Income Tax (Jersey)
Law 1961[1]
PART 1
PRELIMINARY
1 Charge of income tax
Where any Law enacts that
income tax shall be charged for any year at any rate,[3] then, subject to the provisions of this Law, the tax at that rate
shall be charged for that year in respect of all property, profits or gains
respectively described or comprised in the Schedules contained in the Articles
of this Law enumerated below, that is to say –
Schedule A –
Article 51;
Schedule D –
Article 61,
and in accordance with
the provisions of this Law respectively applicable to those Schedules.[4]
2 Yearly
assessments
Every assessment and
charge to tax shall be made for a year commencing on 1st January and ending on
the following 31st December.
PART 2
INTERPRETATION
3 General
provisions as to interpretation
(1) In
this Law, unless the context otherwise requires –
“51% subsidiary”
shall be construed in accordance with Article 3AB;
“accounting date”
shall be construed in accordance with Article 4A;
“annuity equivalent”
has the meaning given in Article 131CA(1);
“assessable income”
means the amount of that income as calculated in accordance with the provisions
of this Law;
“authorized
insurance company” means a person who is –
(a) authorized
by a permit granted under Article 7 of the Insurance
Business (Jersey) Law 1996; or
(b) registered,
or exempted from registration, under section 7 or section 5
respectively of the Insurance Business (Bailiwick of Guernsey) Law 2002
(other than a protected cell company within the meaning of that Law),
and who carries on
business through a branch or agency in Jersey or in Guernsey as the case may
be;
“body of persons”
means any body politic, corporate or collegiate, and any company, fraternity,
fellowship and society of persons, whether corporate or not corporate;
“civil
partner A” and “civil partner B” shall be construed
in accordance with Article 122A;
“collective
investment fund” means a collective investment fund, within the meaning
of the Collective
Investment Funds (Jersey) Law 1988, which holds a permit by virtue of
being a functionary within Group 1 in Part 2 of the Schedule to that
Law;
“Commissioners”
means a Commission of Appeal constituted under Article 5 of the Revenue
Administration (Jersey) Law 2019;
“Comptroller”
has the meaning given by the Revenue
Administration (Jersey) Law 2019;
“connected”
and “unconnected” shall be construed in accordance with Article 3A;
“distribution”
shall be construed in accordance with Article 3AE;
“document”
includes information recorded in any form and, in relation to information
recorded otherwise than in legible form, references to its being furnished
include references to furnishing a copy of the information in legible form;
“earned income”
means –
(a) any
income arising in respect of any remuneration from any office or employment of
profit held by the individual, or in respect of any pension, superannuation, or
other allowance, deferred pay, or compensation for loss of office, given in
respect of the past services of the individual or of the spouse (other than an independently taxed spouse), civil
partner (other than an independently taxed civil partner) or parent of the
individual in any office or employment of profit, or given to the individual in
respect of the past services of any deceased person, whether the individual or spouse
(other than an independently taxed spouse), civil partner (other
than an independently taxed civil partner) or parent of the individual has
contributed to such pension, superannuation allowance or deferred pay or not;
(b) any
income from any property which is attached to or forms part of the emoluments
of any office or employment of profit held by the individual;
(c) any
income which is charged under Schedule A, by virtue of Article 51(1)(b) or
(c), or under Schedule D, and is immediately derived by the individual from the
carrying on or exercise by the individual of the individual’s trade,
profession or vocation, either as an individual or, in the case of a
partnership, as a partner personally acting therein; and
(d) any
other payment required by Article 77AA(2)(b), Article 131K(1),
Article 131M(2) or any other provision of this Law to be treated as or
deemed to be earned income;
“eligible investment
scheme” shall be construed in accordance with Article 3AC;
“eligible
participant” shall be construed in accordance with Article 3AD;
“emoluments”
means –
(a) all
salaries, fees, wages, perquisites or profits or gains whatsoever arising from
an office or employment, including any other benefit (whether or not
convertible into cash) –
(i) derived by the
office holder or employee or by a member of that person’s family or
household from that office or employment or from its commencement or
termination or in consequence of a change in its terms, and
(ii) provided
by the office holder’s or employee’s employer or by a person
connected with the employer; and
(b) the amount
of any pension;
“enactment”
includes any enactment of the United Kingdom;
“financial period”
shall be construed in accordance with Article 4A;
“financial services
company” has the meaning given in Article 123D;
“fixed place of business”
includes a building site or a construction project;
“general notice”
means a notice published in the Jersey Gazette;
“general
partnership” means a trade or profession carried
on by 2 or more persons jointly and does not include –
(a) a
limited partnership as defined in Article 76A;
(b) an
incorporated limited partnership within the meaning of the Incorporated
Limited Partnerships (Jersey) Law 2011;
(c) a
separate limited partnership within the meaning of the Separate Limited
Partnerships (Jersey) Law 2011;
(d) a
limited liability partnership within the meaning of the Limited
Liability Partnerships (Jersey) Law 2017;
(e) a
foreign limited liability partnership;
“Guernsey”
means any Island in the Bailiwick of Guernsey in which is in force the Income
Tax (Guernsey) Law 1950, or any Law amending or replacing that Law;
“income, profits or
gains distributed” in Article 3AD shall be construed in accordance
with Article 3AE;
“independently taxed civil partner” means
a person who is in a civil partnership and to whom one or more of the following
applies –
(a) the
civil partnership was formed after 31st December 2021;
(b) the
person or their civil partner became resident in Jersey after 31st December
2021;
(c) the
person and their civil partner have elected under Article 122DA, 122DB or
122DC to be independently taxed;
(d) the
person or their civil partner has elected under Article 122DD to be
independently taxed;
“independently taxed spouse” means a
person who is married and to whom one or more of the following
applies –
(a) the
marriage took place after 31st December 2021;
(b) the
person or their spouse became resident in Jersey after 31st December 2021;
(c) the
person and their spouse have elected under Article 121C, 121D or 121E to
be independently taxed;
(d) the
person or their spouse has elected under Article 121F to be independently
taxed;
“international
activities” means business activities carried on outside Jersey;
“liability to tax” includes income
chargeable in a year of assessment at a rate of 0%;
“lifetime annuity”
means an annuity guaranteed to be payable for the remainder of the life of an
individual and guaranteed not to reduce in amount;
“LLC” or
“limited liability company” means a limited liability company
registered under Article 4 of the Limited
Liability Companies (Jersey) Law 2018;
“marginal income
deduction” means a reduction of total income allowed only for the
purposes of and in accordance with Articles 92A and 92C;
“medical
practitioner” means a person who is a registered medical practitioner
under the Medical
Practitioners (Registration) (Jersey) Law 1960 or who is the
equivalent of such a person under the law of a country or territory outside
Jersey;
“member”, in relation to a limited
liability company, has the meaning given in Article 1(1) of the Limited
Liability Companies (Jersey) Law 2018;
“Minister”
means the Minister for Treasury and Resources;
“motor vehicle”
means any mechanically propelled vehicle intended or adapted for use on roads;
“officer” has the same meaning as in the Revenue
Administration (Jersey) Law 2019;
“ordinary share
capital”, in relation to a company, means all the issued share capital
(by whatever name called) of the company, other than preference shares;
“partnership” means –
(a) a
general partnership;
(b) a
limited partnership as defined in Article 76A;
(c) an
incorporated limited partnership within the meaning of the Incorporated
Limited Partnerships (Jersey) Law 2011;
(d) a
separate limited partnership within the meaning of the Separate Limited
Partnerships (Jersey) Law 2011;
(e) a
limited liability partnership within the meaning of the Limited
Liability Partnerships (Jersey) Law 2017;
(f) a
foreign limited liability partnership approved by the Comptroller under
Article 76E;
“partnership”
includes a partnership established under the Limited
Liability Partnerships (Jersey) Law 2017;
“permanent
establishment”, in relation to a company, includes a branch of the
company, a factory, shop, workshop, quarry or a building site, and a place of
management of the company, but the fact that the directors of a company
regularly meet in Jersey shall not, of itself, make their meeting place a
permanent establishment;
“preference share”
means, in relation to a company, a share which confers a right to a dividend at
a fixed percentage of the nominal value of the share, but no other right to
share in the profits of the company;
“recognized stock
exchange” means any market for the buying and selling of securities which
is situate in, and recognized as, a stock exchange within the meaning of the
law relating to stock exchanges of –
(a) any
member State of the European Union;
(aa) the United
Kingdom;
(b) Australia,
Canada, Hong Kong, Japan, Norway, Singapore, South Africa, Switzerland or the
United States of America; and
(c) any
other exchange approved in writing by the Minister;
“registered person”
shall be construed in accordance with Article 118C;
“regulatory compliance activity” has the
meaning given in Article 3AF;
“relevant
distribution” shall be construed in accordance with Article 81R;
“shareholder loan”
shall be construed in accordance with Article 81O;
“spouse A”
means –
(a) in
relation to a marriage between 2 persons of the opposite sex, the husband;
(b) in
relation to a marriage between 2 persons of the same sex, the elder of the
persons;
“spouse B”
means –
(a) in
relation to a marriage between 2 persons of the opposite sex, the wife;
(b) in
relation to a marriage between 2 persons of the same sex, the younger of
the persons;
“stock dividend”
means –
(a) share
capital issued by a company in consequence of the exercise by any person of an
option conferred on the person to receive, in respect of shares of the company,
either cash or additional share capital;
(b) bonus
share capital issued by a company in respect of shares in the company of a
relevant class;
“trade”
includes every disposal, on a commercial basis, of land, any building or
structure, or any part thereof, and every trade, manufacture, adventure or
concern in the nature of trade;
“trading company”
shall be construed in accordance with Schedule A1;
“trading
group” shall be construed in accordance with Schedule A1;
“utility company”
has the meaning given in Article 123C(3).[5]
(1A) References
in this Law to the disposal of land, any building or structure, or any part
thereof, are to its sale, transfer or lease, or to the issue or transfer of
shares in a company, the ownership of which shares confers an exclusive right
to occupy it.[6]
(1B) In
this Law, unless the context otherwise requires, a reference to the winding up
of a company shall include a reference to the company becoming bankrupt and to
the making of any compromise, arrangement or composition with its creditors.[7]
(2) References
in this Law to any enactment include references to any other enactment in so
far as it amends that enactment.
(3) The
Minister may by Order amend the definition “collective investment fund”.[8]
3AA [9]
3A Connected persons[10]
(1) For
the purposes of this Law any question whether a person is connected with
another shall be determined in accordance with the following provisions of this
Article.
(2) A
person is connected with an individual if that person is the individual’s
spouse or civil partner, or is a relative, or the spouse or civil partner of a
relative, of the individual or of the individual’s spouse or civil
partner.[11]
(3) A
person is connected with any person with whom the person is in partnership, and
with the spouse, civil partner or relative of any individual with whom the
person is in partnership.[12]
(3A) A
person who is a member of an LLC is connected with a person who is –
(a) another
member of the LLC; or
(b) the
spouse, civil partner or a relative of another member of the LLC.[13]
(4) A
company is connected with another company –
(a) if the same person has control of both, or a
person has control of one and persons connected with the person, or the person
and persons connected with the person, have control of the other; or
(b) if a group of 2 or more persons has control
of each company, and the groups either consist of the same persons or could be
regarded as consisting of the same persons by treating (in one or more cases) a
member of either group as replaced by a person with whom the member is
connected.
(5) A
company is connected with another person if that person has control of it or if
that person and persons connected with that person together have control of it.
(6) In
this Article “relative” means brother, sister, ancestor or lineal
descendant.
3AB Subsidiaries[14]
(1) For
the purposes of this Law, a body corporate shall be deemed to be a 51%
subsidiary of another body corporate if and so long as more than 50% of its
ordinary share capital is owned directly or indirectly by that other body
corporate.
(2) For
the purposes of this Article, ‘owned directly or indirectly’ by a
body corporate means owned, whether directly or through another body corporate
or other bodies corporate or partly directly and partly through another body
corporate or other bodies corporate.
(3) In
this Article, references to ownership are references to beneficial ownership.
(4) For
the purposes of this Article the amount of ordinary share capital of one body corporate
owned by a second body corporate through another body corporate or other bodies
corporate, or partly directly and partly through another body corporate or
other bodies corporate, shall be determined in accordance with paragraphs (5)
to (9).
(5) Where,
in the case of a number of bodies corporate, the first directly owns ordinary
share capital of the second, and the second directly owns ordinary share
capital of the third, then, for the purposes of this Article, the first shall
be deemed to own ordinary share capital of the third through the second and, if
the third directly owns ordinary share capital of a fourth, the first shall be
deemed to own ordinary share capital of the fourth through the second and
third, and the second shall be deemed to own ordinary share capital of the
fourth through the third, and so on.
(6) In
this Article –
(a) any
number of bodies corporate of which the first directly owns ordinary share
capital of the next and the next directly owns ordinary share capital of the
next but one, and so on, and, if they are more than 3, any 3 or more of them,
are referred to as “a series”;
(b) in
any series –
(i) that body
corporate which owns ordinary share capital of another through the remainder is
referred to as the “first owner”,
(ii) that
other body corporate the ordinary share capital of which is so owned is
referred to as the “last owned body corporate”,
(iii) the
remainder, if one only, is referred to as an “intermediary” and, if
more than one, are referred to as a “chain of intermediaries”;
(c) a
body corporate in a series which directly owns ordinary share capital of
another body corporate in the series is referred to as an “owner”;
(d) any 2
bodies corporate in a series of which one owns ordinary share capital of the
other directly, and not through one or more of the other bodies corporate in
the series, are referred to as being directly related to one another.
(7) Where
every owner in a series owns the whole of the ordinary share capital of the
body corporate to which it is directly related, the first owner shall be deemed
to own through the intermediary or chain of intermediaries the whole of the
ordinary share capital of the last owned body corporate.
(8) Where
one of the owners in a series owns a fraction of the ordinary share capital of
the body corporate to which it is directly related, and every other owner in
the series owns the whole of the ordinary share capital of the body corporate
to which it is directly related, the first owner shall be deemed to own that
fraction of the ordinary share capital of the last owned body corporate through
the intermediary or chain of intermediaries.
(9) Where –
(a) each
of 2 or more of the owners in a series owns a fraction, and every other owner
in the series owns the whole, of the ordinary share capital of the body
corporate to which it is directly related; or
(b) every
owner in a series owns a fraction of the ordinary share capital of the body
corporate to which it is directly related,
the first owner shall be
deemed to own through the intermediary or chain of intermediaries such fraction
of the ordinary share capital of the last owned body corporate as results from
the multiplication of those fractions.
(10) Where
the first owner in any series owns a fraction of the ordinary share capital of
the last owned body corporate in that series through the intermediary or chain
of intermediaries in that series, and also owns another fraction or other
fractions of the ordinary share capital of the last owned body
corporate –
(i) directly,
(ii) through
an intermediary or intermediaries which is not a member or are not members of
that series,
(iii) through
a chain or chains of intermediaries of which one or some or all are not members
of that series, or
(iv) in a case
where the series consists of more than 3 bodies corporate, through an
intermediary or intermediaries which is a member or are members of the series,
or through a chain or chains of intermediaries consisting of some but not all
of the bodies corporate of which the chain of intermediaries in the series
consists,
then, for the purpose of
ascertaining the amount of the ordinary share capital of the last owned body
corporate owned by the first owner, all those fractions shall be aggregated and
the first owner shall be deemed to own the sum of those fractions.
3AC Eligible
investment scheme[15]
(1) For
the purposes of this Law, an eligible investment scheme is any of the
following –
(a) a
scheme or arrangement for the investment of money which has as its object, or
one of its objects, the collective investment of capital acquired by means of
an offer of units for subscription, sale or exchange;
(b) a
scheme which has been established for the principal purpose of –
(i) the
securitization or repackaging of assets involving the issue of securities, or
(ii) such
other capital market transaction or category of capital market transaction as
the Comptroller may from time to time approve.
(2) In
this Article “unit” means any material representation of the rights
of participants with regard to the assets of an eligible investment scheme
whether such rights are represented –
(a) by
securities issued by the eligible investment scheme;
(b) by
the entry of names of participants in a register kept in relation to the
eligible investment scheme; or
(c) by
any other means.
(3) The
Minister may, by Order, amend this Article.
3AD Eligible
participant[16]
(1) In
this Article –
(a) references
to ownership are references to beneficial ownership;
(b) “limited
liability partnership” means a partnership established under the Limited
Liability Partnerships (Jersey) Law 2017, or an equivalent partnership
established under the law of any country or territory outside Jersey;
(c) “general
partner” and “limited partnership” have the same meanings as
in Article 76A(6); and
(d) “scheme”
means an eligible investment scheme.[17]
(2) For
the purposes of this Law, an eligible participant is any of the following
persons resident in Jersey –
(a) a
company issuing units or securities in a scheme;
(b) a
company, such company being a general partner of a limited partnership issuing
units or securities in a scheme;
(c) a
trustee of a unit trust, such trustee issuing units or securities in a scheme;
(d) a
limited liability partnership issuing units or securities in a scheme;
(e) any
person in whom one or more other persons, such other persons being eligible
participants pursuant to any of sub-paragraph (a), (b), (c) or (d), have a
majority economic interest.
(3) For
the purposes of paragraph (2)(e) one or more persons (“first
persons”) have a majority economic interest in another person
(“second person”) if the first person is, or the first persons are
in aggregate, entitled directly or indirectly, to more than 50% of the annual
income, profits or gains howsoever arising or accruing to the second person
(including any income, profits or gains following a winding up, dissolution or
equivalent of the second person).
(4) For
the purposes of paragraph (3) –
(a) in
the case of a person owning shares in a body corporate who, by virtue of such
ownership, is entitled to a percentage of any annual income, profits or gains
distributed by the body corporate, that person shall be deemed to be entitled
to the same percentage of the annual income, profits or gains arising or
accruing to the body corporate;
(b) “entitled
directly or indirectly” means entitled, whether directly or through
another person or persons or partly directly and partly through another person
or persons; and
(c) the
percentage of annual income, profits or gains to which a person is entitled,
through another person or partly directly and partly through another person,
shall be determined in accordance with Article 3AB(5) to (10) as if
references in those paragraphs to –
(i) a body corporate
were references to a person,
(ii) ownership
of shares in a body corporate were references to entitlement, including deemed
entitlement under paragraph (a), to the annual income, profits or gains
arising or accruing to a person.
(5) The
Minister may, by Order, amend this Article.
3AE Distributions[18]
(1) In
this Law, in relation to a company, “distribution” means any of the
following –
(a) a
cash dividend paid by a company (including a dividend paid out of capital);
(b) any
other distribution (whether or not in cash), out of the assets of a company
(whether or not in the winding-up of a company or otherwise following its
dissolution) in respect of shares in the company to the extent that the amount
or value of such distribution exceeds the amount or value of any new
consideration received by the company;
(c) any transfer
of the assets of the company for the repayment of, or otherwise in respect of,
an advance of money to the company by a member of the company or by a person
connected with a member (whether or not the advance is secured);
(d) any
transfer of assets or liabilities to the extent not described in sub-paragraph (a),
(b) or (c) –
(i) by a company to a
member, or to a person connected with a member, or
(ii) by
a member, or by a person connected with a member, to a company,
to the extent that the
amount or value of the benefit received by the member, or person connected with
a member, exceeds the amount or value of any new consideration given by the
member or person connected with a member.
(2) For
the purposes of paragraph (1) –
(a) sub-paragraphs (a)
and (b) do not include any dividends on preferences shares chargeable to tax
under Case III(g) of Schedule D (whether such dividends are charged or
not);
(aa) sub-paragraphs (b)
and (c) do not include any interest of money which is chargeable to tax
under Case I of Schedule D or Case III(a) of Schedule D
(whether such interest is charged or not);
(b) sub-paragraph (c)
does not include a transfer of assets where the following conditions are
satisfied –
(i) the advance,
where made on or after 1st January 2013, is on a commercial basis and remains
on a commercial basis until fully repaid or, if made before that date is on a
commercial basis on that date and remains on a commercial basis until fully
repaid, and
(ii) the
advance is made to a trading company or a company within a trading group and is
repayable by a trading company or a company within a trading group throughout
the period from the date the advance is made until the advance is fully repaid.[19]
(3) For
the purposes of paragraph (1)(b) and (c), a distribution is treated as
made out of the assets of a company if the cost falls on the company.
(4) For
the purposes of paragraph (1)(b) and (d), the amount or value of any
consideration or benefit, other than where such consideration or benefit takes
the form of cash, is determined in accordance with its market value at the time
the distribution is made.
(4A) For
the purposes of paragraph (1)(c) and (d), in the case of a company with a
share capital, “member” includes any person who is deemed to own
shares in the company under Article 82A(1)(a).[20]
(5) For
the purposes of paragraph (1) a distribution is in respect of a share
if –
(a) it is
made to a person as being the holder of the share;
(b) it is
made to a person as having at a particular time been the holder of the share;
or
(c) it is
made in pursuance of a right granted or offer made in respect of a share,
however nothing in
sub-paragraphs (a) to (c) is to be read as limiting the circumstances in
which a distribution may be treated as being made in respect of a share.
