Income Tax (Jersey) Law 1961

Jersey Law 29/1961

 

“INCOME TAX (JERSEY) LAW, 1961”,

 

CONFIRMÉ PAR

 

Ordre de Sa Majesté en Conseil

 

en date du 26 juin 1961.

____________

 

(Enregistré le 15 juillet 1961).


 

ARRANGEMENT OF ARTICLES.

____________

PART I

PRELIMINARY

Article No.

 

    1.

Charge of income tax.

    2.

Yearly assessments.

PART II

INTERPRETATION

    3.

General provisions as to interpretation.

    4.

Meaning of, and provisions as to, total income.

PART III

ADMINISTRATION

    5.

Interpretation of Part III

    6.

Comptroller of Income Tax.

    7.

Removal of Comptroller.

    8.

Deputy Comptroller, Assistant Comptroller and staff.

    9.

Exercise of functions of Comptroller in event of absence or vacancy in office.

  10.

Commissioners of Appeal.

  11.

Oath of office.

  12.

Audit.

  13.

Power of Comptroller to disclose statistical information.

  14.

Power to administer oaths.

PART IV

RETURNS

  15.

Comptroller to ascertain income liable to tax.

  16.

Delivery of statements in pursuance of notices.

  17.

Delivery of statements by persons acting for others.

  18.

Delivery of lists by persons in receipt of taxable income belonging to others.

  19.

Lists of lodgers and inmates.

  20.

List of employees.

  21.

Parochial taxation lists.

PART V

ASSESSMENT

  22.

Assessment of income.

  23.

Provision for making assessments where no returns are received.

  24.

Additional assessments.

  25.

Notices of assessment.

  26.

Books of assessment.

PART VI

APPEALS AND RELIEF FOR MISTAKE

  27.

Right of appeal.

  28.

Other provisions as to appeals.

  29.

Procedure on appeals.

  30.

Power to cause land to be valued on appeal.

  31.

Power to Commissioners on appeal to issue precepts.

  32.

Objection by Comptroller to schedules.

  33.

Power on appeal to confirm or amend assessments.

  34.

Power of putting questions as to assessments or schedules.

  35.

Power to summon and examine witnesses.

  36.

Appeals to the Royal Court.

  37.

Provision against double assessment.

  38.

Relief in respect of error or mistake.

PART VII

COLLECTION AND REPAYMENTS

  39.

Tax when due.

  40.

Demand for payment.

  41.

General notice to persons by whom tax is payable.

  42.

Proceedings for recovery of tax.

  43.

Recovery of arrears of tax by deduction from earnings.

  44.

Certificate of Comptroller admissible in evidence.

  45.

Arrears of tax.

  46.

Payment of receipts to States’ Treasurer.

  47.

Repayments to be made by States’ Treasurer.

  48.

Proof of payment of tax before repayment.

  49.

Time limit for repayment.

PART VIII

SCHEDULE A AND PRINCIPAL PROVISIONS RELATING THERETO

  50.

Interpretation of Part VIII.

  51.

Schedule A.

  52.

Deductions under Schedule A.

  53.

Allowance for losses.

  54.

Unoccupied premises.

  55.

Persons chargeable.

  56.

Deduction of tax on annual payments in respect of hypothecs and other charges.

PART IX

SCHEDULE C AND PRINCIPAL PROVISIONS RELATING THERETO

  57.

Interpretation of Part IX.

  58.

Schedule C.

  59.

Payment of tax under Schedule C.

  60.

Tax exemption certificates.

PART X

SCHEDULE D AND PRINCIPAL PROVISIONS RELATING THERETO

  61.

Schedule D.

  62.

Mode of charge under Schedule D ; the six Cases.

  63.

Farming and other commercial occupation of land in the Island to be charged under Schedule D.

Cases I and II

  64.

Full tax to be charged.

  65.

General provisions as to period of computation under Cases I and II.

  66.

Period of computation at commencement of trade, profession or vocation.

  67.

Option as to period of computation for the two years next after commencement of trade, profession or vocation.

  68.

Period of computation on discontinuance of trade, profession or vocation.

  69.

Exclusion from computation of annual value of premises in Jersey.

  70.

General rules as to deductions not allowable.

  71.

Losses may be set off against profits.

  72.

Deduction on account of wear and tear of machinery or plant.

  73.

Deduction in respect of replacement of machinery or plant.

  74.

Partnership statements and assessments.

  75.

Changes of proprietor.

  76.

Partnerships controlled abroad.

Case II

  77.

Fees and subscriptions to professional bodies, learned societies, etc.

Case III

  78.

Basis of computation under Case III.

  79.

Pensions chargeable under Case III.

Cases IV and V

  80.

Basis of computation under Cases IV and V.

Case VI

  81.

Basis of computation under Case VI.

Miscellaneous provisions as to Schedule D.

  82.

Persons chargeable.

  83.

Deduction from profits of interest paid by coupon.

  84.

Tax computed on profits of previous period to be charged though no profits in year of assessment.

  85.

Statement of profits to include all sources of income chargeable under Schedule D.

PART XI

PRINCIPAL PROVISIONS AS TO INTEREST, DIVIDENDS, ANNUAL PAYMENTS, ETC

  86.

Payments out of profits or gains already taxed.

  87.

Payments not made out of profits or gains already taxed.

  88.

Deduction of tax from Jersey dividends.

  89.

Explanation of income tax deductions to be annexed to dividend warrants, etc.

  90.

Relief in respect of interest paid to banks.

  91.

Small maintenance payments.

PART XII

PERSONAL ALLOWANCES AND RELIEFS

  92.

Earned income and old age allowances.

  93.

Deductions from assessable income.

  94.

Personal allowances.

  95.

Children.

  96.

Person taking charge of widower’s or widow’s children, or acting as his or her housekeeper.

  97.

Person employed or maintained to take charge of children.

  98.

Relative taking charge of unmarried person’s young brother or sister.

  99.

Dependent relatives.

100.

Individual dependent on services of daughter.

101.

Insurance premiums.

102.

Reduced rate of tax.

103.

No relief unless statement delivered.

104.

No relief in respect of charges on income.

105.

Partners.

106.

Non-residents.

PART XIII

RELIEF FOR LOSSES, ETC

107.

Right to have income for year of assessment adjusted by reference to losses.

108.

Right to carry forward losses to future years.

109.

Extension of period for carrying forward losses in certain cases.

110.

Amount of assessment under Article 87 to be allowed as a loss for certain purposes.

PART XIV

RELIEF FROM DOUBLE TAXATION

111.

Double taxation arrangements.

112.

Tax credits.

113.

Effect on dividends of double taxation relief.

114.

Power to make orders.

PART XV

EXEMPTIONS

115.

Miscellaneous exemptions.

116.

Exemption for certain friendly societies.

117.

Exemption in respect of wounds and disability pensions.

118.

Exemption for savings banks.

119.

Exemption in respect of United Kingdom savings certificates.

120.

Exemption of consular officers and employees.

PART XVI

SPECIAL PROVISIONS AS TO MARRIED PERSONS

121.

General rule as to income tax on husbands and wives.

122.

Construction of references to married women living with their husbands, and special provisions as to certain spouses geographically separated.

PART XVII

SPECIAL PROVISIONS AS TO BODIES OF PERSONS, PERSONS UNDER DISABILITY AND PERSONAL REPRESENTATIVES

123.

Bodies corporate.

124.

Individuals under disability.

125.

Personal representatives of a deceased person.

PART XVIII

SPECIAL PROVISIONS AS TO INDIVIDUALS TEMPORARILY ABROAD, AND NON-RESIDENTS

126.

Individuals temporarily abroad.

127.

Method of charging non-residents and absent residents.

128.

Responsibilities and indemnification of persons in whose name a non-resident or absent resident is chargeable.

129.

Position under Schedule D of temporary residents.

PART XIX

SPECIAL PROVISIONS AS TO PENSIONS AND PENSION SCHEMES, ANNUITIES, ETC

130.

Insular Insurance and Family Allowances.

131.

Exemption of superannuation funds.

132.

Purchased life annuities.

PART XX

SPECIAL PROVISIONS AS TO LIFE ASSURANCE COMPANIES, INVESTMENT BUSINESSES AND SAVINGS BANKS

133.

Relief to life assurance companies and others in respect of expenses of management.

134.

Taxation of investment income on life assurance companies with head office outside Jersey.

PART XXI

SPECIAL PROVISIONS AS TO MINISTERS OF RELIGION

135.

Deduction in respect of expenditure and houses of ministers of religion.

PART XXII

GENERAL PROVISIONS AS TO PROSECUTIONS AND PENALTIES

136.

Penalties for failure to deliver statements, etc.

137.

Penalties for fraudulently or negligently making incorrect statements, etc.

138.

Penalty for assisting in making incorrect statements, etc.

139.

Penalty for refusing to allow deduction of tax, and avoidance of agreements for payment without deduction.

140.

Time limit for prosecutions.

141.

Penalties to belong to States’ Revenues.

PART XXIII

MISCELLANEOUS PROVISIONS

142.

Provisions for giving effect to any increase, during any year of assessment, in the standard rate of income.

143.

Solemn affirmation.

144.

Power to make orders.

145.

Delivery and service of notices and forms.

PART XXIV

COMMENCEMENT, REPEALS, SAVINGS, TEMPORARY AND TRANSITIONAL PROVISIONS AND SHORT TITLE

146.

Commencement and repeals.

147.

This Law to apply to tax for years before 1962 in certain cases.

148.

Saving of appointments.

149.

Construction of references, etc.

150.

Short title.

FIRST SCHEDULE

Oaths of office.

SECOND SCHEDULE

Enactments repealed.

 


INCOME TAX (JERSEY) LAW, 1961.

____________

A LAW   to re-enact, with minor amendments, the enactments relating to income tax, sanctioned by Order of Her Majesty in Council of the

 

26th day of JUNE, 1961.

____________

 

(Registered on the 15th day of July, 1961).

____________

 

STATES OF JERSEY.

____________

 

The 28th day of February, 1961.

____________

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

PART I

PRELIMINARY

ARTICLE 1

CHARGE OF INCOME TAX

Where any Law enacts that income tax shall be charged for any year at any rate, 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 C – Article 58 ;

Schedule D – Article 61 ;

and in accordance with the provisions of this Law respectively applicable to those Schedules.

ARTICLE 2

YEARLY ASSESSMENTS

Every assessment and charge to tax shall be made for a year commencing on the first day of January and ending on the following thirty-first day of December.

PART II

INTERPRETATION

ARTICLE 3

GENERAL PROVISIONS AS TO INTERPRETATION

(1)           In this Law, unless the context otherwise requires –

“assessable income” means the amount of that income as estimated in accordance with the provisions of this Law, and, in the case of earned income, as ascertained in accordance with the provisions of Article 92 of this Law ;

“body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate ;

“the Commissioners” means a Commission of Appeal constituted in accordance with Article 10 of this Law ;

“the Comptroller” has the meaning assigned thereto by Article 6 of this Law ;

“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 husband 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 husband or parent of the individual has contributed to such pension, superannuation allowance or deferred pay or not ; and

(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 ; and

(c)     any income which is charged under Schedule D, and is immediately derived by the individual from the carrying on or exercise by him of his trade, profession or vocation, either as an individual or, in the case of a partnership, as a partner personally acting therein ;

“general notice” means a notice published in the Jersey Gazette ;

“States’ Auditor” means the Auditor of the public accounts of the States ;

“trade” includes every trade, manufacture, adventure or concern in the nature of trade.

(2)           References in this Law to any enactment include references to any other enactment in so far as it amends that enactment.

ARTICLE 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 he is liable to allow the deduction of tax, less the amounts of any interest, annuity or other annual payments to be made out of the property or profits or gains assessed on him.

(2)           In estimating 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.

PART III

ADMINISTRATION

ARTICLE 5

INTERPRETATION OF PART III

In this Part of this Law, “officer” has the same meaning as in the Civil Service Administration (Jersey) Law, 1953.1

ARTICLE 6

COMPTROLLER OF INCOME TAX

(1)           The administration of this Law shall be entrusted to an officer to be known as the Comptroller of Income Tax (in this Law referred to as “the Comptroller”).

(2)           The appointment of the Comptroller shall be subject to the approval of the States, which shall first deliberate on the subject in camera, and shall then vote in public assembly by ballot, the votes of an absolute majority of the members present being necessary for such approval.

ARTICLE 7

REMOVAL OF COMPTROLLER

If the Comptroller is found guilty of any malpractice or incapacity, or if for any reason he is considered to be unsuitable for the appointment, the Finance Committee shall report the facts to the States, which, after deliberating upon them in camera, may remove him from office.

ARTICLE 8

DEPUTY COMPTROLLER, ASSISTANT COMPTROLLER AND STAFF

There shall be appointed such number of officers, including a Deputy Comptroller and an Assistant Comptroller of Income Tax, as may be necessary to assist the Comptroller in the exercise of his functions under this Law.

ARTICLE 9

EXERCISE OF FUNCTIONS OF COMPTROLLER IN EVENT OF ABSENCE OR VACANCY IN OFFICE

In the event of the absence from duty of the Comptroller either by reason of illness or for any other cause, or in the event of a vacancy in the office of Comptroller, the duties imposed and the powers conferred on the Comptroller by this Law shall be exercised by the Deputy Comptroller of Income Tax, and in the event of the absence from duty of both the Comptroller and the Deputy Comptroller, the said powers and duties shall be exercised by the Assistant Comptroller of Income Tax.

ARTICLE 10

COMMISSIONERS OF APPEAL

(1)           For the purpose of hearing appeals under this Law from decisions of the Comptroller, a Commission of Appeal shall be constituted, consisting of any three out of a total of five Commissioners of Appeal appointed by the States, on the recommendation of the Finance Committee.

(2)           The Commissioners of Appeal shall hold office for such period as the States may determine on their appointment.

(3)           The Commissioners of Appeal shall be chosen from residents in the Island of experience in financial matters, who are not actively interested in any trade, business or profession, assessable to tax under Schedule D, which is of such a nature as would cause their appointment to be objected to by competitors in similar trades, businesses or professions carried on in the Island.

(4)           The Commissioners of Appeal shall, with the consent of the President of the Finance Committee, have power to obtain expert advice in cases in which they consider it to be necessary, and the Finance Committee shall defray any expenses so incurred.

(5)           The Finance Committee may appoint a clerk to the Commissioners of Appeal, and shall fix his salary and determine the conditions of his appointment.

ARTICLE 11

OATH OF OFFICE

Every person appointed under this Part of this Law and every person employed to carry out the audit of the accounts of the Comptroller shall, before he begins to act in execution of this Law, take oath before the Royal Court in the form set out in the First Schedule to this Law appropriate to the office to which he has been appointed.

ARTICLE 12

AUDIT

For the purposes of audit, the Comptroller is authorized to place at the disposal of the States’ Auditor all books and information that he may require.

ARTICLE 13

POWER OF COMPTROLLER TO DISCLOSE STATISTICAL INFORMATION

Notwithstanding anything in this Law contained, the Comptroller may disclose to the President of the Finance Committee such statistical information as he may require for the purpose of the preparation of the general estimate of the revenue of the States for any year or for any other purpose affecting the revenue of the States.

ARTICLE 14

POWER TO ADMINISTER OATHS

The Comptroller shall have power to administer oaths for the purpose of this Law.

PART IV

RETURNS

ARTICLE 15

COMPTROLLER TO ASCERTAIN INCOME LIABLE TO TAX

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.

ARTICLE 16

DELIVERY OF STATEMENTS IN PURSUANCE OF NOTICES

(1)           Every person chargeable under this Law, when required so to do by any general notice or by a notice served on him by the Comptroller, shall, within the time limited by the notice, prepare and deliver to the Comptroller, a true and correct statement in writing, signed by him, containing such of the following particulars as may be required by the notice, namely, –

(a)     the annual value of all lands and tenements in his occupation ;

(b)     the amount of the profits or gains arising to him from each and every source (whether or not tax under this Law is deductible therefrom) chargeable according to the respective Schedules, estimated for the period specified in the notice and according to the provisions of this Law.

(2)           To the said statement shall be added a declaration that such values or amounts are estimated in respect of all the sources of income required to be inserted in the statement, after deducting only such sums as are allowed.

(3)           Every such statement 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.

(4)           Every person on whom a particular notice has been served by the Comptroller requiring him to deliver a statement of any profits, gains or income in respect of which he may be chargeable under Schedule D, shall deliver a statement in the form required by the notice whether or not he is so chargeable.

