Taxation
(Partnerships – Economic Substance) (Jersey) Law 2021
A LAW to impose an economic substance
test on Jersey resident partnerships.
Commencement [see endnotes]
PART 1
Interpretation
1 Interpretation – general[1]
In this Law –
“1961 Law” means the Income Tax
(Jersey) Law 1961;
“authorised person” means the Comptroller or any
person authorised by the Comptroller to perform functions under Article 14;
“banking business” –
(a) means, in respect of a person,
a deposit taking business that the person must be registered to carry on under Article 9
of the Banking Business
(Jersey) Law 1991; but
(b) does not include business
carried on by a person which the Jersey Financial Services Commission is
satisfied is registered under the Banking
Business (Jersey) Law 1991 solely for
business continuity and liable to pay a reduced annual fee accordingly under
the Commission’s published fees under Article 15 of the Financial
Services Commission (Jersey) Law 1998;
“Comptroller” means the Comptroller of Revenue
described in Article 2 of the Revenue
Administration (Jersey) Law 2019;
“connected person”, in relation to a resident
partnership, means –
(a) an individual who is –
(i) a partner in the
resident partnership, or
(ii) the spouse, civil
partner, sibling, ancestor or lineal descendant of a partner in the resident
partnership; or
(b) another partnership or
person (the “other entity”) if the resident partnership and the other
entity –
(i) are both controlled by
the same person, either alone or with other persons to whom the person is connected
in accordance with this definition or with Article 3A(2), (4) or (5) of
the 1961 Law, or
(ii) are both controlled by
groups of 2 or more persons 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 in accordance with this definition or with Article 3A(2),
(4) or (5) of the 1961 Law;
“core income-generating activities” has the
meaning given in Article 5;
“deposit-taking business” has the meaning given
in Article 3 of the Banking Business
(Jersey) Law 1991;
“distribution and service centre business” –
(a) means the business
of –
(i) purchasing, from foreign
connected persons, goods ready for sale or component parts or materials for
goods and then reselling those component parts, materials or goods, or
(ii) providing services to
foreign connected persons in connection with such a business; but
(b) does not include any
activity included in any other relevant activity except holding partnership
business;
“economic substance test” means the test in Article 8(1);
“finance and leasing business” has the meaning
given in Article 3;
“financial period” has the meaning given in Article 4A
of the 1961 Law;
“foreign connected person”, in relation to a
resident partnership, means a person or partnership that is –
(a) a connected person of the
resident partnership; and
(b) not resident or regarded
as resident in Jersey;
“foreign limited partnership” means a
partnership that –
(a) was established under the
Law of a jurisdiction outside of Jersey; and
(b) consists of one or more
persons who are general partners and one or more persons who are limited
partners;
“fund management business” means –
(a) the business of a manager
or investment manager referred to in Group 2 in Part 2 of the Schedule to
the Collective
Investment Funds (Jersey) Law 1988 who
is required to hold a permit under that Law to carry on the business;
(b) the business of a person
who is required to be registered under the Financial
Services (Jersey) Law 1998 to carry on
financial service business (as defined in Article 2 of that Law) and who
is –
(i) a manager or investment
manager referred to in Article 2(10)(a) of that Law,
(ii) a trustee referred to in
Article 2(10)(c) of that Law, except where a separate manager has been
appointed to the fund, or
(iii) a member of a partnership
referred to in Article 2(10)(d) of that Law, except where a separate
manager has been appointed to the fund;
(c) the business of being a
person who is the equivalent of a person referred to in paragraph (b) in
respect of a fund that would be a scheme falling within the definition of
“collective investment fund” in Article 3 of the Collective
Investment Funds (Jersey) Law 1988
except that the offer of units in the scheme or arrangement is not an offer to
the public within the meaning of that Article; or
(d) the business of being a
person who is the equivalent of a person referred to in paragraph (b) in
respect of a fund that –
(i) is not for the purpose
of securitisation or repackaging of assets, and
(ii) would be a scheme
falling within the definition of “collective investment fund” in Article 3
of the Collective
Investment Funds (Jersey) Law 1988
except that the fund is prescribed not to constitute a collective investment
fund in an Order made for the purposes of paragraph (7) of that Article;
“general partner” means a partner that is not a
limited partner;
“headquarters business” –
(a) means the business of
providing any of the following services to one or more foreign connected
persons of the resident partnership –
(i) the provision of senior
management,
(ii) the assumption or
control of material risk for activities carried out by, or assets owned by, any
of those connected persons, or
