Social Security (Amendment No. 21) (Jersey) Law 2014

A LAW to amend further the Social Security (Jersey) Law 1974 and, consequentially, the Income Tax (Jersey) Law 1961

Adopted by the States                                          11th December 2013

Sanctioned by Order of Her Majesty in Council         5th March 2014

Registered by the Royal Court                                  14th March 2014

THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law –

1        Interpretation

In this Law –

1961 Law” means the Income Tax (Jersey) Law 1961[1];

1974 Law” means the Social Security (Jersey) Law 1974[2].

2        Article 30 of the 1974 Law amended

In Article 30(3B) of the 1974 Law for the words “shall be the aggregate of” to the end of the paragraph there shall be substituted the words –

“shall be the aggregate of –

(a)     the LTC contributions determined in accordance with Schedule 1C; and

(b)     LTC surcharges determined in accordance with paragraph 4A of Schedule 1D,

and collected in accordance with Schedule 1D and the 1961 Law.”.

3        Article 50 of the 1974 Law amended

In Article 50 of the 1974 Law –

(a)     after paragraph (3) there shall be inserted the following paragraph –

“(3A) The States may by Regulations amend in, or add to, this Law provision for the imposition of a surcharge where contributions of any specified class are not paid, whether by the insured person or any other person, by the date required by or under this Law.”;

(b)     after paragraph (5) there shall be inserted the following paragraph –

“(5A) Regulations made under this Article may amend Article 49B of, and Schedule 1A to, the 1961 Law.”.

4        Schedule 1D to the 1974 Law amended

In Schedule 1D to the 1974 Law after paragraph 4 there shall be inserted the following paragraph –

“4A   Surcharge for late payment of LTC contribution

(1)     In this paragraph, ‘specified time’ means 6 p.m. on the Friday following the first Monday in December in a year.

(2)     An insured person who is liable to pay an LTC contribution for a year shall be liable to pay an amount in addition to that contribution (hereafter referred to as the ‘LTC surcharge’) equal to 10% of so much of the LTC contribution for the year which remains unpaid, if the LTC contribution for the year is not paid in full by the specified time.

(3)     A person shall not be liable to pay the LTC surcharge if –

(a)     the Comptroller has, under Article 41I(2) of the 1961 Law, waived the person’s payment of the tax surcharge due; or

(b)     the person is not, by virtue of Article 41I(3) of the 1961 Law, liable to pay the tax surcharge.

(4)     If, on an appeal under Article 41I(7) of the 1961 Law, the Commissioners direct that a person’s liability under Article 41I(2) shall be waived, the person’s liability to the LTC surcharge shall be taken to have been waived.

(5)     In this paragraph ‘tax surcharge’ means a surcharge that a person is liable to pay under Article 41I of the 1961 Law.”.

5        1961 Law amended

(1)     After Article 49B(8) of the 1961 Law there shall be inserted the following paragraphs –

“(8A) Where an insured person liable to pay a surcharge under Article 41I is also liable, pursuant to paragraph 4A of Schedule 1D to the 1974 Law, to pay an LTC surcharge, Article 41I shall have effect with the following modifications –

(a)     for paragraph (4) there shall be substituted the following paragraph –

‘(4)    The Comptroller shall issue a written notice to a person of his or her liability under paragraph (2) and of his or her liability to an LTC surcharge under paragraph 4A of Schedule 1D to the 1974 Law.’;

(b)     at the end of paragraph (6) there shall be added the words ‘under paragraph (2)’.

(8B)   Where the Comptroller receives an LTC surcharge paid under paragraph 4A of Schedule 1D to the 1974 Law and Article 41I of this Law as modified by paragraph (8A), the Comptroller shall remit the sum to the Minister for Social Security.”.

(2)     In Article 49B(10) of the 1961 Law, for the words “and 41E” there shall be substituted the words “, 41E and 41I”.

(3)     In the heading to Schedule 1A to the 1961 Law, for the words “and 41E” there shall be substituted the words “, 41E and 41I”.

(4)     In Schedule 1A to the 1961 Law, after Article 41E there shall be inserted the following Article –

(1)     In this Article, ‘specified time’, in relation to a year of assessment, means 6 p.m. on the Friday following the first Monday in December of the year next following the year of assessment.

(2)     Any person chargeable to tax, whether or not an assessment has been served on that person, shall be liable to pay an amount in addition to that tax (hereafter referred to as the ‘surcharge’) equal to 10% of that tax which remains unpaid, if the tax chargeable on that person for the year of assessment is not paid in full by 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.

(3)     Paragraph (2) shall not apply where the aggregate of the amounts received by the specified time by the Comptroller, pursuant to Article 41G, as payment of a person’s tax for the year of assessment, is 70% or more of the person’s liability to tax for that year.

[(4)    The Comptroller shall issue a written notice to a person of his or her liability under paragraph (2) and of his or her liability to an LTC surcharge under paragraph 4A of Schedule 1D to the 1974 Law.]

(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 [under paragraph (2)].

(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)     The following provisions of this Law shall apply, with the necessary modifications, to an appeal under paragraph (7) as they apply to an appeal against any assessment –

(a)     the proviso to Article 27(1);

(b)     Article 27(2);

(c)     Article 28(1);

(d)     Article 29, with the omission of paragraphs (4) and (5);

(e)     Articles 29A and 31 to 36.”.

6        Citation and commencement

This Law may be cited as the Social Security (Amendment No. 21) (Jersey) Law 2014 and shall come into force on 1st January 2015 or, if later, 7 days after it is registered.

m.n. de la haye

Greffier of the States

 


 



[1]                                    chapter 24.750

[2]                                    chapter 26.900


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