ARTICLE 17

DELIVERY OF STATEMENTS BY PERSONS ACTING FOR OTHERS

(1)           Every person acting in any character on behalf of any incapacitated person or persons absent from or not resident in the Island 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 him by the Comptroller, within the time limited by the notice, deliver such a statement as is described in Article 16 of this Law of the profits or gains in respect of which the tax is to be charged on him on account of that other person, together with the declaration referred to in that Article.

(2)           Where two or more such persons are liable to be charged for the same person, one statement only shall be required to be delivered, and such statement may be made by them jointly or by any one or more of them.

ARTICLE 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 he were resident in the Island and not an incapacitated person, shall, whenever required so to do by a notice served on him by the Comptroller, prepare and deliver, within the time limited by the notice, a list in the form required by the notice, signed by him, containing –

(a)     a true and correct statement of all such money, value, profits or gains ; and

(b)     the name and address of every person to whom the same belong ; and

(c)     a declaration whether every such person is of full age, or is a married woman, or is resident in the Island, or is an incapacitated person.

(2)           If any person described in paragraph (i) of this Article is acting jointly with any other person, he shall, in like manner, deliver a list of the names and addresses of all persons joined with him at the time of delivery of the list mentioned in that paragraph.

ARTICLE 19

LISTS OF LODGERS AND INMATES

Every person, when required so to do by any general notice or by a notice served on him by the Comptroller, shall, within the time limited by the notice, prepare and deliver to the Comptroller a list, signed by him, containing to the best of his belief the name of every lodger or inmate resident in his dwelling-house who has resided in the Island for six months.

ARTICLE 20

LIST OF EMPLOYEES

(1)           Every employer, when required so to do by a notice served on him by the Comptroller, shall, within the time limited by the notice, prepare and deliver to the Comptroller a return, signed by him, containing –

(a)     the names and places of residence of all persons employed by him ; and

(b)     the payments made to those persons in respect of that employment, except persons who are not employed in any other employment and whose remuneration in the employment for the year does not exceed the sum of two hundred pounds, or, if the employment is for less than a year, a proportionately reduced amount.

(2)           Any director of a company, or person engaged in the management of a company, shall be deemed for the purposes of this Article to be a person employed.

(3)           Where the employer is a body of persons, the secretary of the body, or other officer (by whatever name called) performing the duties of secretary, shall be deemed to be the employer for the purposes of this Article :

Provided that where the employer is a body corporate, that body corporate shall be liable to a penalty for failure to deliver a return in pursuance of this Article, as well as the said secretary or other officer.

ARTICLE 21

PAROCHIAL TAXATION LISTS

The Constable of every parish shall either supply the Comptroller, as early as possible in each year, with copies of all returns received by him in pursuance of Article 10 of the Parish Rate (Administration) (Jersey) Law, 1946,2 or shall give the Comptroller or his representative free access to such returns, and where the information required by the Comptroller is of a nature requiring special preparation, such remuneration shall be allowed to the Constables as the Finance Committee considers reasonable.

PART V

ASSESSMENT

ARTICLE 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.

(2)           In the case of assessments under Schedule A, other than assessments of rentes, he shall prepare lists containing –

(a)     the full and just annual value of all lands, tenements, hereditaments and heritages estimated in each particular case as directed by this Law ; and

(b)     the names of the owners thereof.

(3)           In the case of assessments of rentes under Schedule A and assessments under Schedule D, he 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.

ARTICLE 23

PROVISION FOR MAKING ASSESSMENTS WHERE NO RETURNS ARE RECEIVED

If the Comptroller does not receive a statement from a person liable to be charged to income tax, he shall to the best of his information and judgement make an assessment on that person of the amount at which he ought to be charged under this Law, and shall include such assessment in the appropriate list.

ARTICLE 24

ADDITIONAL ASSESSMENTS

(1)           If the Comptroller discovers –

(a)     that any properties or profits chargeable to tax have been omitted from the first assessments or have not been assessed ; or

(b)     that a person chargeable has not delivered any statement, or has not delivered a full and proper statement, or has not been assessed to tax, or has been undercharged in the first assessments ; or

(c)     that a person chargeable has been allowed, or has obtained from and in the first assessments, any deduction, or reduction of rate not authorized by this Law ;

then and in every such case the Comptroller shall amend the assessment or make, such additional assessment as will render the person liable to the full amount of tax with which he ought to be charged:

Provided that any such amended or additional assessment shall be subject to appeal and other proceedings as in the case of a first assessment.

(2)           An assessment may be amended, or an additional assessment may be made, at any time not later than five years after the expiration of the year of assessment :

Provided that where any form of fraud, wilful default or neglect has been committed by or on behalf of the person chargeable in relation to income tax for the year of assessment, assessments and additional assessments on that person for that year may be amended or made at any time.

ARTICLE 25

NOTICES OF ASSESSMENT

As soon as the assessments under Schedules A and D have been made, the Comptroller shall serve on each person assessed a notice of the amount of the assessment, the latest date on which an appeal against the assessment may be made and the date by which the said amount, failing the making of an appeal, is required to be paid.

ARTICLE 26

BOOKS OF ASSESSMENT

As soon as the assessments have been made, each book of assessment shall be signed by the Comptroller.

PART VI

APPEALS AND RELIEF FOR MISTAKE

ARTICLE 27

RIGHT OF APPEAL

(1)           A person aggrieved by any assessment on him, 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 twenty-one days after the date of the notice of such assessment.

(2)           If it be shown to the satisfaction of the Commissioners that owing to absence, sickness or other reasonable cause, any person has been prevented from appealing in due time, or from attending at the hearing of an appeal on the day fixed for that purpose, they may postpone the hearing of his appeal for such reasonable time as they think necessary, or may admit the appeal to be made by any agent, clerk or servant on his behalf.

ARTICLE 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)           Notwithstanding that an appeal against an assessment is pending –

(a)    such part of the tax assessed as appears to the Comptroller not to be in dispute 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 the 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.

ARTICLE 29

PROCEDURE ON APPEALS

(1)           The Commissioners shall cause not less than four 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.

(2)           The Comptroller shall attend every appeal, and shall be entitled –

(a)     to be present during all the time of the hearing and at the determination of the appeal ; and

(b)     to produce any lawful evidence in support of the assessment ; and

(c)     to give reasons in support of the assessment.

(3)           On any appeal, the Commissioners shall permit the Law Officers of the Crown or any advocate or solicitor of the Royal Court to plead before them on behalf of either the appellant or of the Comptroller, either viva voce or in writing, or may hear any accountant, that is to say, any person who has been admitted a member of an incorporated society of accountants.

(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 he be charged with the excess.

ARTICLE 30

POWER TO CAUSE LAND TO BE VALUED ON APPEAL

(1)           If, on appeal against an assessment under Schedule A, any dispute arises as to the annual value of any lands, tenements, hereditaments or heritages, the Commissioners may, if they consider it necessary, and shall, if required by the appellant, direct the appellant to cause a valuation to be made by three sworn appraisers, to be chosen by the Commissioners, one from each of the parishes nearest to that in which the appellant’s property is situated, and the annual value shall be determined in accordance with that valuation.

(2)           If the appellant does not proceed, with effect, to cause such valuation to be made, the Commissioners shall determine the annual value according to the best of their judgement.

(3)           The costs and charges of any such valuation shall abide the final determination of the Commissioners, and, if the value so found exceeds the value alleged by the appellant, the Commissioners may order him to pay the costs and charges of the valuation, but if they are of opinion that such costs and charges have not been incurred through any default of the appellant, they shall report their finding to the Finance Committee, which shall issue an order for the payment of the said costs and charges by the Treasurer of the States.

ARTICLE 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 him 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 ; or

(b)     the trade, profession, employment or vocation carried on or exercised by him ; or

(c)     the amount of his profits or gains, distinguishing the particular amounts derived from each separate source ; or

(d)     any deductions made in arriving at his profits or gains ;

and the Commissioners are hereby 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.

ARTICLE 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 his objection, according to the best of his knowledge or information.

(2)           In every such case, the Comptroller shall give notice in writing of his objection to the person to be charged, in order that he may, if he 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.

ARTICLE 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.

ARTICLE 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 seven 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 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 him orally shall be taken down in writing in his presence, and be read over to him, and after he has had liberty to amend any such answer, he 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, on behalf of such person, to be examined orally before the Commissioners, the same provisions shall apply to his examination as in the case of the person to be charged who tenders himself to be examined orally.

ARTICLE 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 paragraph (2) of Article 34 of this Law.

(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 ; or

(b)     appears, but refuses to be sworn or to subscribe the oath ; or

(c)     refuses to answer any lawful question touching the matters under consideration ;

shall be liable to a fine not exceeding twenty pounds :

Provided that the penalty imposed in respect of any offence under sub-paragraph (b) or (c) of this paragraph shall not apply to any clerk, agent, servant or other person as aforesaid.

ARTICLE 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 his 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 twenty-one 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.

ARTICLE 37

PROVISION AGAINST DOUBLE ASSESSMENT

(1)           A person who, either on his 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 his 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, he 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, he shall cause the amount of the overpayment to be repaid to the applicant.

ARTICLE 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 him or on his behalf, he 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 five years after the end of the year in which the assessment in pursuance of the return was made.

(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 his income, and the amounts of tax with which he has been charged, or which he has borne, for other years may be taken into consideration.

PART VII

COLLECTION AND REPAYMENTS

ARTICLE 39

TAX WHEN DUE

Income tax contained in an assessment for any year shall be deemed to be due and payable on the day next after the day on which the assessment is made.

ARTICLE 40

DEMAND FOR PAYMENT

The notices of assessment given under Article 25 of this Law to persons assessed to tax shall be deemed to be a demand for payment for the purposes of this Law.

ARTICLE 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.

ARTICLE 42

PROCEEDINGS FOR RECOVERY OF TAX

(1)           Proceedings for the recovery of income tax may be instituted by the Treasurer of the States, either in term or in vacation, at any time after the assessment to tax has been finally settled.

(2)           Where under the provisions of this Law income tax has been charged on the husband in respect of the profits or income of the wife, 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 wife :

Provided that no action for recovery shall be instituted against the wife unless a notice demanding payment has been served by the Comptroller on the wife and she has failed to pay the amount of tax payable by her husband within seven days of such service.

ARTICLE 43

RECOVERY OF ARREARS OF TAX BY DEDUCTION FROM EARNINGS

(1)           Where judgement has been obtained for the payment of arrears of income tax due by any individual (hereinafter referred to as “the judgement 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 judgement together with the recoverable costs (hereinafter referred to as “the judgement debt”) may be recovered in accordance with the provisions of this Article.

(2)           Where it is desired to recover any judgement debt under this Article –

(a)     the Comptroller may serve notice on the employer for the time being of the judgement debtor requiring him to furnish the Comptroller, within such time (not being less than seven days) as may be specified in the notice, with a certificate of the earnings of the judgement 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 judgement debtor requiring him to make such deductions from the earnings of the judgement 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 judgement debt :

Provided that where the judgement 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 judgement debt by a greater amount than that by which it would have been reduced had the instalments been paid.

(3)           Any notice under sub-paragraph (b) of paragraph (2) of this Article may at any time be varied by a subsequent notice under that sub-paragraph.

(4)           A copy of every notice served under sub-paragraph (b) of paragraph (2), or paragraph (3), of this Article shall be served also on the judgement debtor.

(5)           Where any employer fails to deduct any amount which he is required by virtue of sub-paragraph (b) of paragraph (2) of this Article to deduct, or to pay to the Comptroller any amount so deducted, the amount may be recovered from him as a debt due to the States.

ARTICLE 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 hereby certify that the sum of ............................................. is due to the States of Jersey, in respect of income tax for the year ended the 31st December, 19....., by .................................. of ..................................... and that the aforesaid sum fell into arrears on the ........................... day of ...........................,19.......

.........................................................

Comptroller of Income Tax.

(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.

ARTICLE 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 twelve 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 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 twelve months next before that time.

(3)           In the event of any “dégrèvement”, “réalisation”, “désastre”, bankruptcy or composition with creditors, the income tax due for the year in which that event occurs as well as that due for the preceding year shall rank for payment pari passu with other privileged debts and in priority to all other debts.

ARTICLE 46

PAYMENT OF RECEIPTS TO STATES’ TREASURER

All monies received by the Comptroller in payment of income tax shall forthwith be paid by him to the Treasurer of the States.

ARTICLE 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.

ARTICLE 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 him that tax, in respect of which the repayment is claimed, has been paid by deduction at source or otherwise.

ARTICLE 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 five years next after the end of the year of assessment to which it relates.

PART VIII

SCHEDULE A AND PRINCIPAL PROVISIONS RELATING THERETO

ARTICLE 50

INTERPRETATION OF PART VIII

In this Part of this Law –

“owner” means, in relation to any lands, tenements, hereditaments, heritages or rentes, the person for the time being having the enjoyment of the lands, tenements, hereditaments, heritages or rentes, either as owner or usufructuary owner or in the exercise of rights of dower, “franc veuvage”, seignioralty or otherwise ;

“rack-rent” means the yearly rent which a tenant might reasonably be expected to pay (taking one year with another) if he undertook to bear all the usual tenant’s rates and taxes, and if the landlord undertook to bear the cost of repairs, insurance and any other expense necessary to maintain the property in a state to command that rent.

ARTICLE 51

SCHEDULE A

The Schedule referred to in this Law as Schedule A is as follows –

1.             Tax under this Schedule shall be charged in respect of –

(a)     the property in all lands, tenements, hereditaments and heritages in the Island capable of actual occupation, for every twenty shillings of the annual value thereof ; and

(b)     all profits arising from annual payments of rente, for every twenty shillings of the annual amount of the profits.

2.             The annual value for the purposes of this Schedule shall, in the case of all lands, tenements, hereditaments or heritages, of whatever nature and for whatever purpose occupied or enjoyed, be understood to be –

(a)     the amount of the rent by the year at which they are let at rack-rent ; or

(b)     if they are not let at rack-rent, then the rack-rent at which they are worth to be let by the year.

3.             The annual amount of profits for the purposes of this Schedule shall, in the case of rentes, be understood to be the amount receivable, whether received or not.

ARTICLE 52

DEDUCTIONS UNDER SCHEDULE A

The following deductions and allowances shall be made under Schedule A in respect of the property in lands, tenements, hereditaments and heritages –

(a)     all parochial rates or taxation which by law are charged on the owner ;

(b)     any parochial rates, taxes or assessments which by law are charged on the occupier and which the landlord is subject to an agreement to pay or satisfy out of the rent reserved on any land or tenements ;

(c)     an allowance in respect of repairs, calculated upon the annual value of any house or building but excluding the annual value of land –

(i)      where the owner is occupier or where a tenant is occupier and the landlord undertook to bear the cost of repairs, a sum equal to forty per centum of such value ;

(ii)     where a tenant is occupier and the landlord undertook to bear the cost of a portion of the repairs, a sum equal to twenty per centum of such value ;

(d)     an allowance in respect of rentes payable on the property, on condition that the owner supplies the Comptroller in each year with a detailed list of all such rentes.

ARTICLE 53

ALLOWANCE FOR LOSSES

(1)           Where land has been let at a reserved rent and loss has been sustained on the growing crops or stock on the land, and the owner proves that he has in consideration of such loss allowed or agreed to allow to the tenant an abatement of the whole or any part of the rent payable, a proportionate abatement in the assessment under Schedule A shall be made for the year for which the abatement of rent has been made.

(2)           Where any such loss is sustained on land in the occupation of the owner, on proof of the loss, a like abatement and discharge of tax may be made under Schedule A as might have been made if the land had been let to a tenant and the owner had made such abatement in rent.

ARTICLE 54

UNOCCUPIED PREMISES

Tax under Schedule A shall be charged on all lands, tenements and hereditaments, whether occupied at the time of assessment or not, but if any house or land is or becomes unoccupied for the year or for part of the year of assessment, the tax shall not be levied thereon in respect of the period while it is so unoccupied.

ARTICLE 55

PERSONS CHARGEABLE

Save as in this Law provided, tax under Schedule A shall be charged on and paid by the owner for the time being.

ARTICLE 56

DEDUCTION OF TAX ON ANNUAL PAYMENTS IN RESPECT OF HYPOTHECS AND OTHER CHARGES

Where any lands, tenements, hereditaments or heritages are subject to the payment of any annual sum by way of hypothec or other charge (not being a rente), the owner shall be entitled on making such payment to deduct and retain thereout income tax at the rate in force for the year in which the amount payable becomes due, and every person to whom such payment is made shall, on receipt of the residue thereof, and without any charge for so doing, allow the deduction and acquit the owner as if the sum represented by the deduction had been paid in cash.