(iii) the provision of
substantive advice in connection with the assumption or control of risk referred
to in sub-paragraph (ii); but
(b) does not include anything
falling within the definition of finance and leasing business, intellectual
property holding business, insurance business or banking business;
“high risk IP partnership” means a partnership
that carries on an intellectual property holding business and –
(a) the partnership –
(i) did not create the
intellectual property in an intellectual property asset which it holds for the
purposes of its business,
(ii) acquired the
intellectual property asset –
(A) from a connected person,
or
(B) in consideration for
funding research and development by another person situated in a country or
territory other than Jersey, and
(iii) licences the intellectual
property asset to one or more connected persons or otherwise generates income
from the asset in consequence of activities (such as facilitating sale
agreements) performed by foreign connected persons; or
(b) the partnership does not
carry out research and development, branding or distribution as part of its
core income-generating activities;
“holding body” has the meaning given in Article 2
of the Companies
(Jersey) Law 1991, except that in that Article –
(a) “body corporate” is to be
read as including a limited liability partnership registered under the Limited
Liability Partnerships (Jersey) Law 2017; and
(b) paragraph (1) (which
defines “subsidiary”) is to be read with the necessary modifications so that it
could apply to a limited liability partnership;
“holding partnership” means a resident
partnership which –
(a) is a holding body;
(b) has as its primary
function the acquisition and holding of shares or equitable interests in
companies; and
(c) does not carry on any
commercial activity;
“holding partnership business” means the
business of being a holding partnership;
“income”, in respect of an intellectual property
asset, includes –
(a) royalties;
(b) income from a franchise
agreement; and
(c) income from licensing the
intangible asset;
“incorporated limited partnership” means an
incorporated limited partnership established in accordance with the Incorporated
Limited Partnerships (Jersey) Law 2011;
“insurance business”, in respect of a person, means
long-term business or general business within the meaning of Article 1 of
the Insurance
Business (Jersey) Law 1996 which person must be authorised to
carry on by a Category A permit or Category B permit under that Law;
“intellectual property holding business” means the
business of holding or exploiting intellectual property assets;
“intellectual property asset” means any
intellectual property right in intangible assets, including but not limited to
copyright, patents, trade marks, brand, and technical
know-how, from which identifiable income accrues to the business (such income
being separately identifiable from any income generated from any tangible asset
in which the right subsists);
“limited liability partnership” means a limited
liability partnership registered under the Limited
Liability Partnerships (Jersey) Law 2017 or a foreign limited
liability partnership approved by the Comptroller under Article 76E of the
1961 Law;
“limited partner” means a partner whose liability
towards the partnership’s debts is legally limited;
“limited partnership” means a limited
partnership established in accordance with the Limited
Partnerships (Jersey) Law 1994;
“Minister” means the Minister for Treasury and
Resources;
“partner”, in relation to a partnership, means
any partner in the partnership (regardless of whether the partner is a general
partner or limited partner);
“partnership” includes –
(a) an
incorporated limited partnership;
(b) a limited
liability partnership;
(c) a limited partnership;
(d) a separate limited
partnership;
(e) a foreign limited
partnership;
(f) a general partnership
within the meaning of Article 3 of the 1961 Law;
“relevant activities” has the meaning given in Article 4;
“resident partnership” has the meaning given in Article 2;
“separate limited partnership” means a separate
limited partnership established in accordance with the Separate Limited
Partnerships (Jersey) Law 2011;
“ship” has the meaning given in Article 1
of the Shipping (Jersey)
Law 2002 but does not include –
(a) a fishing vessel (as
defined by that Article);
(b) a small ship (as defined
by that Article); or
(c) a ship to the extent that
it is used as a pleasure vessel (as defined by Article 169(6) of that
Law);
“shipping business” means any of the following
activities involving the operation of a ship anywhere in the world other than
solely between Jersey and Guernsey or within the territorial waters of Jersey –
(a) the business of
transporting, by sea, persons, animals, goods or mail;
(b) the renting or chartering
of ships for the purpose described in paragraph (a);
(c) the sale of travel
tickets or equivalent, and ancillary services connected with the operation of a
ship;
(d) the use, maintenance or
rental of containers, including trailers and other vehicles or equipment for
the transport of containers, used for the transport of anything by sea;
(e) the management of the
crew of a ship.
