Income Tax
(Purchased Life Annuities) (Jersey) Order 1959
1
In this
Order –
“Law” means
the Income Tax
(Jersey) Law 1961;
“payee” means
the person beneficially entitled for the time being to the payments on account
of an annuity;
“payer” means
any person resident in the Island of Jersey by whom, or any branch or agency in
the Island of Jersey of a person not so resident (being a branch or agency
through which that person carries on life assurance business) through which, an
annuity is paid;
“principal Article”
means Article 132(8) of the Law.[1]
2
A claim for the
application of the principal Article to an annuity shall be made in writing to
the Comptroller of Revenue by the payee, and shall give the particulars set out
in the Schedule to this Order.[2]
3
The Comptroller of
Revenue may by notice require the payer of an annuity to furnish such
particulars relating to the annuity as the Comptroller may require, including
the age of the person during whose life the annuity is payable, if known to him
or her, the amount or value of the consideration given for the grant of the
annuity, and particulars of any other matter appearing to him or her to be
relevant for the purposes of the principal Article.[3]
4
On the receipt of a claim
under Article 2, the Comptroller of Revenue shall determine whether the
annuity is a purchased life annuity to which the principal Article applies and,
if so, what proportion of each payment on account of the annuity constitutes
the capital element. The prescribed tables of mortality to be used for this
purpose shall be the select tables in the volume of tables published
in 1953 at the University Press, Cambridge, for the Institute of Actuaries
and the Faculty of Actuaries, entitled the a(55) Tables for Annuitants, and in
using these tables the age, as at the date when the first of the annuity
payments begins to accrue, of a person during whose life the annuity is payable
shall be taken to be the number of years of the person’s age at the person’s
birthday last preceding that date. If that age is outside the range of the said
tables, or in any other case where the tables are insufficient, the actuarial
value of the annuity for the purposes of paragraph (3)(c) of the principal
Article shall be such amount as may be certified by the Comptroller and Auditor
General. The Comptroller of Revenue shall serve a notice of the
Comptroller’s determination (hereinafter referred to as the “original
determination”) upon the payee, and, unless the payer is not entitled or
required to deduct tax from the annuity, upon the payer of the annuity. The
determination shall thereupon become effective, and a payer upon whom such
notice is served shall be treated as having been notified in the prescribed
manner for the purposes of paragraph (4) of the principal Article.[4]
5
If the payee is
dissatisfied with the original determination on a claim under Article 2, the
payee may by notice in writing to that effect given to the Comptroller of
Revenue of the payee’s intention within 21 days from the date of service
upon the payee of notice of the original determination, make application to
have the payee’s claim heard and determined by the Commissioners of
Appeal who shall hear and determine the claim in like manner as an appeal made
to them against an assessment under Schedule D, and all the provisions of the Law
relating to such an appeal (including the provisions relating to appeals to the
Royal Court) shall apply accordingly with any necessary modifications.[5]
6
If the original
determination is amended as the result of an appeal, the Comptroller of Revenue
shall, unless the payer is not entitled or required to deduct tax from the
annuity or any part of it, immediately serve a notice of the determination as
so amended upon the payer of the annuity. The revised determination shall
become effective as soon as the appeal has been determined and any notice as
aforesaid has been served, and shall supersede any earlier determination in
relation to the first payment made thereafter on account of the annuity, and,
subject to Article 7, to all subsequent such payments.[6]
7
If, at any time after a
determination has become effective and at least one payment on account of the
annuity has been made thereafter, the Comptroller of Revenue or the payee
alleges that that determination is erroneous whether by reason of an error or
mistake in a claim by the payee or otherwise, the Comptroller of Revenue may
make, or the payee may make a claim for, a revised determination. If the Comptroller
of Revenue makes a revised determination in accordance with the claim, the
Comptroller shall serve notice upon the payee accordingly. If the Comptroller
makes a revised determination without the payee having claimed it, or if the
Comptroller makes a revised determination which is not in accordance with the
payee’s claim, or if on receipt of the payee’s claim the
Comptroller refuses to make a revised determination, the Comptroller shall
serve notice upon the payee accordingly, and Article 5 shall apply, with
any necessary modifications, as it applies in relation to the original
determination.[7]
8
As soon as the time limit
for appealing against a revised determination made under Article 7 has
expired, or, if there is an appeal, as soon as the appeal has been determined,
the Comptroller of Revenue shall, unless the payer is not entitled or required
to deduct tax from the annuity or any part of it, serve notice of the said determination
or, as may be appropriate, of that determination as amended on appeal, upon the
payer of the annuity. The determination shall thereupon become effective and
shall supersede any earlier determination in relation to the first payment made
thereafter on account of the annuity, and, subject to Article 7, to all
subsequent such payments.[8]
9
Where any effective
determination is amended on appeal, any amount by which the tax deducted from
or assessed and charged upon payments on account of the annuity by reference to
the said determination exceeds the tax that would have been deducted or assessed
and charged if the determination as amended on appeal had applied to those
payments shall, subject to Article 13, be repaid to the payee. Any amount
by which the tax so deducted or assessed and charged falls short of the tax
that would have been deducted or assessed and charged if the determination as
amended on appeal had applied to those payments shall, subject to Article 13,
be assessed and charged on the payee under Case VI of Schedule D for the years
of assessment in which the said payments were made.