PART IX

SCHEDULE C AND PRINCIPAL PROVISIONS RELATING THERETO

ARTICLE 57

INTERPRETATION OF PART IX

In this Part of this Law, “banker” includes a person acting as a banker.

ARTICLE 58

SCHEDULE C

The Schedule referred to in this Law as Schedule C is as follows –

Tax under this Schedule shall be charged in respect of all profits arising from interest and dividends which are payable either out of the public revenues of the Island or by coupon, for every twenty shillings of the annual value thereof.

ARTICLE 59

PAYMENT OF TAX UNDER SCHEDULE C

(1)           The Treasurer of the States on payment of any interest payable out of the public revenues of the Island, whether by coupon or otherwise, shall (except where such interest is specifically exempted from income tax) deduct thereout a sum representing the amount of income tax thereon at the rate of tax in force at the date on which the said interest falls due for payment.

(2)           Sums so deducted by the Treasurer of the States shall be charged as interest as if it had been paid in cash, and credited to the General Revenues of the States as having been received from income tax.

(3)           Before paying or placing to the credit of the person entitled thereto any profits arising from interest and dividends which are payable by coupon, a banker shall deduct thereout a sum representing the amount of income tax thereon at the rate of tax in force at the date on which the said interest and dividends are paid.

(4)           Within seven days of the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of December in each year, every banker shall pay to the Treasurer of the States the amount of income tax deducted by him under paragraph (3) of this Article during the three months ending on those dates (but excluding the amount deducted from coupons issued by the States of Jersey) and shall at the same time give a certificate signed by the manager of the bank stating the amount so paid over to the Treasurer of the States and further declaring that it represents tax at the rate specified in the said paragraph (3) on the whole of the coupons (other than those issued by the States of Jersey) which have been paid or credited by him as banker during that period.

ARTICLE 60

TAX EXEMPTION CERTIFICATES

(1)           If a person to whom any interest or dividends chargeable under Schedule C is payable satisfies the Comptroller that he is not liable to income tax in any year, the Comptroller may issue a certificate to that effect, and the Treasurer of the States, or the banker who under Article 59 of this Law is required to deduct income tax from such interest or dividends, may, on sight of such certificate, pay or credit to that person the profits arising from such interest or dividends, free of income tax for that year.

(2)           In all cases where a banker pays interest or dividends free of income tax by virtue of this Article, he shall modify the certificate required to be given by him under Article 59 of this Law accordingly.

PART X

SCHEDULE D AND PRINCIPAL PROVISIONS RELATING THERETO

ARTICLE 61

SCHEDULE D

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 the Island from any kind of property whatever, whether situate in the Island or elsewhere; and

(ii)     to any person residing in the Island from any trade, profession, employment, vocation or office, whether carried on in the Island or elsewhere, or from any pension, whether arising in the Island or elsewhere; and

(iii)    to any person, whether a British subject or not, although not resident in the Island, from any property whatever in the Island, or from any trade, profession, employment, vocation or office exercised within the Island, or from any pension arising in the Island; and

(b)     all interest of money, annuities, and other annual profits or gains not charged under Schedule A or C, and not specially exempted from tax;

in each case for every twenty shillings of the annual amount of the profits or gains.

ARTICLE 62

MODE OF CHARGE UNDER SCHEDULE D; THE SIX CASES

(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 the Island 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

(c)     all pensions, except pensions which are paid by or on behalf of a person outside the Island, whether paid voluntarily or otherwise and whether capable of being discontinued or not;

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 the Island, 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;

(c)     interest paid or credited in full without deduction of tax by a savings bank to any depositor;

(d)     any pensions whether paid voluntarily or otherwise and whether capable of being discontinued or not which are paid by or on behalf of a person outside the Island;

except such income as is charged under Schedule C;

Case IV. –tax in respect of income arising from securities out of the Island, except such income as is charged under Schedule C;

Case V. –tax in respect of income arising from possessions out of the Island;

Case VI. –tax in respect of any annual profits or gains not falling under any of the foregoing Cases, and not charged by virtue of Schedule A or C;

and subject to and in accordance with the provisions of this Law applicable to the said Cases respectively.

(2)           The provisions of paragraph (1) of this Article 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.

ARTICLE 63

FARMING AND OTHER COMMERCIAL OCCUPATION OF LAND IN THE ISLAND TO BE CHARGED UNDER

SCHEDULE D

(1)           All farming and market gardening in the Island 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 the Island 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 the Island 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 the Island as a nursery or garden for the sale of produce.

 

Case I and II

ARTICLE 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.

ARTICLE 65

GENERAL PROVISIONS AS TO PERIOD OF COMPUTATION UNDER CASES I AND II

(1)           Subject to the provisions of Articles 66, 67 and 68 of this Law, tax shall be charged under Cases I and II of Schedule D –

(a)     in the case of a trade, profession or vocation, on the full amount of the balance of the profits or gains for the year ending on that day of the year immediately preceding the year of assessment on which the accounts of the trade, profession or vocation have been usually made up, or on the thirty-first day of December preceding the year of assessment;

(b)     in the case of an employment, office or pension, on the full amount of the emoluments of the employment, office or pension arising in the year of assessment.

(2)           In this Article, “emoluments” means all salaries, fees, wages, perquisites or profits or gains whatsoever arising from an office or employment, or the amount of any pension, as the case may be.

ARTICLE 66

PERIOD OF COMPUTATION AT COMMENCEMENT OF TRADE, PROFESSION OR VOCATION

Where the trade, profession or vocation has been set up and commenced within the year preceding the year of assessment, the computation shall be made on the profits or gains for one year from the period of the first setting up of the same, and, where it has been set up and commenced within the year of assessment, the computation shall be made in accordance with the provisions of this Law applicable to Case VI of Schedule D.

ARTICLE 67

OPTION AS TO PERIOD OF COMPUTATION FOR THE TWO YEARS NEXT AFTER COMMENCEMENT OF TRADE, PROFESSION OR VOCATION

(1)           In this Article –

“charged” means charged to income tax in respect of the profits or gains of a trade, profession or vocation;

“the second year of assessment” and “the third year of assessment” mean respectively the year next after and the year next but one after the year of assessment in which the trade, profession or vocation was set up or commenced.

(2)           The person charged or liable to be charged shall be entitled, on giving notice in writing to the Comptroller within two years after the end of the second year of assessment to require that tax shall be charged for both the second year of assessment and the third year of assessment (but not for one or other only of those years) on the amount of the profits or gains of each such year respectively:

Provided that he may by notice in writing given to the Comptroller within twelve months after the end of the third year of assessment revoke the notice and in such case tax shall be charged for both the second year of assessment and the third year of assessment as if the first notice had never been given.

(3)           If at any time during the second or third year of assessment, any such change as is mentioned in Article 75 of this Law occurs in the persons engaged in the trade, profession or vocation, a notice for the purpose of paragraph (2) of this Article or the proviso thereto, must, if given after the occurrence of the change –

(a)     in the case of a notice given within twelve months after the end of the second year of assessment, be signed by each of the persons who were engaged in the trade, profession or vocation, at any time between the commencement of the second year of assessment and the giving of the notice, or, in the case of a deceased person, by his legal representatives; and

(b)     in the case of a notice given after the end of the third year of assessment, be signed by each of the persons who were engaged in the trade, profession or vocation, at any time during the second or third year of assessment, or, in the case of a deceased person, by his legal representatives.

(4)           In the case of the death of a person who if he had not died would, under the provisions of this Article, have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged on his executors or administrators and shall be a debt due from and payable out of his estate.

(5)           There shall be made such additional assessments, reductions of assessments or repayments of tax as may in any case be required in order to give effect to the foregoing provisions of this Article.

ARTICLE 68

PERIOD OF COMPUTATION ON DISCONTINUANCE OF TRADE, PROFESSION OR VOCATION

(1)           Where in any year of assessment a trade, profession or vocation is permanently discontinued, then, notwithstanding anything in this Part of this Law –

(a)     the person charged or chargeable with tax in respect thereof shall be charged for that year on the amount of the profits or gains of the period beginning on the first day of January in that year and ending on the date of the discontinuance, subject to any deduction or set-off to which he may be entitled under Article 71 or Article 108 of this Law in respect of any loss, and, if he has been charged otherwise than in accordance with this provision, any tax overpaid shall be repaid or any additional assessment may be made on him, as the case may require;

(b)     if the profits or gains of the year ending on the thirty-first day of December in the year preceding the year of assessment in which the discontinuance occurs exceed the amount on which the person has been charged for that preceding year, or would have been charged if no deduction or set-off as aforesaid had been allowed, an additional assessment may be made on him, so that he shall be charged for that preceding year on the amount of the profits or gains of the said year ending on the thirty-first day of December, subject to any such deduction or set-off as aforesaid to which he may be entitled.

(2)           In the case of the death of a person who if he had not died would, under the provisions of this Article, have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed on his executors or administrators, and shall be a debt due from and payable out of his estate.

ARTICLE 69

EXCLUSION FROM COMPUTATION OF ANNUAL VALUE OF PREMISES IN JERSEY

(1)           The computation of tax under Case I or Case II of Schedule D shall be made exclusive of the annual value of lands, tenements, hereditaments or heritages occupied for the purpose of the trade or profession and separately assessed and charged under Schedule A.

(2)           Where any lands, tenements, hereditaments or other premises of whatsoever description used for the purpose of any trade, profession, employment or vocation are situate outside the Island, no deduction or set-off shall, in estimating the amount of annual profits or gains arising or accruing from that trade, profession, employment or vocation, in any manner be allowed on account or in respect of the annual value of those premises.

(3)           Where, in estimating the amount of annual profits or gains arising or accruing from any trade, profession, employment or vocation and chargeable to tax under Schedule D, any sum is deducted on account of the annual value of the lands, tenements, hereditaments or heritages used for the purpose of such trade, profession, employment or vocation, the sum so deducted shall not exceed the net amount of the assessment.

ARTICLE 70

GENERAL RULES AS TO DEDUCTIONS NOT ALLOWABLE

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 or annual value of any dwelling-house or domestic offices or any part thereof, except such part thereof 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 two-thirds of the annual value or of the rent bona fide paid for the said dwelling-house or offices, unless in any particular case the Comptroller or the Commissioners, as the case may be, are of 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 which might have been made if any such sums as aforesaid had been laid out at interest ;

(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, except in so far as such interest is chargeable under Schedule C ;

(m)   any royalty or other sum paid in respect of the user of a patent.

ARTICLE 71

LOSSES MAY BE SET OFF AGAINST PROFITS

(1)           A person who carries on, either solely or in partnership, two or more distinct trades, the profits of which are chargeable under Schedule D, may deduct from or set off against the profits as computed under this Law in respect of one or more such trades, the loss so computed sustained in any other such trade, and may make separate statements as to each such trade.

(2)           The references in paragraph (1) of this Article to a trade shall be deemed to include references to a profession or vocation.

ARTICLE 72

DEDUCTION ON ACCOUNT OF WEAR AND TEAR OF MACHINERY OR PLANT

(1)           In charging the profits or gains of a trade under Schedule D for any year of assessment, such deduction may be allowed, as may be considered just and reasonable, as representing the diminished value by reason of wear and tear during the year of any machinery or plant used for the purposes of the trade and belonging to the person by whom it is carried on.

(2)           Where machinery or plant is let to the person by whom the trade is carried on, on the terms of his being bound to maintain the same and deliver it over in good condition at the end of the lease, the machinery or plant shall be deemed to belong to that person for the purposes of this Article.

(3)           Where full effect cannot be given to any such deduction in any year of assessment, owing to there being no profits or gains chargeable for that year, or owing to the profits or gains chargeable being less than the deduction, the deduction or part of the deduction to which effect has not been given, as the case may be, shall, for the purpose of making the assessment for the following year, be added to the amount of the deduction for wear and tear for that year, and deemed to be part of that deduction, or, if there is no such deduction for that year, be deemed to be the deduction for that year, and so on for succeeding years.

(4)           Any claim in respect of the aforesaid deduction shall be included in the annual statement required to be delivered under this Law of the profits or gains of the trade for which the machinery or plant is used, and such allowance may be made in assessing those profits or gains in respect thereof, as is just and reasonable.

(5)           Where machinery or plant is let upon such terms that the burden of maintaining and restoring it falls upon the lessor, he shall be entitled, on presenting a claim, to have repaid to him such a portion of the sum assessed and charged in respect of the machinery or plant, and deducted by the lessee on payment of the rent, as represents the income tax on an amount considered to be just and reasonable as representing the diminished value by reason of wear and tear of the machinery or plant during the year :

Provided that no such claim shall be allowed unless made within twelve months after the expiration of the year of assessment.

(6)           No deduction for wear and tear, or repayment on account of any such deduction, shall be allowed for any year of assessment if the deduction, when added to the deductions allowed on that account for any previous years to the person by whom the trade is carried on, will make the aggregate amount of the deductions exceed the actual cost to that person of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by way of renewal, improvement or re-instatement.

(7)           References in this Article to the profits or gains of a trade include references to the profits or gains of a profession, employment, vocation or office.

ARTICLE 73

DEDUCTION IN RESPECT OF REPLACEMENT OF MACHINERY OR PLANT

In estimating the profits or gains of any trade, profession, employment, vocation or office chargeable under Schedule D, there shall be allowed to be deducted as expenses incurred in any year so much of any amount expended in that year in replacing any plant or machinery which has become obsolete as is equivalent to the cost of the plant or machinery replaced after deducting from that cost the total amount of any allowances which have at any time been made in estimating profits or gains as aforesaid on account of the wear and tear of that plant and machinery, and any sum realised by the sale of that machinery or plant.

ARTICLE 74

PARTNERSHIP STATEMENTS AND ASSESSMENTS

(1)           Where a trade or profession is carried on by two or more persons jointly, the tax in respect thereof shall be computed and stated jointly and in one sum, and shall be separate and distinct from any other tax chargeable on those persons or any of them, and a joint assessment shall be made in the partnership name.

(2)           The precedent partner, that is to say, the partner who, being resident in the Island –

(a)     is first named in the agreement of partnership ; or

(b)     if there be no agreement, is named singly or with precedence to the other partners in the usual name of the firm ; or

(c)     is the precedent acting partner, if the person named with precedence is not an acting partner ;

shall make and deliver a statement of the profits or gains of such trade or profession, on behalf of himself and the other partners, and declare therein the names and residences of the other partners, under the penalty prescribed by this Law for default in delivering a statement.

(3)           Where no partner is resident in the Island, the statement shall be made and delivered by the agent, manager or representative of the firm resident in the Island.

(4)           Any other partner may, if a statement has been delivered as aforesaid, notify the fact that he is a partner, together with his name and place of abode, without returning the amount of tax payable in respect of the partnership, but every partner may be required to make a like statement and supply the like information and evidence, as required from the precedent partner.

ARTICLE 75

CHANGES OF PROPRIETOR

(1)           If a change occurs in a partnership of persons engaged in any trade, profession or vocation, by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, in such circumstances that one or more of the persons who until that time were engaged in the trade, profession or vocation continue to be engaged therein, or a person who until that time was engaged in any trade, profession or vocation on his own account continues to be engaged in it, but as a partner in a partnership, the income tax payable by the person or persons who carry on the trade, profession or vocation after that time shall, notwithstanding the change, be computed according to the profits or gains of the trade, profession or vocation during the period prescribed by this Law :

Provided that, where all the persons who were engaged in the trade, profession or vocation both immediately before and immediately after the change require, by notice signed by all of them or, in the case of a deceased person by his legal representatives, and sent to the Comptroller within twelve months after the change took place, that the tax payable for all years of assessment shall be computed as if the trade, profession or vocation had been discontinued at the date of the change, and a new trade, profession or vocation had been then set up or commenced, and that the tax so computed for any year shall be charged on and paid by such of them as would have been charged if such discontinuance and setting up or commencement had actually taken place, the tax shall be computed, charged, collected and paid accordingly.

(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 paragraph (1) of this Article applies, the income tax payable for all years of assessment by the person succeeding as aforesaid shall be computed as if he had set 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.

(3)           In the case of the death of a person who, if he 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 executors or administrators and shall be a debt from and payable out of his estate.

ARTICLE 76

PARTNERSHIPS CONTROLLED ABROAD

(1)           Where any trade or business is carried on by two or more persons in partnership, and the control and management of such trade or business is situate abroad, the trade or business shall be deemed to be carried on by persons resident outside the Island, and the said partnership shall be deemed to reside outside the Island, notwithstanding the fact that some of the members of the said partnership are resident in the Island and that some of the trading operations of the said partnership are conducted within the Island.