2 Meaning of “resident partnership”
(1) A
partnership formed under Jersey law is a resident partnership unless its place
of effective management is outside of Jersey in a country or territory
where –
(a) the highest rate at which
a company or individual may be charged to tax on any part of its income is 10%
or higher; or
(b) the partnership is
required to satisfy a test that is substantially the same as the economic
substance test.
(2) A
partnership not formed under Jersey law is a resident partnership if its place
of effective management is in Jersey.
(3) In
this Article –
(a) a partnership’s place of
effective management is the place where key management and commercial decisions
that are necessary for the conduct of the partnership’s business as a whole are
in substance made; and
(b) a partnership will have
one place of effective management at any one time (even if there is more than
one place where management decisions are made).
(4) The
Comptroller –
(a) may issue guidance on the
meaning of “place of effective management”; and
(b) must publish any guidance
issued (and any amendments to the guidance) in a manner which the Comptroller
considers will bring it to the attention of those most likely to be affected by
it.
(5) In
determining the meaning of “place of effective management”, a person must have
regard to any guidance issued under paragraph (4).
3 Meaning of “finance and leasing
business”
(1) In
this Law, “finance and leasing business” –
(a) means the business of
providing credit facilities of any kind for consideration; but
(b) does not include any
activity falling within the definition of “banking business”, “fund management
business” or “insurance business”.
(2) For
the purposes of paragraph (1) but without limiting the generality of that
paragraph –
(a) consideration may include
consideration by way of interest;
(b) the provision of credit
may be by way of instalments for which a separate charge is made and disclosed
to the customer in connection with –
(i) the supply of goods by
hire purchase,
(ii) leasing other than any
lease granting an exclusive right to occupy land, or
(iii) conditional sale or
credit sale.
(3) Where
an advance or credit repayable by a customer to a person is assigned to another
person or partnership, that other person or partnership is deemed to be
providing the credit facility for the purposes of paragraph (1).
4 Meaning of “relevant activities”
(1) In
this Law, “relevant activities” means any of the following activities –
(a) banking business;
(b) distribution and service
centre business;
(c) finance and leasing
business;
(d) fund management business
(e) headquarters business;
(f) holding partnership
business;
(g) insurance business;
(h) intellectual property
holding business;
(i) shipping business.
(2) However,
“relevant activities” does not include –
(a) business conducted by a
collective investment fund (as defined in the Collective
Investment Funds (Jersey) Law 1988);
(b) business conducted by a
fund that would be a collective investment fund except that the offer of units
in the fund is not an offer to the public (within the meaning given in Article 3
of the Collective
Investment Funds (Jersey) Law 1988); or
(c) business conducted by a
fund that –
(i) is not for the purpose
of securitisation or repackaging of assets, and
(ii) would be a collective
investment fund except that the fund is prescribed not to constitute a
collective investment fund in an Order made for the purposes of Article 3(7)
of the Collective
Investment Funds (Jersey) Law 1988.
(3) If
a partner in a partnership has been required to satisfy the economic substance
test in this Law or in the Taxation (Companies –
Economic Substance) (Jersey) Law 2019 in relation to an activity
(the “partner’s activity”), then for the purpose of determining whether an activity
carried on by or through the partnership is a relevant activity, the
definitions of the terms listed in paragraph (1) must be read as if the
partner’s activity was undertaken by the partnership.