(6) In
this Article –
“new
consideration” means consideration not provided (directly or indirectly)
out of the assets of a company and, for this purpose –
(a) any
amount retained by the company by way of capitalizing a distribution; or
(b) the
transfer of shares to a company pursuant to the purchase or redemption by the
company of its own shares,
is not regarded as new
consideration;
“share”
includes stock and any other interest of a member in a company (whether or not
the company is limited by shares).
3AF Regulatory
compliance activity[21]
(1) For the purposes of
this Law regulatory compliance activity is activity listed in paragraph (2)
carried out by an eligible entity.
(2) The activities
are –
(a) the
prevention of financial crime, including combatting money laundering activity
and combatting of the financing of terrorism and the proliferation of weapons
of mass destruction;
(b) the
management of data and information and cyber risks and the protection of
identity and privacy;
(c) other
activities required by the Jersey Financial Services Commission for risk
management, fraud prevention and the good conduct of financial services;
(d) regulatory
reporting and analytics, and compliance management in relation to the
activities in sub-paragraphs (a) to (c).
(3) In this
Article –
“eligible entity”
means an entity that –
(a) is
a financial services business, within the meaning of the Proceeds of Crime (Jersey)
Law 1999, which is registered with
the Jersey Financial Services Commission; and
(b) is
a financial services company charged to tax under Article 123D of this
Law;
“Jersey Financial Services
Commission” means the Jersey
Financial Services Commission established under Article 2 of the Financial Services
Commission (Jersey) Law 1998.
4 Meaning
of, and provisions as to, total income
(1) References
in this Law to the total income of an individual for any year of assessment
shall be construed as references to the total of the sums for which the
individual has been or is liable to be assessed for that year and the sums in
respect of which the individual is liable to allow the deduction of tax, less
so much as are allowed under this Law of the amounts of any interest of money
and of any annuity or other annual payment to be made out of the property or
profits or gains assessed on the individual.[22]
(2) In
calculating under this Law the total income of any person, any income which is
chargeable with income tax by way of deduction at the standard rate in force
for any year, shall be deemed to be income of that year, and any deductions
which are allowable on account of sums payable under deduction of income tax at
the standard rate in force for any year out of the property or profits of that person
shall be allowed as deductions in respect of that year, notwithstanding that
the income or sums, as the case may be, accrued or will accrue in whole or in part
before or after that year.[23]
4A Meaning
of, and provision as to, financial period and accounting date[24]
(1) The
financial period of a company or of a trade, profession or vocation is the
period for which its accounts are made up.
(2) Subject
to any power in this Law for the Comptroller to determine an accounting date,
the accounting date for a company or a trade, profession or vocation, is the
day on which its financial period ends.
(3) A
financial period shall not exceed 18 months.
PART 3[25]
5 [26]
6 [27]
6A [28]
7 [29]
8 [30]
9 [31]
10 [32]
11 [33]
12 [34]
13 [35]
13A [36]
13B [37]
14 [38]
PART 4
RETURNS
A15 Interpretation of
Part 4[39]
(1) In
this Part, unless the context otherwise requires –
“building
contractor” means, subject to paragraphs (4) and (5), a person carrying
on any business in the building or construction industry;
“earnings” means
all salaries, fees, wages, perquisites or profits or gains arising from an
office or employment;
“effective rate”
means the rate applicable in a person’s case in accordance with Article 41B(2);
“employee”
includes –
(a) a
director of a company;
(b) a
person engaged in the management of a company; and
(c) any
office holder, whether or not of a company,
and any reference to a
person being employed or commencing employment shall be construed accordingly;
“exemption
certificate” means a certificate issued under Article 41F.
(2) For
the purposes of this Part, a person is a sub-contractor of a building
contractor if, under a contract for building or construction work –
(a) the
person is under a duty to the building contractor to carry out building or
construction work or to furnish his or her own labour (that is to say, in the
case of a company, the labour of employees or officers of the company) or the
labour of others in the carrying out of the work or to arrange for the labour
of others to be furnished in the carrying out of the work; or
(b) the
person is answerable to the building contractor for the carrying out of the
work by others, whether under a contract or under other arrangements made or to
be made by the person.
(3) In
determining, for the purposes of paragraph (2), whether a person is
carrying out building or construction work or furnishing labour for another
person, the supply by or on behalf of the first-mentioned person to the other
person of any materials which are incidental to the work shall be disregarded.
(4) Subject
to paragraph (5), where a building contractor is not resident in Jersey,
any officer (by whatever name called) of the building contractor or other person
who is –
(a) engaged
in the management of the building contractor; and
(b) resident
in Jersey,
shall be deemed to be the
building contractor.
(5) Where
a building contractor is a body of persons, the secretary of the body or other
officer (by whatever name called) performing the duties of secretary shall, if
resident in Jersey, be deemed to be the building contractor.
(6) Subject
to paragraph (7), where an employer is not resident in Jersey, any officer
(by whatever name called) of the employer or other person who is –
(a) engaged
in the management of the employer; and
(b) resident
in the Island,
shall be deemed to be the
employer.
(7) Where
an employer is a body of persons, the secretary of the body or other officer
(by whatever name called) performing the duties of secretary shall, if resident
in Jersey, be deemed to be the employer.
15 Comptroller
to ascertain income liable to tax
(1) The
Comptroller shall annually take such steps as may be necessary for ascertaining
the amount of income in respect of which tax is to be levied in accordance with
and subject to the provisions of this Law.
(2) Without
prejudice to paragraph (1), the Comptroller shall annually take such steps
as may be necessary for ascertaining the amount of income in respect of which
tax is chargeable at a rate of 0%.[40]
16 Delivery
of returns in pursuance of notices[41]
(1) Every
person required so to do by any general notice or by a notice served on him or
her by the Comptroller, shall, within the time limited by the notice, prepare
and deliver to the Comptroller, a true, complete and correct return containing
such information as the Comptroller requires, including, but not limited to,
any or all of the following –
(a) the
amount of the profits or gains arising to the person from each and every source
(whether or not tax under this Law is deductible therefrom) chargeable
according to the respective Schedules, calculated for the period specified in
the notice and according to the provisions of this Law, showing separately such
amounts as are allowed by way of deduction against the profits or gains;
(b) an
indication of each kind of source which is owned by the person at any time
during the period specified in the notice, whether or not any profits or gains
arise from a source in the period specified in the notice which are chargeable
as described in sub-paragraph (a);
(c) a
description of each and every source, or of each source, or each source of a
kind, specified in the notice, which is owned by the person at any time during
the period specified in the notice, whether or not any profits or gains arise
from the source in that period which are chargeable as described in sub-paragraph (a);
(d) a
description of each and every source, or of each source, or each source of a
kind specified in the notice, which is acquired or disposed of by the person
during the period specified in the notice, and the date of acquisition or
disposal.
(e) the
amount of any shareholder loan made to the person or to a member of the
person’s family or household;
(f) the
amount of any repayment or reimbursement by the person of a shareholder loan.[42]
(2) The
said return shall include a declaration by the person preparing and delivering
it that, to the best of his or her knowledge and belief, the return contains
all of the particulars required by the notice and is true, complete and
correct.[43]
(3) Every
such return shall be made exclusive of any interest of money or other annual
payment arising out of the property of any other person charged in respect
thereof.[44]
(4) Every
person on whom a particular notice has been served by the Comptroller requiring
the person to deliver a return of any profits, gains or income in respect of
which he or she may be chargeable under Schedule A, by virtue of Article 51(1)(b)
or (c), or Schedule D, or the source of such profits, gains or income, shall
deliver a return in the form required by the notice whether or not the person
is so chargeable.[45]
(4A) [46]
(5) In
this Article a reference to ownership, acquisition or disposal of a source
shall, in the case of an individual, where the source is shares, be construed
in accordance with Articles 82A and 82AA.[47]
(6) [48]
(7) [49]
(8) [50]
(9) The
Comptroller must publish a general notice in such a manner as may be considered
appropriate.[51]
16A Furnishing of
documents and other information in pursuance of notices[52]
The Comptroller may serve
notice on any person requiring the person to furnish, within such a period and
at such a place as may be specified in the notice, such documents and
information as the Comptroller may reasonably require for fulfilling the
Comptroller’s purposes under Article 15.
16B [53]
17 Delivery
of returns by persons acting for others[54]
(1) Every
person acting in any character on behalf of any incapacitated person or persons
absent from or not resident in Jersey who, by reason of such incapacity,
absence or non-residence, cannot be personally charged under this Law, shall,
when required so to do by any general notice, or by a notice served on the
first person by the Comptroller, within the time limited by the notice, deliver
such a return as is described in Article 16 of the profits or gains in
respect of which the tax is to be charged on the first person on account of
that other person, together with the declaration referred to in that Article.[55]
(2) Where
2 or more such persons are liable to be charged for the same person, one return
only shall be required to be delivered, and such return may be made by them
jointly or by any one or more of them[56].
17A Penalty for late
delivery of return[57]
(1) Where
a person required to deliver to the Comptroller a true, complete and correct
return does not do so by the specified time, the person is liable to a penalty
of –
(a) £100
in the case of a return under Article 20 or 20A; or
(b) £300
in any other case.[58]
(2) In
this Article “specified time” means –
(a) in
relation to a requirement to deliver a return in respect of a year of
assessment –
(i) in the case of a
return in respect of a company’s own charge to tax, midnight on 30th
November in the year following the year of assessment,
(ia) in
the case of a return in respect of an LLC under Article 135C, midnight on 30th November
in the year following the year of assessment,
(ii) in
the case of a return delivered electronically other than a return referred to
in clause (i) or (ia), midnight on 31st July in the year following
the year of assessment,
(iii) in
the case of any other return not referred to in clause (i), (ia) or (ii),
midnight on 31st May in the year following the year of assessment;
(b) in
the case of a return under Article 20(1) or 20A(1), midnight on the 15th
day after the end of the month in respect of which the return is required to be
delivered;
(c) in
the case of a return under Article 20C, midnight on 15th January in
the year following the year in which or in respect of which the benefit was
provided;
(d) in
the case of a return under Article 20(1A) or 20A(1A), midnight on the 15th
day after the end of each year;
(e) in
the case of a return under Article 20E, midnight on 30th November in the
year following the year of assessment.[59]
(2A) Where
a person required to deliver to the Comptroller a true, complete and correct
return does not do so by midnight on the date that is 3 months after the
specified time, the person is liable to a penalty of an amount specified in
paragraph (2B) for each month that the return remains undelivered up to a
maximum of 9 months.[60]
(2B) Those
amounts are –
(a) in
the case of a return under Article 16 or 17 by a person other than a body
corporate or LLC, £50 per month;
(b) in
the case of a return under Article 20, 20A, 20B, 20C, 20D, 20E or 135C or
by a body corporate or LLC under Article 16, £100 per month.[61]
(3) A
person who is required to deliver a return under Article 16 or 17 is
not liable to a penalty under this Article if –
(a) the
person is not a body corporate or LLC; and
(b) the
Comptroller is satisfied that the person is not liable to pay any tax for the
period to which the return relates.[62]
(4) Where
a return under Article 16 or 17 is delivered after the specified time
and the Comptroller is satisfied that, for the year of assessment to which the
return relates, a person other than a body corporate or LLC is liable to pay
tax of less than £300 –
(a) the
person’s liability under paragraph (1) must be abated to an amount
equal to the tax that the person is liable to pay for that year of assessment;
and
(b) the
Comptroller must repay to the person any amount paid by the person in discharge
of the person’s liability under paragraph (1) which exceeds the
abated amount.[63]
(4A) Paragraph (4B)
applies if –
(a) a
person, other than a body corporate or LLC, is liable to pay one or more
penalties under paragraph (2A) in respect of a return under
Article 16 or 17; and
(b) the
Comptroller is satisfied that the person is liable to pay tax of less
than £50 for the period to which the return relates.[64]
(4B) If
this paragraph applies, –
(a) each
penalty that the person is liable to pay under paragraph (2A) is abated to
an amount equal to the tax the person is liable to pay for the period to which
the return relates; and
(b) the
Comptroller must repay to the person any amount paid to discharge the
person’s liability under paragraph (2A) that exceeds the amount of
the penalty after the abatement.[65]
(5) Where a person is liable to a penalty under paragraph (1)
or (2A), the Comptroller may serve a written notice on the person –
(a) specifying
the amount of the penalty; and
(b) setting
out the person’s entitlement to apply to the Comptroller under paragraph (6).[66]
(5A) Subject to paragraph (6), a
person on whom a notice is served under paragraph (5) must pay the amount
of the penalty within 40 days after the issue of the notice.[67]
(6) A
person may, within 40 days of the issue of a notice under paragraph (5),
apply to the Comptroller in writing for a discharge or waiver under paragraph (7).
(7) The
Comptroller may –
(a) discharge
a person’s liability under paragraph (1) or (2A) if satisfied that a
return delivered by the person to the Comptroller, by the specified time, is
true, complete and correct; or
(b) waive
a person’s liability under paragraph (1) or (2A) if satisfied that
death, serious illness or other grave and exceptional circumstance prevented
the person delivering the return to the Comptroller by the specified time.[68]
(8) Where
a person applies under paragraph (6), the Comptroller shall give notice to
the person of whether or not he or she has discharged or waived the person’s
liability.
(9) A
person aggrieved by the Comptroller’s refusal to discharge or waive
liability under paragraph (7) may appeal to the Commissioners, on giving
notice to the Comptroller within 40 days of the issue of the notice of refusal.
(10) Part 6
applies, with the necessary modifications, to an appeal under
paragraph (9) as if it were an appeal against an assessment.[69]
(11) Subject
to paragraph (12) –
(a) this
Law shall apply to the collection and recovery of the penalty as if it were an
amount of tax charged and payable under this Law; and
(b) the
penalty shall not be deductible for any purposes of this Law.
(12) The
penalty shall be disregarded when determining the amount of a late payment
surcharge under Article 41I.[70]
(12A) In
this Article, “return” means a return required under Article 16,
17, 20, 20A, 20B, 20C, 20D, 20E or 135C, and includes a notification under
Article 20E(1).[71]
(13) [72]
17B [73]
18 Delivery
of lists by persons in receipt of taxable income belonging to others
(1) Every
person who, in whatever capacity, is in receipt of any money or value, or of
any profits or gains arising from any of the sources mentioned in this Law, of
or belonging to any other person who is chargeable in respect thereof, or who
would be so chargeable if that other person were resident in Jersey and not an
incapacitated person, shall, whenever required so to do by a notice served on
the first person by the Comptroller, prepare and deliver, within the time
limited by the notice, a list containing –
(a) a
statement of all such money, value, profits or gains;
(b) a
description of each and every source of such money, value, profits or gains;
(c) the
name and address of every person who owns each source and, for each person,
whether the person is –
(i) of full age,
(ii) resident
in Jersey,
(iii) incapacitated,
and
(iv) married
or in a civil partnership.[74]
(2) If
any person described in paragraph (1) is acting jointly with any other
person, he or she shall, in like manner, deliver a list of the names and addresses
of all persons joined with him or her at the time of delivery of the list
mentioned in that paragraph.
(3) The
said list shall include a declaration by the person preparing and delivering it
that –
(a) the
list contains all of the information required by the notice pursuant to
paragraph (1)(c) that is within his or her knowledge; and
(b) the
information contained in the list is, to the best of his or her knowledge and
belief, true, complete and correct.[75]
(4) For
the purposes of this Article, any reference to ownership of a source includes,
in the case of an individual, ownership of shares in accordance with Article 82A.[76]
19 Lists
of lodgers and inmates
Every person, when
required so to do by any general notice or by a notice served on the person by
the Comptroller, shall, within the time limited by the notice, prepare and
deliver to the Comptroller a list containing to the best of his or her belief
the name of every lodger or inmate resident in his or her dwelling-house who
has resided in Jersey for 6 months.[77]
19A Duty of employer
or building contractor to register[78]
(1) A
person who becomes an employer shall, no later than 7 days after so
becoming, notify the Comptroller, in writing, of the date the person became an
employer.[79]
(2) A
building contractor shall, no later than 7 days after first entering into
a contract with a sub-contractor, notify the Comptroller, in writing, of the
date the building contractor first entered into such a contract.[80]
(3) A
person who, without reasonable excuse, fails to comply with paragraph (1)
or (2) shall be guilty of an offence and liable to a fine of level 3 on
the standard scale.[81]
(4) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the employer by
virtue of Article A15(6) or (7), the body corporate, as well as that
person, shall be liable to a penalty for failure to comply with paragraph (1).
(5) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the building
contractor, by virtue of Article A15(4) or (5), the body corporate, as
well as that person, shall be liable to a penalty for failure to comply with
paragraph (2) of this Article.
20 Returns of information regarding employees[82]
(1) An
employer shall deliver to the Comptroller, no later than 15 days after the
end of each month, a true, complete and correct return –
(a) containing
such information as the Comptroller may require, including all or any of the
specified information;
(b) for
the month in question; and
(c) in
respect of each person employed by the employer at any time during that month.[83]
(1A) Provided
that the conditions in paragraph (1B) are met, in the case of an employer
which is a company, the employer may deliver to the Comptroller a return
complying with sub-paragraphs (a) to (c) of paragraph (1) by no later
than midnight on the 15th day after the end of each year, instead of by the
time limit stated in that paragraph.[84]
(1B) The
conditions mentioned in paragraph (1A) are that –
(a) an
application is made in writing to the Comptroller for paragraph (1A) to
apply;
(b) at
least 25% of the ordinary share capital of the company is owned by each
employee in respect of whom the return is made; and
(c) the
Comptroller agrees to the application.[85]
(1C) Without
prejudice to paragraph (1), the Comptroller may, for the purpose of
establishing whether or not an employer has provided a true, complete and
correct return under that paragraph, require, by a notice served on the
employer, the provision of such further information as the Comptroller may
consider necessary, including all or any of the specified information, in
respect of any person employed by the employer at any time during a period or
year of assessment specified in the notice.[86]
(2) The
specified information in respect of each person employed by the employer at any
time during the period or year specified is –
(a) the person’s full name;
(b)
(ba)
(c) the reference number (if any) assigned to
the person by the Comptroller;
(d) the reference number (if any) assigned to
the employer by the Comptroller;
(e) the reference number assigned to the person
for the purposes of the Social Security (Jersey)
Law 1974;
(f)
(g) the earnings paid to the person in respect
of the employment;
(h)
(i) the amounts deducted from the earnings
paid to the person in respect of superannuation;
(j) the amounts required, pursuant to
Article 41B, to
be deducted from the earnings paid to the person and the effective rate applied
to each deduction;
(k) where the employment commenced in the period
or year of assessment in question, the date of such commencement; and
(l) where the employment ceased in the
period or year of assessment, the date of such cessation.[87]
(3) [88]
(4) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the employer
under Article A15(6) or (7), the body corporate as well as that person shall
be liable to a penalty for any failure to deliver a return.[89]
20A Returns of
information regarding building sub-contractors[90]
(1) A
building contractor shall deliver to the Comptroller, no later than
15 days after the end of each month, a true, complete and correct return containing
such information as the Comptroller may require, including all or any of the
specified information, for the period in question in respect of each person who
is a sub-contractor of the building contractor at any time during that period.[91]
(1A) Without
prejudice to paragraph (1), the Comptroller may, for the purpose of
establishing whether or not a building contractor has provided a true, complete
and correct return under that paragraph, require, by a notice served on the
building contractor, the provision of such further information as the
Comptroller may consider necessary, including all or any of the specified
information, in respect of any person who is a sub‑contractor of the
building contractor at any time during a period or year of assessment specified
in the notice.[92]
(2) The
specified information in respect of each person who is a sub-contractor of the
building contractor at any time during the period or year specified
is –
(a) the person’s full name;
(b)
(ba)
(c) the reference number (if any) assigned to
the person by the Comptroller;
(d) the reference number (if any) assigned to
the building contractor by the Comptroller;
(e) the reference number assigned to the person
for the purposes of the Social Security (Jersey)
Law 1974;
(f) the payments made to the person, or to
a person he or she has nominated for the purpose, under or in relation to the
contract and the date such payments are made;
(g) the amounts required, pursuant to Article 41E,
to be deducted from the payments described in sub-paragraph (f) in
respect of tax;
(h) the making of any payment without deduction
of tax pursuant to Article 41E, by virtue of paragraph (2) of that
Article;
(i) where the contract commenced in the
period or year of assessment in question, the date of such commencement; and
(j) where the contract ceased in the
period or year of assessment, the date of such cessation.[93]
(3) [94]
(4) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the building
contractor under Article A15(4) or (5), the body corporate as well as that
person shall be liable to a penalty for any failure to deliver a return.[95]
20B Returns of
information by companies[96]
(1) A
company regarded as resident in Jersey or which has a permanent establishment
in Jersey, shall, when required to do so by a general notice or by a notice
served on the company by the Comptroller, and within the time limited by the
notice, prepare and deliver to the Comptroller a true, complete and correct
return containing, as required by the notice, such information as the
Comptroller may require, including but not limited to all or any of the
specified information described in paragraphs (3) to (3C) for the
period or year of assessment specified in the notice.[97]
(2) The
requirement in paragraph (1) shall not apply to a collective investment
fund.[98]
(3) The
specified information is, in respect of each person who, at any time during the
period or year of assessment specified in the notice is registered as a
shareholder in the company –
(a) the
shareholder’s name and address;
(b) the
number and class of shares held by the shareholder and the number of days in
the period or year of assessment specified in the notice for which they were
held;
(c) distributions
made to the shareholder specifying, in respect of each
distribution –
(i) the value of the
distribution,
(ii) the
date the distribution is made, and
(iii) where
the distribution is subject to Article 89, the further information
required by that Article;
(d) the
amount of any shareholder loan made or paid by or derived from the company to a
borrower or to a member of the borrower’s family or household during the
period, determined in accordance with Article 81O;
(e) the
amount repaid or reimbursed by a borrower in respect of any shareholder loan
made or paid by or derived from the company in an earlier period.