(2)           Where any part of the trade or business of a partnership firm whose management and control is situate abroad consists of trading operations within the Island, the said firm shall be chargeable in respect of the profits of such trading operations within the Island to the same extent as, and no further than, a person resident abroad is chargeable in respect of trading operations by him within the Island, notwithstanding the fact that one or more of the members of the said firm are resident in the Island :

Provided that, for the purpose of charging any such firm in respect of the profits of the said trading operations within the Island, an assessment may be made on the said firm in respect of the said profits in the name of any partner resident in the Island.

 

Case II

ARTICLE 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) of this Article, 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) of this Article, 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)           Any body aggrieved by the failure of the Comptroller to approve the body for the purposes of this Article, or by his withdrawal of the approval, or by any determination made by him under this Article or the variation of or a refusal to withdraw or vary such a determination, may, by notice in writing given to the Comptroller within twenty-one days from the date on which the body is notified of his decision, make application to have its claim heard and determined by the Commissioners, who shall hear and determine the claim in like manner as an appeal made to them against an assessment under Schedule D, and the provisions of this Law relating to such an appeal (including the provisions relating to appeals to the Royal Court) shall apply accordingly with the necessary modifications.

 

Case III

ARTICLE 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.

(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.

ARTICLE 79

PENSIONS CHARGEABLE UNDER CASE III

(1)           A person who is in receipt of a pension, in respect of which there has been paid income tax imposed by the laws of any part of Her Majesty’s Dominions, India, the British protectorates and protected states or any trust territory administered by the government of any part of Her Majesty’s dominions, shall be assessed to income tax on such pension at half the appropriate rate of tax.

For the purposes of this paragraph, the appropriate rate of tax shall be ascertained by dividing by the amount of the income of the person concerned which is chargeable to income tax the amount of income tax payable by that person on that income before deduction of any relief granted under the provisions of this paragraph.

(2)           In the case of a pension, other than a pension to which paragraph (1) of this Article applies, the tax shall be computed on the full amount of the 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.

 

Cases IV and V

ARTICLE 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 the Island or not, subject, in the case of income not received in the Island –

(a)     to the same deductions and allowances as if it had been so received ; and

(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 ; and

(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 the Island ;

and the provisions of this Law (including those relating to the delivery of statements) shall apply accordingly.

(2)           Paragraph (1) of this Article shall not apply –

(a)     to any person who satisfies the Comptroller that he is not ordinarily resident in the Island ; or

(b)     to any income which is immediately derived by a person from the carrying on by him of any trade, profession or vocation, either solely or in partnership ; or

(c)     to any income which arises from any office or employment.

(3)           In the cases mentioned in paragraph (2) of this Article, 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 the Island 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 the Island in the year of assessment from remittances payable in the Island, 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 the Island, 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.

(4)           Any person who is aggrieved by the decision of the Comptroller on any question as to ordinary residence arising under paragraph (2) of this Article may, by notice in writing to that effect given to the Comptroller within three months from the date on which notice of the decision is given to him, make an application to have his claim heard and determined by the Commissioners.

(5)           Where any application is made under paragraph (4) of this Article, the Commissioners 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 this Law relating to such an appeal (including the provisions relating to appeals to the Royal Court) shall apply accordingly with any necessary modifications.

(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.

 

Case VI

ARTICLE 81

BASIS OF COMPUTATION UNDER CASE VI

(1)           Tax under Case VI of Schedule D shall be computed on the full amount of the profits or gains arising in the year of assessment.

(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.

 

Miscellaneous provisions as to Schedule D

ARTICLE 82

PERSONS CHARGEABLE

Tax under Schedule D shall be charged on and paid by the persons or bodies of persons receiving or entitled to the income in respect of which tax under that Schedule is, in this Law, directed to be charged.

ARTICLE 83

DEDUCTION FROM PROFITS OF INTEREST PAID BY COUPON

The amount represented by coupons charged to tax under Schedule C, which have been issued by any firm or undertaking, the whole of whose profits and income from every source are liable to tax under this Law, shall be deducted from the profits of that firm or undertaking assessable to tax under Schedule D.

ARTICLE 84

TAX COMPUTED ON PROFITS OF PREVIOUS PERIOD TO BE CHARGED THOUGH NO PROFITS IN YEAR OF ASSESSMENT

Where it is provided by this Law that income tax under Schedule D in respect of profits or gains or income from any source is to be computed by reference to the amount of the profits or gains or income of some period preceding the year of assessment, tax as so computed shall be charged for that year of assessment notwithstanding that no profits or gains or income arise from that source for or within that year of assessment.

ARTICLE 85

STATEMENT OF PROFITS TO INCLUDE ALL SOURCES OF INCOME CHARGEABLE UNDER SCHEDULE D

Every statement of profits to be charged under Schedule D which is made by any person –

(a)     on his own account ; or

(b)     on account of some other person for whom he is chargeable, or who is chargeable in his name ;

shall include every source of income so chargeable.

PART XI

PRINCIPAL PROVISIONS AS TO INTEREST, DIVIDENDS, ANNUAL PAYMENTS, ETC

ARTICLE 86

PAYMENTS OUT OF PROFITS OR GAINS ALREADY TAXED

(1)           Where any yearly interest of money, annuity, or any other annual payment (whether payable within or out of the Island) is payable wholly out of profits or gains brought into charge to tax –

(a)    no assessment shall be made upon the person entitled to the interest, annuity or annual payment ;

(b)     the whole of the profits or gains shall be assessed and charged with tax on the person liable to the interest, annuity or annual payment, without distinguishing the interest, annuity or annual payment ;

(c)     the person liable to make the payment, whether out of the profits or gains charged with tax or out of any annual payment liable to deduction, or from which a deduction has been made, shall be entitled, on making the payment, to deduct and retain of it a sum representing the amount of the tax thereon at the standard rate for the year in which the amount payable becomes due ; and

(d)     the person to whom the payment is made shall allow the deduction on receipt of the residue of the payment, and the person making the deduction shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid.

(2)           Paragraph (1) of this Article shall not apply in relation to any payment to which paragraph (3) of Article 59 of this Law applies.

(3)           Where any royalty or other sum paid in respect of the user of a patent is paid wholly out of profits or gains brought into charge to tax, the person paying the royalty or sum shall be entitled, on making the payment, to deduct and retain of it a sum representing the amount of the tax thereon at the standard rate for the year in which the amount payable becomes due.

ARTICLE 87

PAYMENTS NOT MADE OUT OF PROFITS OR GAINS ALREADY TAXED

(1)           Where –

(a)     any interest of money, annuity or other annual payment charged with tax under Schedule D ; or

(b)     any royalty or other sum paid in respect of the user of a patent ;

is not payable or not wholly payable out of profits or gains brought into charge, the person by or through whom any payment thereof is made shall, on making the payment, deduct out of it a sum representing the amount of the tax thereon at the standard rate in force at the time of the payment.

(2)           Where any such payment as aforesaid is made by or through any person, that person shall forthwith deliver to the Comptroller an account of the payment, or of so much thereof as is not made out of profits or gains brought into charge, and of the tax deducted out of the payment or out of that part thereof, and the Comptroller shall assess and charge the payment for which an account is so delivered on that person.

(3)           This Article shall not apply in relation to any payment to which paragraph (3) of Article 59 of this Law applies.

ARTICLE 88

DEDUCTION OF TAX FROM JERSEY DIVIDENDS

(1)           The profits or gains to be charged on any body of persons shall be computed in accordance with the provisions of this Law on the full amount of the same before any dividend thereof is made in respect of any share, right or title thereto, and the body of persons paying the dividend shall be entitled to deduct tax at the standard rate for the year in which the amount payable becomes due.

(2)           This Article shall not apply to any profits to which paragraph (3) of Article 59 of this Law applies.

ARTICLE 89

EXPLANATION OF INCOME TAX DEDUCTIONS TO BE ANNEXED TO DIVIDEND WARRANTS, ETC

(1)           Every warrant or cheque or other order drawn or made, or purporting to be drawn or made, in payment of any dividend or interest distributed by any company, being a limited liability company constituted under the “Loi (1861) sur les Sociétés à responsabilité limitée”,3 or a company created by or in pursuance of a Law passed by the States and confirmed by Order of Her Majesty in Council, shall have annexed thereto or be accompanied by a statement in writing showing –

(a)     the gross amount which, after deduction of the income tax appropriate thereto, corresponds to the net amount actually paid ; and

(b)     the rate and the amount of the income tax appropriate to such gross amount ; and

(c)     the net amount actually paid.

(2)           If a company fails to comply with the provisions of this Article, the company shall, in respect of each offence, be liable to a fine not exceeding ten pounds :

Provided that the aggregate amount of any fines imposed under this Article on any company in respect of offences connected with any one distribution of dividends or interest shall not exceed one hundred pounds.

ARTICLE 90

RELIEF IN RESPECT OF INTEREST PAID TO BANKS

Where interest payable in the Island on an advance from a bank carrying on a bona fide banking business in the Island is paid to the bank without deduction of tax out of profits or gains brought into charge to tax, the person by whom the interest is paid shall be entitled, on proof of the facts to the satisfaction of the Comptroller, to relief of tax on the amount of the interest :

Provided that no relief shall be given unless the Comptroller is satisfied that the interest has been or will be brought into account in the statement delivered or to be delivered for the purpose of income tax by the bank making the advance.

ARTICLE 91

SMALL MAINTENANCE PAYMENTS

(1)           Notwithstanding anything in Article 86 or 87 of this Law, small maintenance payments shall be made without deduction of tax.

(2)           Any sums paid in or towards the discharge of a small maintenance payment shall be chargeable under Case III of Schedule D, but the tax shall be computed in all cases on the payments falling due in the year of assessment, so far as paid in that year or in any other year of assessment.

(3)           A claimant shall be entitled, in computing his total income for any year of assessment for any of the purposes of this Law, to deduct sums paid by him in or towards the discharge of any small maintenance payments which fall due in that year, and effect shall be given to this deduction by reducing any assessment made on him or by repayment, as the case may require ; and, for the purposes of Article 103 of this Law (which provides that relief is not to be given in respect of charges on income), any amount which can be deducted under this paragraph in computing the total income of a person shall be treated as if it were income the tax on which that person is entitled to charge against another person.

(4)           Where a court –

(a)     makes a small maintenance order ; or

(b)     varies an order so that it becomes or ceases to be a small maintenance order ; or

(c)     changes the persons who are entitled to small maintenance payments ;

the Judicial Greffier shall furnish to the Comptroller particulars of the order or variation, as the case may be, the names of the persons affected by the order and, so far as known to him, the addresses of those persons.

(5)           In this Article –

“the persons affected”, in relation to a small maintenance order, means the person liable to make the payments under the order and any person for the time being entitled to the payments ;

“small maintenance payments” means payments under an order made by a court in the Island –

(a)     to or for the benefit of a woman for her maintenance ; or

(b)     to any person for the benefit of, or for the maintenance or education of, a person under twenty-one years of age; being payments which –

(i)      are for the time being required by the order (whether as originally made or as varied) to be made weekly at a rate not exceeding five pounds a week in the case mentioned in sub-paragraph (a) of this definition and not exceeding thirty shillings a week in the case mentioned in sub-paragraph (b) of this definition ; and

(ii)     would, apart from this Article, fall within Article 86 or 87 of this Law (which provide for the deduction of tax from interest, annuities and other payments) ;

“small maintenance order” means an order providing for the making of small maintenance payments.

(6)           In this Article, references to the making of a small maintenance order include references to the revival of such an order, and references to the variation of a small maintenance order include references to the making of such an order changing the persons entitled to the payments thereunder.

(7)           This Article shall apply to any small maintenance payment under an order made on or after the first day of January, nineteen hundred and fifty-nine, and to any small maintenance payment falling due on or after that date under an order made before that date.

PART XII

PERSONAL ALLOWANCES AND RELIEFS

ARTICLE 92

EARNED INCOME AND OLD AGE ALLOWANCES

(1)           An individual who delivers a statement in accordance with the provisions of Article 16 of this Law shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his earned income of a sum equal to one quarter of the amount of that income, but not exceeding in any case four hundred pounds.

In any case where the profits of a wife are deemed to be profits of the husband, references in this paragraph to the earned income of an individual shall be deemed to include the earned income of the wife.

(2)           Any individual who delivers a statement in accordance with the provisions of Article 16 of this Law and proves that at the commencement of the year of assessment either he or, in the case of a married man, his wife living with him, was of the age of sixty-five years or upwards and that his total income for the year of assessment does not exceed seven hundred and fifty pounds shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his total income of a sum equal to one quarter of the amount of that income, and any individual who would, but for the fact that his total income exceeds seven hundred and fifty pounds, be entitled to an allowance as aforesaid shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to, but had not exceeded, seven hundred and fifty pounds and five-eighths of the amount by which his total income exceeds seven hundred and fifty pounds :

Provided that any deduction or relief under this paragraph shall be in substitution for and not in addition to the deduction under paragraph (1) of this Article.

ARTICLE 93

DEDUCTIONS FROM ASSESSABLE INCOME

The amount of the income of an individual which is chargeable to income tax shall be ascertained by making from the assessable income of the individual deductions in accordance with and subject to the provisions of this Part of this Law hereafter following.

ARTICLE 94

PERSONAL ALLOWANCE

(1)           If an individual proves that for the year of assessment he has his wife living with him, or that his wife is wholly maintained by him during the year of assessment and that he is not entitled in computing the amount of his income for that year for the purposes of this Law to make any deductions in respect of the sums paid for the maintenance of his wife, he shall be entitled to a deduction by way of personal allowance for married persons of four hundred pounds, and in any other case to a deduction by way of personal allowance of two hundred pounds.

(2)           If the total income of the individual includes any earned income of his wife, the deduction to be allowed under this Article shall be increased by an amount equal to three quarters of the amount of that earned income, but not exceeding in any case one hundred pounds :

Provided that no deduction shall be allowed by virtue of this paragraph in respect of earned income received or receivable by the wife from the individual himself.

ARTICLE 95

CHILDREN

(1)           If an individual proves that he has living at any time within the year of assessment any child who is either under the age of sixteen years or who, if over the age of sixteen years at the commencement of that year, was receiving full-time instruction at any university, college, school or other educational establishment, he shall, subject to the provisions of this Article, be entitled in respect of each such child to a deduction of one hundred and fifty pounds.

In this paragraph, “child” includes a step-child and an illegitimate child whose parents have married each other after his birth.

(2)           If an individual proves that for the year of assessment he has the custody of and maintains at his own expense any child who is under the age of sixteen years at the commencement of that year or who, if over the age of sixteen years at the commencement of that year, is receiving such full-time instruction as aforesaid and that neither he nor any other individual is entitled to a deduction in respect of the same child under the foregoing provisions of this Article or under any of the other provisions of this Part of this Law, or, if any other individual is entitled to such a deduction, that that other individual has relinquished his claim thereto, he shall be entitled in respect of the child to the same deduction as if the child were a child of his.

(3)           No deduction shall be allowed under this Article in respect of any child who is entitled in his own right to an income exceeding one hundred pounds a year :

Provided that in calculating the income of the child for the purposes of this paragraph no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary or other similar educational endowment.

(4)           Where, for any year of assessment, two or more individuals are entitled to a deduction under this Article in respect of the same child, the deduction shall be apportioned between them in such proportion as they agree, or, in default of agreement, in proportion to the amount or value of the provision made by them respectively (otherwise than by way of payments deductible in computing their respective total incomes) for the child’s maintenance and education for the year of assessment.

(5)           An apportionment may be made under paragraph (4) of this Article notwithstanding that a deduction in respect of the child in question has already been allowed to any individual, and, if it appears as a result of the apportionment that the individual has been allowed too great a deduction, the amount of the excess may, if not otherwise made good, be assessed under Case VI of Schedule D and the tax thereon recovered from him accordingly.

ARTICLE 96

PERSON TAKING CHARGE OF WIDOWER’S OR WIDOW’S CHILDREN OR ACTING AS HIS OR HER HOUSEKEEPER

(1)           If an individual proves that he is a widower and that for the year of assessment a person, being a female relative of his or of his deceased wife, is resident with him for the purpose of having the charge and care of any child of his or in the capacity of a housekeeper, or that he has no female relative of his own or of his deceased wife who is able and willing to take such charge or act in such capacity and that he has employed some other female person for the purpose, he shall be entitled to a deduction of one hundred pounds in respect of that female relative or female person :

Provided that –

(a)     no deduction shall be allowed under this Article unless the individual proves that no other individual is entitled to a deduction in respect of the female relative under the provisions of this Part of this Law or, if any other individual is so entitled, that the other individual has relinquished his claim thereto ; and

(b)     no deduction shall be allowed under this Article where the female relative is a married woman living with her husband, and the husband has claimed and been allowed the higher deduction under paragraph (1) of Article 94 of this Law ; and

(c)     not more than one deduction shall be allowed to an individual under this Article in any year.

