Tax return backlog much bigger than thought

A backlog of tax returns and other revenue documents is much larger than initially thought, a report has found.

Previously the States of Guernsey was told there were 20,000 backlogged tax returns as the island's Revenue Service struggled to keep up with demand.

However, a report from the service has highlighted there were 106,444 outstanding work items - including tax assessments, repayments and bereavement cases - at the end of August.

Jean Mehers, director of the Revenue Service operations, apologised for the frustration and uncertainty caused by the backlog, which had built up over 12 years.

The report said the challenges being faced by the Revenue Service extended beyond a single workstream and the introduction of independent taxation had increased the annual return population by about 12,000 returns.

The Revenue Service said it was preparing a business case for the next phase of its recovery programme to be considered by the Policy and Resources (P&R) Committee.

The plan aims to clear the backlog by October 2028 but included projects "specifically intended" to bring this date forward, it added.

"Since joining the service, my first priority has been to gain a clear understanding of the true scale and nature of the work outstanding, ensuring that recovery plans are based on the best information available and focused on delivering meaningful improvements for customers," Mehers said.

"We now have recovery arrangements in place, are making measurable progress, and are tackling both the backlog itself and the issues that contributed to it."

The Revenue Service said customers waiting for an assessment or a repayment do not need to take any action.

Boley Smillie, chief executive and head of the public service, said the backlog was unacceptable but he had a "high level of confidence" the Revenue Service's leadership team, including Mehers, was making improvements.

"There is a great deal still to do, but I have every confidence in the approach she is taking and she has my full support," Smillie said.

P&R President Lindsay de Sausmarez said the report had shone a "welcome light" on the issues being faced by the service.

De Sausmarez added: "It's clear now that this has been a problem many, many years in the making and is worse than anyone previously understood.

"While recovery will take time to reach completion, we can expect to see continuous improvement and reduction of the backlog over the coming months."

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