(f) [99]
(3A) The
specified information is, in respect of any person to whom paragraph (3)
does not apply and who receives a distribution in the period or year of
assessment specified in the notice –
(a) the
value of the distribution;
(b) the
date the distribution is made; and
(c) where
the distribution is subject to Article 89, the further information
required by that Article.[100]
(3B) The
specified information is, in respect of a company resident in Jersey, the
financial statements showing the profits or gains of the company arising or
accruing from any kind of property, trading activity, profession, employment,
vocation or office, whether carried on in Jersey or elsewhere, or interest of
money and other annual profits or gains.[101]
(3C) The
specified information is, in respect of a non-resident company having a
permanent establishment in Jersey, the financial statements showing the profits
or gains of that permanent establishment arising or accruing from any kind of
property, trading activity, profession, employment, vocation or office, whether
carried on in Jersey or elsewhere, or interest of money and other annual
profits or gains.[102]
(3D) For
the avoidance of doubt, the requirement in paragraph (1) applies in
respect of, among other entities, a company to which Article 123C applies,
such company being charged to tax at the rate of 0% under Article 123C(2).[103]
(4) [104]
(5) [105]
(6) [106]
(7) [107]
(8) In
this Article –
“borrower” has
the same meaning as in Article 81O.[108]
20C Returns of
information as to benefits in kind[109]
(1) An
employer shall deliver to the Comptroller, no later than midnight on 15th January
in the year following the year in which or in respect of which the benefit in
question was provided, a true, complete and correct return containing such
information as the Comptroller may require, including all or any of the
specified information, for the year of assessment in question in respect of
each person employed by the employer at any time during that year.[110]
(2) Without
prejudice to paragraph (1), the Comptroller may, for the purpose of
establishing whether or not an employer has provided a true, complete and
correct return under that paragraph, require, by a notice served on the
employer, the provision of such further information as the Comptroller may
consider necessary, including all or any of the specified information, in
respect of any person employed by the employer at any time during a period or
year of assessment specified in the notice.
(3) The
specified information mentioned in paragraph (1) is –
(a) the
benefits provided to the person, whether by the employer or by a person
connected with the employer, other than any benefit left out of account under
Article 65B(2)(b); and
(b) the
amount attributable to each benefit and determined in accordance with Article 65B.
(4) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the employer
under Article A15(6) or (7), the body corporate as well as that person shall
be liable to a penalty for any failure to deliver a return under this Article.
20D Returns of
information by foundations[111]
(1) A
foundation to which Article 123CA applies shall, when required to do so by
a general notice or by a notice served on the foundation by the Comptroller,
and within the time limited by the notice, deliver to the Comptroller a true,
complete and correct return containing, as required by the notice, such
information as the Comptroller may require, including but not limited to the
specified information described in paragraph (2), for the period or year
of assessment specified in the notice.
(2) The
specified information is the financial statements showing the profits or gains
of that foundation arising or accruing from any kind of property, trading
activity, profession, employment, vocation or office, whether carried on in
Jersey or elsewhere, or interest of money and other annual profits or gains.
20E Returns of
information by partnerships[112]
(1) The
responsible partner of a partnership must notify the Comptroller whether the
partnership is a relevant partnership by midnight on 30th November in the year
following the year of assessment.
(2) The
responsible partner of a relevant partnership must prepare and deliver to the
Comptroller a true, complete and correct return containing such information as
the Comptroller may, by notice, reasonably require.
(3) For
the purposes of this Article, a “relevant partnership” is a
partnership that has a source of income in the year of assessment which would,
if amounting to profit or gain, give rise to any partner’s liability to
tax in Jersey.
(4) A
collective investment vehicle is not a relevant partnership for the purposes of
this Article.
(5) For
the purposes of this Article the “responsible partner” is a partner
determined by the Comptroller to be the responsible partner.[113]
(6) When
determining who the responsible partner is the Comptroller –
(a) must
not determine that a limited partner is the responsible partner, unless that
partner is also a general partner, in which case the partner acts as a general
partner for the purpose of being the responsible partner; and
(b) must
have regard to a nomination (if any) made by the partnership.[114]
(7) If
the Comptroller determines that the responsible partner is a partner other than
one nominated by the partnership the Comptroller must notify the partnership
who the responsible partner is.
(8) For
the purposes of this Article “collective investment vehicle”
means –
(a) a
collective investment fund within the meaning of Article 3 of the Collective
Investment Funds (Jersey) Law 1988;
(b) a
fund that would be a collective investment fund within the meaning of Article 3
of the Collective
Investment Funds (Jersey) Law 1988 except that the offer of units for
subscription, sale or exchange is not an offer to the public; or
(c) a
fund that is –
(i) not created for
the purposes of securitisation or the repackaging of assets, and
(ii) would
be a collective investment fund except that it is prescribed not to be
collective investment fund in an Order made under Article 3(7) of the Collective
Investment Funds (Jersey) Law 1988.
21 Form
and manner of returns[115]
(1) In
this Article –
“recipient”
means a person required to deliver a return to the Comptroller;
“return” means any of the following –
(a) a return
under Article 16;
(b) a return
under Article 17;
(c) a
list under Article 18;
(d) a
list under Article 19;
(e) a
return under Article 20;
(f) a
return under Article 20A;
(g) a
return under Article 20B;
(h) a
return under Article 20C;
(i) a
return under Article 20D;
(ia) a return
under Article 135C;
(j) a
return or a notification under Article 20E;
(k) a
notification under Article 123AA.[116]
(2) A
recipient shall deliver a return to the Comptroller in such form and by such
means as may be required by the Comptroller in a notice served on the recipient
or by general notice.
(3) The
Comptroller may, by general notice or by a notice served on a recipient,
require the recipient or such class or description of recipients as may be
specified in a general notice, to deliver such description of return as is
specified in the notice to the Comptroller in such electronic form and by such
electronic means as the Comptroller may specify in the notice.
(4) A
notice given under this Article may allow the recipient to choose between such
alternative forms of a return and means of delivering a return as are specified
in the notice.
(5) In
this Article, references to the form of a return may include requirements
relating to a signature for or on behalf of the recipient, including an
electronic signature.
21A Returns
equivalent to Common Reporting Standard returns[117]
(1) The
States may by Regulations make such provision as they think necessary or
expedient to require reporting financial institutions which are subject to the
requirements of the Taxation (Implementation)
(International Tax Compliance) (Common Reporting Standard) (Jersey) Regulations
2015 (“2015 Regulations”) to be subject to equivalent
requirements in respect of the accounts of any person, company or entity
resident in Jersey or regarded as resident in Jersey. [118]
(2) Regulations
under paragraph (1) may contain –
(a) such
incidental, supplementary and consequential provisions as appear to the States
to be necessary or expedient for the purposes of the Regulations; and
(b) offences
and penalties for breach of the Regulations that are equivalent to those
contained in the 2015 Regulations.
(3) In
this Article “reporting financial institution” has the same meaning
as it does in the 2015 Regulations.
21B Offences[119]
(1) It
is an offence for a person to fail, without reasonable excuse, to comply with a
requirement imposed by, or by a notice under, any of the following provisions
of this Part –
(a) Article 16
(returns);
(b) Article 16A
(documents and other information in support of a return);
(c) Article 17
(returns by persons acting for others);
(d) Article 18
(lists by persons in receipt of taxable income belonging to others);
(e) Article 19
(lists of lodgers etc);
(f) Article 20
(returns: employees);
(g) Article 20A
(returns: building sub-contractors);
(h) Article 20B
(returns: companies);
(i) Article 20C
(returns: employees’ benefits in kind);
(j) Article 20D
(returns: foundations);
(k) Article
20E (returns: partnerships);
(l) Article
135C (secretary of LLC to provide returns). [120]
(2) A
person who commits an offence under paragraph (1) is liable to a fine.
21C Offences by
bodies corporate and others[121]
(1) Paragraph (2)
applies if –
(a) an
offence under Article 21B is committed by –
(i) a limited
liability partnership,
(ii) a
separate limited partnership, or
(iii) a
body corporate; and
(b) the
offence is proved to have been committed with the consent or connivance of, or
to be attributable to any neglect on the part of, a relevant officer of the
body corporate or partnership.
(2) The
relevant officer also commits an offence and is liable in the same manner as
the body corporate or partnership to the penalty provided for the offence.
(3) In
this Article, “relevant officer” means –
(a) in
relation to a limited liability partnership, a partner;
(b) in
relation to a separate limited partnership or an incorporated limited
partnership –
(i) a general
partner, or
(ii) a
limited partner who is participating in the management of a partnership;
(c) in
relation to a foundation, the qualified member of the council of the foundation
(within the meaning of the Foundations
(Jersey) Law 2009);
(d) in
relation to a body corporate, other than an incorporated limited partnership or
a foundation –
(i) a director,
manager, secretary or other similar officer of the body corporate, or
(ii) if
the affairs of the body corporate are managed by its members, a member who is
acting in connection with the member’s functions of management; and
(e) a
person purporting to act in any capacity mentioned in sub-paragraphs (a)
to (d) in relation to the body corporate or partnership.
PART 5
ASSESSMENT
22 Assessment
of income
(1) The
Comptroller shall assess the income to be charged to tax under Schedules A and
D in accordance with the provisions of this Law.
(3) In
the case of assessment of rentes or, by virtue of Article 51(1)(b) or (c),
of profits or gains under Schedule A and assessments under Schedule D, the
Comptroller shall prepare lists containing –
(a) the
full and just assessment of the profits or gains; and
(b) the
names of the persons to be charged with tax in respect of the same.[122]
23 Provision
for making assessments where no returns are received
(1) If
the Comptroller does not receive from a person a return that the person is
required to provide under this Law, the Comptroller may, to the best of the
Comptroller’s information and judgement, make an assessment on that
person of the amount at which the person ought to be charged under this Law
and, if such an assessment is made, include it in the appropriate list.[123]
(1A) The
Comptroller may, at any time, amend an assessment made under paragraph (1)
or make an additional assessment under that paragraph.[124]
(2) No
appeal under Part 6 lies against an assessment under this Article, but a
person on whom the assessment is made may nevertheless, no later than 12 months
after the date of the assessment, deliver a return containing such information
as the Comptroller requires or as is required by a relevant provision of this
Law, and if the person does so, the Comptroller’s assessment under this
Article is set aside and the Comptroller must make a further assessment on the
basis of that return.[125]
24 Comptroller
may amend assessments[126]
(1) The Comptroller may,
within the time limits specified in this Article, amend an assessment or make
an additional assessment to ensure that the correct amount of tax is charged on
a person.
(2) The Comptroller must
not amend an assessment or make an additional assessment later than
2 years after the later of the filing due date and the date the return was
delivered unless –
(a) the
amendment or additional assessment is required due to a careless action by the
person, in which case the Comptroller must not amend the assessment later than
4 years after the later of the filing due date and the date the return was
delivered; or
(b) the
amendment or additional assessment is required due to a deliberate action or
inaction by the person, in which case the Comptroller may amend the assessment
at any time.
(3) An amended or
additional assessment may be appealed in the same way as a first assessment.
(4) In this Article,
“filing due date” has the meaning given to “specified
time” by Article 17A(2).
25 Notices
of assessment[127]
(1) The
Comptroller shall serve, on each person assessed, notice in writing of an
assessment under Schedules A and D.[128]
(2) The
notice of assessment shall include –
(a) the
amount of the assessment;
(b) the
latest date on which an appeal against the assessment may be made; and
(c) the
date by which, failing the making of an appeal, the amount is required to be
paid.[129]
26 [130]
PART 6
APPEALS AND RELIEF FOR
MISTAKE
27 Right
of appeal[131]
(1) A
person aggrieved by any assessment on him or her made by the Comptroller in any
first or additional assessment, shall be entitled to appeal to the
Commissioners, on giving notice in writing to the Comptroller, within 40 days
of the notice of such assessment:
Provided that if it is
shown to the satisfaction of the Comptroller that, owing to absence, sickness
or other reasonable cause, any person has been prevented from appealing within
that time, the Comptroller may admit the appeal if notice of it is given to the
Comptroller without unreasonable delay.[132]
(2) If
an appellant fails to attend or to be represented at a hearing of which the
appellant has been duly notified, the Commissioners may –
(a) unless
they are satisfied that there is good and sufficient reason for such absence,
hear and determine the proceedings in the absence of the appellant or the
appellant’s representative; or
(b) postpone
or adjourn the hearing:
Provided that, if any
representations in writing or otherwise have been submitted by or on behalf of
the appellant in response to the notice of the hearing, the Commissioners shall
consider such representations and shall give the Comptroller an opportunity to
be heard in regard to those representations before they decide to hear and
determine any proceedings in the absence of the appellant or the
appellant’s representative.[133]
(3) If
the Comptroller wishes to be heard, he or she may appear in person or be
represented by another officer.[134]
(4) If
a person has given notice in writing to the Comptroller in accordance with
paragraph (1) and has not received notice of the hearing within 90 days
of giving that notice, the person may give notice directly to the Commissioners,
who may admit the appeal.[135]
28 Other
provisions as to appeals
(1) In
the case of an appeal against any assessment, the appellant shall, in the
notice of appeal, specify the grounds of the appeal:
Provided that, if on the
hearing of the appeal the appellant desires to go into any ground of appeal
which was not specified in the notice and the omission of that ground from the
notice was, in the opinion of the Commissioners, not wilful or unreasonable,
the Commissioners shall not, by reason of anything in this paragraph, be
precluded from allowing the appellant to go into that ground or taking it into
their consideration.
(2) In
the case of an appeal against any assessment the appellant shall, in the notice
of appeal, enter the appellant’s estimate of the tax that will become
payable on the determination of the appeal, appending an explanation in the
event that the appellant’s estimate is that no tax will become payable or
a greater amount of tax will become payable than the amount demanded in the
assessment.[136]
(3) Notwithstanding
that an appeal against an assessment is pending –
(a) the
tax estimated to be due in accordance with paragraph (2) shall be
collected and paid in all respects as if it were tax charged by an assessment
of which no appeal was pending; and
(b) on
determination of the appeal, any balance of tax chargeable in accordance with
the determination shall be paid, or any tax overpaid shall be repaid, as the
case may require.[137]
(4) [138]
(5) [139]
29 Procedure
on appeals
(1) The
Commissioners shall cause not less than 21 days’ notice of the day for
hearing appeals to be given to every appellant and shall meet together for the
hearing of appeals from time to time, with or without adjournment, until all
appeals have been determined.[140]
(2) An
officer shall attend every appeal and may be present for all of the hearing and
the determination.[141]
(3) On
an appeal the following persons shall have right of audience, either viva voce
or in writing, before the Commissioners –
(a) the
Law Officers of the Crown or an advocate or solicitor of the Royal Court;
(b) a
member of an incorporated society of accountants; and
(c) any
other person, except that if in a particular case the Commissioners are
satisfied that there are good and sufficient reasons for so doing, they may
refuse to permit a particular person to represent the appellant.[142]
(4) If,
on any appeal, it appears to the majority of the Commissioners present at the
hearing, by examination of the appellant on oath, or by other lawful evidence,
that the appellant is overcharged by any assessment, they shall direct the
assessment to be abated or reduced accordingly, but otherwise every such
assessment shall stand good.
(5) If,
on an appeal, it appears to the Commissioners that the person assessed ought to
be charged in an amount exceeding the amount contained in the assessment, they
shall direct that the person be charged with the excess.
(6) At
the beginning of the hearing of any proceedings the Commissioners shall –
(a) explain
the order of proceedings which they propose to adopt unless they consider it
unnecessary to do so;
(b) conduct
the hearing in the manner they consider most suitable for the clarification and
determination of the issues before them and, so far as it appears appropriate,
avoid formality in procedure; and
(c) determine
in which order the parties to the proceedings shall be heard.[143]
(7) The
appellant and the officer attending the appeal shall be entitled –
(a) to
give evidence;
(b) to
call witnesses;
(c) to
question any witnesses including other parties who give evidence; and
(d) to
address the Commissioners both on the evidence and generally on the subject
matter of the proceedings.[144]
29A Power of the
Commissioners to review final determination[145]
(1) If,
on application by the appellant or the Comptroller, or of their own motion, the
Commissioners are satisfied that –
(a) their
final determination was wrongly made as a result of a clerical or
administrative error on their part or on the part of the appellant or the
Comptroller;
(b) an
appellant, who was entitled to be heard at a hearing but failed to appear or to
be represented, had good and sufficient reason for the appellant’s
failure; or
(c) accounts
or other information relevant to an appellant’s case had been sent to the
Commissioners or the Comptroller prior to the hearing of the proceedings but
had not been received by the Commissioners until after the hearing,
the Commissioners may
review and set aside or vary the final determination.
(2) The
appellant and the Comptroller shall have an opportunity to be heard on a
review, or in relation to any application or proposal for review.
(2A) If
the Comptroller wishes to be heard, he or she may appear in person or be
represented by another officer.[146]
(3) An
application for a review by the appellant or the Comptroller shall be made to
the Commissioners, in writing, stating the grounds in full, within 21 days of
the date of the final determination or by any later time as the Commissioners
may allow.
31 Power
of Commissioners on appeal to issue precepts
(1) If
the Commissioners have received notice of appeal against an assessment made by
the Comptroller, they may issue a precept to the appellant ordering the
appellant to deliver to them, within the time limited by the precept, a
schedule containing such particulars, for their information, as they may demand
respecting –
(a) the
property of the appellant;
(b) the
trade, profession, employment or vocation carried on or exercised by the
appellant;
(c) the
amount of the appellant’s profits or gains, distinguishing the particular
amounts derived from each separate source; or
(d) any
deductions made in arriving at the appellant’s profits or gains,
and the Commissioners are
empowered to demand the said particulars at their discretion whenever it
appears to them necessary to do so for the purposes of this Law.
(2) The
Commissioners may issue further precepts whenever they consider it necessary
for the purposes aforesaid, until complete particulars have been furnished to
their satisfaction.
(3) The
Comptroller may, at all reasonable times, inspect and take copies of or
extracts from any schedule.
32 Objection
by Comptroller to schedules
(1) The
Comptroller may, within a reasonable time to be allowed by the Commissioners,
object to any schedule or any part thereof, and in that case shall state, in
writing, the cause of the Comptroller’s objection, according to the best
of the Comptroller’s knowledge or information.
(2) In
every such case, the Comptroller shall give notice in writing of the
Comptroller’s objection to the person to be charged, in order that he or
she may, if he or she thinks fit, appeal against the same.
(3) No
assessment shall be confirmed or altered until any appeal against such
objection has been heard and determined.
33 Power
on appeal to confirm or amend assessments
If –
(a) the
Commissioners see cause to disallow an objection of the Comptroller to a schedule;
or
(b) on
the hearing of an appeal, the Commissioners are satisfied with the assessment
made by the Comptroller, or if, after the delivery of a schedule, they are
satisfied therewith, and have received no information as to its insufficiency,
they shall direct the
assessment to be confirmed or to be altered in accordance with any such schedule,
as the case may require.
34 Power
of putting questions as to assessments or schedules
(1) Whenever
the Commissioners require further information relating to a schedule, they may,
at any time and from time to time, by precept, put any questions in writing
concerning the schedule, or any matter which is contained or ought to be
contained therein, or concerning any deductions made in arriving at the profits
or gains, and the particulars thereof, and may require true and particular
answers, signed by the person to be charged, to be given within 7 days after
the service of the precept.
(2) The
person to be charged shall within the time limited, either answer any such
questions in writing or shall tender himself or herself to be examined orally
before the Commissioners; and may object to, and refuse to answer, any
question, but the substance of any answer given by the person orally shall be
taken down in writing in his or her presence, and be read over to him or her,
and after the person has had liberty to amend any such answer, he or she may be
required to verify the same on oath, and every such oath shall be subscribed by
the person by whom it is made.
(3) Where
any clerk, agent or servant of the person to be charged tenders himself or
herself, on behalf of such person, to be examined orally before the
Commissioners, the same provisions shall apply to the clerk, agent or
servant’s examination as in the case of the person to be charged who
tenders himself or herself to be examined orally.