(2)           In this Article, the expression “child” means a child in respect of whom a deduction is allowed under this Part of this Law.

(3)           This Article shall apply to an individual being a widow as it applies to an individual being a widower, with the substitution of “her deceased husband” for “his deceased wife”.

ARTICLE 97

PERSON EMPLOYED OR MAINTAINED TO TAKE CHARGE OF CHILDREN

(1)           Subject to the provisions of this Article, if an individual proves, in the case of a year of assessment –

(a)     that he is entitled to relief under Article 95 of this Law in respect of a child resident with him ; and

(b)     that a female person is resident with and maintained or employed by him for the purpose of having the charge and care of the child ; and

(c)     that neither he nor any other individual is entitled under Article 95, 96, 98, 99 or 100 of this Law to relief in respect of the person so employed or maintained or, if he or any other individual is so entitled, that the claim thereto has been relinquished ; and

(d)     that he is not entitled under Article 96 or 98 of this Law to relief in respect of any other person ;

he shall be entitled to a deduction of one hundred pounds.

(2)           Not more than one deduction shall be allowed under this Article to any individual for any year.

(3)           No relief shall be given under this Article for any year –

(a)     to a male person if he is entitled for that year to the higher deduction under paragraph (1) of Article 94 of this Law unless throughout that year his wife was totally incapacitated by physical or mental infirmity ; or

(b)     to a female person unless throughout that year she was either incapacitated as aforesaid or in full-time employment or engaged full-time in some trade, profession or vocation.

(4)           Where more than one individual is entitled to relief under this Article in connexion with the same child, the deduction under paragraph (1) of this Article shall be apportioned between them in such proportions as may be agreed between them or, in default of such agreement, in such proportions as the Comptroller may deem reasonable.

(5)           An apportionment may be made under this Article notwithstanding that relief has already been allowed thereunder to any individual, and if it appears as a result of the apportionment that the individual has been allowed too much relief, the amount of the excess may, if not otherwise made good, be assessed under Case VI of Schedule D and recovered from him accordingly.

ARTICLE 98

RELATIVE TAKING CHARGE OF UNMARRIED PERSON’S YOUNG BROTHER OR SISTER

If the individual proves that he is unmarried and that he has living with him either his mother, being a widow or a person living apart from her husband, or some other female relative, for the purpose of having the charge or care of any brother or sister of his, being a child in respect of whom a deduction is allowed under this Part of this Law, and that he maintains the mother or other relative at his own expense, and that neither he nor any other person has been allowed any other deduction in respect of the same person under any of the other provisions of this Part of this Law, he shall be entitled to a deduction of one hundred pounds.

ARTICLE 99

DEPENDENT RELATIVES

(1)           If an individual proves that he maintains at his own expense any person, being a relative of his or of his wife, who is incapacitated by old age or infirmity from maintaining himself, or being his or his wife’s widowed mother, whether incapacitated or not, and being a person whose total income does not exceed one hundred and seventy pounds a year, he shall be entitled, in respect of each person whom he so maintains, to a deduction of one hundred pounds :

Provided that, in the case of a person so maintained whose total income exceeds seventy pounds a year, this paragraph shall have effect with the substitution for the reference to one hundred pounds of a reference to one hundred pounds diminished by the amount of the excess.

(2)           For the purposes of paragraph (1) of this Article, an individual, not being widowed, shall be treated as being widowed if –

(a)     she is living apart from her husband ; or

(b)     she is a single woman in consequence of the dissolution or annulment of her marriage.

(3)           Where two or more individuals jointly maintain any such person as aforesaid, the one hundred pounds mentioned in paragraph (1) of this Article, or, as the case may be, the lesser amount mentioned in the proviso thereto, shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that person.

(4)           Where the individual is a female person, the references in the preceding provisions of this Article to a wife shall be construed as references to a husband.

(5)           An individual shall not be entitled to less relief under this Law than he would be entitled to if no relief were available under paragraph (1) of this Article in respect of the maintenance of a person whose total income exceeds fifty pounds a year.

ARTICLE 100

INDIVIDUAL DEPENDENT ON SERVICES OF DAUGHTER

If an individual, by reason of old age or infirmity, is compelled to depend on the services of a daughter resident with and maintained by him, he shall be entitled to a deduction of one hundred pounds.

ARTICLE 101

INSURANCE PREMIUMS

(1)           Any individual –

(a)     who has made an insurance on his life or the life of his wife, or who has contracted for any deferred annuity on his own life or the life of his wife, with a legally established insurance company or with a registered friendly society or, in the case of a deferred annuity, with the National Debt Commissioners ; or

(b)     who is, under any enactment or under the terms and conditions of his employment, liable to the payment of any sum or to the deduction from his salary or stipend of any sum for the purpose of securing a deferred annuity to his widow or provision for his children after his death ;

shall, subject as hereinafter provided, be entitled to deduct from the amount of his assessable income the amount of the premiums paid by him for any such insurance or contract or the amount of the sum paid by him or deducted from his salary or stipend.

(2)           No such allowance –

(a)     shall be made in respect of any such amounts beyond one-sixth of the total income of the person from all sources estimated in accordance with the provisions of this Law ;

(b)     shall exceed, in respect of any premium or other payment payable on a policy for securing a capital sum on death (whether in conjunction with any other benefit or not), seven per centum of the actual capital sum assured and, in calculating any such capital sum, no account shall be taken of any sum payable on the happening of any other contingency, or of the value of any premiums agreed to be returned, or any benefit by way of bonus, or otherwise, which is to be or may be received either before or after death, either by the person paying the premium or by any other person, and which is not the sum actually assured ;

(c)     shall, as regards insurances or contracts for deferred annuities –

(i)      be given except in respect of premiums or other payments payable on policies for securing a capital sum on death, whether in conjunction with any other benefit or not ; or

(ii)     be given in respect of premiums or payments payable during the period of deferment in respect of a policy of deferred assurance :

Provided that the two last-mentioned restrictions shall not affect premiums or payments payable on policies or contracts made in connexion with any superannuation or bona fide pension scheme for the benefit of the employees of any employer or of persons engaged in any particular trade, profession, vocation or business or for the benefit of the wife or widow of any such employee or person or of his children or other dependants.

(3)           Where premiums in respect of any insurance effected with a registered friendly society are made payable for shorter periods than three months, a person who claims relief under this Article shall, in order to obtain relief, produce to the Comptroller a certificate, signed by an officer of the society, certifying the correct amount of premiums paid during the year of assessment.

(4)           Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband, or a contract for any deferred annuity on her own life or the life of her husband, the same deduction shall be allowed as if the premium were a premium paid by her husband for an insurance on his own life, or for a contract for a deferred annuity on his own life, and this Article shall apply accordingly.

ARTICLE 102

REDUCED RATE OF TAX

The rate at which the first two hundred and fifty pounds of the taxable income of an individual shall be charged to income tax shall be half the rate of tax imposed for the year.

ARTICLE 103

NO RELIEF UNLESS STATEMENT DELIVERED

An individual shall not be entitled to any allowances or relief under the preceding provisions of this Part of this Law, other than Article 92, unless he has delivered to the Comptroller a statement of his income from all sources.

ARTICLE 104

NO RELIEF IN RESPECT OF CHARGES ON INCOME

An individual shall not be entitled to any allowance or relief under the preceding provisions of this Part of this Law in respect of any income, the tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which he is liable to make to any other person.

ARTICLE 105

PARTNERS

(1)           Partners carrying on a trade, profession or vocation together, who are entitled to the profits thereof in shares, and others holding joint interest in property, may claim allowance or relief under the provisions of this Part of this Law according to their respective shares and interests, in the same manner as in the case of several interests.

(2)           For the purposes of this Article, the income of a partner from a partnership carrying on any trade, profession or vocation, shall be deemed to be the share to which he is entitled during the year to which the claim relates in the partnership profits, such profits being estimated according to the provisions of this Law.

ARTICLE 106

NON-RESIDENTS

(1)           Subject to the provisions of this Article, no allowance or relief under the preceding provisions of this Part of this Law shall be given in the case of any individual who is not resident in the Island unless he is a British subject.

(2)           In the case of British subjects not resident in the Island, no such deduction or reduction of rate as aforesaid shall be given so as to reduce the amount of the income tax payable by that individual below an amount which bears the same proportion to the amount which would be payable by him by way of tax if the tax were chargeable on his total income from all sources, including income which is not subject to income tax charged in the Island, as the amount of income subject to income tax so charged bears to the amount of his total income from all sources.

PART XIII

RELIEF FOR LOSSES, ETC

ARTICLE 107

RIGHT TO HAVE INCOME FOR YEAR OF ASSESSMENT ADJUSTED BY REFERENCE TO LOSSES

(1)           Where any person sustains a loss in any trade, profession, employment or vocation carried on by him either solely or in partnership, he may, on giving notice in writing to the Comptroller within one year after the year of assessment, apply for an adjustment of his liability by reference to the loss and to the aggregate amount of his income for that year estimated according to this Law.

(2)           The Comptroller shall, on proof to his satisfaction of the amount of the loss and of the payment of tax on the aggregate amount of income, authorize repayment of so much of the sum paid for tax as would represent the tax on income equal to the amount of the loss.

(3)           Where repayment has been made to a person for any year under this Article, no further relief shall be granted in respect of the amount of the loss for any subsequent year.

ARTICLE 108

RIGHT TO CARRY FORWARD LOSSES TO FUTURE YEARS

(1)           Where a person has in any trade, profession or vocation carried on by him, either solely or in partnership, sustained a loss (to be computed in like manner as profits or gains under the provisions of this Law applicable to Cases I and II of Schedule D) in respect of which relief has not been wholly given under Article 107 of this Law or under any other provision of this Law, he may claim that any portion of the loss for which relief has not been so given shall be carried forward and, as far as may be, deducted from or set off against the amount of profits or gains on which he is assessed under Schedule D in respect of that trade, profession or vocation for the five following years of assessment :

Provided that in so far as relief in respect of any loss has been given to any person under this Article that person shall not be entitled to claim relief in respect of that loss under any other provision of this Law.

(2)           In the application of this Article to a loss sustained by a partner in a partnership, “the amount of profits or gains on which he is assessed” shall, in respect of any year, be taken to mean such portion of the amount on which the partnership is assessed under Schedule D in respect of the trade, profession or vocation as he would be required under this Law to include in a return of his untaxed income for that year.

(3)           Any relief under this Article shall be given as far as possible from the first subsequent assessment for any year within the said five following years and, so far as it cannot be so given, then from the next such assessment and so on.

ARTICLE 109

EXTENSION OF PERIOD FOR CARRYING FORWARD LOSSES IN CERTAIN CASES

(1)           Where a loss sustained by a person has been carried forward under Article 108 of this Law and as regards that loss or any part thereof a deduction or set off cannot be given under that Article from or against the profits or gains on which the person is assessed under Schedule D for five years following the year in which the loss was sustained owing to the allowance in the assessments for those years of deductions for wear and tear of machinery or plant under Article 72 of this Law, then so much of the loss in respect of which relief has not been given as represents the amount in respect of which relief could have been given but for the allowance aforesaid shall be further carried forward and deducted or set off under and in accordance with the provisions of the said Article 108 as if, in relation to the loss so carried forward, for references in the said Article 108 to the five years of assessment following the year in which the loss was sustained there were substituted references to all following years of assessment :

Provided that the same deduction for wear and tear of machinery or plant to which effect is given in any year of assessment shall not be taken into account more than once for the purposes of this Article.

(2)           Any relief given under Article 108 of this Law from an assessment shall be given in respect of a loss sustained in any year within the five years immediately preceding the year of assessment before it is given in respect of a loss sustained in any year not within those five years.

ARTICLE 110

AMOUNT OF ASSESSMENT UNDER ARTICLE 87 TO BE ALLOWED AS A LOSS FOR CERTAIN PURPOSES

Where a person has been assessed to income tax for any year of assessment under Article 87 of this Law in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall, for the purposes of Article 108 of this Law, be treated as though it were a loss sustained in that trade, profession or vocation, and relief in respect thereof shall be allowed accordingly :

Provided that no relief shall be allowed under this Article in respect of any such payment or any part of any such payment which is not ultimately borne by the person assessed or which is charged to capital.

PART XIV

RELIEF FROM DOUBLE TAXATION

ARTICLE 111

DOUBLE TAXATION ARRANGEMENTS

(1)           If the States by Act declare that arrangements specified in the Act have been made with the Government of any territory outside the Island with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect, the arrangements shall have effect in relation to income tax notwithstanding anything in any enactment.

(2)           Where any arrangements have effect by virtue of this Article, the obligation as to secrecy imposed by virtue of this Law shall not prevent the disclosure to any authorized officer of the Government with which the arrangements are made of such information as is required to be disclosed under the arrangements.

ARTICLE 112

TAX CREDITS

(1)           The provisions of this Article shall have effect where, under arrangements having effect under Article 111 of this Law, tax payable in respect of any income in the territory with the Government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in the Island ; and in this Article “foreign tax” means any tax payable in that territory which under the arrangements is to be allowed and “income tax” means tax chargeable under this Law.

(2)           The amount of the income tax chargeable in respect of the income shall be reduced by the amount of the credit :

Provided that credit shall not be allowed against income tax for any year of assessment unless the person entitled to the income is resident in the Island for that year.

(3)           Save in respect of a pension to which paragraph (1) of Article 79 of this Law applies, the credit shall not exceed the amount which would be produced by computing the amount of the income in accordance with the provisions of this Law and then charging it to income tax at a rate ascertained by dividing the income tax chargeable (before allowance of credit under any arrangements having effect under Article 111 of this Law) on the total income of the person entitled to the income by the amount of his total income.

(4)           The credit in respect of a pension to which paragraph (1) of Article 79 of this Law applies shall not exceed the amount of tax chargeable in respect of that pension in accordance with that paragraph.

(5)           Without prejudice to the provisions of paragraph (3) of this Article, the total credit for foreign tax to be allowed to a person for any year of assessment under all arrangements having effect under Article in of this Law shall not exceed the total income tax payable by him for the year of assessment, less any tax payable by him under the provisions of Article 104 of this Law.

(6)           In computing the amount of the income –

(a)     no deduction shall be allowed in respect of foreign tax (whether in respect of the same or any other income) ;

(b)     where the income tax chargeable depends on the amount received in the Island, the said amount shall be increased by the appropriate amount of the foreign tax in respect of the income ;

(c)     where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any, and if so what, credit is to be given against income tax in respect of the dividend, the amount of the income shall be increased by the amount of the foreign tax not so chargeable which falls to be taken into account in computing the amount of the credit ;

but notwithstanding anything in the preceding provisions of this paragraph a deduction shall be allowed of any amount by which the foreign tax in respect of the income exceeds the credit therefor.

(7)           Sub-paragraphs (a) and (b) of paragraph (6) of this Article (but not the remainder thereof) shall apply to the computation of total income for the purposes of determining the rate mentioned in paragraph (3) of this Article and shall apply thereto in relation to all income in the case of which credit falls to be given for foreign tax under arrangements for the time being in force under Article 111 of this Law.

(8)           Where –

(a)     the arrangements provide, in relation to dividends of some classes, but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any, and if so what, credit is to be given against income tax in respect of the dividends ; and

(b)     a dividend is paid which is not of a class in relation to which the arrangements so provide ;

then, if the dividend is paid to a company which controls, directly or indirectly, not less than one half of the voting power in the company paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide.

(9)           Credit shall not be allowed under the arrangements against income tax chargeable in respect of the income of any person for any year of assessment if he elects that credit shall not be allowed in the case of his income for that year.

(10)         Any claim for an allowance by way of credit shall be made not later than five years after the end of the year of assessment, and in the event of any dispute as to the amount allowable the claim shall be subject to objection and appeal in like manner as an assessment.

(11)         Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in the Island or elsewhere, nothing in this Law limiting the time for the making of assessments or claims for relief shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than five years from the time when all such assessments, adjustments and other determinations have been made, whether in the Island or elsewhere, as are material in determining whether any, and if so what, credit falls to be given.