5 Meaning of “core income-generating
activity”
In this Law, “core
income-generating activity” includes any of the following activities –
(a) in respect of banking
business –
(i) raising funds or
managing risk, including credit, currency and interest risk,
(ii) taking hedging
positions,
(iii) providing loans, credit
or other financial services to customers,
(iv) managing capital and
preparing reports and returns to the Jersey Financial Services Commission or any body or entity with equivalent functions relating to
the supervision or regulation of such business;
(b) in respect of
distribution and service centre business –
(i) transporting and storing
goods, components and materials,
(ii) managing stocks,
(iii) taking orders,
(iv) providing consulting or
other administrative services;
(c) in respect of finance and
leasing business –
(i) agreeing funding terms,
(ii) identifying and
acquiring assets to be leased (in the case of leasing),
(iii) setting the terms and
duration of any financing or leasing,
(iv) monitoring and revising
any agreements,
(v) managing any risks;
(d) in respect of fund
management business –
(i) taking decisions on the
holding and selling of investments,
(ii) calculating risk and
reserves,
(iii) taking decisions on
currency or interest fluctuations and hedging positions,
(iv) preparing reports and
returns to investors and the Jersey Financial Services Commission or any body or entity with equivalent functions relating to
the supervision or regulation of such business;
(e) in respect of
headquarters business –
(i) taking relevant
management decisions,
(ii) incurring expenditures
on behalf of group entities,
(iii) co-ordinating group
activities;
(f) in respect of holding partnership
business, all activities related to that business;
(g) in respect of insurance
business –
(i) predicting and calculating
risk,
(ii) insuring or re-insuring
against risk and providing insurance business services to clients;
(h) in respect of
intellectual property holding business –
(i) taking strategic
decisions and managing (as well as bearing) the principal risks related to
development and subsequent exploitation of the intangible asset generating
income,
(ii) taking the strategic
decisions and managing (as well as bearing) the principal risks relating to
acquisition by third parties and subsequent exploitation and protection of the
intangible asset,
(iii) carrying on the
underlying trading activities through which the intangible assets are exploited
leading to the generation of revenue from third parties,
(iv) research and development,
branding or distribution;
(i) in respect of shipping
business –
(i) managing crew (including
hiring, paying and overseeing crew members),
(ii) overhauling and
maintaining ships,
(iii) overseeing and tracking
deliveries,
(iv) determining what goods to
order and when to deliver them, organising and overseeing voyages.
6 Liability of partners - partnerships without separate legal
personality
(1) This
Article applies in respect of a partnership that does not have separate legal
personality.
(2) A
requirement in this Law for the partnership to take an action is a requirement
for the general partners in the partnership to take that action, and all general
partners are jointly liable for any penalty resulting from a failure for the
action to be taken.
PART 2
Economic
substance test
7 Who must meet economic substance test
(1) Unless
an exception in this Article applies, a resident partnership must satisfy the
economic substance test in relation to any relevant activity carried on by or
through it for which it has gross income.
(2) A
resident partnership is not required to satisfy the economic substance test in
relation to a relevant activity carried on by or through it if all of the
partners in the partnership are individuals who are subject to income tax in
Jersey.
(3) A resident partnership is not required to
satisfy the economic substance test in relation to a relevant activity carried
on by or through it in a financial period if, during that financial
period, –
(a) the resident partnership
is not part of a multinational group; and
(b) the resident partnership
does not undertake business activities outside of Jersey.
(4) A resident partnership is part of a
multinational group if –
(a) under international
accounting standards, the partnership’s income and expenses would be a part of
the consolidated results of a group of enterprises; and
(b) one or more of the
persons or partnerships in the group –
(i) is not a tax resident in
Jersey, or
(ii) has one or more
permanent establishments outside of Jersey.
(5) In this Article, –
“international accounting standards”
means the International Financial Reporting Standards set by the International
Accounting Standards Board;
“permanent establishment”, in
relation to a person or partnership, includes a branch, a factory, shop,
workshop, quarry or a building site, and a place of management of the person or
partnership;
“undertake business activities”,
in relation to a resident partnership, –
(a) means performing services
for customers, or manufacturing or producing goods for sale to or for use by
customers, regardless of whether the service is performed or the goods are
manufactured or produced –
(i) wholly or in part, or
(ii) through a permanent
establishment of the resident partnership; but
(b) does not include
performing services for the benefit of the resident partnership, rather than a
customer.