35 Power
to summon and examine witnesses
(1) The
Commissioners may through the Département du Vicomte summon any person,
whom they think able to give evidence respecting an assessment made or to be
made on another person, to appear before them to be examined, and may
administer an oath to and examine such person on oath, except the clerk, agent,
servant or other person confidentially employed in the affairs of a person to
be charged, who shall be examined in the manner laid down in Article 34(2).
(2) The
oath shall be that the evidence to be given, touching the matter in question by
the person sworn, shall be the truth, the whole truth, and nothing but the
truth.
(3) A
person who, after being duly summoned –
(a) neglects
or refuses to appear before the Commissioners at the time and place appointed
for that purpose;
(b) appears,
but refuses to be sworn or to subscribe the oath; or
(c) refuses
to answer any lawful question touching the matters under consideration,
shall be liable to a fine
not exceeding level 2 on the standard scale:
Provided that the penalty
imposed in respect of any offence under sub-paragraph (b) or (c) shall not
apply to any clerk, agent, servant or other person as aforesaid.[147]
35A Appeals may be
conducted remotely[148]
(1) The
Commissioners may hear appeals and perform other functions under this Part
either by meeting in person or remotely.
(2) If
the Commissioners choose to meet remotely, –
(a) references
in this Part to a person appearing in person must be read as the person
appearing remotely; and
(b) a
provision in this Part that requires or entitles a person to take an action
must be read as requiring or entitling the person to take that action remotely.
36 Appeals
to the Royal Court
(1) Immediately
after the determination by the Commissioners of an appeal under this Law,
either party, if dissatisfied with the determination, may give notice to the
Commissioners of the party’s intention to appeal and the Commissioners
shall immediately notify the Judicial Greffier that such notice of appeal has
been given to them.
(2) If
such appeal be not brought before the Royal Court within 21 days, it shall be
void and the determination by the Commissioners shall be final.
(3) Appeals
under this Article shall be heard, either in term or vacation, before the
Inferior Number of the Royal Court sitting in camera.
(4) No
appeal shall lie from the decision of the Inferior Number of the Royal Court
under this Article except on a point of law.
36A Settling appeals
by agreement[149]
(1) Before an appeal is determined
by the Commissioners, the Comptroller and the appellant may make an agreement
in writing that the assessment is to be treated as –
(a) confirmed;
or
(b) altered
in accordance with the agreement.
(2) The appellant may,
within a period of 40 days beginning with the day on which the agreement
is made, inform the Comptroller, in writing, that the appellant revokes the
agreement.
(3) The effect of an
agreement between the Comptroller and the appellant that is not revoked under
paragraph (2) is that –
(a) the
assessment is to be treated as if, at the time the agreement was made, the
Commissioners had determined the appeal exactly as agreed, and the Comptroller
may revise any assessments or notices to give effect to the agreement; and
(b) the
agreement is considered a final determination of the appeal and there is no
further right of appeal.
37 Provision
against double assessment
(1) A
person who, either on his or her own account, or on behalf of another person,
has been assessed to tax, and is by any error or mistake again assessed for the
same year for the same cause and on the same account, may apply to the
Comptroller for relief, and the Comptroller, on proof to the
Comptroller’s satisfaction of the double assessment, shall cause the said
assessment, or so much thereof as constitutes a double assessment, to be
vacated.
(2) If
it appears, to the satisfaction of the Comptroller, that a person has been
assessed more than once for the same cause and for the same year, the
Comptroller shall cause the whole, or such part of any such assessment as
appears to be an overcharge, to be vacated.
(3) If
it is proved, to the satisfaction of the Comptroller, that any such double
assessment as aforesaid has been made, and that payment has been made on both
assessments, the Comptroller shall cause the amount of the overpayment to be
repaid to the applicant.
38 Relief
in respect of error or mistake
(1) Where
the amount of tax paid or borne by any person was excessive by reason of some
error or mistake in a return made by the person or on his or her behalf, he or
she shall, on a claim being made for the purpose, be entitled to be given by
way of repayment such relief as is reasonable and just.
(2) A
claim under this Article shall not be allowed unless it is made not later than
5 years after the end of the year of assessment in respect of which the return
was made.[150]
(3) No
relief shall be granted under this Article in respect of an error or mistake as
to the basis on which the liability of the claimant ought to have been
computed, if the return was in fact made on the basis of or in accordance with
the practice prevailing at the time when the return was made.
(4) In
determining a claim under this Article, regard shall be had to all the relevant
circumstances of the case and in particular it shall be considered whether the
granting of the relief would result in the exclusion from charge of any part of
the income of the claimant, and for this purpose the liability of the claimant,
the assessments of the claimant’s income, and the amounts of tax with
which the claimant has been charged, or which the claimant has borne, for other
years may be taken into consideration.
PART 7
COLLECTION AND REPAYMENTS
A39 Interpretation of
Part 7[151]
In this Part –
(a) expressions
defined in Article A15 (interpretation of Part 4) have the same meaning,
unless the context requires otherwise; and
(b) “tax”
means income tax.
39 Tax
when due[152]
Subject to Article 41A
and 41AB, income tax contained in an assessment for any year shall be deemed to
be due and payable –
(a) on
or before 30th November in the year following the year of assessment except
where paragraph (b) applies;
(b) in
the case of a large company within the meaning of Article 41AB(7), on or
before 30th September in the year following the year of assessment.
40 Demand
for payment
The notices of assessment
given under Article 25 to persons assessed to tax shall be deemed to be a
demand for payment for the purposes of this Law.
41 General
notice to persons by whom tax is payable
The Comptroller shall, as
the need may be, cause to be published a general notice to the effect
that –
(a) income
tax for the year specified in the notice is due and payable; and
(b) persons
who fail to pay the income tax due by them for the year specified in the notice
before such date as may be so specified will be liable to legal proceedings for
the recovery of the same:
Provided that the
publication of such a notice shall not be necessary before instituting legal
proceedings for the recovery of tax.
41A Duty to pay
instalments (taxpayers other than companies)[153]
(1) A
person who is not a company must pay instalments of income tax for a year of
assessment beginning on or after 1st January 2021 if –
(a) 25%
or less of the person’s total income for the year before the year of
assessment consists of earnings; and
(b) the
amount of the instalment payable under paragraph (3) is £100 or
more.
(2) A
person who is required to pay instalments of income tax for a year of
assessment must pay 2 instalments for the year, which are due and payable as
follows –
(a) the
first instalment is due and payable on 30th November in the year of assessment;
and
(b) the
second instalment is due and payable on 31st May in the year following the year
of assessment.
(3) The
amount of a person’s first instalment is calculated as
follows –
Where –
A is the amount of the instalment;
B is 0.5 if the person’s
income for the year before the year of assessment did not include any earnings,
and is 0.4 in any other case;
C is the person’s liability
to income tax for the year before the year of assessment; and
D is the amount of income tax
already paid for the year of assessment (not including an amount deducted
during the year under Article 41B or 41E).
(4) If,
at the time the second instalment is payable, an income tax assessment has not
been made for a person for the year of assessment, the amount of the
person’s second instalment is calculated as follows –
Where –
A is the amount of the instalment;
B is 0.5 if the person’s
income for the year before the year of assessment did not include any earnings,
and is 0.4 in any other case;
C is the person’s liability
to income tax for the year before the year of assessment; and
D is the amount of income tax
already paid for the year of assessment (not including an amount deducted
during the year under Article 41B or 41E and the amount paid for the first
instalment).
(5) If,
at the time the second instalment is payable, an income tax assessment has been
made for a person for the year of assessment, the amount of the person’s
second instalment is the lower of –
(a) the
person’s remaining income tax liability for the year of assessment; and
(b) the
amount calculated using the formula in paragraph (4).
(6) This
Article applies regardless of whether, at the time an instalment is due and
payable, an assessment has been made for the year of assessment or any prior
year.
(7) This
Article does not apply in respect of tax charged under Part 19 on a scheme
manager of an approved Jersey scheme, an approved drawdown contract or an
approved trust (as defined in Article 130).
41AA Applications to waive or
reduce amount of instalment[154]
(1) A
person may apply to the Comptroller to waive or reduce the amount of an
instalment payable under Article 41A that is due one month or more after
the date the Comptroller receives the application if –
(a) the
person’s income tax liability for the year of assessment is likely to be
substantially less than the sum of the instalments payable for the year; or
(b) the
person’s income for the year of assessment from sources other than
earnings is likely to be substantially less than the person’s income for
the previous year from those sources.
(2) The
Comptroller may accept an application that is received less than a month before
the date the instalment is payable if the Comptroller is satisfied that the
applicant was not able to apply at an earlier time due to absence, sickness or
another reasonable cause.
(3) On
receipt of an application, –
(a) the
Comptroller may waive or reduce the amount of the instalment; and
(b) the
Comptroller must notify the applicant of the outcome of their application.
(4) If
the Comptroller refuses accept a late application or to waive or reduce the
amount of an instalment payable by a person, –
(a) the
person may appeal the refusal to the Commissioners by giving notice in writing
to the Comptroller within 40 days of the date on which the notice of
refusal is issued; but
(b) the
instalment remains due and payable by the date specified in
Article 41A(2).
(5) If
the Commissioners conclude that the instalment should be waived or reduced, the
Comptroller must repay any amount determined to have been overpaid.
(6) Part 6
applies, with the necessary modifications, to an appeal under this Article as
if it were an appeal against an assessment.
41AB Duty to pay instalment
(companies)[155]
(1) This
Article applies to a company regarded as resident in Jersey or which has a
permanent establishment in Jersey.
(2) A
company shall, in accordance with this Article, pay an instalment of income tax
for a year of assessment.
(3) The
instalment –
(a) shall
be due and payable no later than –
(i) in the case of a
large company, midnight on 31st March of the year immediately following
the year of assessment, or
(ii) in
the case of any other company, midnight on 31st May of the year
immediately following the year of assessment; and
(b) subject
to this Article, shall be of an amount equal to 50% of an estimate of the
company’s liability to income tax for the year of assessment.
(4) For
the purposes of paragraph (3), the estimate is such amount as the company
reasonably estimates.
(5) A
large company must notify the Comptroller by the date referred to in paragraph (3)(a)
if it estimates that the amount it is liable to pay under paragraph (3)(b)
is zero.[156]
(6) Subject
to a notification being given under paragraph (5), a company is liable to
pay the instalment whether or not an assessment has been raised for the year of
assessment for which instalment is due.
(7) In
this Article “large company” means a company whose liability to
income tax is or exceeds £500,000 for each of the 2 years of
assessment immediately preceding the year of assessment in which an instalment
is payable under this Article.
41B Duty of employer
to deduct and account for tax[157]
(1) An
employer shall, in accordance with this Article, deduct tax at the effective
rate from earnings payable by the employer to an employee, including any
payments made by an employer that fall within Article 62D.[158]
(2) The
effective rate shall be –
(a) where
the employer has received a copy of a notice issued by the Comptroller under Article 41CC
specifying a rate applicable on the day the deduction is made, the rate so
specified;
(b) where
the employer has not received a copy of such a notice –
(i) for deductions
made in the years 2006 and 2007, 15%,
(ii) for
deductions made in the year 2008 and ensuing years, 20%.[159]
(3) When
making a deduction under paragraph (1), an employer shall give the
employee written notice of the amount of the deduction and the effective rate
applied to the deduction.
(4) An
employer shall maintain a record of the amount of tax deducted and the
effective rate applied to the deduction in respect of each of his or her
employees.
(5) Subject
to paragraph (5AA), an employer shall, no later than 15 days after
the end of each month, remit to the Comptroller an amount equal to the
aggregate of the amounts required to be deducted under paragraph (1)
during the month in respect of each of his or her employees.[160]
(5AA) Provided
that the conditions in paragraph (5AB) are met, in the case of an employer
which is a company, the employer may, instead of complying with paragraph (5),
remit to the Comptroller no later than midnight on the 15th day after the
end of each year, an amount equal to the aggregate of the amounts required to
be deducted under paragraph (1) during the year in respect of each of the
company’s employees.[161]
(5AB) Those
conditions are that –
(a) an
application is made in writing to the Comptroller by a director of the company
for paragraph (5AA) to apply;
(b) at
least 25% of the ordinary share capital of the company is owned by each
employee in respect of whom the deduction is made; and
(c) the
Comptroller agrees to the application.[162]
(5A) If,
in respect of an amount required to be remitted under paragraph (5) or
(5AA) –
(a) the
Comptroller has not received a return from the employer under Article 20
or the information included in the return is not complete; and
(b) no
amount is remitted to the Comptroller or the Comptroller is not satisfied the
amount remitted is the amount required to be deducted under paragraph (1),
the Comptroller may, to
the best of the Comptroller’s information and judgement, make an estimate
of the amount required to be remitted under paragraph (5) or (5AA) and
shall serve on the employer a notice requiring the amount of the estimate to be
paid and containing the information described in paragraph (5B).[163]
(5B) That
information is –
(a) the
amount required to be paid;
(b) the
latest date on which an appeal against the amount required to be paid may be
made; and
(c) the
date by which the said amount, failing the making of an appeal, is required to
be paid, such date being no earlier than 15 days from the date of the
notice.[164]
(5C) If,
at any time, the Comptroller discovers, by reason of receiving a return from
the employer under Article 20 or for any other reason, that the amount of
the estimate specified in a notice under paragraph (5A) is incorrect, the
Comptroller may cancel the notice and serve on the employer a further notice
under paragraph (5A) requiring a revised amount to be paid and containing
the information described in paragraph (5B).[165]
(5D) An
employer shall comply with any notice served on the employer under paragraph (5A).[166]
(5E) Part 6
shall apply, with the necessary modifications, to an appeal against an estimate
under paragraph (5A) as it applies to an appeal against an assessment and
as if for the number “40” in Article 27(1) there were
substituted the number “15”.[167]
(6) An
employer shall, no later than the end of January following a year of
assessment, give each of the persons in his or her employment at the end
of that year a written summary of the deductions made pursuant to this Article
from the employee’s earnings for that year.
(7) Where
an employee ceases employment before the end of a year of assessment, the
employer shall, upon the employment ceasing, give the employee a written
summary of the deductions made pursuant to this Article from the
employee’s earnings for that year.
(8) An
employer is not required to deduct tax from an employee who is under the upper
limit of compulsory school age as defined by Article 2 of the Education
(Jersey) Law 1999.[168]
(9) An
employer who fails to comply with paragraph (5) or (5AA) shall be guilty
of an offence and liable to a fine.[169]
(10) Where
the secretary or another officer of a body corporate or any other person engaged
in the management of the body corporate is deemed to be the employer by virtue
of Article A15(6) or (7), the body corporate, as well as that person,
shall be liable to a fine under paragraph (9) of this Article.
(11) The
imposition of a fine under paragraph (9) shall not discharge the
employer’s liability to remit the monies required under paragraph (5)
or (5AA).[170]
(12) Subject
to paragraph (12A), where an employee proves, to the satisfaction of the
Comptroller, that a deduction has been made from the employee’s earnings,
in accordance with paragraph (1), the employee shall be entitled to have
the deduction treated as a payment of tax by the employee, notwithstanding that
the employer has failed to remit the amount to the Comptroller in accordance
with paragraph (5) or (5AA).[171]
(12A) Paragraph (12)
does not apply where the employer is a company limited by shares and the
employee directly or indirectly, at the time the deduction is made from the
employee’s earnings –
(a) owns
20% or more of the shares in the company; and
(b) is
entitled to 20% or more of the income, profits or gains of the company
chargeable to tax under this Law in the year of assessment in which the
deduction is made.[172]
(13) An
employer who fails to make a deduction in accordance with paragraph (1)
but who remits to the Comptroller the amount required by paragraph (5) or
(5AA) in respect of an employee may recover that amount from the employee as a
civil debt.[173]
(14) Deductions
shall be made, in accordance with this Article, from the earnings of a spouse B
notwithstanding that, by virtue of Article 121(1), his or her income is
deemed to be that of his or her spouse A.[174]
(14A) Deductions
shall be made, in accordance with this Article, from the earnings of a civil
partner B notwithstanding that, by virtue of Article 122B(1), his or
her income is deemed to be that of his or her civil partner A.[175]
(15) An
agreement shall be void to the extent that it provides for the payment of
earnings without deduction of tax in contravention of this Article.
41C Calculation
of rate[176]
(1) The
rate applicable to an employee for a year is the lower of –
(a) the
rate calculated using the formula in paragraph (2), rounded up to the
nearest whole number; and
(b) the
maximum rate for the employee in paragraph (3).
(2) The
formula to calculate an employee’s rate is –
Where –
A is the rate;
B is the employee’s
estimated liability to income tax for the year to which the rate applies;
C is the income tax chargeable for
any year preceding the year to which the rate applies, less any amount of
income tax already paid for that preceding year, and any costs recoverable in
respect of unpaid income tax;
D is the amount of income tax
already paid for the year to which the rate applies (not including any amount
deducted during the year under Article 41B or 41E);
E is the estimated amount of
income for which the employee is liable to be assessed for the year to which
the rate applies;
F is the estimated amount of
income from which the employee is liable to allow the deduction of tax for the
year to which the rate applies;
G is the estimated amount of the
employee’s allowable deductions under this Law (except for
Article 131I) in relation to the employee’s earnings for the year to
which the rate applies; and
H is the estimated amount of the
employee’s allowable deductions under Article 131I for the year to
which the rate applies.[177]
(3) The
maximum rate for an employee is –
(a) 20%,
if the employee has no arrears of income tax;
(b) 25%,
if the employee has arrears of income tax for one year of assessment;
(c) 30%,
if the employee has arrears of income tax for 2 years of assessment; and
(d) 35%,
if the employee has arrears of income tax for 3 or more years of assessment.
41CA Revised rates: initiated by
Comptroller[178]
(1) If
one or more of the variables used to calculate an employee’s rate
changes, the Comptroller may determine a revised rate for the employee by
applying Article 41C using the new variables.
(2) If
the Comptroller considers that the revised rate determined under
paragraph (1) will not recover the employee’s income tax liability
(including arrears for previous years) by the end of the year to which the rate
applies, the Comptroller may determine a revised rate that is the lower of –
(a) the
rate calculated using the formula in paragraph (3), rounded up to the
nearest whole number; and
(b) the
maximum rate for the employee in Article 41C(3).
(3) The
formula for calculating a revised rate in the circumstances described in
paragraph (2) is –
Where –
A is the revised rate;
B is the amount of the
employee’s estimated liability to income tax for the year to which the
rate applies;
C is the income tax chargeable for
any year preceding the year to which the rate applies, less any amount of income
tax already paid for that preceding year, and any costs recoverable in respect
of unpaid income tax;
D is the amount of income tax
already paid for the year to which the rate applies, including any amount
deducted during the year under Article 41B or 41E; and
E is the estimated amount of the
employee’s earnings for the remainder of the year to which the rate
applies.[179]
41CB Revised rates: initiated by
employee[180]
(1) An
employee may request that the Comptroller determine a revised rate for the
employee that is higher than the rate determined under Article 41C or
41CA.
(2) The
Comptroller may approve or refuse a request.
41CC Notification of rate[181]
(1) After
determining the rate applicable to an employee (including a revised rate), the
Comptroller may issue a notice in writing to the employee and the
employee’s employer that states the rate and the day from which it
applies.
(2) A
notice issued by the Comptroller has effect until the earlier of –
(a) the
day stated in the notice;
(b) the
day on which a rate specified in a further notice applies; or
(c) the
end of the year to which the rate applies.
41CD Appeals against rates
decisions[182]
(1) An
employee may appeal to the Commissioners against a rate determined to apply to
the employee by giving notice in writing to the Comptroller within 40 days
of the date on which the notice of the rate is issued to the employee.
(2) An
employee may appeal against a refusal by the Comptroller to determine a rate to
apply to the employee by giving notice in writing to the Comptroller within
40 days of providing the Comptroller with sufficient information to
determine a rate.
(3) The
rate that applies to the employee before the employee gives notice of an appeal
(whether it is the rate determined by the Comptroller or the rate applicable
under Article 41B(2)(b)) continues to apply until the appeal is
determined.
(4) Part 6
applies, with the necessary modifications, to an appeal under this Article as
if it were an appeal against an assessment.
41CE False and altered rate
notices[183]
(1) A
person must not give another person –
(a) a
document purporting to be a notice issued by the Comptroller under
Article 41CC, knowing it to be false; or
(b) a
notice issued by the Comptroller under Article 41CC, knowing that the
notice has been altered by a person other than the Comptroller.
(2) A
person who breaches this Article commits an offence and is liable to a fine.
41CF Rates do not prevent
recovery of arrears[184]
The Comptroller may
continue to pursue the recovery of arrears of income tax for an earlier year of
assessment and any costs recoverable in respect of those arrears, regardless of
whether those amounts are used in determining a rate to apply to an employee.