ARTICLE 113

EFFECT ON DIVIDENDS OF DOUBLE TAXATION RELIEF

(1)           The amount of tax which is authorized by Article 88 of this Law to be deducted by a company from any dividend shall be determined without taking into account any reduction, by reason of double taxation relief, of the Jersey income tax payable directly or by deduction by the company, but –

(a)     notwithstanding anything in this Law, no relief or repayment in respect of the tax deducted or authorized to be deducted from any dividend shall be allowed at a rate exceeding the rate (hereinafter referred to as “the net Jersey rate”) of the Jersey income tax payable directly or by deduction by the company after taking double taxation relief into account ; and

(b)     where the Jersey income tax payable directly or by deduction by the company is affected by double taxation relief, the particulars to be given by the company in the statement required by Article 89 of this Law shall (in addition to the particulars required to be given apart from this Article) include particulars of the net Jersey rate.

(2)           Where the whole or any part of any annual payment is payable out of a dividend and the rate of relief or repayment allowable in respect of the tax deducted or authorized to be deducted from the dividend is affected by double taxation relief, the annual payment, or that part thereof, as the case may be, shall be deemed to be paid out of profits or gains not brought into charge to tax and Article 87 of this Law shall apply accordingly, but the tax chargeable under the said Article on the person making the payment shall be reduced by an amount equal to tax on the payment or part of the payment at the net Jersey rate applicable to the dividend.

(3)           In this Article –

“dividend” means a dividend from which deduction is authorized by Article 88 of this Law ;

“double taxation relief” means any credit for tax payable in any territory outside the Island which is allowable against Jersey income tax by virtue of arrangements having effect under Article 111 of this Law ;

“the company” means the body of persons paying a dividend.

(4)           Without prejudice to the general transitional provisions contained in Part XXIV of this Law, the double taxation relief which may be taken into account for the purposes of this Article includes relief for years before the year nineteen hundred and sixty-two, and references in paragraph (3) of this Article to provisions of this Law shall be construed accordingly as including, in relation to relief for such years, references to the corresponding provisions of the enactments repealed by this Law.

ARTICLE 114

POWER TO MAKE ORDERS

The Finance Committee may make orders for carrying out the provisions of this Part of this Law and the provisions of any arrangements having effect under Article 111 of this Law.

PART XV

EXEMPTIONS

ARTICLE 115

MISCELLANEOUS EXEMPTIONS

Exemption from income tax shall be granted in respect of –

(a)     any income derived from the property of a corporation, association or trust established for a charitable object or for the service of any church or chapel, or any building used solely for the purpose of divine worship and in so far as such income is applied to those purposes ;

(b)     any income derived by Her Majesty or by any Department of Her Majesty’s Government from property in the Island ;

(c)     any income derived by the States from their own property ;

(d)     the official emoluments of the Lieutenant-Governor ;

(e)     the official emoluments of any servant of Her Majesty or of Her Majesty’s Government paid by Her Majesty or Her Majesty’s Government in respect of any office or employment carried on by him and in respect of which he is liable to pay income tax imposed by the law of the United Kingdom.

ARTICLE 116

EXEMPTION FOR CERTAIN FRIENDLY SOCIETIES

Exemption from income tax shall be granted in respect of any income derived from the property of an unregistered British or Northern Irish friendly society whose income does not exceed one hundred and sixty pounds, and any income derived from the property of a registered British or Northern Irish friendly society which is precluded by Act of Parliament or by its rules from assuring to any person a sum exceeding three hundred pounds by way of gross sum, or fifty-two pounds a year by way of annuity.

ARTICLE 117

EXEMPTION IN RESPECT OF WOUNDS AND DISABILITY PENSIONS

(1)           Income from wounds and disability pensions to which this paragraph applies shall be exempt from income tax and shall not be reckoned in computing income tax for any of the purposes of this Law.

(2)           Paragraph (1) of this Article applies to –

(a)     wound pensions granted to members of the naval, military or air forces of the Crown ;

(b)     retired pay of disabled officers granted on account of medical unfitness attributable to or aggravated by naval, military or air force service ;

(c)     disablement or disability pensions granted to members, other than commissioned officers, of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval, military or air force service ;

(d)     disablement pensions granted to persons who have been employed in the nursing services of any of the naval, military or air forces of the Crown on account of medical unfitness attributable to or aggravated by naval, military or air force service ;

(e)     injury and disablement pensions payable under the following Acts of Parliament of the United Kingdom, viz. : The Injuries in War (Compensation) Act, 1914, the Injuries in War Compensation Act, 1914 (Session 2), and the Injuries in War (Compensation) Act, 1915, or under any War Risks Compensation Scheme for the Mercantile Marine :

Provided that, where the amount of any retired pay or pension to which paragraph (1) of this Article applies is not solely attributable to disablement or disability, the relief conferred by the said paragraph (1) shall extend only to such part as is certified by the Minister of Pensions and National Insurance of the United Kingdom, after consultation with the appropriate Government Department, to be attributable to disablement or disability.

(3)           Allowances granted by the Minister of Pensions and National Insurance of the United Kingdom under a Royal Warrant, Order in Council, or order administered by him towards the subsistence of dependants, being widows, parents or families of deceased members of the naval, military or air forces of the Crown, shall be exempt from income tax and shall not be reckoned in computing the income of such dependants for any of the purposes of this Law.

ARTICLE 118

EXEMPTION FOR SAVINGS BANKS

(1)           Exemption from income tax shall be granted in respect of interest and dividends of any savings bank certified under the Trustee Savings Banks Act, 1954 (of the United Kingdom) arising from its investments with the National Debt Commissioners.

(2)           Exemption from income tax shall be granted under Schedule C and Schedule D in respect of the income of the funds of any savings bank, whether certified under the Trustee Savings Banks Act, 1954 (of the United Kingdom) or not, so far as such income is applied in the payment or credit of interest to any depositor :

Provided that –

(a)     any such interest shall be chargeable under the appropriate Case of Schedule D ;

(b)     in the year for which exemption is claimed, the bank shall make a return to the Comptroller of –

(i)      the name and place of residence of every depositor to whom any interest is paid or credited out of the income of its funds other than interest and dividends arising from investments with the National Debt Commissioners, and of the amount thereof ;

(ii)     the name and address of every investor through the Stock and Bonds Department and a statement of the interest received on behalf of such investor ;

and unless such returns are duly made on or before the first day of March in the year following that in respect of which exemption is claimed, the bank shall not be entitled to any relief in respect of such sums :

Provided further that the Comptroller may at his discretion in any year assign an upper limit to the amounts of interest received by depositors and investors which shall render them liable to be included in the returns referred to in sub-paragraph (b) of the foregoing proviso.

ARTICLE 119

EXEMPTION IN RESPECT OF UNITED KINGDOM SAVINGS CERTIFICATES

(1)           The accumulated interest payable in respect of any national or war savings certificate issued by Her Majesty’s Treasury through the Post Office, under which the purchaser, by virtue of an immediate payment, becomes entitled after the expiration of a specified period to receive some greater sum, shall not be liable to income tax so long as the amount of the certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which an individual is for the time being authorized to hold under regulations made by Her Majesty’s Treasury.

(2)           Where the currency of any national or war savings certificate has been extended under any Act of Parliament of the United Kingdom, the provisions of paragraph (1) of this Article shall apply with respect to any interest payable in respect of the certificate for the period after the expiration of the period referred to in the said paragraph (1) up to the date on which it is repaid or redeemed as it applies to the said accumulated interest.

ARTICLE 120

EXEMPTION OF CONSULAR OFFICERS AND EMPLOYEES

(1)           Exemption from income tax shall be granted in respect of income arising from a person’s office or employment in the Island as a consular officer or employee in the service of any foreign state to which this Article applies :

Provided that no such exemption shall be granted to a consular employee who, not being a national of that state, is a citizen of the United Kingdom, Islands and Colonies.

(2)           Exemption from income tax shall be granted in respect of income arising from securities or possessions outside the Island, or from a pension paid by or on behalf of a person outside the Island, to a consular officer or employee in the Island, in the service of any foreign state to which this Article applies :

Provided that such exemption shall be granted only, to a consular officer or employee who –

(i)      is not a citizen of the United Kingdom Islands and Colonies ; and

(ii)     is not engaged in any trade, profession, vocation or employment in the Island, otherwise than as such a consular officer or employee ; and

(iii)    either is a permanent employee of that state, or was not ordinarily resident in the Island immediately before he became a consular officer or employee in the Island of that state.

(3)           In this Article, “consular employee” includes any person employed for the purposes of the official business of a consular officer at any consulate or consular establishment or at any other premises used for those purposes.

(4)           Where an Order in Council has been made by Her Majesty under section 24 of the Finance Act, 1954 (of the United Kingdom) directing that that section shall apply to any foreign state, and the Order in Council has been registered by the Royal Court, this Article shall apply to that foreign state subject to any limitations contained in the Order in Council.

PART XVI

SPECIAL PROVISIONS AS TO MARRIED PERSONS

ARTICLE 121

GENERAL RULE AS TO INCOME TAX ON HUSBANDS AND WIVES

(1)           A woman’s income chargeable to income tax shall, so far as it is income for a year of assessment or part of a year of assessment during which she is a married woman living with her husband, be deemed for the purposes of this Law to be his income and not to be her income :

Provided that the question whether there is any income of hers chargeable to income tax for any year of assessment, and, if so, what is to be taken to be the amount thereof for the purposes of this Law, shall not be affected by the provisions of this paragraph.

(2)           Any tax falling to be assessed in respect of any income which, under paragraph (1) of this Article, is to be deemed to be the income of a woman’s husband shall, instead of being assessed on her, or on her trustee, guardian or curator, or on her heirs, executors or administrators, be assessable on him, or in the appropriate cases, on his trustee, guardian or curator, or on his heirs, executors or administrators :

Provided that nothing in this paragraph shall affect the operation of Article 74 of this Law (which relates to the method by which partnership income is to be assessed).

ARTICLE 122

CONSTRUCTION OF REFERENCES TO MARRIED WOMEN LIVING WITH THEIR HUSBANDS, AND SPECIAL PROVISIONS AS TO CERTAIN SPOUSES GEOGRAPHICALLY SEPARATED

(1)           A married woman shall be treated for all the purposes of this Law as living with her husband unless either –

(a)     they are separated under an order of a court of competent jurisdiction or by agreement of separation ; or

(b)     they are in fact separated in such circumstances that the separation is likely to be permanent.

(2)           Where a married woman is living with her husband and either –

(a)     one of them is, and one of them is not, resident in the Island for a year of assessment ; or

(b)     both of them are resident in the Island but one of them is, and one of them is not, absent from the Island throughout that year ;

the same consequences shall follow for all the purposes of this Law as would have followed if, throughout that year of assessment, they had been in fact separated in such circumstances that the separation was likely to be permanent :

Provided that, where this paragraph applies and the net aggregate amount of income tax falling to be borne by the husband and the wife for the year is greater than it would have been but for the provisions of this paragraph, the Comptroller shall give such relief as will reduce the said net aggregate amount by the amount of the excess.

PART XVII

SPECIAL PROVISIONS AS TO BODIES OF PERSONS, PERSONS UNDER DISABILITY AND PERSONAL REPRESENTATIVES

ARTICLE 123

BODIES CORPORATE

(1)           Every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the provisions of this Law.

(2)           The Treasurer, or other officer acting as treasurer for the time being, of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under this Law, for the purpose of the assessment of such body and for payment of the tax, and for the purpose of the assessment of the officers and persons in the employment of such body :

Provided that, in the case of a company, the person so answerable shall be the secretary of the company or other officer (by whatever name called) performing the duties of secretary.

(3)           Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged on the body, and shall be indemnified for all such payments made in pursuance of this Law.

ARTICLE 124

INDIVIDUALS UNDER DISABILITY

(1)           The curator or guardian or other person having the direction, control or management of the property or concern of an individual under disability, whether such individual resides in the Island or not, shall be assessable and chargeable to tax in like manner, and to the like amount, as that individual would be assessed and charged as if that individual were not under disability.

(2)           A person who is chargeable in respect of an individual under disability shall be answerable for all matters required to be done under this Law for the purpose of assessment and payment of income tax.

(3)           Any person who has been charged under this Law in respect of any individual under disability may retain, out of the money coming into his hands on behalf of any such individual, so much thereof from time to time as is sufficient to pay the income tax charged, and shall be indemnified for all such payments made in pursuance of this Law.

ARTICLE 125

PERSONAL REPRESENTATIVES OF A DECEASED PERSON

(1)           Where any person dies without having delivered a statement of all his profits or gains chargeable to income tax with a view to assessment thereon in due course, an assessment in respect of the profits or gains which arose or accrued to him before his death may be made at any time within the year of assessment or within five years after the expiration thereof, on his heirs, executors or administrators and the amount of the tax thereon shall be a debt from and payable out of his estate.

(2)           The time allowed by paragraph (1) of this Article shall not extend beyond a year and a day from the date of death of the deceased person.

PART XVIII

SPECIAL PROVISIONS AS TO INDIVIDUALS TEMPORARILY ABROAD, AND NON-RESIDENTS

ARTICLE 126

INDIVIDUALS TEMPORARILY ABROAD

Every individual whose ordinary residence has been in the Island shall be assessed and charged to income tax, notwithstanding that at the time the assessment or charge is made he may have left the Island, if he has so left the Island for the purpose only of occasional residence abroad, and shall be charged as a person actually residing in the Island on the whole amount of his profits or gains, whether they arise from property in the Island or elsewhere, or from any allowance, annuity, or stipend (save as herein is excepted), or from any trade, profession, employment or vocation in the Island or elsewhere.

ARTICLE 127

METHOD OF CHARGING NON-RESIDENTS AND ABSENT RESIDENTS

A person not resident in the Island, or who being ordinarily resident therein is absent from the Island, shall be assessable and chargeable in the name of any attorney, guardian, curator or other representative having the direction, control or management of the property or concern of such person.

ARTICLE 128

RESPONSIBILITIES AND INDEMNIFICATION OF PERSONS IN WHOSE NAME A NON-RESIDENT OR ABSENT RESIDENT IS CHARGEABLE

(1)           A person in whose name a non-resident person or person who is absent from the Island is chargeable, shall be answerable for all matters required to be done under this Law for the purpose of assessment and payment of income tax.

(2)           Any person who has been charged under this Law in respect of any non-resident person or person absent from the Island as aforesaid may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the income tax charged, and shall be indemnified for all such payments made in pursuance of this Law.

ARTICLE 129

POSITION UNDER SCHEDULE D OF TEMPORARY RESIDENTS

A person shall not be charged to tax under Schedule D as a person residing in the Island, in respect of profits or gains received in respect of possessions or securities out of the Island, who is in the Island for some temporary purpose only and not with any view or intent of establishing his residence therein, and who has not actually resided in the Island at one time or several times for a period equal in the whole to six months in any year of assessment, but if any such person resides in the Island for the aforesaid period he shall be so chargeable for that year.

PART XIX

SPECIAL PROVISIONS AS TO PENSIONS AND PENSION SCHEMES, ANNUITIES, ETC

ARTICLE 130

INSULAR INSURANCE AND FAMILY ALLOWANCES

(1)           Payments of benefit under the Insular Insurance (Jersey) Law, 1950,4 other than sickness benefit and accident benefit, shall be charged to income tax under Case II of Schedule D, and payments on account of family allowances under the Family Allowances (Jersey) Law, 1951,5 shall be charged to income tax under Case VI of Schedule D, and, subject as hereinafter provided, shall be deemed for all the purposes of this Law to be earned income :

Provided that no such payment, other than retirement pension payable to a wife by virtue of her own insurance, shall be treated as earned income of a wife for the purposes of paragraph (2) of Article 94 of this Law.

(2)           The amount of any contribution paid by any person under the Insular Insurance (Jersey) Law, 1950,4 except, in the case of a contribution other than an employer’s contribution, so much thereof as is referable to sickness benefit and accident benefit, shall be deducted from or set off against any income of that person for the year of assessment in which the contribution is paid, and tax shall, where necessary, be discharged or repaid accordingly, and the total income of that person for that year of assessment shall be calculated accordingly for all the purposes of this Law ; and no relief or deduction shall be given or allowed under any other provision of this Law in respect of any contribution in respect of which relief can be given under this paragraph :

Provided that nothing in this paragraph –

(a)     shall be construed as allowing any amount to be deducted from or set off against any income of any person in respect of any contribution paid by him on behalf of any other person ; or

(b)     shall apply to any employer’s contribution which, apart from this paragraph –

(i)      would be allowable as a deduction in computing the amount of any profits or gains ; or

(ii)     would be included in computing the expenses of management in respect of which relief may be claimed under Article 133 of this Law.

