“With effect from 6 April 1993, the Crown has voluntarily paid income tax and capital gains tax in the United Kingdom. In light of this development in the United Kingdom 30 years ago, the logic or principle that the Crown’s representative in the Bailiwick should be exempt from local income tax is no longer sustainable. In 2023, having regard to principles of tax equity, it is not justifiable that a senior public servant resident in the island should be exempt from income tax,” they said. 

“It is noted that the remuneration of the next office holder net of income tax will need to remain competitive and attractive. Consequently, it is not possible to accurately forecast the net gain to the public exchequer of this tax change.  

“The proposal would be to end the exemption with effect from the beginning of the term of the next office holder. This is in recognition that the current office holder has legitimate expectation based on the conditions applicable at the beginning of the term of office that the remuneration would be tax exempt.  

“It is recognised that the Ministry of Justice and the Lord Chancellor have an interest in the matter and that similar arrangements exist for the Lieutenant-Governors of Jersey and the Isle of Man. Accordingly, the proposition includes provision for consultation with these interested parties, following which the Policy & Resources Committee can present the Assembly with the requisite proposition to repeal the income tax exemption.” 

The change, if approved, would come into force after the end of the current term.