41D Deductions in
respect of spouses[185]
(1) In
the case of spouses to whom Article 121(1) applies –
(a) a
rate shall be determined in accordance with Article 41C, 41CA or 41CB as
if spouse A were the employee, whether or not he or she is in employment;
and
(b) subject
to paragraph (2), where the Comptroller has issued a notice under Article 41CC
specifying a rate, that rate shall apply to both spouses.[186]
(2) Where
the spouses are both in employment they may jointly elect for the rate
applicable to the earnings of one of them to be increased and the rate
applicable to the earnings of the other of them to be correspondingly reduced.[187]
(3) If
the Comptroller agrees the adjusted rates proposed in an election made under
paragraph (2), the Comptroller shall issue a notice in writing of the rates
applicable to each spouse and the day from which the rates apply.[188]
(3A) Article 41CD
applies to a refusal by the Comptroller to issue a notice under
paragraph (3) of this Article as it applies to a refusal to determine a
rate to apply to an employee. [189]
(4) The
aggregate of the deductions made when applying the rates, adjusted pursuant to
this Article, to the earnings of both spouses shall not be less than the
aggregate of the deductions that would have been made had the adjustment not
been made.[190]
(5) An
election shall cease to have effect upon –
(a) either
spouse ceasing to be in employment;
(b) paragraph (4)
not being complied with;
(c) a new
rate applying pursuant to a further notice issued under Article 41CC; or
(d) an
effective rate described in Article 41B(2)(b) applying.[191]
41DA Deductions in respect
of civil partners[192]
(1) In
the case of civil partners to whom Article 122B(1) applies –
(a) a
rate shall be determined in accordance with Article 41C as if civil
partner A were the employee, whether or not he or she is in employment;
and
(b) subject
to paragraph (2), where the Comptroller has issued a notice under Article 41CC
specifying a rate, that rate shall apply to both civil partners.[193]
(2) Where
both the civil partners are in employment they may jointly elect for the rate
applicable to the earnings of one of them to be increased and the rate
applicable to the earnings of the other of them to be correspondingly reduced.
(3) If
the Comptroller agrees the adjusted rates proposed in an election made under
paragraph (2), the Comptroller shall issue a notice in writing of the rates
applicable to the civil partners and the day from which the rates apply.[194]
(3A) Article 41CD
applies to a refusal by the Comptroller to issue a notice under
paragraph (3) of this Article as it applies to a refusal to determine a
rate to apply to an employee.[195]
(4) The
aggregate of the deductions made when applying the rates, adjusted pursuant to
this Article, to the earnings of the civil partners shall not be less than the
aggregate of the deductions that would have been made had the adjustment not
been made.
(5) An
election shall cease to have effect upon –
(a) either
civil partner ceasing to be in employment;
(b) paragraph (4)
not being complied with;
(c) a new
rate applying pursuant to a further notice issued under Article 41CC; or
(d) an
effective rate described in Article 41B(2)(b) applying.[196]
41E Duty of
building contractor to deduct and account for tax[197]
(1) A
building contractor shall, in accordance with this Article, deduct tax at the
specified rate from payments made to a sub-contractor or to a person nominated
by the sub-contractor for the purpose.
(2) Paragraph (1)
shall not apply at any time when –
(a) the
sub-contractor has produced an exemption certificate to the building
contractor; and
(b) the
building contractor is satisfied that the exemption certificate is in force at
the time the payment is made.
(3) When
making a deduction under paragraph (1) a building contractor shall give
the sub-contractor or the person nominated by the sub-contractor to receive the
payment written notice of the amount of the deduction.
(4) A
building contractor shall maintain a record of the amount of tax deducted in
respect of each of his or her sub-contractors.
(5) A
building contractor shall, no later than 15 days after the end of each
month, remit to the Comptroller an amount equal to the aggregate of the
amounts required to be deducted under paragraph (1) during the month in
respect of each of his or her sub-contractors.
(5A) If,
in respect of an amount required to be remitted under paragraph (5) –
(a) the
Comptroller has not received a return from the building contractor under Article 20A
or the information included in the return is not complete; and
(b) no
amount is remitted to the Comptroller or the Comptroller is not satisfied the
amount remitted is the amount required to be deducted under paragraph (1),
the Comptroller may, to
the best of the Comptroller’s information and judgement, make an estimate
of the amount required to be remitted under paragraph (5) and shall serve
on the building contractor a notice requiring the amount of the estimate to be
paid and containing the information described in paragraph (5B).[198]
(5B) That
information is –
(a) the
amount required to be paid;
(b) the
latest date on which an appeal against the amount required to be paid may be
made; and
(c) the
date by which the said amount, failing the making of an appeal, is required to
be paid, such date being no earlier than 15 days from the date of the
notice.[199]
(5C) If,
at any time, the Comptroller discovers, by reason of receiving a return from
the building contractor under Article 20A or for any other reason, that
the amount of the estimate specified in a notice under paragraph (5A) is
incorrect, the Comptroller may cancel the notice and serve on the building
contractor a further notice under paragraph (5A) requiring a revised
amount to be paid and containing the information described in paragraph (5B).[200]
(5D) A
building contractor shall comply with any notice served on the building
contractor under paragraph (5A).[201]
(5E) Part 6
shall apply, with the necessary modifications, to an appeal against an estimate
under paragraph (5A) as it applies to an appeal against an assessment and
as if for the number “40” in Article 27(1) there were
substituted the number “15”.[202]
(6) Where,
before the end of a year of assessment, a person ceases to be a sub-contractor
of a building contractor, the building contractor shall give the sub-contractor
a written summary of the total deductions made, pursuant to this Article,
during that year, from the payments made under the contract to the
sub-contractor or person nominated by the sub-contractor for the purpose.
(7) A
building contractor shall, no later than the end of January following a year of
assessment, give each person who is, at the end of the year, his or her
sub-contractor, a written summary of the total deductions made, pursuant to
this Article, during that year, from the payments made under the contract to
the sub-contractor or person nominated by the sub-contractor for the purpose.
(8) A
building contractor who fails to comply with paragraph (5) shall be guilty
of an offence and liable to a fine.[203]
(9) Where
the secretary or another officer of a body corporate or any other person
engaged in the management of the body corporate is deemed to be the building
contractor by virtue of Article A15(4) or (5), the body corporate, as well
as that person, shall be liable to a fine under paragraph (8) of this
Article.
(10) The
imposition of a fine under paragraph (8)(b) shall not discharge the
building contractor’s liability to remit the monies required by paragraph (5).
(11) Where
a sub-contractor proves, to the satisfaction of the Comptroller, that a
deduction has been made in accordance with paragraph (1) from payments
made to the sub-contractor or to a person nominated by the sub-contractor for
the purpose, the sub-contractor shall be entitled to have the deduction treated
as a payment of tax by the sub-contractor, notwithstanding that the building
contractor has failed to remit the amount to the Comptroller in accordance with
paragraph (5).
(12) A
building contractor who fails to make a deduction in accordance with paragraph (1)
but who remits to the Comptroller the amount required by paragraph (5) may
recover that amount from the sub-contractor as a civil debt.
(13) A
contract shall be void to the extent that it provides for payments to be made
without deduction of tax, in contravention of this Article.
(14) Where
a sub-contractor has arrears of tax for any year of assessment, the fact that
deductions are made in accordance with this Article from payments made to the
sub-contractor or to a person nominated by the sub-contractor for the purpose
shall not prevent the Comptroller pursing the recovery of those arrears by any
means.
(15) For
the purposes of this Article, the ‘specified rate’ is –
(a) for
deductions made in the years 2006 and 2007, 15%;
(b) for
deductions made in the year 2008, and ensuing years, 20%.
41F Exemption
certificate[204]
(1) A
sub-contractor may apply to the Comptroller for an exemption certificate.
(2) An
application for an exemption certificate shall be made in such form and
manner, and accompanied by such information, as the Comptroller may require.
(3) The
Comptroller may issue an exemption certificate where the Comptroller is
satisfied that the sub-contractor has consistently complied with the
requirements of the Revenue Laws, as defined in Article 1 of the Revenue
Administration (Jersey) Law 2019, in full and without delay.[205]
(4) An
exemption certificate shall, unless cancelled under paragraph (5), have
effect for the year specified in it, and may be issued subject to conditions.
(5) The
Comptroller may cancel an exemption certificate at any time when –
(a) the
Comptroller is no longer satisfied that the sub-contractor has consistently
complied with the requirements of the Revenue Laws, as defined in
Article 1 of the Revenue
Administration (Jersey) Law 2019, in full and without delay; or
(b) the
conditions attached to the certificate have not been complied with.[206]
(6) Upon
cancelling an exemption certificate, the Comptroller shall publish a notice of
cancellation in such a manner that the notice is likely to be seen by persons
affected by it.
(7) The
cancellation of an exemption certificate shall take effect upon publication of
the notice required by paragraph (6).
(8) A
person who gives another person –
(a) a
document purporting to be an exemption certificate issued by the Comptroller
under this Article, knowing it to be false; or
(b) an
exemption certificate, knowing that the certificate has been altered by a
person other than the Comptroller,
commits an offence and is
liable to a fine.[207]
41G Treatment of
amounts received by Comptroller[208]
(1) The
Comptroller must apply an amount deducted and remitted under Article 41B
or 41E –
(a) as a
payment of income tax by the employee or sub-contractor from whom it was
deducted; or
(b) if
the employee or sub-contractor from whom it was deducted is a spouse B to whom
Article 121(1) (general rule as to income tax on married persons) applies
or a civil partner B to whom Article 122B(1) (general rule as to income
tax on civil partners) applies, as a payment of income tax by the
employee’s or sub-contractor’s spouse A or civil partner A.
(2) The
Comptroller must apply the amount to the year of assessment in which it was
deducted (the “deduction year”) unless paragraph (3) or
(4) applies.
(3) If
the amount was deducted from an employee whose effective rate accounts for the
recovery of arrears of income tax or costs recoverable with them, the
Comptroller must apportion the amount between the employee’s liability to
income tax for the deduction year and the employee’s liability to pay the
arrears or costs (the apportionment must reflect the proportion each liability
makes up of the total liability).
(4) If
the amount was deducted from a sub-contractor who has arrears of income tax
from a previous year of assessment or costs recoverable with those
arrears, –
(a) the
Comptroller must apply any amount received that exceeds the
sub-contractor’s liability to income tax in the deduction year as a
payment of the arrears or costs; and
(b) if
the arrears or costs are from more than one previous year of assessment, the
Comptroller must apply the excess to the earliest year of assessment first.
41H Requirement to
provide information when entering or resuming employment or sub-contracting[209]
(1) This
Article applies to a person who –
(a) begins
employment in Jersey for the first time or after being non-resident in Jersey
for at least one year of assessment; or
(b) enters
into a contract as a sub-contractor of a building contractor in Jersey for the
first time or after being non-resident in Jersey for at least one year of
assessment.
(2) The
person must, no later than one month after beginning or resuming the employment
or entering into or resuming the contract, notify the Comptroller in writing
of –
(a) the
person’s full name and place or places of residence;
(b) the
reference number assigned to the person for the purposes of the Social Security
(Jersey) Law 1974;
(c) the
person’s date of birth;
(d) the
number of children dependent on the person;
(e) the
date (if any) the person arrived in Jersey;
(f) the
name and address of –
(i) if the person is
an employee, the person’s employer, or
(ii) if
the person is a sub-contractor of a building contractor, the building
contractor;
(g) the
date the employment or building contract began;
(h) an
estimate, for the year in which the employment or contract began, of the
person’s –
(i) earnings from the
employment or payments under the building contract, and
(ii) income
from all other sources.
(3) If
the person is married or in a civil partnership and the spouses or civil
partners are not independently taxed, the person must also notify the
Comptroller of –
(a) the
date of the marriage or formation of the civil partnership;
(b) which
spouse or civil partner is spouse A or civil partner A and which spouse or
civil partner is spouse B or civil partner B; and
(c) the
information required by paragraph (2) in respect of their spouse or civil
partner.[210]
(3A) If
the person is married or in a civil partnership and the spouses or civil
partners are independently taxed, the person must also notify the Comptroller
of –
(a) the
date of the marriage or formation of the civil partnership; and
(b) the
information required by paragraph (2)(a) to (e) in respect of their spouse
or civil partner.[211]
(4) The
Comptroller may –
(a) require
the information to be provided in a form, and in a manner, approved by the Comptroller;
and
(b) require
the person providing the information to sign a declaration that the information
is true, complete and correct to the best of the person’s knowledge.
41HA Tax deducted under the Social Security (Jersey) Law 1974[212]
(1) If
the Minister of Social Security is required under the Social Security
(Jersey) Law 1974 to deduct income tax from a component of a benefit
payable to a person under that Law, tax shall be deducted at the same effective
rate which the person’s employer would have been required to deduct had
such component been paid by the employer to the person as earnings when such
earnings were due to be paid.
(2) The
Comptroller may issue a notice, in writing, to the Minister for Social
Security, of the effective rate for the purposes of paragraph (1).
(3) The
amount of income tax deducted under paragraph (1) shall be remitted to the
Comptroller and received by the Comptroller as a payment of tax by the person
to whom the benefit is paid.
41I Late
payment surcharge[213]
(1) In
this Article, “specified time” means, in relation to the year of
assessment 2019 and ensuing years –
(a) midnight
on 30th November of the year immediately following the year of assessment,
except in a case such as specified in sub-paragraph (b);
(b) in
the case of a large company within the meaning of Article 41AB(7),
midnight on 30th September of the year immediately following the year of
assessment.[214]
(2) If
a person in relation to whom this Article applies does not pay in full, before
the specified time, the tax chargeable for a year of assessment on that person,
the person shall be liable, whether or not an assessment has been served on the
person, to pay an additional amount (the “surcharge”) equal to 10%
of such tax as remains unpaid at the specified time.
Provided that the
Comptroller may waive payment of the surcharge –
(a) if it
amounts to £50 or less for any year of assessment;
(b) where
failure to pay the tax by the specified day is caused by the action of a
person, in accordance with Article 3A, not connected with the person
liable to the surcharge and the failure is remedied without unnecessary delay;
or
(c) the
Comptroller is satisfied that death, serious illness or other grave and
exceptional circumstance prevented payment by the specified time.[215]
(3) [216]
(4) The
Comptroller shall issue a written notice to a person of his or her liability
under paragraph (2).
(5) A
person may, within 40 days of the issue of a notice under paragraph (4),
apply to the Comptroller in writing for a waiver under paragraph (2).
(6) Where
a person applies under paragraph (5), the Comptroller shall give notice to
the person of whether or not he or she has waived the person’s liability.
(7) A
person aggrieved by the Comptroller’s refusal to waive liability under
paragraph (2) may appeal to the Commissioners, on giving notice in writing
to the Comptroller within 40 days of the issue of notice of refusal.
(8) Part 6
applies, with the necessary modifications, to an appeal under
paragraph (7) as if it were an appeal against an assessment.[217]
(9) [218]
(10) This
Article does not apply in relation to an individual person if more than 25% of
the person’s total income for the year before the year of assessment
consists of earnings.[219]
42 Proceedings
for recovery of tax
(1) Proceedings
for the recovery of income tax may be instituted by the Treasurer of the States
at any time after the assessment to tax has been finally settled.[220]
(1A) Notwithstanding
paragraph (1), proceedings for the recovery of an instalment of income tax
due under Article 41A may be instituted by the Treasurer of the States at
any time after the amount of the instalment has been finally determined in
accordance with that Article.[221]
(1AA) Notwithstanding
paragraph (1), proceedings for the recovery of an instalment of income tax
due under Article 41AB may be instituted by the Treasurer of the States at
any time after the instalment falls due.[222]
(1B) Proceedings
for the recovery of monies due under Article 41B(5), 41B(5AA), 41B(5D),
41E(5) or 41E(5D) or under paragraph 3(8) or 4(8) of Schedule 3A may
be instituted by the Treasurer of the States at any time after the monies fall
due.[223]
(2) Where
under the provisions of this Law income tax has been charged on the spouse A
in respect of the profits or income of the spouse B, the powers of
recovery provided in this Law in the case of non-payment of any such tax shall
extend to the property, goods and chattels of the spouse B:
Provided that no action
for recovery shall be instituted against the spouse B unless a notice
demanding payment has been served by the Comptroller on the spouse B and
he or she has failed to pay the amount of tax payable by his or her spouse A
within 7 days of such service.[224]
(3) Where
under the provisions of this Law income tax has been charged on civil
partner A in respect of the profits or income of civil partner B, the
powers of recovery provided in this Law in the case of non-payment of any such
tax shall extend to the property, goods and chattels of civil partner B:
Provided that no action
for recovery shall be instituted against civil partner B unless a notice
demanding payment has been served by the Comptroller on civil partner B
and he or she has failed to pay the amount of tax payable by civil
partner A within 7 days of such service.[225]
43 Recovery
of arrears of tax by deduction from earnings
(1) Where
judgment has been obtained for the payment of arrears of income tax due by any
individual (hereinafter referred to as the “judgment debtor”),
then, notwithstanding any enactment or rule of law to the contrary and without
prejudice to any other means of recovery, the money payable under the judgment
together with the recoverable costs (hereinafter referred to as the
“judgment debt”) may be recovered in accordance with the provisions
of this Article.
(2) Where
it is desired to recover any judgment debt under this Article –
(a) the
Comptroller may serve notice on the employer for the time being of the judgment
debtor requiring the judgment debtor to furnish the Comptroller, within such
time (not being less than 7 days) as may be specified in the notice, with a
certificate of the earnings of the judgment debtor during such period as may be
so specified; and
(b) whether
or not such a certificate as aforesaid has been required to be furnished, the
Comptroller may serve notice on the employer for the time being of the judgment
debtor requiring the judgment debtor to make such deductions from the earnings
of the judgment debtor as may, having regard to all the circumstances of the
case, appear to the Comptroller to be reasonable and to pay the amounts so
deducted to the Comptroller at such times as may be specified in the notice,
and the amount so paid shall be applied towards the satisfaction of the
judgment debt:
Provided that where the judgment
debt has been ordered to be paid by instalments, the Comptroller shall not
require such deductions to be made as would at any date reduce the judgment
debt by a greater amount than that by which it would have been reduced had the
instalments been paid.
(3) Any
notice under paragraph (2)(b) may at any time be varied by a subsequent
notice under that sub-paragraph.
(4) A
copy of every notice served under paragraph (2)(b) or (3), shall be
served also on the judgment debtor.
(5) Where
any employer fails to deduct any amount which the employer is required by
virtue of paragraph (2)(b) to deduct, or to pay to the Comptroller any
amount so deducted, the amount may be recovered from the employer as a debt due
to the States.
44 Certificate
of Comptroller admissible in evidence
(1) For
the recovery by legal process of income tax, or of any balance of income tax, a
certificate under the hand of the Comptroller in the following form or to the
same effect, stating that the person named therein is in default as regards
payment of income tax, shall be sufficient evidence that the amount of tax
mentioned therein has been duly charged and assessed, and is in arrear and
unpaid –
I certify that the sum of
............................................. is due
to the States of Jersey,
in respect of income tax for the
year ended 31st December, 20.....,
by
..................................
of ..................................... and that
the aforesaid sum fell
into arrears on the ...........................
day of ..........................., 20.......
.........................................................
Comptroller of Taxes.[226]
(2) Any
certificate issued by virtue of this Article shall be considered authentic, and
no evidence will be required as to the signature or official character of the
person who signs as Comptroller.
45 Arrears
of tax
(1) A
tenant après décret or tenant après
dégrèvement shall be liable for the payment of the income tax due
in respect of the land foreclosed and having become due and payable within 12
months next before the date of the Act of the Court authorizing the
décret or dégrèvement or at any time thereafter.
(2) Where
the Royal Court has granted –
(a) an
application made by any person to place his or her property under the control
of the Court (de remettre ses biens entre les mains de la Justice); or
(b) an
application for the holding of a bénéfice d’inventaire on
the estate of any deceased person,
the autorisés or
the Viscount, as the case may be, shall pay, out of the property of such person
or the estate of such deceased person, any income tax due by such person or
such deceased person at the time of the granting of the application and having
become due and payable within 12 months next before that time.
(3) In
the event of any composition with creditors, désastre,
dégrèvement, réalisation or other bankruptcy, the
following amounts shall rank for payment pari passu with other privileged debts
and in priority to all other debts –
(a) the
income tax due from the debtor for the year in which that event occurs and for
the preceding year;
(b) any
amount deducted by the debtor in accordance with Article 41B(1) and due
from the debtor, in the year in which that event occurs or in the preceding
year, in accordance with Article 41B(5);
(c) any
amount deducted by the debtor in accordance with Article 41E(1) and due
from the debtor, in the year in which that event occurs or in the preceding
year, in accordance with Article 41E(5);
(d) any
amount deducted by the debtor in accordance with paragraph 3(1) of Schedule 3A,
and due from the debtor, in the year in which that event occurs or in the
preceding year in accordance with sub-paragraph (8) of that paragraph; and
(e) any
amount deducted by the debtor in accordance with paragraph 4(2) of
Schedule 3A, and due from the debtor, in the year in which that event
occurs or in the preceding year in accordance with sub-paragraph (8) of
that paragraph.[227]
46 Payment
of receipts to States’ Treasurer
All monies received by
the Comptroller in payment of income tax shall forthwith be paid by the
Comptroller to the Treasurer of the States.