(3)           In this Article, “accident benefit”, “contribution”, “employer’s contribution”, “retirement pension” and “sickness benefit” have the same meanings as in the Insular Insurance (Jersey) Law, 1950.6

(4)           A person who, by virtue of any provision of the Insular Insurance (Jersey) Law, 1950,6 suffers a deduction from his remuneration in respect of any contribution shall be deemed for the purposes of this Article to have paid a contribution equal to the amount of the deduction.

ARTICLE 131

EXEMPTION OF SUPERANNUATION FUNDS

(1)           Subject to the provisions of this Article and to any order made thereunder, exemption from income tax shall be allowed in respect of income derived from investments or deposits of a superannuation fund, and, subject as aforesaid, any sum paid by an employer or employed person by way of contribution towards a superannuation fund shall, in computing profits or gains for the purpose of an assessment to income tax under Case I or Case II of Schedule D, be allowed to be deducted as an expense incurred in the year in which the sum is paid :

Provided that no allowance shall be made under this paragraph in respect of any contribution by an employed person which is not an ordinary annual contribution and, where a contribution by an employer is not an ordinary annual contribution, it shall, for the purposes of this paragraph, be treated as the Comptroller may direct, either as an expense incurred in the year in which the sum is paid or as an expense to be spread over such period of years as the Comptroller thinks proper.

(2)           Income tax chargeable in respect of an annuity paid out of a superannuation fund to a person residing in the Island shall, if the Comptroller so directs, be assessed and charged on the annuitant under Case VI of Schedule D, instead of being deducted and accounted for under Article 87 of this Law and tax shall be computed on the full amount of the annuity arising in the year of assessment.

(3)           For the purposes of this Article, “superannuation fund” means, unless the context otherwise requires, a fund which is approved for those purposes by the Comptroller and, subject as hereinafter provided, the Comptroller shall not approve any fund unless it is shown to his satisfaction that –

(a)     the fund is a fund bona fide established under irrevocable trusts in connexion with some trade or undertaking carried on in the Island by a person residing therein ;

(b)     the fund has for its sole purpose the provision of annuities for all or any of the following persons in the events respectively specified, that is to say, for persons employed in the trade or undertaking, either on retirement at a specified age or on becoming incapacitated at some earlier age, or for the widows, children or dependants of persons who are or have been so employed, on the death of those persons ;

(c)     the employer in the trade or undertaking is a contributor to the fund ;

(d)     the fund is recognised by the employer and employed persons in the trade or undertaking :

Provided that the Comptroller may, if he thinks fit, and subject to such conditions, if any, as he thinks proper to attach to the approval, approve a fund, or any part of a fund, as a superannuation fund for the purposes of this Article –

(i)      notwithstanding that the rules of the fund provide for the return in certain contingencies of contributions paid to the fund ; or

(ii)     if the main purpose of the fund is the provision of such annuities as aforesaid, notwithstanding that such provision is not its sole purpose ; or

(iii)    notwithstanding that the trade or undertaking in connexion with which the fund is established is carried on only partly in the Island and by a person not residing therein.

(4)           The Finance Committee may make orders generally for the purpose of carrying this Article into effect and, in particular, without prejudice to the foregoing provision, may by any such order –

(a)     provide for the charging of and accounting for tax in respect of contributions (including interest) repaid to a contributor to a superannuation fund and on lump sums paid in commutation of or in lieu of annuities payable out of a superannuation fund, as if any sums so repaid or paid were income of the year in which they are repaid or paid ;

(b)     require the trustees or other persons having the management of a superannuation fund, or an employer whose employees contribute to a superannuation fund, to deliver to the Comptroller such information and particulars as the Comptroller may reasonably require for the purposes of this Article ;

(c)     prescribe the manner in which claims for relief under this Article are to be made and approved, and in which applications for the approval of a superannuation fund are to be made ;

(d)     provide for the withdrawal of approval in the case of a fund which ceases to satisfy the requirements of this Article ;

(e)     provide for determining what contributions to a superannuation fund are to be treated as ordinary annual contributions for the purposes of this Article.

(5)           Any person or body of persons aggrieved by any decision of the Comptroller under this Article shall be entitled to appeal to the Commissioners, on giving notice in writing to the Comptroller within twenty-one days of the date of the decision of the Comptroller.

ARTICLE 132

PURCHASED LIFE ANNUITIES

(1)           A purchased life annuity (not being of a description excepted by paragraph (7) of this Article) shall, for the purposes of the provisions of this Law relating to tax on annuities and other annual payments, be treated as containing a capital element and, to the extent of that capital element, as not being an annual payment or in the nature of an annual payment ; but the capital element in such an annuity shall be taken into account in computing profits or gains or losses for other purposes of this Law in any circumstances in which a lump sum payment would be taken into account.

(2)           In the case of any purchased life annuity to which this Article applies –

(a)     the capital element shall be determined by reference to the amount or value of the payments made or other consideration given for the grant of the annuity ; and

(b)     the proportion which the capital element in any annuity payment bears to the total amount of that payment shall be constant for all payments on account of the annuity ; and

(c)     where neither the terms of the annuity nor the amount of any annuity payment depends on any contingency other than the duration of a human life or lives, that proportion shall be the same proportion which the total amount or value of the consideration for the grant of the annuity bears to the actuarial value of the annuity payments as determined in accordance with the next following paragraph ; and

(d)     where sub-paragraph (c) of this paragraph does not apply, the said proportion shall be such as may be just, having regard to that sub-paragraph and to the contingencies affecting the annuity.

(3)           For the purposes of paragraph (2) of this Article –

(a)     any entire consideration given for the grant of an annuity and for some other matter shall be apportioned as appears just (but so that a right to a return of premiums or other consideration for an annuity shall not be treated for this purpose as a distinct matter from the annuity) ;

(b)     where it appears that the amount or value of the consideration purporting to be given for the grant of an annuity has affected, or has been affected by, the consideration given for some other matter, the aggregate amount or value of those considerations shall be treated as one entire consideration given for both and shall be apportioned under sub-paragraph (a) of this paragraph accordingly ; and

(c)     the actuarial value of any annuity payments shall be taken to be their value as at the date when the first of those payments begins to accrue, that value being determined by reference to the prescribed tables of mortality and without discounting any payment for the time to elapse between that date and the date it is to be made.

(4)           Where a person making a payment on account of any life annuity has been notified in the prescribed manner of any decision as to its being or not being a purchased life annuity to which this Article applies or as to the amount of the capital element (if any), and has not been notified of any alteration of that decision, the notice shall be conclusive as to those matters for the purpose of determining the amount of tax which he is entitled or required to deduct from the payment, or for which he is chargeable in respect of it.

(5)           Where a person making a payment on account of a purchased life annuity to which this Article applies has not been notified in the prescribed manner of the amount of the capital element, the amount of tax which he is entitled or required to deduct from the payment, or for which he is chargeable in respect of it, shall be the same as if the annuity were not a purchased life annuity to which this Article applies.

(6)           Any person carrying on a business of granting annuities on human life shall be entitled to repayment of tax borne by him by deduction or otherwise for any year of assessment up to the amount of tax which, if this Article had not been passed, he would have been entitled to deduct and retain on making payments due in that year of assessment on account of life annuities and which in accordance with this Article he has not deducted.

(7)           This Article shall not apply –

(a)     to any annuity which would, apart from this Article, be treated for the purposes of the provisions of this Law relating to tax on annuities and other annual payments as consisting to any extent in payment or repayment of a capital sum ; or

(b)     to any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief from tax under Article 101 of this Law (which gives relief for certain life assurance premiums) ; or

(c)     to any annuity purchased in pursuance of any direction in a will, or to provide for an annuity payable by virtue of a will or settlement (whether with or without resort to capital) ; or

(d)     to any annuity purchased under or for the purposes of any sponsored superannuation scheme or to any other annuity purchased by any person in recognition of another’s services (or past services) in any office or employment.

(8)           The Finance Committee may by order prescribe anything which is to be prescribed under this Article and any such order may apply, for the purposes of this Article and of the order, any provision of this Law (with or without modifications) and may, in particular, make provision as to all or any of the following matters, that is to say –

(a)     as to the information to be furnished in connexion with the determination of any question whether an annuity is a purchased life annuity to which this Article applies, or what is the capital element in an annuity, and as to the persons who may be required to furnish any such information ;

(b)     as to the manner of giving effect to a decision on any such question and (notwithstanding anything in Article 86 of this Law) as to the making of assessments for the purpose on the person entitled to the annuity ;

(c)           as to the extent to which the decision on any such question is to be binding, and the circumstances in which it may be reviewed.

(9)     In this Article –

“life annuity” means an annuity payable for a term ending with (or at a time ascertainable only by reference to) the end of a human life, whether or not there is provision for the annuity to end during the life on the expiration of a fixed term or on the happening of any event or otherwise, or to continue after the end of the life in particular circumstances ;

“purchased life annuity” means a life annuity granted for consideration in money or money’s worth in the ordinary course of a business of granting annuities on human life ;

“sponsored superannuation scheme” means any scheme or arrangement relating to service in particular offices or employments and having for its objects or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, against future termination of service through death or disability, or against similar matters, being a scheme or arrangement under which any part of the cost of the provision so made is or has been borne otherwise than by those persons by reason of their service ; but for this purpose a person shall be treated as bearing by reason of his service the cost of any payment in respect of his service, if that payment is treated for the purposes of this Law as increasing his income, or would be so treated if he were chargeable to tax under Case II of Schedule D in respect of his emoluments from that service.

(10)         This Article shall extend to life annuities whenever purchased or commenced.

PART XX

SPECIAL PROVISIONS AS TO LIFE ASSURANCE COMPANIES, INVESTMENT BUSINESSES AND SAVINGS BANKS

ARTICLE 133

RELIEF TO LIFE ASSURANCE COMPANIES AND OTHERS IN RESPECT OF EXPENSES OF MANAGEMENT

(1)           Where an assurance company carrying on life assurance business, or any company whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, or any savings bank or other bank for savings, claims and proves to the satisfaction of the Comptroller that, for any year of assessment, it has been charged to tax by deduction or otherwise, and has not been charged in respect of its profits in accordance with the provisions of this Law applicable to Case I of Schedule D, the company or bank shall be entitled to repayment of so much of the tax paid by it as is equal to the amount of the tax on any sums disbursed as expenses of management (including commissions) for that year :

Provided that –

(a)     relief shall not be given under this Article so as to make the tax paid by the company or bank less than the tax which would have been paid if the profits had been charged in accordance with the said provisions ; and

(b)     the amount of any fines, fees or profits arising from reversions in the case of an assurance company and, in the case of any other company or any such bank, the amount of any income or profits derived from sources not charged to tax, shall be deducted from the amount treated as expenses of management for the year ; and

(c)     in calculating profits arising from reversions, the company may set off against those profits any loss arising from reversions for any previous year during which any enactment granting this relief was in operation.

(2)           Where, on a claim for relief under this Article made by a company or bank for any year of assessment in respect of the sums disbursed by it as expenses of management (including commissions) for that year, relief is disallowed in respect of the whole or part of those sums by reason only of the provisions of proviso (a) to paragraph (1) of this Article, the amount in respect of which relief has been so disallowed may be carried forward and treated for the purposes of this Article as if it had been disbursed as aforesaid for any of the five years of assessment next following :

Provided that relief in respect of an amount so carried forward shall be given for the first year of assessment next following, in so far as relief can be so given in accordance with the provisions of this Article in respect of that amount as well as in respect of the sums actually disbursed as aforesaid for that year, and so far as it cannot be so given, then for the next year of assessment, and so on.

(3)           If effect cannot be given, or cannot be fully given, to paragraph (1) of this Article because the company or bank has not been charged to tax for that year by deduction or otherwise, or because the sums disbursed for that year exceed the amount on which the company or bank has been charged to tax for that year, an amount equal to the sums disbursed, less any amount on which the company or bank has been so charged, may be carried forward and treated for the purposes of this Article as if it had been disbursed for any of the five years of assessment next following :

Provided that relief in respect of an amount so carried forward shall be given for the first year of assessment next following, in so far as relief can be given in accordance with the provisions of this Article in respect of that amount as well as in respect of other sums disbursed or treated as disbursed for that year, and so far as it cannot be so given, then for the next year of assessment, and so on.

(4)           Notice of any claim under this Article, together with the particulars thereof, shall be given in writing to the Comptroller within twelve months after the expiration of the year of assessment in respect of which the claim is made, and, where the Comptroller objects to such claim, the Commissioners shall hear and determine the same in the like manner as in the case of an appeal to them against an assessment under Schedule D, and the provisions of this Law relating to appeals to the Royal Court shall apply.

(5)           Where an assurance company, not having its head office in the Island, is charged under Case III of Schedule D on a proportion of the income from the investments of its life assurance fund, the relief in respect of expenses of management shall be calculated by reference to a like proportion of its total expenses of management for the year, estimated according to the provisions of this Law.

(6)           Where income arising from the investments of the foreign life assurance fund of an assurance company has been relieved from tax in pursuance of the provisions of this Law, a corresponding reduction shall be made in the relief granted under this Article in respect of the expenses of management.

ARTICLE 134

TAXATION OF INVESTMENT INCOME OF LIFE ASSURANCE COMPANIES WITH HEAD OFFICE OUTSIDE JERSEY

(1)           Where an assurance company not having its head office in the Island carries on life assurance business through any branch or agency in the Island, any income of the company from the investments of its life assurance fund (excluding the annuity fund, if any), wherever received, shall, to the extent provided in this Article, be deemed to be profits comprised in Schedule D and shall be charged under Case III thereof.

(2)           Such portion only of the income from the investments of the life assurance fund for the year preceding the year of assessment shall be so charged as bears the same proportion to the total income from those investments as the amount of premiums received in that year from policy holders resident in the Island and from policy holders resident abroad whose proposals were made to the company at or through its office or agency in the Island bears to the total amount of the premiums received by the company.

(3)           Where a company has already been charged to tax, by deduction or otherwise, in respect of its life assurance business, to an amount equal to or exceeding the charge under this Article, no further charge shall be made under this Article, and where a company has already been so charged, but to a less amount, the charge shall be proportionately reduced.

PART XXI

SPECIAL PROVISIONS AS TO MINISTERS OF RELIGION

ARTICLE 135

DEDUCTION IN RESPECT OF EXPENDITURE AND HOUSES OF MINISTERS OF RELIGION

(1)           In assessing the tax chargeable under any Schedule on a clergyman or minister of any religious denomination, the following deductions may be made from any profits, fees or emoluments of his profession or vocation –

(a)     any sums of money paid or expenses incurred by him wholly, exclusively and necessarily in the performance of his duty as a clergyman or minister ;

(b)     a part of the rent (not exceeding one-eighth) paid by him in respect of a dwelling-house any part of which is used mainly and substantially for the purposes of his duty as such clergyman or minister ;

and where any such clergyman or minister is in the occupation of a dwelling-house, but pays no rent therefor, he shall for the purposes of the foregoing provision be deemed to pay a rent equal to the annual value of the dwelling-house as assessed to tax under Schedule A.

(2)           If no such deduction has been made, a proportionate part of the tax paid by him shall be repaid to the clergyman or minister on proof that any sum has been expended as aforesaid.

PART XXII

GENERAL PROVISIONS AS TO PROSECUTIONS AND PENALTIES

ARTICLE 136

PENALTIES FOR FAILURE TO DELIVER STATEMENTS, ETC

(1)           Subject to the provisions of this Article, if any person who has been required by a notice or precept given, issued or served under this Law to deliver or furnish any statement, list, return, schedule or certificate, fails to comply with the notice or precept, he shall be liable –

(a)     where the notice is a general notice given under Article 16 of this Law, to a fine not exceeding one hundred pounds ; and

(b)     in any other case, to a fine not exceeding fifty pounds, and if the failure continues after it has been declared by the court before which proceedings for the recovery of the fine have been commenced, to a further fine not exceeding ten pounds for each day on which the failure so continues.

(2)           A person shall not be liable to any fine for a failure incurred under this Article to comply with any notice (other than a general notice given under Article 16 of this Law) or a precept if the failure is remedied before proceedings for recovery of the fine are commenced.

(3)           Where a person liable to a fine incurred under this Article for a failure to comply with a notice served under paragraph (4) of Article 16 of this Law proves to the satisfaction of the court that he is not chargeable to tax, the maximum fine which may be imposed under this Article in respect of the offence shall be five pounds.

(4)           A person shall not be liable to any fine incurred under this Article for a failure to comply with a notice served under paragraph (1) of Article 20 of this Law by reason of omitting from any return the name or place of residence of any person employed by him and not employed in any other employment, if such person is entitled to total exemption from tax.

