Impact on policy
The research examined how inappropriate taxes can cause serious problems, such as; capital flight to non-EU countries, reduced investment in Europe, stifling of competition and damage to the economy. This research has impacted Jersey through introducing a VAT-equivalent tax (known as GST); a radical reform of Jersey’s corporate income tax and a proposed, but not yet enacted, system for taxing commercial property in Jersey.
The research also had an impact on the Turks and Caicos Islands (TCI). The TCI Independent Business Council commissioned an independent report from Teather into the potential impact of VAT on the TCI economy, with a view to helping local businesses, government officials and individuals to understand the issues concerning tax. UK Government and the TCI Governor agreed to cancel the implementation of VAT, as recommended by Teather, since the research revealed that VAT was unsuitable for the TCI given its unique economy.