8 Economic substance test
(1) A
partnership meets the economic substance test in relation to a relevant
activity if –
(a) it is managed in Jersey
in relation to that activity;
(b) having regard to the
level of relevant activity carried on in Jersey –
(i) there are an adequate
number of people performing work in relation to that activity who are
physically present in Jersey (whether partners or employees, whether employed
by the resident partnership or another entity or partnership and whether on
temporary or long-term contracts),
(ii) there is adequate
expenditure incurred in Jersey, and
(iii) there are adequate
physical assets in Jersey;
(c) all of the partnership’s
core-income generating activities are carried out in Jersey; and
(d) the partnership’s
governing body is able to monitor and control the carrying out of core
income-generating activities carried out in Jersey for the partnership by
another entity or partnership (if any).
(2) A
partnership is managed in Jersey in relation to an activity if –
(a) the partnership’s
governing body meets in Jersey at an adequate frequency having regard to the
amount of decision-making required at that level;
(b) the majority of the
partnership’s governing body are physically present at those meetings;
(c) records are kept of the
strategic decisions made at those meetings;
(d) the members of the
governing body, as a whole, have the necessary knowledge and expertise to
discharge their duties; and
(e) the records of the
partnership, including the records referred to in sub-paragraph (c), are
kept in Jersey.
(3) In
paragraph (2), unless guidance to the contrary is issued by the Comptroller
under paragraph (4), “governing body”, in relation to a partnership, means –
(a) the person or group of persons
responsible for making the partnership’s strategic and management decisions;
but
(b) if that person or group
is not able to be identified, all of the partners in the partnership.
(4) The Comptroller –
(a) may issue guidance on how
the economic substance test may be met;
(b) may issue guidance on the
meaning of any expression used in this Article for the purpose of the economic
substance test; and
(c) must publish any guidance
issued (and any amendments to the guidance) in a manner which the Comptroller
considers will bring it to the attention of those most likely to be affected by
it.
(5) In determining whether the economic
substance test has been met, or the meaning of an expression used in this
Article, a person must have regard to any guidance issued under paragraph (2)
or under Article 5(4) of the Taxation
(Companies – Economic Substance) (Jersey) Law 2019.
9 Assessment of whether
economic substance test is met
(1) The Comptroller may determine that a
resident partnership has not met the economic substance test for a financial
period –
(a) up to 6 years after the
end of the financial period; or
(b) if the Comptroller is not
able to make a determination within the 6‑year period by reason of any
deliberate misrepresentation or negligent or fraudulent action by the resident partnership
or by any other person, at any time.
(2) The Comptroller must determine that a high
risk IP partnership has not met the economic substance test for a financial
period unless the partnership provides sufficient
information to satisfy the Comptroller that the test is met.
10 Penalties for failing to
meet economic substance test
(1) A resident partnership is liable to a fine
not exceeding £10,000 if –
(a) the Comptroller
determines that the partnership has failed to meet the economic substance test
for a financial period; and
(b) the partnership has not,
during the previous financial period, been notified of a determination that the
partnership has not met the economic substance test.
(2) A resident partnership is liable to a fine
not exceeding the amount calculated under paragraph (3) if –
(a) the Comptroller
determines that the partnership has failed to meet the economic substance test
for a financial period; and
(b) during the previous
financial period, the partnership has been notified of a determination that the
partnership has not met the economic substance test.
(3) The maximum amount of the penalty a
partnership is liable to under paragraph (3) is –
where –
A is the maximum amount
of the penalty; and
B is the number previous
consecutive financial periods, immediately before the financial period the
penalty relates to, in which the Comptroller has notified the partnership of
its failure to meet the economic substance test.
(4) If the Comptroller determines that a
partnership has failed to meet the economic substance test for a financial
period, the Comptroller must determine the amount of the penalty and must
notify the partnership –
(a) that the Comptroller has
determined that the partnership does not meet the economic substance test for
the financial period;
(b) of the reasons for the
determination;
(c) of the amount of the
penalty imposed on the partnership;
(d) of the date from which
penalty is due, which must not be less than 30 days after the Comptroller
issues the notice;
(e) of the action the
Comptroller considers the partnership should take to meet the economic
substance test for future financial periods; and
(f) of the partnership’s
right of appeal under Article 16.