47 Repayments
to be made by States’ Treasurer
All repayments of tax
under this Law shall be made by the Treasurer of the States, on a certificate
of the Comptroller.
48 Proof
of payment of tax before repayment
No repayment of income
tax shall be certified by the Comptroller for payment until it is proved to the
Comptroller that tax, in respect of which the repayment is claimed, has been
paid by deduction at source or otherwise.
49 Time
limit for repayment
Save as otherwise
expressly provided in this Law, no claim for repayment of income tax under this
Law shall be allowed unless it is made within 5 years next after the end of the
year of assessment to which it relates.
49A Deductions in
respect of corrupt payments[228]
Notwithstanding anything
in this Law to the contrary, in computing any amount chargeable to tax, no
deduction shall be allowed in respect of –
(a) any
sum the payment of which is a criminal offence in Jersey;
(b) any
sum paid in a country or territory outside Jersey which, if paid in Jersey,
would be a criminal offence in Jersey;
(c) any
sum induced by a demand, such demand constituting the offence of blackmail or a
cognate offence.
49B General provision for
collection of long-term care contributions[229]
(1) An
insured person who is liable to pay instalments of income tax under
Article 41A must also pay instalments of LTC contributions in accordance
with paragraph 1 of Schedule 1A.
(2) The
combined effective rate for an employee who is an insured person is calculated
in accordance with paragraph 2 of Schedule 1A.
(2A) An
employer must deduct LTC contributions from payments of earnings made to an
employee who is an insured person and must account for those deductions in
accordance with paragraph 3 of Schedule 1A.[230]
(3) Article 41E
has effect with the modifications shown in Part 2 of Schedule 1A.[231]
(4) Nothing
in this Article or in Schedule 1A –
(a) confers
a right of appeal under this Law in respect of a person’s liability for
or the amount of an LTC contribution;
(b) confers
a right of appeal under this Law against the part of a combined effective rate
that relates to LTC contributions; or
(c) makes
it an offence under this Law to fail to remit an LTC contribution to the
Comptroller or to do any other thing in relation to LTC contributions.
(5) In
this Article and in Schedule 1A –
“insured person” means a person described
in Article 3(1) of the Social Security
(Jersey) Law 1974;
“LTC contribution” means a long-term care
contribution payable under the Social Security
(Jersey) Law 1974.
PART 8
SCHEDULE A AND PRINCIPAL
PROVISIONS RELATING THERETO
50 Interpretation
of Part 8[232]
In this Part –
“land”
includes buildings, tenements, heritages and hereditaments;
“lease”
includes an agreement for a lease, and any tenancy, but does not include a
hypothec or other charge;
“owner” means,
in relation to any land, the person for the time being having the enjoyment of
that land, either as owner or usufructuary owner or in the exercise of rights
of dower, franc veuvage, seignorialty or otherwise;
“premium”
includes any like sum, other than rent, paid, and the value of any
consideration given, on or in connection with the granting of a tenancy, except
insofar as other sufficient consideration for the payment is shown to have been
given.
51 Schedule
A[233]
(1) The
Schedule referred to in this Law as Schedule A is as follows –
Tax under this Schedule
shall be charged on –
(a) the
annual profits or gains arising in respect of any rents or receipts as follows,
that is to say –
(i) rents under
leases of land in Jersey,
(ii) rentes,
and
(iii) other
receipts arising to the owner of land in Jersey from, or by virtue of, the
owner’s ownership of that land including any receipts arising from a
licence to occupy land;
(b) the
annual profits or gains arising or accruing from the trade, carried on in
Jersey, of the disposal, on a commercial basis as part of a property trade, of
land or any building or structure, or any part thereof, which is situated in
Jersey;
(c) the
annual profits or gains arising or accruing from the trade of the exploitation
of land in Jersey by the exploration, excavation, excision, extrication,
extirpation, exsiccation, expropriation or extraction or recovery of stone,
minerals and other inorganic solid materials.[234]
(2) For
the purposes of paragraph (1)(b), the land, building or structure, or part
thereof, shall be a fixed place of business through which the trade is
exercised, whether or not the disposal is made or concluded in Jersey.[235]
(3) In
any case where a sum (whether rent or otherwise) is payable in respect of the
use of any premises and the tenant, leaseholder, licensee or other person is
entitled also to use of the furniture, any sum payable in respect of use of the
furniture shall also be chargeable under this Schedule.[236]
(4) [237]
(5) [238]
51A Basis of
computation under Schedule A[239]
(1) Tax
shall be charged under Schedule A in respect of the profits or gains described
in Article 51(1)(a) by reference to the rent, rentes or receipts to which
the person becomes entitled in the year of assessment.
(2) Tax
shall be charged under Schedule A in respect of the profits or gains described
in Article 51(1)(b) or (c) in accordance with Articles 64A to 64H, as
if they were the profits or gains of a trade charged under Case I of Schedule
D.[240]
52 Deductions
under Schedule A in respect of rents, etc.[241]
(1) Subject
to the provisions of this Article, in computing the amounts of the profits or
gains to be charged under this Schedule pursuant to Article 51(1)(a),
there shall be deducted the normal outgoings paid by the person chargeable in
respect of the profits or gains.[242]
(2) For
the purposes of paragraph (1), and subject to paragraphs (2A) and
(2B), the term “normal outgoings” means the following payments, not
being payments of a capital nature, made in respect of the land to which the
profits or gains relate, that is to say –
(a) payments
for maintenance, repairs, insurance and management; and
(b)
(c) rents,
rentes or other periodical payments.[243]
(2A) No
deductions shall be made –
(a) for
any interest of money, or any annuity or other annual payment;
(b) for
or in respect of rates –
(i) which, under the Rates (Jersey)
Law 2005, are charged on the owner of the land, and
(ii) which
the person chargeable in respect of the profits and gains is liable to defray.[244]
(2B) For
the further avoidance of doubt, no deduction shall be made for any payment, or
part of a payment –
(a) which
is or which represents payment in respect of such rates as mentioned in
paragraph (2A)(b)(i); and
(b) which
is made to the owner of the land by the person chargeable in respect of the
profits and gains (including by any agent on behalf of such a person).[245]
(2C) In
paragraphs (2A) and (2B), reference to the owner of the land is to be
construed in accordance with the Rates (Jersey)
Law 2005.[246]
(3) In
the case of –
(a) payments
for maintenance and repairs, deductions shall be made for payments incurred by
reason of dilapidation to the extent only that the dilapidation is attributable
to a period falling within the currency of the lease, or to a period during
which the person chargeable was the landlord in relation to a previous lease;
(b) other
payments, deductions shall be made only for payments incurred in such a period
as aforesaid;
(c) a
receipt other than rent payable under a lease, there shall be deducted so much
of any other payment made by the owner as constituted an expense of the
transaction.
(4) The
deductions allowable under this Article shall be made from the profits or gains
chargeable for the year of assessment in which the payments are made:
Provided that where the
profits or gains chargeable are not sufficient to allow the whole of the
deductions to be made, the amount not deducted shall be deducted from the
profits or gains for the earliest year of assessment from which it can be
deducted.
52A Allowable
deduction under Schedule A for energy-saving items[247]
(1) Notwithstanding
anything in this Law to the contrary, in computing the amounts of the profits
or gains to be charged under Schedule A pursuant to Article 51(1)(a) there
shall be deducted any expenditure incurred for any energy-saving item specified
in paragraph (2) provided that the conditions specified in paragraph (3)
are met in respect of the expenditure.
(2) Those
items are –
(a) cavity
wall insulation;
(b) loft
insulation;
(c) hot
water system insulation;
(d) low
energy lamps; and
(e) draught
proofing.
(3) Those
conditions are that –
(a) the
expenditure is incurred for acquiring and installing the energy-saving item
wholly and exclusively for the purpose of a property business as defined in
paragraph (5);
(b) the
maximum amount of expenditure deducted is £1,500 per annum; and
(c) subject
to paragraph (4), the deduction is made from the profits or gains
chargeable for the year of assessment in which the expenditure is incurred,
such year of assessment being any of 2010, 2011 and 2012.
(4) If
the profits or gains chargeable are not sufficient to allow the whole of the
deduction to be made in the year of assessment in which the expenditure is
incurred, the amount not deducted may be deducted from the earliest year of
assessment from which it can be deducted provided that year is 2011
or 2012.
(5) In
this Article, “property business” means the business of generating
income from any rents, rentes, or other receipts, described in Article 51(1)(a).
53 Relief
for rent not paid[248]
If a person proves that
he or she has not received an amount which he or she was entitled to receive in
respect of any rents or receipts chargeable under Schedule A pursuant to Article 51(1)(a),
and that –
(a) the
non-receipt was attributable to the default of the person by whom it was
payable and the person chargeable has taken all reasonable steps available to
him or her to enforce payment; or
(b) the
person chargeable has waived payment of the said amount without consideration
and in order to avoid hardship to the person by whom it was payable,
the person chargeable
shall be treated as if he or she had not been entitled to the said amount.[249]
54 Treatment
of premiums and other payments as rents [250]
(1) If
payment of any premium is required under a lease, or otherwise under the terms
subject to which a lease is granted and the duration of the lease does not
exceed 50 years, the person entitled to the premium shall be treated for the
purposes of this Law as becoming entitled when the lease is granted to an
amount by way of rent (in addition to any actual rent and any other amount
treated as rent under this Article) equal to the amount of the premium reduced
by 1/50 of that amount for each complete period of 12 months (other than the
first) comprised in the duration of the lease:
Provided that where the
said premium is payable by instalments, the amount of each instalment shall be
treated as rent for the year in which it becomes payable.[251]
(2) If,
under any term subject to which a lease is granted, any sum is payable by a
tenant as consideration for the surrender of the lease, the person entitled to
the consideration shall be treated for the purposes of this Law as becoming
entitled, when the consideration is payable, to an amount by way of rent (in
addition to any actual rent and any other amount treated as rent under this
Article) equal to the amount of the consideration reduced by 1/50 of that
amount for each complete period of 12 months (other than the first) comprised
in the duration of the lease calculated to the day of surrender:
Provided that where the
said consideration is payable by instalments, the amount of each instalment
shall be treated as rent for the year in which it becomes payable.[252]
(2A) If
any sum is payable by a tenant as consideration for the variation or waiver of
any term of a lease, the person entitled to the consideration shall be treated
for the purposes of this Law as becoming entitled, when the agreement for the
variation or waiver is entered into, to an amount by way of rent (in addition
to any actual rent and any other amount treated as rent under this Article)
equal to the amount of the consideration reduced by 1/50 of that amount for
each complete period of 12 months (other than the first) comprised in that part
of the duration of the lease for which the variation or waiver has effect:
Provided that where the
said consideration is payable by instalments, the amount of each instalment
shall be treated as rent for the year in which it becomes payable.[253]
(3) If,
in respect of a lease granted for a period which does not exceed 50 years, a
premium is paid on the assignment of the lease or as consideration for the
grant of a sub-lease, the person entitled to the premium shall be treated for
the purposes of this Law as becoming entitled when the premium is payable to an
amount by way of rent equal to the amount of the premium reduced by the
appropriate fraction of any amount of premium chargeable as rent on the person
by whom the lease was granted:
Provided that no reduction
as aforesaid shall be made in respect of any premium which has been allowed as
a deduction in computing the income of any person for income tax purposes.
(4) For
the purpose of paragraph (3), the “appropriate fraction” means
the fraction arrived at by dividing the period for which the assignment or
sub-lease is granted by the period for which the lease was granted.
54A Deductions under
Schedule A in respect of property development or quarrying, etc.[254]
Articles 70, 70A and
83 shall apply for the purposes of computing the amount of the profits or gains
to be charged under Schedule A pursuant to Article 51(1)(b) or (c) as they
apply for the purposes of computing the amount of the profits or gains to be
charged under Schedule D Case I in respect of a trade.[255]
55 Persons
chargeable under Schedule A
(1) Subject
to paragraph (2), tax under Schedule A shall be charged on and paid by the
persons receiving or entitled to the profits or gains in respect of which tax
under Schedule A is, in this Law, directed to apply.
(2) Articles 74
to 76D shall apply to taxation under Schedule A pursuant to Article 51(1)(b)
or (c) as they apply to the taxation of any trade under Schedule D
Case 1.[256]
55A Miscellaneous
provisions applicable to property development and quarrying, etc.[257]
Articles 84 and 85
shall apply to and for the purposes of the charge to tax under Schedule A
pursuant to Article 51(1)(b) or (c) as they apply to and for the purposes
of the charge to tax under Schedule D.[258]
PART 10
SCHEDULE D AND PRINCIPAL
PROVISIONS RELATING THERETO
61 Schedule
D
(1) The
Schedule referred to in this Law as Schedule D is as follows –
Tax under this Schedule
shall be charged in respect of –
(a) the
annual profits or gains arising or accruing –
(i) to any person
residing in Jersey from any kind of property whatever, whether situate in Jersey
or elsewhere,
(ii) to
any person residing in Jersey from any trade, profession, employment, vocation
or office, whether carried on in Jersey or elsewhere, or from any pension,
whether arising in Jersey or elsewhere, and
(iii) to
any person, whether a British subject or not, although not resident in Jersey,
from –
(A) any
property whatever in Jersey;
(B) any
trade exercised in Jersey, whether or not through a fixed place of business in
Jersey;
(C) any
profession, employment, vocation or office exercised within Jersey; or
(D) any pension
arising in Jersey;
(b) all
interest of money, annuities, and other annual profits or gains not charged
under Schedule A, and not specially exempted from tax;
(c) all
sums paid to an individual or an individual’s personal representative
pursuant to Article 131D or 131E other than a sum applied in the purchase
from an authorized insurance company which is unconnected with the individual
of a lifetime annuity payable to the individual or, on the individual’s
death, to the individual’s spouse, civil partner or dependent; and
(d)
(e) shareholder
loans, where the borrower, within the meaning of Article 81O, is an
individual resident in Jersey, in accordance with the following provisions of
this Part,
in each case for every one
pound of the annual amount of the profits or gains.[259]
(1A) [260]
(2) The
provisions of paragraph (1) are without prejudice to any other provision
of this Law directing tax to be charged under Schedule D and the tax so
directed to be charged shall be charged accordingly.[261]
(3) In
paragraph (1), the reference to annual profits or gains arising or
accruing from any property includes distributions of a company.[262]
(4) [263]
62 Mode
of charge under Schedule D; the Cases[264]
(1) Tax
under Schedule D shall be charged under the following cases respectively, that
is to say –
Case I. – tax in respect
of any trade carried on in Jersey or elsewhere;
Case II. – tax in respect
of –
(a) all profits and
earnings of whatever value arising from professions, employments, vocations or
offices;
(b) any office or
employment by retainer in any character whatever, whether such retainer is
annual or for a longer or shorter period; and
(c) all payments which, by
virtue of Article 131K(1), are to be treated as earned income;
Case IIA. – tax
in respect of attributable earnings in accordance with the following provisions
of this Part;
Case III. – tax in respect
of profits of an uncertain value and of –
(a) any interest of money,
whether yearly or otherwise, or any annuity, or other annual payment, whether
such payment is payable within or out of Jersey, either as a charge on any
property of the person paying the same by virtue of any deed or will or
otherwise, or as a reservation out of it or as a personal debt or obligation by
virtue of any contract, or whether the same is received and payable half-yearly
or at any shorter or more distant periods;
(b) all discounts;
(c) interest paid or
credited in full without deduction of tax by a savings bank to any depositor;
(d) subject to any
exemption in Part 19 –
(i) any
payment of a pension (other than a payment which is taxed under Case II,
in accordance with sub-paragraph (c) of that Case) whether paid
voluntarily or otherwise and whether capable of being discontinued or not, and
(ii) any
lump sum paid from or under a pension scheme, annuity contract, retirement
trust scheme or similar arrangement, whether the payment is made on the death
of a pension holder, in commutation of or otherwise in lieu of a pension, by
way of return of contributions paid by a pension holder, by way of transfer, or
otherwise (other than a payment which is taxed under Case VI, in
accordance with Article 131J(2)(a) or 131L(1));
(e) interest and dividends
payable out of the public revenues of Jersey or by coupon;
(f) distributions
of a company regarded as resident in Jersey other than those distributions
which are charged to tax under Case IX;
(g) dividends on preference
shares of a company regarded as resident in Jersey that are declared out of
profits or gains chargeable to tax on the company at a rate other than the
standard rate;
Case IV. – tax in respect
of income arising from securities out of Jersey, (whether or not payable by
coupon);
Case V. – tax in respect
of income arising from possessions out of Jersey;
Case VI. – tax in respect
of any annual profits or gains not falling under any of the foregoing Cases or
Case VII or VIII, and not charged by virtue of Schedule A;
Case VII. – tax in
respect of all sums paid to an individual or an individual’s personal
representative pursuant to Article 131D or 131E of this Law other than a
sum applied in the purchase from an authorized insurance company which is
unconnected with the individual of a lifetime annuity payable to the individual
or, on the individual’s death, to the individual’s spouse, civil
partner or dependent;
Case VIII. – tax
in respect of –
(a)
(b) shareholder
loans, in accordance with the following provisions of this Part;
Case IX. – tax in
respect of relevant distributions of a company regarded as resident in Jersey,
or which has a permanent establishment in Jersey, in accordance with the
following provisions of this Part;
and subject to and in
accordance with the provisions of this Law applicable to the said Cases
respectively.[265]
(2) The
provisions of paragraph (1) are without prejudice to any other provision
of this Law directing tax to be charged under one or other of the said Cases,
and the tax so directed to be charged shall be charged accordingly.
(3) In
paragraph (1), in Case V, income does not arise from a possession out
of Jersey if it is income from emoluments other than pensions arising from an
office or employment exercised in Jersey.[266]
62A Disapplication of
Schedule D where trade taxed under Schedule A
Notwithstanding Article 61(1)
and Article 62(1) Case I, tax under Schedule D shall not be
charged on any profits or gains of a trade that are charged to tax under
Schedule A by virtue of Article 51(1)(b) or (c).[267]
62B [268]
62C Application of Schedule D to the repayments
of a levy made to the Jersey Bank Depositors
Compensation Board[269]
Tax shall be charged under Schedule D in respect of the
repayment or the partial repayment to a bank of a levy paid by the bank to the Jersey Bank Depositors Compensation Board established by the Banking
Business (Depositors Compensation) (Jersey) Regulations 2009 as if the repayment or
the partial repayment were a trading receipt of the bank in the year in which it
is made.
62D Application of
Schedule D to termination and other payments[270]
(1) Tax
shall be charged under Case II of Schedule D in respect of any
payment made by or on behalf of an employer to an employee in consequence of –
(a) the
termination of the employee’s employment; or
(b) any
change in the duties or emoluments of the employment,
regardless of whether the
payment arises from a contractual or statutory entitlement, an order by a court
or tribunal or is voluntary on the part of the employer.
(2) For
the purposes of paragraph (1) –
(a) “employee”
refers to any person paid wages or salary by another person regardless of
whether the first person is employed or is an office holder and
“employer” and “employment” shall be construed
accordingly; and
(b) the
reference to payment made to an employee includes payment to an
employee’s estate.
63 Farming
and other commercial occupation of land in Jersey to be charged under Schedule
D
(1) All
farming and market gardening in Jersey shall be treated as the carrying on of a
trade or, as the case may be, of a part of a trade, and the profits or gains
thereof shall be charged to tax under Case I of Schedule D accordingly.
(2) The
occupation of land in Jersey for any purpose other than farming or market
gardening shall, if the land is managed on a commercial basis and with a view
to the realization of profits, be treated as the carrying on of a trade or, as
the case may be, of a part of a trade, and the profits or gains thereof shall
be charged to tax under Case I of Schedule D accordingly.
(3) In
this Article –
“farming”
means the occupation of land in Jersey wholly or mainly for the purposes of
husbandry, but excludes market gardening;
“land”
includes tenements, hereditaments and heritages;
“market
gardening” means the occupation of land in Jersey as a nursery or garden
for the sale of produce.
Case I and II
64 Full
tax to be charged
The tax under Case I or
Case II of Schedule D shall be charged without any other deduction than is by
this Law allowed.
64A General provision
as to period of computation for trade, profession or vocation[271]
Subject to Articles 64B
to 64E, tax shall be charged in the case of a trade, profession or vocation on
the full amount of the balance of the profits or gains of the trade, profession
or vocation for the financial period ending in the year of assessment.
64B Change of
financial period and accounting date[272]
(1) Where,
by virtue of a change in the financial period for a trade, profession or
vocation, there are 2 or more accounting dates for it in a year of assessment,
tax shall be charged on the aggregate of the full amounts of the balance of
profits or gains for each financial period ending on those dates.
