Taxation
(International Tax Compliance) (Crypto-Asset Reporting Framework) (Jersey)
Regulations 2025
1 Interpretation
(1) In
these Regulations –
“1961 Law” means the Income Tax (Jersey) Law 1961;
“authorised person” means the Comptroller or a
person authorised by the Comptroller to perform functions under Regulation 16;
“business document” means –
(a) a document that relates
to the carrying on of a business, trade, profession or vocation by a person and
that forms part of a record under an enactment; or
(b) in the case of an entity
or arrangement that does not carry on a business, trade, profession or vocation,
a document that an authorised person believes to be relevant, or potentially
relevant, to determining the compliance of the entity or arrangement with these
Regulations;
“CARF” means the Crypto-Asset Reporting
Framework, consisting of the Rules and the Commentary, approved by the Organisation for Economic Co-operation and Development
on 8 June 2023, which contains due diligence and reporting procedures for the
exchange of information on an automatic basis, as amended from time to time;
“Commissioners” means a Commission of Appeal
constituted under Article 5 of the Revenue Administration
(Jersey) Law 2019);
“Comptroller” means the Comptroller of Revenue
described in Article 2 of the Revenue Administration
(Jersey) Law 2019.
(2) These
Regulations have effect for and in connection with the implementation Jersey’s
obligations arising under –
(a) the Multilateral
Competent Authority Agreement on Automatic Exchange of Information pursuant to
the Crypto-Asset Reporting Framework signed by Jersey on 26 November 2024;
(b) the Convention on Mutual
Administrative Assistance in Tax Matters, as amended by the Protocol, which
provides for the exchange of information on an automatic basis as described in
the CARF, signed on behalf of the United Kingdom and extended to Jersey with
effect from 1 June 2014; and
(c) any other international
governmental agreement to which Jersey and another participating jurisdiction
is a party and that provides for the automatic exchange of information under
the CARF.
(3) Terms
used in these Regulations that are defined in the CARF (and are not defined differently
in these Regulations) have the meaning given in the CARF.
(4) The
Schedule contains a list of terms used in these Regulations that are defined in
the CARF.
2 Due diligence
(1) A
reporting crypto-asset service provider that meets the criteria in Section I
of the CARF must comply with the due diligence obligations under this
Regulation and Sections II and III of the CARF.
(2) A
reporting crypto-asset service provider must establish and maintain
arrangements designed to apply the due diligence procedures set out in Section III
of the CARF.
3 Circumstances in which reporting
crypto-asset service provider not required to comply with due diligence
obligations
(1) A
reporting crypto-asset service provider is not required to comply with the due
diligence obligations in Regulation 2 if the requirements are fulfilled by the
crypto-asset service provider or its branch in a partner jurisdiction in
accordance with the criteria set out in Section I of the CARF.
(2) If
a reporting crypto-asset provider is not required to complete the due diligence
requirements, it must notify the Comptroller indicating –
(a) in which partner
jurisdiction the obligations are fulfilled; and
(b) which criteria in Section
I of the CARF applies.
(3) The
notification must be made –
(a) on or before 30 June
following the calendar year to which it relates; and
(b) in the form and manner
required by the Comptroller.
(4) In
this Regulation, “partner jurisdiction" means a jurisdiction –
(a) that has put in place
equivalent obligations to the due diligence obligations in Regulation 2;
(b) that is identified as a partner
jurisdiction in a list published by the Comptroller.
4 Record-keeping
(1) A
reporting crypto-asset service provider must keep a record of –
(a) the steps taken to comply
with Regulation 2; and
(b) the information collected
in applying the due diligence procedures set out in Section III of the CARF.
(2) The
reporting crypto-asset service provider must keep the records required by
paragraph (1) for a period of 5 years beginning with the day after
the end of the calendar year to which they relate.
5 Reporting of
information
(1) A
reporting crypto-asset service provider must deliver to the Comptroller an
information return in respect of each calendar year containing information in
respect of all the crypto-asset users with which it maintains a relationship in
the calendar year that are –
(a) identified as reportable
users; or
(b) identified as having
controlling persons that are reportable persons.
(2) The
information return must be provided in the manner and form specified by the
Comptroller and must –
(a) contain the information
set out in Section II of the CARF;
(b) contain any other
information reasonably required by the Comptroller; and
(c) be delivered on or before
30 June following the calendar year to which it relates.
6 Penalty for failure to
comply with Regulations
A person who fails to
comply with an obligation of these Regulations is liable to a penalty of up to
£300 in respect of each failure.
7 Daily default penalty
(1) This
Regulation applies if –
(a) a penalty under
Regulation 6 is imposed; and
(b) the failure in question
continues after the person has been notified of the penalty.
(2) If
this Regulation applies, the person is liable to a further penalty, for each
subsequent day on which the failure continues, of an amount not exceeding £60
for each day.
8 Penalties for
inaccurate information
(1) A
person is liable to a penalty not exceeding £3,000 if –
(a) the person provides
inaccurate information in an information return delivered under Regulation 5;
and
(b) condition A, B or C is
met.
(2) Condition
A is that the inaccuracy is –
(a) due to a failure to
comply with the due diligence requirements in Regulation 2; or
(b) deliberate on the part of
the person.
(3) Condition
B is that the person knows of the inaccuracy at the time the information is
provided but does not inform the Comptroller at that time.
(4) Condition
C is that the person –
(a) discovers the inaccuracy
after the information is provided to the Comptroller; and
(b) fails to take reasonable
steps to inform the Comptroller.