(5) If the Comptroller determines that a
partnership is liable to a fine under paragraph (2), –
(a) the Comptroller may provide
the Minister with a report stating that the partnership has failed to meet the
economic substance test, along with any other information that the Comptroller
considers relevant; and
(b) the Comptroller must, in
the notice issued under paragraph (4), notify the partnership that the
Comptroller may make a report to the Minister.
(6) If the Minister receives a report in
relation to a partnership under paragraph (5), the Minister may –
(a) apply to the Court for an
order under Regulation 19 of the Incorporated
Limited Partnerships (Jersey) Regulations 2011, if
the partnership is an incorporated limited partnership;
(b) apply to the Court for an
order under Article 23A of the Limited
Liability Partnerships (Jersey) Law 2017, if
the partnership is a limited liability partnership; or
(c) provide the report to the
Jersey Financial Services Commission (established by the Financial
Services Commission (Jersey) Law 1998),
if the partnership is not an incorporated limited partnership or a limited
liability partnership.
PART 3
Requirement to provide information
11 Requirement to provide
information
(1) A resident partnership must provide any
information reasonably required by the Comptroller in order to assist the
Comptroller in making a determination under Article 9.
(2) The Comptroller may serve notice on any
person or partnership requiring the person or partnership to provide, within
the period specified in the notice and at such place as is specified in the
notice, such documents and information as the Comptroller may reasonably
require for the purpose of facilitating the Comptroller’s exercise of functions
under this Law.
(3) A person or partnership served with a
notice under paragraph (2) must provide the information in the manner and
within the period specified in the notice.
12 Penalties for failure to
provide information or for providing inaccurate information
(1) A person or partnership who fails to comply
with a requirement to provide information or documents under Article 11 is
liable to a penalty not exceeding £3,000.
(2) A person or partnership who is required to
provide information under Article 11 is liable to a penalty not exceeding
£3,000 if the person or partnership provides inaccurate information and –
(a) knows of the inaccuracy
at the time the information is provided but does not inform the Comptroller at
that time; or
(b) discovers the inaccuracy
after the information is provided and fails to take reasonable steps to inform
the Comptroller.
(3) A person or partnership is not liable to a
penalty under this Article if the person or partnership satisfies the
Comptroller that the person or partnership has a reasonable excuse.
(4) If a person or partnership is liable to a
penalty, the Comptroller must determine the amount of the penalty and must
notify the person or partnership of –
(a) the reasons for imposing
the penalty;
(b) the amount of the penalty
imposed;
(c) the date from which the
penalty is due, which must not be less than 30 days after the Comptroller
issues the notice; and
(d) the right of appeal under
Article 16.
PART 4
Comptroller’s duties and powers
13 Exchange of information
to competent authorities
(1) This Article applies if the Comptroller
determines that a resident partnership has not met the economic substance test
for a financial period.
(2) The Comptroller must provide any
information provided under Article 11 relating to the partnership for the
financial period to the competent authority of the countries or territories in
which the following people or partnerships are tax residents –
(a) a controlling partner of
the partnership;
(b) the ultimate holding body
of the controlling partner;
(c) the ultimate beneficial
owner of the partnership.
(3) The Comptroller must provide any
information provided under Article 11 relating to a high risk IP partnership
(regardless of whether the partnership has met the economic substance test) to
the competent authority of the countries or territories in which the following
people or partnerships are tax residents –
(a) a controlling partner of
the partnership;
(b) the ultimate holding body
of the controlling partner;
(c) the ultimate beneficial
owner of the partnership.
(4) This Article applies –
(a) only to the extent to
which the provision of information is permitted under –
(i) a bilateral agreement
made between Jersey and a country or territory, or
(ii) the OECD and Council of
Europe (2011), Multilateral Convention on Mutual Administrative Assistance in
Tax Matters: Amended by the 2010 Protocol; but
(b) despite any obligation as
to confidentiality or other restriction on the disclosure of information
imposed by statute, contract or otherwise.
