ranging from those just staring their career “journey” with CIPP, CIPD and accounting qualifications to fully-qualified staff with many years in the business.
Although the legislation is yet to be finalised and no doubt changes will be made before the final law comes in, overall we feel this is a step in the right direction.
We welcome what will surely be another nail in the coffin of the ‘brass plaque’ style “employers” who have for too long been detrimental to the reputation of our industry and our Island.
For further information on the consultation and how it applies to employment structures in Guernsey, please contact us.