(2) Where –
(a) there
is a change in the financial period for a trade, profession or vocation;
(b) the
new accounting date is in the year of assessment immediately following the year
of assessment in which the preceding accounting date fell; and
(c) the
Comptroller is of the opinion that the change is not made in good faith and for
the purpose of facilitating the good management of the business,
the Comptroller may charge
the trade, profession or vocation to tax, for the year of assessment in which
the new accounting date falls, on the full amount of the balance of the profits
or gains for the period of 12 months ending on that date.
(3) Where –
(a) there
is a change in the financial period for a trade, profession or vocation;
(b) the
new accounting date is neither in the same year of assessment as the preceding
accounting date nor in the year of assessment immediately following that year;
and
(c) the
Comptroller is of the opinion that the change is not made in good faith and for
the purpose of facilitating the good management of the business,
the Comptroller may –
(i) determine an
accounting date in the year of assessment immediately following the year of
assessment in which the preceding accounting date fell; and
(ii) charge
the trade, profession or vocation to tax, for the year of assessment in which
the determined accounting date falls, on the full amount of the balance of the
profits or gains for the period of 12 months ending on that date.
(4) The
accounting date determined under paragraph (3) shall be the same day, in
the same month, as the new accounting date.
64C Commencement
of trade, profession or vocation[273]
(1) Subject
to paragraph (2), where a trade, profession or vocation is set up and
commenced, tax shall first be charged for the year of assessment in which the
first financial period ends, on the full amount of the balance of the profits
or gains of the trade, profession or vocation for that period.
(2) Where
the first financial period of the trade, profession or vocation does not end in
the first year of assessment or the second year of assessment, the Comptroller
shall determine an accounting date in the second year of assessment for it.
(3) Subject
to paragraph (4), the accounting date determined under paragraph (2)
shall be the same day, in the same month, as the accounting date which falls in
the third year of assessment.
(4) Where
there is more than one accounting date in the third year of assessment, the
first of those dates shall be used for the purposes of paragraph (3).
(5) Where
the profits or gains of a trade, profession or vocation are charged to tax in
the second year of assessment by virtue of an accounting date being determined
under paragraph (2), tax shall be charged for the third year of assessment
on the full amount of the balance of the profits or gains of the first
financial period, after deduction of an amount equal to the profits or gains
charged to tax in the second year of assessment by virtue of paragraph (2).
(6) For
the purposes of this Article and Article 64D –
“first financial
period”, in relation to a trade, profession or vocation, means the
financial period beginning on the day it is set up and commenced;
“first year of
assessment”, in relation to a trade, profession or vocation, means the
year in which it is set up and commenced;
“second year of
assessment” means the year following the first year of assessment;
“third year of
assessment” means the year following the second year of assessment.
64D Discontinuance of
trade, profession or vocation[274]
(1) Subject
to paragraphs (2) and (3), where a trade, profession or vocation is
permanently discontinued, tax shall be charged, in the year of assessment in
which the discontinuance occurs, on the full amount of the balance of the
profit or gains for the period beginning on the day following the accounting
date preceding the date of discontinuance and ending on the date of
discontinuance.
(2) Where,
in the year of assessment in which the trade, profession or vocation is
permanently discontinued, there are one or more accounting dates preceding the
date of discontinuance, tax shall be charged on the aggregate of the full
amounts of the balance of profits or gains for each financial period ending on
those dates and for the period described in paragraph (1).
(3) Where
a trade, profession or vocation is permanently discontinued in the first year
of assessment or the second year of assessment, tax shall be charged for the
period beginning on the date the trade, profession or vocation is set up and
commenced and ending on the date of its discontinuance.
64E Trade,
profession or vocation transferred to or from Jersey[275]
(1) This
Article applies –
(a) where
a trade, profession or vocation previously carried on in a place outside Jersey
transfers to, and continues to be carried on, in Jersey; and
(b) where
a trade, profession or vocation previously carried on in Jersey transfers to,
and continues to be carried on, in a place outside Jersey.
(2) Tax
shall be charged for the year of assessment in which the trade, profession or
vocation transfers, on such portion of the full amount of the balance of the
profits or gains of the trade, profession or vocation as equates to the portion
of that year for which the trade, profession or vocation is carried on in
Jersey.
64F Apportionment
of profits or gains of trade, profession or vocation[276]
(1) Where
the period for which tax is to be charged on the full amount of the balance of
the profits or gains of a trade, profession or vocation does not coincide with
a financial period, the full amount of the balance of the profits or gains for
the financial periods which overlap with the period for which tax is to be
charged shall be apportioned so as to arrive at the full amount of the balance
of the profits or gains for the period for which tax is to be charged.
(2) Where
the full amount of the balance of the profits or gains for the period for which
tax is to be charged, determined in accordance with paragraph (1), does
not, in the opinion of the Comptroller, fairly represent the full amount of the
balance of the profits or gains of the period for which tax is to be charged,
the Comptroller may direct that the apportionment shall be made another way.
64G Liability of
executors or administrators for tax on the profits or gains of a trade,
profession or vocation[277]
In the case of the death
of a person who, if he or she had not died, would have been chargeable to
income tax for any year under Articles 64A to 64E, the tax which would
have been so chargeable –
(a) shall
be assessed and charged on the person’s executors or administrators; and
(b) shall
be a debt due from and payable out of the person’s estate.
64H Deduction from
profits or gains of trade or profession for premiums payable[278]
(1) Where
any land in Jersey is occupied for the purposes of any trade or profession, a
deduction shall be allowed, in calculating the full amount of the balance of
the profits or gains arising from that trade or profession, for any premium
paid in consideration of the grant of a lease or sub-lease, or for the
assignment of a lease, of that land to the extent that the premium has been
charged to tax under Schedule A of this Law.
(2) In
this Article “land” and “premium” have the same
meanings as in Part 8.
65 General
provisions as to period of computation for offices, employments and pensions[279]
(1) Tax
is charged under Case II of Schedule D –
(b) in
the case of an office or employment, on the full amount of the emoluments of
the office or employment received in the year of assessment;
(c) in
the case of a pension, on the full amount of the emoluments of the pension
arising in the year of assessment.[280]
(1A) Paragraph (1)
applies, in the case described in sub-paragraph (b) thereof –
(a) whether
the emoluments are for the year in which they are received or for some other
year of assessment;
(b) whether
or not the office or employment is held at the time the emoluments are
received.[281]
(1B) Where
paragraph (1) applies in the case described in sub-paragraph (b)
thereof, in the case of emoluments received after the death of the person who
held the office or employment concerned, tax charged on the emoluments –
(a) shall
be assessed and charged on the deceased’s heirs, executors or
administrators; and
(b) shall
be a debt due from and payable out of the deceased’s estate.[282]
65A Meaning of receipt
of emolument[283]
(1) For
the purposes of Article 65(1), in the case described in sub-paragraph (b)
thereof, emoluments which take the form of a benefit not consisting of money
shall be treated as received at the time when the benefit is provided.
(2) For
the purposes of Article 65(1), in the case described in sub-paragraph (b)
thereof, emoluments to which paragraph (1) of this Article does not apply
shall be treated as received at the time found in accordance with the following
rules (taking the earlier or earliest time in a case where more than one rule
applies) –
(a) the
time when payment is made of or on account of the emoluments;
(b) the
time when a person becomes entitled to payment of or on account of the
emoluments;
(c) in a
case where the emoluments are from an office or employment with a company, the
holder of the office or employment is a director of the company and sums on
account of the emoluments are credited in the company’s accounts or
records, the time when sums on account of the emoluments are so credited;
(d) in a
case where the emoluments are from an office or employment with a company, the
holder of the office or employment is a director of the company and the amount
of the emoluments for a period is determined before the period ends, the time
when the period ends;
(e) in a
case where the emoluments are from an office or employment with a company, the
holder of the office or employment is a director of the company and the amount
of the emoluments for a period is not known until the amount is determined
after the period has ended, the time when the amount is determined.
(3) Paragraph (2)(c),
(d) or (e) applies whether or not the office or employment concerned is that of
director.
(4) Paragraph (2)(c),
(d) or (e) applies if the holder of the office or employment is a director of
the company at any time in the year of assessment in which the time mentioned
in the sub-paragraph concerned falls.
(5) For
the purposes of the rule in paragraph (2)(c), any fetter on the right to
draw the sums shall be disregarded.
(6) In
paragraph (2), “director” means –
(a) in
relation to a company whose affairs are managed by a board of directors or
similar body, a member of that board or similar body;
(b) in
relation to a company whose affairs are managed by a single director or similar
person, that director or person; and
(c) in
relation to a company whose affairs are managed by the members themselves, a
member of the company.
(7) In
paragraph (2), “director”, in relation to a company, also
includes any person in accordance with whose directions or instructions the
company’s directors (as defined in paragraph (6)) are accustomed to
act and, for this purpose, a person is not to be deemed to be a person in
accordance with whose directions or instructions the company’s directors
are accustomed to act by reason only that the directors act on advice given by
the person in a professional capacity.
(8) In
this Article, “company” means any body corporate or unincorporated
association but does not include a partnership.
65B Emoluments:
benefits in kind[284]
(1) In
this Article and in Schedules 2 and 3 –
“benefit”
means so much of any emoluments as consists of a benefit (other than salaries,
fees, wages, perquisites, profits or gains) –
(a) derived
by the office holder or employee or by a member of that person’s family
or household from that office or employment or from its commencement or
termination or in consequence of a change in its terms; and
(b) provided
by the office holder’s or employee’s employer;
“employer”
includes any person connected with the employer.
(2) In
assessing the emoluments of an office or employment for the purposes of Article 65
there shall be left out of account –
(a) any
benefit disclaimed by the office holder or employee, whether for his or her own
use or the use of a member of that person’s family or household; and
(b) any
benefit, or amount attributable to any benefit, specified in Schedule 2.
(3) An
office holder or employee shall be entitled, in any year of assessment, to a
deduction in respect of the first £250 of the aggregate amount of
benefits assessed for the purposes of Article 65.[285]
(4) Subject
to paragraph (5) –
(a) where
the benefit consists of a transfer of ownership of property, the amount
attributable to the benefit shall be the open market value of the property at
the time of the transfer;
(b) where
the benefit consists of the payment or discharge of any pecuniary liability of
the office holder or employee or of a member of that person’s family or
household, the amount attributable to the benefit shall be the amount paid by
the employer; and
(c) where
the benefit consists of the provision of property for use, without transfer of
ownership, the amount attributable to the benefit shall be determined in
accordance with Schedule 3.[286]
(5) There
shall be deducted from the amount attributable to any benefit any sums paid by
the office holder or employee in respect of the benefit.
(7) The
Minister may, by Order, amend Schedules 2 and 3.
66 [287]
67 [288]
68 [289]
69 [290]
69A Restriction on
deduction for emoluments of office or employment[291]
(1) Where –
(a) any
emoluments arising from an office or employment would, apart from this Article,
be deducted in computing the amount of the profits or gains of a period ending
on or after 1st January 2001 on which tax shall be charged for a year of
assessment; and
(b) the
emoluments are not paid before the end of the period of 12 months beginning
with the end of that period,
the Comptroller, if he or
she is of the opinion that the main purpose of deferral of payment of the emoluments
is the avoidance or reduction of the liability of any person to income tax, may
refuse to allow their deduction for that period.[292]
(2) In
this Article the time when emoluments are paid shall be determined in
accordance with Article 65A as if “paid” were substituted for
“received” throughout that Article.[293]
70 General
rules as to deductions not allowable[294]
Subject to the provisions
of this Law, in computing the amount of the profits or gains to be charged, no
sum shall be deducted in respect of –
(a) any
disbursements or expenses, not being money wholly and exclusively laid out or
expended for the purposes of the trade, profession, employment or vocation;
(b) any
disbursements or expenses of maintenance of the parties, their families or
establishments, or any sums expended for any other domestic or private purposes
distinct from the purposes of such trade, profession, employment or vocation;
(c) the
rent assessed and charged under Schedule A pursuant to Article 51(1)(a) of
any dwelling-house or domestic offices or any part thereof, except such part as
is used for the purposes of the trade or profession:
Provided that where any
such part is so used, the sum so deducted shall not exceed 2/3 of the said rent
bona fide paid for the said dwelling-house or offices, unless in any case the
Comptroller is of the opinion that having regard to all the circumstances, some
greater sum ought to be deducted;
(d) any
sum expended for repairs of premises occupied, or for the supply, repairs or
alterations of any implements, utensils or articles employed for the purposes
of the trade, profession, employment or vocation, beyond the sum actually
expended for those purposes;
(e) any
loss not connected with or arising out of the trade, profession, employment or
vocation;
(f) any
capital withdrawn from, or any sum employed or intended to be employed as
capital in such trade, profession, employment or vocation;
(g) any
capital employed in improvements of premises occupied for the purposes of the
trade, profession, employment or vocation;
(h) any
interest on sums disallowed under any provision of this Article;
(i) any
debts, except bad debts proved to be such to the satisfaction of the
Comptroller or the Commissioners, and doubtful debts to the extent that they
are respectively estimated to be bad, and, in the case of the bankruptcy or
insolvency of a debtor, the amount which may reasonably be expected to be
received on any such debts shall be deemed to be the value thereof;
(j) any
average loss beyond the actual amount of loss after adjustment;
(k) any
sum recoverable under an insurance or contract of indemnity;
(l) any
annual interest, or any annuity or other annual payment payable out of the
profits or gains;
(m) any
royalty or other sum paid in respect of the user of a patent.
70A Deduction on
account of Social Security contributions[295]
(1) Notwithstanding
anything in Article 70, in computing the profits or gains to be charged in
respect of a trade or profession under Schedule D there shall be allowed to be
deducted as expenses in any year an amount equal to the relevant percentage of
the Class 2 contributions which the individual or, in the case of a trade or
profession carried on in partnership, the individuals carrying on the trade or
profession are liable to pay in that year under the Social Security
(Jersey) Law 1974, as Class 2 insured persons.[296]
(1A) In
paragraph (1), the “relevant percentage” means –
(a) in
relation to the year 2002 and ensuing years up to and including 2011, 52%;
(b) in
relation to the year 2012 and ensuing years –
(i) for Class 2
contributions calculated with reference to the difference between the standard
monthly earnings limit and the upper monthly earnings limit, 100%,
(ii) for
Class 2 contributions not falling within clause (i), 52%.[297]
(2) In
this Article –
(a) “Class 2
contributions”;
(b) “Class 2
insured person”;
(c) “standard
monthly earnings limit”; and
(d) “upper
monthly earnings limit”,
have the same meaning as
in the Social
Security (Jersey) Law 1974.[298]
70B Deduction on
account of a levy paid to the Jersey Bank Depositors Compensation Board[299]
Notwithstanding Article 70,
in computing the profits or gains to be charged in respect of a trade or
profession under Schedule D there shall be allowed to be deducted by a bank as
expenses in any year an amount equal to any levy paid by the bank in that year to
the Jersey Bank Depositors Compensation Board established by the Banking
Business (Depositors Compensation) (Jersey) Regulations 2009.
70C Deductions
on account of foreign tax paid[300]
(1) Despite
Article 70, in computing the profits or gains to be charged in respect of
a trade under Schedule D there is allowed to be deducted as expenses in
any year an amount equal to the amount of foreign tax payable in respect of
that trade except where the person has claimed a credit in respect of that
foreign tax under Article 112 or Part 14A.
(2) In
this Article “foreign tax” has the same meaning as in
Article 114A.
70D Employer’s
contributions into group life insurance scheme[301]
(1) Despite
Article 70, in computing the profits or gains to be charged in respect of
a trade or profession under Schedule D there is allowed to be deducted as
expenses in any year an amount equal to the sum of contributions payable by the
person liable to tax in respect of that trade or profession into a group life
insurance scheme that is wholly and exclusively for the benefit of the person’s
employees.
(2) However,
paragraph (1) applies only if –
(a) the
death benefits payable under the scheme do not exceed the total of 5 times
the emoluments received by the deceased employee during the year immediately
preceding his or her death; and
(b) where
the employer is a company, no employee who is a beneficiary of the scheme owns
more than 20% of the shares of the company.
(3) In
this Article “employee” means a person who is paid wages or salary
regardless of whether the person is employed or is an office holder.
70E Deductions
for expenditure on regulatory compliance activity[302]
(1) In computing the
profits or gains to be charged in respect of a trade or profession under
Schedule D there is allowed to be deducted as expenses an amount equal
to 150% of eligible expenditure for the purposes of regulatory compliance
activity.
(2) For the purposes of
paragraph (1) eligible expenditure is expenditure in the 2024 year of
assessment and subsequent years on –
(a) computer
hardware;
(b) software,
including software subscriptions and licences; and
(c) training
that is delivered by an external provider on hardware or software.
74 General
partnerships[303]
(1) For the purposes of
this Law, a trade or profession carried on by a general partnership with a view
to profit or gain is to be treated as carried on in partnership by its partners
and not by the general partnership as such.
(2) Accordingly, the
property of the general partnership is to be treated for those purposes as
partnership property of the partners and not as property of the general
partnership.
(3) Subject to the
provisions of this Article, the provisions of this Law apply to the profits and
gains of a partner in a general partnership.
75 Changes
of proprietor
(1) [304]
(2) If
at any time any person succeeds to any trade, profession or vocation which
until that time was carried on by another person and the case is not one to
which Article 75A applies, the income tax payable for all years of
assessment by the person succeeding as aforesaid shall be computed as if he or
she had set up or commenced the trade, profession or vocation at that time, and
the tax payable for all years of assessment by the person who until that time
carried on the trade, profession or vocation shall be computed as if it had
then been discontinued.
In this paragraph,
references to a person include references to a partnership.[305]
(3) In
the case of the death of a person who, if he or she had not died, would under
the provisions of this Article have become chargeable to income tax for any year,
the income tax which would have been so chargeable shall be assessed and
charged on his or her executors or administrators and shall be a debt from and
payable out of his or her estate.
75A Change of partner[306]
(1) Where this Article
applies a partnership’s trade, profession, business or vocation is deemed
to have ceased and a new partnership’s trade, profession, business or
vocation is deemed to commence.
(2) This Article applies
where there is a change in the partners of a partnership and that change represents
a change of 50% or more –
(a) in
the entitlement of the assets in the partnership before the change in partners;
or
(b) in
the collective voting entitlement of the partnership.
(3) For the purposes of
Article 106A, the basis period ends on the date that the partnership is deemed
to have ceased and a new basis period commences on the date the partnership is
deemed to have commenced.
76 [307]
76A Limited partnerships[308]
(1) Subject
to the provisions of this Article, the provisions of this Law apply to the
profits or gains of a partner in a limited partnership.
(2) Paragraph (1)
shall not apply to the profits or gains derived from international activities
of a partner in a limited partnership who is not resident in Jersey.
(3) For
the purposes of this Law, a trade, profession, business or vocation carried on
by a limited partnership is to be treated as carried on in partnership by its
partners and not by the limited partnership as such.[309]
(3A) Accordingly,
the property of the limited partnership is to be treated for those purposes as
partnership property of the partners and not as property of the limited
partnership.[310]
(4) Articles 86
and 87 shall not apply in a case where the general partner of a limited
partnership responsible for making the annual payment referred to in those
Articles is not resident in Jersey.[311]
(5) [312]
(6) In
this Article –
“general
partner” means a person who is so named in, or is identifiable through,
the partnership agreement and if more than one shall mean each general partner;
“limited partner”
means a person who is so named in, or is identifiable through, the partnership
agreement and if more than one shall mean each limited partner;
“limited
partnership” means a partnership consisting of one or more persons who
are general partners and one or more persons who are limited partners;
“partner”
means a limited partner or a general partner;
“partnership
agreement” means any agreement in writing of the partners as to the
affairs of a limited partnership and the rights and obligations of the partners
among themselves;
“profits or
gains” does not include profits or gains of a capital nature.[313]
76B Incorporated
limited partnerships[314]
(1) For the purposes of this Law, a trade, profession, business or
vocation carried on by an incorporated limited partnership with a view to
profit or gain shall be treated as carried on in partnership by its partners,
and not by the incorporated limited partnership as such.
(2) Accordingly,
the property of the incorporated limited partnership shall be treated for those
purposes as partnership property of the partners, and not as property of the
incorporated limited partnership.
(3) Subject
to the provisions of this Article, the provisions of this Law apply to the
profits or gains of a partner in an incorporated limited partnership.
(4) Paragraph (3)
shall not apply to the profits or gains derived from international activities
of a partner in an incorporated limited partnership who is not resident in
Jersey.
(5) [315]
(6) Articles 86
and 87 shall not apply in a case where the general partner of an incorporated
limited partnership responsible for making the annual payment referred to in
those Articles is not resident in Jersey.[316]
(7) [317]
(8) In this
Article –
“incorporated
limited partnership”, “general partner”, “limited
partner”, “partner” and “partnership agreement”
have the same meanings as they have in the Incorporated
Limited Partnerships (Jersey) Law 2011;
“profits
or gains” does not include profits or gains of a capital nature.[318]
76C Separate limited
partnerships[319]
(1) For the purposes of this Law, a trade, profession, business or
vocation carried on by a separate limited partnership with a view to profit or
gain shall be treated as carried on in partnership by its partners, and not by
the separate limited partnership as such.
