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;

(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;

(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;

(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;

(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

“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

(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;

(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;

(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

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 4

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

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;

(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

(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

(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)

(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)

(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;

(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

(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.

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

(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;

(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);

(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

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

(7) The appellant and the officer attending the appeal shall be entitled –

(a) to give evidence;

(b) to call witnesses;

(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

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 –

Embedded Image

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 –

Embedded Image

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

(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 –

Embedded Image

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;

(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 –

Embedded Image

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;

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

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;

(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;

(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]

(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;

(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

(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;

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)

(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;

(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;

(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

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;

(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

(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.

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”;

(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

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]

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;

(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 –

Embedded Image

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.

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Income Tax (Jersey) Law 1961