10
Where –
(a) income
tax has been deducted from or assessed and charged upon the whole of any
payments on account of an annuity and subsequently an original determination
becomes effective; or
(b) a
revised determination becomes effective,
the difference between (1)
the tax which the payer was entitled to deduct and did in fact deduct from
payments on account of the annuity falling due after 31st December, 1958,
but made before the said determination became effective, or the tax assessed
and charged upon those payments and (2) the tax that would have been deducted
or assessed and charged upon those payments if it had been deducted or assessed and charged in accordance
with the said determination shall, except in so far as it has been repaid or
assessed and charged under Article 9, and subject to Article 13, be
repaid to the payee or be assessed and charged upon the payee under Case VI of Schedule
D for the years of assessment in which the said payments were made, as the
circumstances may require, whether or not, in cases within (b) hereof, the
determination in force before the revised determination became effective had
been made or confirmed by the Commissioners of Appeal on an appeal to them:
Provided
that –
(i) no
repayment shall be made under this Article in respect of tax deducted or
deductible from or assessed and charged upon any payment on account of the
annuity which fell due in a year of assessment which ended more than 5 years
before the beginning of the year of assessment in which the claim which gave
rise to the said determination was made, or, in a case where the Comptroller of
Revenue initiated a revised determination, before the beginning of the year of
assessment in which the Comptroller served notice upon the payee under Article 7,
(ii) no
assessment shall be made under this Article in respect of any payment on
account of the annuity which fell due as aforesaid, except that, where any form
of fraud or wilful default has been committed by or on behalf of any person in connection
with or in relation to the taxation of the annuity, an assessment may be made
at any time:
But provided always that
no repayment or assessment shall be made under this Article in respect of tax
deducted from or assessed and charged upon any payment on account of the
annuity made before the date of the claim which gave rise to the said determination
or, as the case may be, the date of the revised determination of the Comptroller
of Revenue under Article 7 if that deduction or assessment and charge was
in fact made on the basis or in accordance with the practice generally
prevailing at the time when the said payment was made.[9]
11
In relation to an annuity
paid by a person not resident in the Island of Jersey, otherwise than through a
branch or agency through which that person carried on life assurance business
in the Island of Jersey, to a payee who is resident in the Island of Jersey,
the foregoing Articles, except Article 3, shall apply as they apply in
relation to an annuity paid by a person who is resident in the Island of
Jersey, with the modification that Article 7 shall apply as though the
reference to at least one payment having been made on account of the annuity
were a reference to at least one first assessment having been made on the payee
in respect of the annuity.
12
Any assessment required
by Article 9 or 10 shall be made in accordance with those Articles
notwithstanding anything in the Law.
13
Where the payee is
regarded as spouse B for the purposes of Part 16 of the Law and is
living with his or her spouse A, any reference in this Order to repaying
tax to the payee or to charging tax on the payee shall be construed as
requiring tax to be repaid to, or charged on, the spouse of spouse B.[10]
13A [11]
Where the payee is
regarded as civil partner B for the purposes of Part 16A of the Law
and is living with his or her civil partner A, any reference in this Order
to repaying tax to the payee or to charging tax on the payee shall be construed
as requiring tax to be repaid to, or charged on, the civil partner of civil
partner B.
14
A determination that
becomes effective under this Order shall, except to the extent that it may be
varied under this Order, be final and conclusive for all the purposes of the Law.
15 [12]
Where a determination is
varied on appeal or by virtue of Article 7, and any tax deducted from or
assessed and charged upon a payment on account of the annuity is repaid under Article 9
or 10 –
(a) a
corresponding adjustment shall be made in estimating for the purposes of the
Law, the total income –
(i) of
the payee,
(ii) if
the payee is married and is living with his or her spouse and, for the purposes
of Part 16 the Law is spouse B, of spouse A,
(iii) if
the payee is a civil partner who, for the purposes of Part 16A of the Law
is civil partner B and is living with his or her civil partner, of civil
partner A,
for the year in which the
payment fell due; and
(b) notwithstanding
anything in the Law, such consequential adjustments of the payee’s
liability to income tax as may be necessary shall be made by assessment or by
repayment, as the case may require.
16
Any notice or other
document authorized or required to be served on any person under this Order by
the Comptroller of Revenue may be served by post by letter addressed to such person
at the person’s usual or last known place of business or abode, or, where
such person is a company, by letter addressed to the secretary of the company
at its registered office.[13]
17
This Order may be cited
as the Income Tax (Purchased Life Annuities) (Jersey) Order 1959.