(5) In this Article, –
“competent authority”, in
respect of a country or territory other than Jersey, means the authority
designated in or for the purposes of an approved agreement or an approved
obligation within the meaning of the Taxation
(Implementation) (Jersey) Law 2004;
“controlling partner”, in
relation to a partnership, means a person or partnership that is entitled to 50%
or more of the income or property of that partnership.
14 Power to enter business premises and
examine business documents
(1) An
authorised person may, for the purpose of investigating any issue relating to
compliance with a provision of this Law, examine and take copies of any
business document that is located on business premises.
(2) In
order to exercise that power, an authorised person may –
(a) enter business premises
at any reasonable hour; and
(b) by notice require any
person to produce any specified business document at the business premises
where the document is located.
(3) In
this Article, –
“business document” means any document –
(a) that relates to the
carrying on of a business, trade, profession or vocation by a person or
partnership; and
(b) that forms part of any
record under any enactment;
“business premises” means
premises used in connection with the carrying on of a business, trade,
profession or vocation.
15 Offences and penalties for obstructing
authorised person or altering business documents
(1) A
person who, without reasonable excuse, obstructs an authorised person
exercising a power under Article 14 –
(a) commits an offence; and
(b) is liable to imprisonment
for a term not exceeding 6 months and to a fine.
(2) A
person who, without reasonable excuse, fails to provide such reasonable
assistance as an authorised person may require when exercising a power under Article 14 –
(a) commits an offence; and
(b) is liable to imprisonment
for a term not exceeding 6 months and to a fine.
(3) A
person who intentionally alters, suppresses or destroys any document that has
been specified in a notice under Article 11(2) –
(a) commits an offence; and
(b) is liable to imprisonment
for a term of not exceeding 2 years and to a fine.
PART 5
appeals,
enforcement and other matters
16 Right of appeal
(1) A
person may appeal to the Commissioners (as defined in Article 3(1) of the
1961 Law) against a decision made by the Comptroller under this Law by giving
notice in writing to the Comptroller within 30 days after receiving
notification of the decision.
(2) Part
6 of the 1961 Law applies, with the necessary modifications, to an appeal
under paragraph (1) as if it were an appeal against an assessment made
under that Law.
17 Enforcement of penalties
(1) A
penalty imposed under this Law must be paid before the end of the period of 30 days
beginning with –
(a) the date stated as the
date from which the penalty is due in the notification of the penalty; or
(b) if the decision to impose
the penalty or the determination of the amount of the penalty is appealed, the
date on which the appeal is finally determined or withdrawn.
(2) A
penalty under this Law may be enforced as if it were income tax charged in an
assessment and due and payable.
18 Disclosure of information and confidentiality
(1) A person must not disclose information
obtained under this Law unless –
(a) the disclosure is
expressly required by this Law;
(b) every person to whom the
information relates consents to the disclosure;
(c) the disclosure is made
for the purpose of any civil proceedings (whether or not in Jersey), including
any investigation as to whether to institute any civil proceedings, relating to
a matter in respect of which the Comptroller has functions under a Law;
(d) the disclosure is made
for the purpose of investigating whether or not an offence has been committed
(whether or not in Jersey), or for the institution of, or otherwise for the
purpose of, any criminal proceedings (whether or not in Jersey);
(e) the disclosure –
(i) is of statistical
information only,
(ii) is made to an
administration of the States for which a Minister has responsibility, and
(iii) is made for the purpose
of assisting in the development of public policy; or
(f) the
disclosure is of statistical information only and is made to an international
body for the purpose of monitoring the implementation of this Law.
(2) A person who discloses information to the
Comptroller in accordance with this Law does not breach –
(a) any obligation of
confidentiality in relation to the information disclosed; or
(b) any other restriction on
the access to or disclosure of the information accessed.
19 Regulations
(1) The
States may by Regulations amend –
(a) the definition of any
term defined in this Law; and
(b) a penalty that may be
imposed under this Law.
(2) Regulations
under this Article may include any consequential, incidental, supplementary,
transitional and savings provisions as the States think necessary or expedient,
including provisions which amend any other enactment.
20 Transitional arrangements
Schedule 1 gives effect
to transitional arrangements.
21 [2]
22 Citation and commencement
This Law may be cited as
the Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 and comes
into force 7 days after it is registered.