(2) Accordingly,
the property of the separate limited partnership shall be treated for those
purposes as partnership property of the partners, and not as property of the
separate limited partnership.
(3) Subject
to the provisions of this Article, the provisions of this Law apply to the
profits or gains of a partner in a separate limited partnership.
(4) Paragraph (3)
shall not apply to the profits or gains derived from international activities
of a partner in a separate limited partnership who is not resident in Jersey.
(5) [320]
(6) Articles 86
and 87 shall not apply in a case where the general partner of a separate limited
partnership responsible for making the annual payment referred to in those
Articles is not resident in Jersey.[321]
(7) [322]
(8) In
this Article –
“separate
limited partnership”, “general partner”, “limited
partner”, “partner” and “partnership agreement” have
the same meanings as they have in the Separate Limited
Partnerships (Jersey) Law 2011;
“profits
or gains” does not include profits or gains of a capital nature.[323]
76D Limited liability
partnerships[324]
(1) For the purposes of this Law, a trade, profession, business or
vocation carried on by a limited liability partnership with a view to profit or
gain shall be treated as carried on in partnership by its partners, and not by
the limited liability partnership as such.
(2) Accordingly,
the property of the limited liability partnership shall be treated for those
purposes as partnership property of the partners, and not as property of the
limited liability partnership.
(3) Subject
to the provisions of this Article, the provisions of this Law apply to the
profits or gains of a partner in a limited liability partnership.
(4) Paragraph (3)
shall not apply to the profits or gains derived from international activities
of a partner in a limited liability partnership who is not resident in Jersey.
(5) [325]
(6) Articles 86
and 87 shall not apply where a payment referred to in those Articles is made by
or through a limited liability partnership.
(7) [326]
(8) [327]
(9) [328]
(10) In
this Article –
(a) “declaration”,
“limited liability partnership”, “partner” and
“secretary” have the same meaning as they have in the Limited
Liability Partnerships (Jersey) Law 2017; and
(b) “profits
or gains” does not include profits or gains of a capital nature.[329]
76E Foreign
limited liability partnerships[330]
(1) Where
the Comptroller approves a foreign limited liability partnership, the
partnership is treated as a limited liability
partnership registered under Article 18 of the Limited Liability Partnerships (Jersey)
Law 2017 for the
purposes of this Law and Article 76D applies to it.[331]
(2) The
Comptroller may approve legislation made in another jurisdiction
(“approved legislation”) under which limited liability partnerships
are or may be established.[332]
(3) The
Comptroller, upon application by the partnership –
(a) may
approve a specific foreign limited liability partnership; and
(b) must
approve a foreign limited liability partnership established under approved
legislation.[333]
(4) At
the start of each year, the Comptroller must publish a list of approved
legislation and must, as soon as practicable, update the list during that year.[334]
(5) [335]
(6) [336]
(7) [337]
(8) [338]
(9) [339]
(10) [340]
Case II
77 Fees
and subscriptions to professional bodies, learned societies, etc.
(1) Subject
to the following provisions of this Article, any annual fee or subscription
paid to a body of persons approved for the purposes of this Article by the
Comptroller may be deducted from the emoluments of any office or employment
assessed to tax, if defrayed out of those emoluments.
(2) The
Comptroller may, on the application of the body, approve for the purposes of
this Article any body of persons not of a mainly local character whose
activities are carried on otherwise than for profit and are solely or mainly
directed to all or any of the following objects, that is to say –
(a) the
advancement or spreading of knowledge (whether generally or among persons
belonging to the same or similar professions or occupying the same or similar
positions);
(b) the
maintenance or improvement of standards of conduct and competence among the
members of any profession;
(c) the
indemnification or protection of members of any profession against claims in
respect of liabilities incurred by them in the exercise of their profession.
(3) If
the activities of a body approved for the purposes of this Article are to a
significant extent directed to objects other than those mentioned in paragraph (2),
the Comptroller may determine that such specified part only of any annual
subscription paid to the body may be deducted under this Article as corresponds
to the extent to which its activities are directed to objects mentioned in that
paragraph; and in doing so the Comptroller shall have regard to all relevant
circumstances and, in particular, to the proportions of the body’s
expenditure attributable to the furtherance of objects so mentioned and other
objects respectively.
(4) A
fee or subscription shall not be deducted under this Article from the
emoluments of any office or employment unless –
(a) the
fee is payable in respect of a registration (or retention of a name in a roll
or record) or certificate which is a condition or one of alternative conditions
of the performance of the duties of the office or employment;
(b) the
subscription is paid to a body the activities of which, so far as they are
directed to the objects mentioned in paragraph (2), are relevant to the
office or employment, that is to say, the performance of the duties of the
office or employment is directly affected by the knowledge concerned or
involves the exercise of the profession concerned.
(5) Any
approval given and any determination made under this Article may be withdrawn,
and any such determination varied, so as to take account of any change of
circumstances; and where a body is approved for the purposes of this Article,
in pursuance of an application made before the end of any year of assessment, a
deduction may be made under this Article in respect of a subscription paid to
the body in that year, whether the approval is given before or after the end of
that year.
(6) A
body may appeal to the Commissioners against a decision made by the Comptroller
under this Article by giving notice in writing to the Comptroller within
21 days of receiving notification of the decision.[341]
(7) Part 6
applies, with the necessary modifications, to an appeal under
paragraph (6) as if it were an appeal against an assessment.[342]
77AA Social Security allowances[343]
(1) This
Article applies to payments of benefits under the Social Security
(Jersey) Law 1974, other than payments of incapacity benefit, parental
allowance, parental grant and death grant.[344]
(2) A
payment of benefit to which this Article applies shall –
(a) be
charged to income tax under Case II of Schedule D; and
(b) subject
to paragraph (3), be deemed for all the purposes of this Law to be earned
income.
(3) A
payment of benefit to which this Article applies shall only be treated as
earned income of a wife for the purposes of Article 92A(4) if it
is –
(a) an
old age pension payable to the wife by virtue of her own insurance; or
(b) home
carer’s allowance payable to the wife.
(4) A
payment of benefit to which this Article applies shall only be treated as the
earned income of an individual’s civil partner B for the purposes of
Article 92(4A) if it is –
(a) an
old age pension payable to the civil partner B by virtue of civil
partner B’s own insurance; or
(b) home
carer’s allowance payable to civil partner B.[345]
Case
IIA[346]
77A Interpretation of
Articles 77A to 77E[347]
(1) In
Articles 77A to 77E –
“attributable
earnings” shall be construed in accordance with Article 77B;
“client” means
the person referred to in the definition “intermediary services
vehicle” providing payment (whether or not in cash) to an ISV for the
supply of the services referred to in that definition;
“individual”
means the individual referred to in the definition “intermediary services
vehicle” who supplies services to the client;
“intermediary
services vehicle” means a company who receives payment from a person
pursuant to arrangements with that person for the supply to that person of the
services of an individual who owns more than 2% of the ordinary share capital
in the company, or of another individual connected with an individual who owns
more than 2% of the ordinary share capital in the company, in circumstances
where, disregarding the interposition of the company, had the arrangements
taken the form of a contract between the individual supplying the services and
the other person, the other person would be an employer of the individual within
the meaning of Article 1A of the Employment
(Jersey) Law 2003;
“ISV” means an
intermediary services vehicle;
“payment”
means payment in any form, whether or not in cash;
“relevant
arrangements” mean the arrangements referred to in the definition
“intermediary services vehicle” between the ISV, the individual and
the client.
(2) The
States may, by Regulations –
(a) amend
the definition “intermediary services vehicle” in paragraph (1)
so that it includes such type of body corporate or partnership as the States
may specify generally or by description; and
(b) amend
the percentages of shareholding specified in the definition “intermediary
services vehicle”.
77B Basis of computation
under Case IIA[348]
(1) Subject
to Articles 77C and 77D, tax under Case IIA of Schedule D is
computed on the full amount of payments made by a client to an ISV in a year of
assessment for the supply of services by an individual to the client pursuant
to the relevant arrangements as if those payments were earnings of the
individual chargeable to tax under Case II (such payments being referred
to as “attributable earnings”).
(2) This
Article applies only to payments made to an ISV in respect of services supplied
by an individual who, at the time of supplying the services, is resident in
Jersey.
77C Deductions
under Case IIA[349]
There shall be deducted
from the attributable earnings –
(a) any
payments made by the ISV to the individual in the year of assessment by way of
remuneration for services provided by the individual to the client pursuant to
the relevant arrangements;
(b) any
contributions paid by the ISV under the Social Security
(Jersey) Law 1974 in the year of assessment as the employer of the
individual in respect of services provided by the individual to the client
pursuant to the relevant arrangements; and
(c) any
payments made by the ISV, pursuant to the relevant arrangements, which, if paid
by the individual, the individual would have been entitled to deduct under this
Law in computing profits or gains chargeable to tax under Case II of
Schedule D (regardless of whether the individual is chargeable to tax
under Case II of Schedule D).
77D Circumstances
where Case IIA does not apply[350]
(1) An
individual is not liable to taxation under Case IIA in a year of
assessment where the aggregate value of the payments made to one or more ISVs
by one or more clients for the supply of services by the individual under
relevant arrangements in the year of assessment was less than £45,000.
(2) The
States may, by Regulations, amend the amount referred to in paragraph (1).
77E Treatment of
attributable earnings for other purposes[351]
(1) Any
amount charged to tax as attributable earnings (after taking into account any
deduction allowed under Article 77C) shall not be chargeable to tax under
Case II or Case V of Schedule D or treated as a distribution for
the purposes of Case III(f) or Case IX of Schedule D.
(2) In
calculating an individual’s allocated share of specified profits for the
purposes of Case IX of Schedule D, the ISV shall, when calculating
the amount of the ISV’s specified profits for any particular period,
disregard any amounts chargeable to tax under Case IIA in respect of
payments received by the ISV during that period.
Case III
78 Basis
of computation under Case III
(1) Subject
to the provisions of this Article, tax under Case III of Schedule D shall be
computed on the full amount of the profits or income arising in the year of
assessment.
(1A) Tax
in respect of distributions of a company shall not be charged under
Case III of Schedule D on any of the following –
(a) so
much of a distribution as is made out of realised capital profits of the
company;
(b) so
much of a distribution as represents a return of share capital where the
company received new consideration in respect of the issue of that share
capital;
(c) so
much of a distribution as represents repayment of the principal amount advanced
to the company by a member or a person connected with a member;
(d) so
much of a distribution as an individual can prove to the satisfaction of the
Comptroller has been made out of the same profits as those that have been used
to determine that an earlier distribution to that individual is a relevant
distribution for the purposes of Case IX of Schedule D.[352]
(1B) For
the purposes of paragraph (1A)(b) –
(a) the
reference to share capital includes stated capital of a no par value company
and share premium;
(b) “new
consideration” has the meaning set out in Article 3AE(6).[353]
(1C) For
the purposes of paragraph (1A)(c), in the case of a company with a share
capital, “member” includes any person who is deemed to own shares
in the company under Article 82A(1)(a).[354]
(2) Save
as otherwise provided in this Law, all profits or income in respect of which
any person is chargeable under Case III of Schedule D may be assessed and
charged in one sum.
79 Pensions
chargeable under Case III
Tax shall be computed on
the full amount of a pension subject to the deduction of any income tax which
has been paid in respect of the pension in the place where it has arisen.[355]
Cases IV and V
80 Basis
of computation under Cases IV and V
(1) Subject
to the provisions of this Article, tax under Case IV or Case V of Schedule D
shall be computed on the full amount of the income arising in the year of
assessment whether the income has been or will be received in Jersey or not,
subject, in the case of income not received in Jersey –
(a) to the
same deductions and allowances as if it had been so received;
(b) to
the deduction, where such a deduction cannot be made under, and is not
forbidden by, any other provision of this Law, of any sum which has been paid
in respect of income tax in the place where the income has arisen;
(c) to a
deduction on account of any annual interest or any annuity or other annual
payment payable out of the income to a person not resident in Jersey; and
(d) to a
deduction in the case of income arising from a profession, office, employment
or vocation of any sums, not being of a capital nature, necessarily expended
for the purpose of earning the income, including any sums so expended in
maintaining a place of residence in the place where the income arises,
and the provisions of this
Law (including those relating to the delivery of statements) shall apply
accordingly.[356]
(1A) [357]
(1B) [358]
(2) Paragraph (1)
shall not apply to any individual who satisfies the Comptroller that he or she
is not ordinarily resident in Jersey for the year of assessment (and applies as
modified by Article 80A where an individual becomes, or ceases to be,
ordinarily resident).[359]
(3) In
the case mentioned in paragraph (2), the tax shall be computed –
(a) in
the case of tax chargeable under Case IV, on the full amount, so far as the
same can be computed, of the sums received in Jersey in the year of assessment,
without any deduction or abatement;
(b) in
the case of tax chargeable under Case V, on the full amount of the actual sums
received in Jersey in the year of assessment from remittances payable in
Jersey, or from property imported, or from money or value arising from property
not imported, or from money or value so received on credit or on account in
respect of any such remittances, property, money or value brought or to be
brought into Jersey, without any deduction or abatement other than is allowed,
under the provisions of this Law, in respect of profits or gains charged under
Case I of Schedule D.[360]
(3A) Tax
in respect of distributions, within the meaning of Article 3AE(1)(a) only,
of a company that is non-resident in Jersey is not charged under Case V of
Schedule D on so much of any such distribution as is made out of the realised
capital profits of the company.[361]
(3B) Tax
in respect of distributions, within the meaning of Article 3AE(1)(c) only,
of a company is not charged under Case V of Schedule D on so much of
a distribution as represents repayment of the principal amount advanced to the
company by a member, or a person connected with a member, where the principal
amount was advanced on a commercial basis.[362]
(4) A
person may appeal to the Commissioners against a decision made by the
Comptroller under paragraph (2) about the person’s ordinary
residence by giving notice in writing to the Comptroller within 3 months
of receiving notification of the decision.[363]
(5) Part 6
applies, with the necessary modifications, to an appeal under
paragraph (4) as if it were an appeal against an assessment.[364]
(6) All
income in respect of which a person is chargeable under Case IV or Case V of
Schedule D may respectively be assessed and charged in one sum.
80A Application of
Article 80: individuals who become, or cease to be, ordinarily resident[365]
(1) Article 80
applies with the modifications in paragraph (2) where –
(a) an
individual who is not resident in Jersey becomes ordinarily resident in Jersey;
or
(b) an
individual who is ordinarily resident in Jersey ceases to be resident in
Jersey.
(2) Paragraph (1)
of Article 80 –
(a) applies
in relation to the individual, for a relevant year of assessment, as if the
reference in that paragraph to the income arising in the year of assessment
were a reference to the income arising in Period A; and
(b) does
not apply in relation to the individual, for a relevant year of assessment, in relation
to income arising otherwise than in Period A.
(3) In
a case within paragraph (1)(a) –
(a) a “relevant year of assessment” means a year of
assessment –
(i) for which the
individual is treated as being ordinarily resident in Jersey, and
(ii) which
immediately follows a year of assessment for which the individual is treated as
being not resident in Jersey;
(b) “Period A”,
in relation to a relevant year of assessment, means the period –
(i) beginning with
the day on which the individual’s circumstances change in such a way as
to result in the individual being treated as ordinarily resident in Jersey for
the relevant year of assessment, and
(ii) ending
with the last day of that year.
(4) In a case within paragraph (1)(b) –
(a) a
“relevant year of assessment” means a year of
assessment –
(i) for which the
individual is treated as being ordinarily resident in Jersey, and
(ii) which
immediately precedes a year of assessment for which the individual is treated
as being not resident in Jersey;
(b) “Period A”,
in relation to a relevant year of assessment, means the period –
(i) beginning with
the first day of the relevant year of assessment, and
(ii) ending
with the day on which the individual’s circumstances change in such a way
as to result in the individual being treated as not resident in Jersey for the
following year of assessment.
Cases VI and VII[366]
81 Basis
of computation under Cases VI and VII
(1) Save
as provided by Articles 86(2)(e), 131J(2)(a), 131L(1) and 131P(6), tax
under Case VI or Case VII of Schedule D shall be computed on the full amount of
the profits or gains arising in the year of assessment.[367]
(2) The
nature of the profits or gains, and the basis on which the amount thereof has
been computed, shall be stated to the Comptroller.
(3) Every
such statement and computation shall be made to the best of the knowledge and
belief of the person in receipt of or entitled to the profits or gains.
81A Transactions in
certificates of deposit[368]
(1) Where
a person acquires the right to receive the amount (with or without interest)
stated in a certificate of deposit issued to the person or any other person,
any profits or gains arising to him or her from the disposal of that right or,
except so far as it is a right to receive interest, from its exercise shall, if
not falling to be taken into account as a trading receipt, be treated as annual
profits or gains chargeable to tax under Case VI of Schedule D.
(2) Where
a person sustains a loss in a transaction which, if a profit had arisen from
it, would be chargeable to tax by virtue of paragraph (1) of this Article,
then, if he or she is chargeable to tax under Schedule D in respect of the
interest payable on the amount stated in the certificate of deposit concerned,
in computing the amount of interest chargeable to tax the amount of the
person’s loss shall be deducted from the interest and, if tax has been
overpaid, he or she shall be entitled to repayment of the amount overpaid.
(3) In
this Article, “certificate of deposit” means a document relating to
money, in any currency, which has been deposited with the issuer or some other
person, being a document which recognizes an obligation to pay a stated amount
to bearer or to order, with or without interest, and being a document by the
delivery of which, with or without endorsement, the right to receive that
stated amount, with or without interest, is transferable.
Case
VIII[369]
81B [370]
81C Basis of
computation under Case VIII[371]
Tax under Case VIII
of Schedule D shall be computed –
(a)
(d) on
the full amount attributable, in the year of assessment, to a shareholder loan,
in accordance with Article 81O.[372]
81CA [373]
81CB [374]
81D [375]
81E [376]
81F [377]
81FA [378]
81FB [379]
81G [380]
81GA [381]
81GB [382]
81H [383]
81I [384]
81J [385]
81K [386]
81L [387]
81M [388]
81N [389]
81O Shareholder loans[390]
(1) A
shareholder loan is a loan –
(a) to an
individual resident in Jersey who owns shares in a company to which Article 123C
or 123D applies (referred to in this Article as “the borrower”) or
to a member of that individual’s family or household;
(b) made,
paid by or derived from that company –
(i) where the company
is a company described in sub-paragraph (a) from the day of its
incorporation, on or after that day,
(ii) where
the company becomes a company described in sub-paragraph (a) in a year of
assessment, on or after the first day of that year.[391]
(2) For
the purposes of paragraph (1), the cases in which a company is to be
regarded as making a loan to an individual shall include a case where –
(a) that
individual incurs a debt from the company; or
(b) a
debt due from that individual to a third person is assigned to the company.
(3) For
the purposes of paragraph (1), a loan is derived from a company to a
borrower or to member of his or her family or household where –
(a) the
company makes a loan or advance which, apart from this paragraph, is not a
shareholder loan; and
(b) some
person other than the company makes a payment or transfers property to, or
releases or satisfies, in whole or in part a liability of, the borrower or of a
member of the borrower’s family or household.
(4) However,
the following loans and debts shall not be shareholder loans –
(a) a
loan advanced at a commercial rate where –
(i) the ordinary
business carried on by the company includes money lending, and
(ii) the
company is authorized, pursuant to an enactment, to carry on a business which
includes money lending;
(b) a
debt incurred for the supply by the company of goods or services in the
ordinary course of its trade or business, unless the period of credit given
exceeds 6 months or is longer than that normally given to the company’s
customers;
(c) any
loan charged to tax as the emolument of any office or employment, by virtue of Article 65B.
(5) The
amount attributable to a shareholder loan for the year of assessment in which
it is made or paid by, or otherwise derived from, the company shall be the
aggregate of the amounts paid by the company in that year in respect of the
loan, less the aggregate of the sums repaid or reimbursed by the borrower to
the company in that year in respect of the loan.
(6) Where
a borrower charged to tax for a year of assessment in respect of a shareholder
loan proves, to the satisfaction of the Comptroller, that he or she has made a
repayment or reimbursement to the company in respect of that loan in a
subsequent year of assessment, the borrower shall be entitled to a credit
against his or her liability to tax for the subsequent year in an amount equal
to the product of –
Where –
S = the amount repaid
or reimbursed by the borrower in the subsequent year of assessment
O = the amount
attributable to the loan, in accordance with paragraph (5), for the year
in which it is made, paid by, or otherwise derived from the company
T = the amount of tax
charged on the borrower pursuant to this Article for the year in which the loan
is made, paid by, or otherwise derived from the company.
(7) [392]
(8) [393]
(9) [394]
(10) [395]
(11) In
determining, for the purposes of this Article, the sums repaid or reimbursed by
the shareholder, there shall be disregarded any payment of interest.