9 Matters to be disregarded
in relation to liability to penalties
(1) Liability
to a penalty under Regulation 6 or 7 does not arise if the person has a
reasonable excuse for the failure.
(2) For
the purposes of this Regulation, neither of the following is a reasonable
excuse –
(a) that the person has
insufficient funds to do something;
(b) that a person relies upon
another person to do something.
(3) If
a person had a reasonable excuse for a failure but the excuse has ceased, the person
is to be treated as having continued to have the excuse if the failure is
remedied without unreasonable delay after the excuse has ceased.
10 Imposition of penalties
(1) If
a person becomes liable to a penalty under any of Regulations 6 to 8 the
Comptroller may impose the penalty.
(2) If
the Comptroller imposes a penalty, the Comptroller must notify the person.
(3) A
penalty under Regulation 6 or 7 may only be imposed within the period of
12 months beginning with the date on which the person became liable to the
penalty.
(4) A
penalty under Regulation 8 may only be imposed –
(a) within the period of 12 months
beginning with the date on which the inaccuracy first came to the attention of
the Comptroller; and
(b) within the period of 6 years
beginning with the date on which the person became liable to the penalty.
11 Right of appeal against
penalties
(1) A
person upon whom a penalty is imposed may appeal to the Commissioners against the
imposition or the amount of the penalty by giving notice in writing to the
Comptroller within 30 days after receiving notification of the imposition
of the penalty.
(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.
12 Increased daily default
penalty
(1) This
Regulation applies if –
(a) a daily default penalty
under Regulation 7 is imposed under Regulation 10;
(b) the failure in respect of
which that penalty is imposed continues for more than 30 days beginning
with the date on which notification of that penalty is given; and
(c) the person has been notified
in writing that an application may be made under this Regulation for an
increased daily penalty to be imposed.
(2) If
this Regulation applies, the Comptroller may make an application to the
Commissioners for an increased daily penalty to be imposed on the person.
(3) If
the Commissioners decide that an increased daily penalty should be imposed then,
for each applicable day on which the failure continues –
(a) the person is not liable
to a penalty under Regulation 7 in respect of the failure; and
(b) the person is liable
instead to a penalty under this Regulation of an amount determined by the
Commissioners.
(4) The
Commissioners must not determine an amount exceeding £1,000 for each applicable
day.
(5) If
a person becomes liable to a penalty under this Regulation, the Comptroller
must notify the person.
(6) The
notification must specify the day from which the increased penalty is to apply.
(7) That
day and any subsequent day is an “applicable day” for the purposes of this
Regulation.
13 Enforcement of penalties
(1) A
penalty under these Regulations must be paid before the end of the period of 30 days
beginning with the later of –
(a) the date on which the
penalty is imposed under Regulation 10 or notification under Regulation 12(5)
is given in respect of the penalty; or
(b) if the penalty is
appealed under Regulation 11, the date on which the appeal is finally
determined or withdrawn.
(2) A
penalty under these Regulations may be enforced as if it were income tax
charged in an assessment and due and payable.
14 Requirements and
penalties for trusts and partnerships
(1) If
a requirement or penalty under these Regulations applies to a trust or
partnership, the requirement or penalty applies to –
(a) in the case of a trust,
each trustee, jointly and severally;
(b) in the case of a
partnership, the partner identified as the responsible partner under Article 20E
of the 1961 Law.
(2) These
Regulations do not prevent a penalty imposed on a trust or partnership from
being recovered from the assets of the trust or partnership.
15 Anti-avoidance
(1) This
Regulation applies if a person enters into an
arrangement and the main purpose, or 1 of the main purposes, of the person entering into the arrangement is to avoid any requirement of
these Regulations.
(2) If
this Regulation applies –
(a) for the purposes of these
Regulations the arrangement is taken not to have been entered
into; and
(b) these Regulations have
effect as if the arrangement had not been entered into.
16 Power to enter business
premises and examine business documents
(1) An
authorised person may examine and take copies of any business document that is
located on business premises.
(2) The
power under paragraph (1) may be exercised only for the purpose of
investigating an issue relating to compliance with these Regulations.
(3) An
authorised person may at any reasonable hour enter business premises for the
purpose of exercising the power under paragraph (1).
(4) An
authorised person may by notice require any person to produce a specified
business document at the business premises where the business document is
located for the purpose of enabling the authorised person to exercise the power
under paragraph (1) in relation to that document.
(5) An
authorised person must not exercise the powers under this Regulation in respect
of a document that a person would, in an action in court, be entitled to refuse
to disclose or produce on the grounds of legal professional privilege.
(6) In
this Regulation, “business premises” means –
(a) premises used in
connection with the carrying on of a business, trade, profession or vocation;
or
(b) in the case of an entity
or arrangement that does not carry on a business, trade, profession or
vocation, the address in Jersey –
(i) of the entity or
arrangement; or
(ii) if the entity or
arrangement is a trust, of a trustee.
17 Obstructing authorised
person
(1) A
person commits an offence and is liable to imprisonment for a term of 6 months
and to a fine if, without reasonable excuse, the person –
(a) obstructs an authorised
person in the exercise of the authorised person’s powers under Regulation 16;
or
(b) fails to provide reasonable
assistance that an authorised person requires when the authorised person is
exercising their powers under Regulation 16.
(2) A
person commits an offence and is liable to imprisonment for a term of
2 years and to a fine if that person intentionally alters, suppresses or
destroys any business document that has been specified in a notice under
Regulation 16(4).
18 Citation and commencement
These Regulations may be
cited as the Taxation (International Tax Compliance) (Crypto-Asset Reporting
Framework) (Jersey) Regulations 2025 and come into force on 1 January 2026.