(5)           For the purposes of this Article, a person shall be deemed not to have failed to deliver or furnish any statement, list, return, schedule or certificate required to be delivered or furnished within a limited time if he delivered or furnished it within such further time, if any, as the Comptroller or the Commissioners may have allowed ; and where a person had a reasonable excuse for not delivering or furnishing any statement, list, return, schedule or certificate, he shall be deemed not to have failed to do so if he did it without unreasonable delay after the excuse had ceased.

ARTICLE 137

PENALTIES FOR FRAUDULENTLY OR NEGLIGENTLY MAKING INCORRECT STATEMENTS, ETC

(1)           If any person fraudulently or negligently –

(a)     delivers any incorrect statement required by Article 16 of this Law ; or

(b)     makes any incorrect statement, return or declaration in connexion with any claims for any allowance, deduction or relief ; or

(c)     submits to the Comptroller any incorrect accounts in connexion with the ascertainment of his liability to income tax ;

he shall be liable to a fine not exceeding the aggregate of –

(i)      fifty pounds ; and

(ii)     the amount, or in the case of fraud, twice the amount, of the difference between the amount of income tax payable on the assumption that the statement, return, declaration or accounts as delivered, made or submitted by him were correct and the amount of income tax which would have been payable if the statement, return, declaration or accounts had been correct.

(2)           If any person fraudulently or negligently delivers or furnishes any incorrect statement, list, schedule or certificate under any provision of this Law other than Article 16, he shall be liable to a fine not exceeding two hundred and fifty pounds, or in the case of fraud, five hundred pounds.

(3)           Where any such statement, return, declaration or accounts as are mentioned in paragraph (1) of this Article were delivered, made or submitted by any person neither fraudulently nor negligently and it comes to his notice that they were incorrect, then, unless the error is remedied without unreasonable delay, the statement, return, declaration or accounts shall be treated for the purposes of this Article as having been negligently delivered, made or submitted by him.

(4)           Where the Comptroller is of the opinion that any person has committed an offence against paragraph (1) of this Article, he may accept a pecuniary settlement instead of proceedings being instituted in respect of the offence ; and where any criminal proceedings are instituted against such person for any form of fraud or wilful neglect in connexion with or in relation to income tax or any proceedings are instituted against him for the recovery of any sum due from him, whether by way of tax or penalty, in relation to income tax, any statements made or documents produced by him or on his behalf shall not be inadmissible in the proceedings by reason only that it has been drawn to his attention that –

(a)     the Comptroller may accept a pecuniary settlement instead of proceedings being instituted ; and

(b)     though no undertaking can be given as to whether or not the Comptroller will accept such a settlement in the case of any particular person, it is the practice of the Comptroller to be influenced by the fact that a person has made a full confession of any fraud or default to which he has been a party and has given full facilities for investigation ;

and that he was or may have been induced thereby to make the statements or produce the documents.

ARTICLE 138

PENALTY FOR ASSISTING IN MAKING INCORRECT STATEMENTS, ETC

Any person who assists in or induces the making or delivering for any purposes of income tax of any statement, return, accounts, list, schedule or certificate which he knows to be incorrect shall be liable to a fine not exceeding five hundred pounds.

ARTICLE 139

PENALTY FOR REFUSING TO ALLOW DEDUCTION OF TAX, AND AVOIDANCE OF AGREEMENTS FOR PAYMENT WITHOUT DEDUCTION

(1)           A person who refuses to allow a deduction of tax authorized by this Law to be made out of any payments shall be liable to a fine not exceeding fifty pounds.

(2)           Every agreement for payment of interest or other annual payment in full without allowing any such deduction shall be void.

ARTICLE 140

TIME LIMIT FOR PROSECUTIONS

(1)           Notwithstanding any enactment or rule of law to the contrary, proceedings which may be taken against any person under this Law may be taken at any time not later than five years from the date of the act or omission giving rise to the proceedings or within the period of one year from the date on which evidence, sufficient in the opinion of the Comptroller to justify the proceedings, comes to his knowledge or, where the person in question was outside the Island at that date, within the period of twelve months from the date on which he first lands in the Island thereafter, whichever of the said periods last expires.

(2)           For the purposes of paragraph (1) of this Article, a certificate under the hand of the Comptroller as to the date on which such evidence as aforesaid came to his knowledge shall be conclusive evidence thereof.

ARTICLE 141

PENALTIES TO BELONG TO STATES’ REVENUES

All penalties recovered under this Law shall belong to the general revenues of the States.

PART XXIII

MISCELLANEOUS PROVISIONS

ARTICLE 142

PROVISIONS FOR GIVING EFFECT TO ANY INCREASE, DURING ANY YEAR OF ASSESSMENT, IN THE STANDARD RATE OF INCOME TAX

(1)           The amount of tax payable by virtue of any assessment made before the increase, during the year of assessment, in the standard rate of income tax, shall be treated as varied to such extent as is necessary to give effect to such increase in the standard rate :

Provided that this paragraph shall not apply in the case of income chargeable under Schedule C or under Article 87 of this Law.

(2)           In the case of such income as is mentioned in the proviso to paragraph (1) of this Article, any deficiencies in the amount of tax deducted from any payment (being a deficiency arising by reason of the increase in the standard rate) shall, so far as possible, be made good by increasing the deduction required or authorized by law to be made from the next payment, by an amount equal to the amount of the deficiency and the deficiency so made good shall be accounted for and assessed in the same manner as the tax deducted from the original payment.

(3)           Where, in any year of assessment, any payments have been made on account of any such income as is mentioned in the proviso to paragraph (1) of this Article previously to the passing of the Act imposing the tax for that year, and tax has not been charged thereon or deducted therefrom or has not been charged thereon or deducted therefrom at the rate ultimately imposed for that year, and it is not possible to make good the deficiency under paragraph (2) of this Article, the amount not so charged or deducted shall be charged under Schedule D in respect of those payments as profits or gains not charged by virtue of any other Schedule under Case VI of Schedule D, and the agents entrusted with the payment of such income or the person by or through whom the payments were made, as the case may be, shall, on requisition made by the Comptroller, furnish to him a list containing the names and addresses of the persons to whom payments have been made, the amounts of those payments and the amounts of tax deducted.

(4)           Where, during any year of assessment, the standard rate of income tax is increased, any person liable to pay any interest, annuity, or any royalty or other sum in respect of the user of a patent, or to make any other annual payment, shall be authorized to make, on the occasion of the next payment, any deduction on account of tax which he has failed to make or to make up any deficiency in any such deduction which has been so made, in addition to any other deduction which he may be by law authorized to make, and shall also be entitled, if there is no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt due from the person against whom the deduction could originally have been made if the standard rate of income tax had then been so increased.

This paragraph shall also apply to any preference dividend from which a deduction of tax may be made under Article 88 of this Law.

(5)           Where on payment of a dividend (not being a preference dividend) income tax has, under Article 88 of this Law, been deducted therefrom by reference to a standard rate of tax lesser than the standard rate for the year in which the dividend became due, the net amount received shall, for all the purposes of this Law, be deemed to represent income of such an amount as would, after deduction of tax by reference to the standard rate last mentioned, be equal to the net amount received, and for the said purposes there shall, in respect of that income, be deemed to have been paid by deduction of tax of such an amount as is equal to the amount of tax on that income computed by reference to the standard rate last mentioned.

(6)           In paragraphs (4) and (5) of this Article, the expression “preference dividend” means –

(a)     a dividend payable on a preferred share at a fixed gross rate per centum ; or

(b)     where a dividend is payable on a preferred share partly at a fixed gross rate per centum and partly at a variable rate, such part of that dividend as is payable at a fixed gross rate per centum ; and

the expression “share” includes stock.

ARTICLE 143

SOLEMN AFFIRMATION

The provisions of the Law confirmed by the Order of Her Majesty in Council of the 13th day of May, 1869, entitled “Règlement substituant dans les cas de conscience, l’affirmation solennelle au serment judiciaire”7 shall apply to all proceedings under this Law.

ARTICLE 144

POWER TO MAKE ORDERS

(1)           The Finance Committee may make orders for any purpose for which orders may be made under this Law and generally for the purpose of carrying this Law into effect.

(2)           The Subordinate Legislation (Jersey) Law, 1960,8 shall apply to orders made under this Law.

ARTICLE 145

DELIVERY AND SERVICE OF NOTICES AND FORMS

A notice or form which is to be served under this Law on a person may be either delivered to him personally or sent to him by post at his usual or last-known place of abode or place of business, or, in the case of a company, at its registered office or place of business.

PART XXIV

COMMENCEMENT, REPEALS, SAVINGS, TEMPORARY AND TRANSITIONAL PROVISIONS AND SHORT TITLE

ARTICLE 146

COMMENCEMENT AND REPEALS

(1)           Subject to the provisions of this Part of this Law, this Law shall come into force on the first day of January, nineteen hundred and sixty-two, and, as from that day, the enactments mentioned in the Second Schedule to this Law shall be repealed to the extent mentioned in the second column of that Schedule :

Provided that, save as otherwise provided in this Part of this Law, the provisions of this Law shall not apply to income tax for the year nineteen hundred and sixty-one or any previous year of assessment, and the provisions of the enactments mentioned in the said Second Schedule shall continue to apply to tax for any such year to the same extent that they would have applied thereto if this Law had not been passed.

(2)           For the avoidance of doubt, it is hereby declared that the saving contained in the proviso to paragraph (1) of this Article extends to provisions which could not in any event have applied to tax for any year after the year nineteen hundred and sixty-one.

ARTICLE 147

THIS LAW TO APPLY TO TAX FOR YEARS BEFORE 1962 IN CERTAIN CASES

(1)           In the case of the following provisions of this Law, that is to say –

(a)     Parts III, IV, V, VI and VII (which relate to administration, returns, assessement, appeals and collection) ; and

(b)     Articles 49, 138, 139, 144 and 145 (which contain supplemental provisions) ; and

(c)     in relation to income chargeable to Jersey income tax for the year nineteen hundred and sixty-two or any subsequent year of assessment, Article 112 (which relates to relief for foreign tax allowable by way of credit against Jersey tax) ; and

(d)     so much of any other provision of this Law as authorizes the making of any order ; and

(e)     except where the tax concerned is all tax for years of assessment before the year nineteen hundred and sixty-two, so much of any other provision of this Law as confers any power or imposes any duty the exercise or performance whereof operates or may operate in relation to tax for more than one year of assessment ;

the proviso to paragraph (1) of Article 146 of this Law shall not apply, and those provisions shall come into force for all purposes on the first day of January, nineteen hundred and sixty-two, to the exclusion of the corresponding provisions of the enactments mentioned in the Second Schedule to this Law :

Provided that any provision in the said enactments which imposes a punishment, penalty or forfeiture for any act or omission shall, in relation to any act or omission which took place or began before the said first day of January, continue to have effect, to the exclusion of the provision of this Law to which it corresponds.

(2)           If, and in so far as, by virtue of the preceding provisions of this Article, a provision of this Law operates, as from the first day of January, nineteen hundred and sixty-two, to the exclusion of a provision in the enactments mentioned in the Second Schedule to this Law, any Act or order made and anything done under the excluded provision before that date shall be treated as from that date as if it were an Act or order made or thing done under that provision of this Law, and any regulations made by the Comptroller under Article 14 of the Income Tax (Jersey) Law, 1937,9 shall be treated as if they were an order made by the Finance Committee under Article 131 of this Law and shall continue in force until revoked by such an order.

ARTICLE 148

SAVING OF APPOINTMENTS

(1)           Subject to the provisions of paragraph (2) of this Article, any person who was appointed to any office under the enactments mentioned in the Second Schedule to this Law and who is holding such office immediately before the first day of January, nineteen hundred and sixty-two, shall be deemed to have been appointed to that office under this Law.

(2)           Any person to whom this Article applies shall, within such period as may be determined by the Finance Committee, take oath of office in the appropriate form prescribed by this Law and –

(a)     if he fails to do so, his appointment shall be deemed to be terminated ; and

(b)     until he does so, the provisions as to secrecy contained in the enactments mentioned in the Second Schedule to this Law shall apply to him to the same extent as they would have applied if this Law had not been passed.

ARTICLE 149

CONSTRUCTION OF REFERENCES, ETC

(1)           The continuity of the operation of the law relating to income tax shall not be affected by the substitution of this Law for the enactments mentioned in the Second Schedule to this Law, and –

(a)     so much of any enactment or document (including enactments contained in this Law) as refers, whether expressly or by implication, to, or to things done or falling to be done under or for the purposes of, any provision of this Law, shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the enactments mentioned in the said Second Schedule has or had effect, a reference to, or, as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision ;

(b)     so much of any enactment or document (including enactments mentioned in the said Second Schedule and enactments and documents passed or made after the passing of this Law) as refers, whether expressly or by implication, to, or to things done or falling to be done under or for the purposes of, any provision of the enactments mentioned in the said Second Schedule, shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Law has effect, a reference to, or, as the case may be, to things done or deemed to be done or falling to be done under or for the purposes of, that corresponding provision.

(2)           The references in sub-paragraphs (a) and (b) of paragraph (1) of this Article to things done or falling to be done under any provision include in particular, and without prejudice to the generality of the references, references to charges to tax and reliefs from tax made or granted or falling to be made or granted under that provision.

ARTICLE 150

SHORT TITLE

This Law may be cited as the Income Tax (Jersey) Law, 1961.


FIRST SCHEDULE

(Article 11)

OATHS OF OFFICE

 

FORM OF OATH TO BE TAKEN BY THE COMMISSIONERS OF APPEAL

You swear and promise before God that you will well and faithfully discharge the duties of a Commissioner of Appeal, without favour, hatred or partiality, in accordance with the laws relating to income tax ; and that you will not disclose any information which may come to your knowledge in the performance of such duties to anyone whomsoever.

 

FORM OF OATH TO BE TAKEN BY THE COMPTROLLER, DEPUTY COMPTROLLER AND ASSISTANT COMPTROLLER OF INCOME TAX

You swear and promise before God that you will well and faithfully discharge the duties of [Comptroller] [Deputy Comptroller] [Assistant Comptroller] of Income Tax in accordance with the laws relating to income tax ; that you will conduct yourself without hatred, favour or partiality ; that you will exercise the powers entrusted to you by the said laws in such manner only as shall appear to you to be necessary for the due execution of the same ; and that you will not disclose any information which may come to your knowledge in the performance of your duties except to such persons only as shall act in execution of the said laws and where it shall be necessary to disclose the same to them for the purposes of the said laws, or in so far as you may be required to disclose the same for the purposes or in the course of a prosecution for an offence against the said laws, or in such cases as you are expressly authorized by the said laws to disclose the same.


FORM OF OATH TO BE TAKEN BY OTHER OFFICERS AND BY PERSONS EMPLOYED AS AUDITORS

You swear and promise before God that you will well and faithfully discharge the duties of ……………............................................. in accordance with the laws relating to income tax ; and that you will not disclose any information which may come to your knowledge in the performance of your duties, except to such persons only as shall act in execution of the said laws and where it shall be necessary to disclose the same to them for the purposes of the said laws, or in so far as you may be required to disclose the same for the purposes or in the course of a prosecution for an offence against the said laws.


SECOND SCHEDULE

(Article 146)

ENACTMENTS REPEALED

 

Short title

Extent of repeal

Income Tax (Jersey) Law, 1937.10

The whole Law.

Income Tax (Amendment No. 2) (Jersey) Law, 1940.11

The whole Law.

Income Tax (Amendment No. 3) (Jersey) Law, 1940.12

The whole Law.

Income Tax (Amendment No. 4) (Jersey) Law, 1943.13

The whole Law.

Income Tax (Amendment No. 5) (Jersey) Law, 1945.14

The whole Law.

Income Tax (Amendment No. 6) (Jersey) Law, 1945.15

The whole Law.

Income Tax (Amendment No. 7) (Jersey) Law, 1946.16

The whole Law.

Income Tax (Amendment No. 8) (Jersey) Law, 1947.17

The whole Law.

Income Tax (Amendment No. 9) (Jersey) Law, 1947.18

The whole Law.

Income Tax (Amendment No. 10) (Jersey) Law, 1948.19

The whole Law.

Finance (Jersey) Law, 1949.20

Part III.

Finance (Jersey) Law, 1950.21

Part III.

Finance (Jersey) Law, 1951.22

Part III.

Income Tax (Amendment No. 11) (Jersey) Law, 1952.23

The whole Law.

Income Tax (Amendment No. 12) (Jersey) Law, 1952.24

The whole Law.

Finance (Jersey) Law, 1954.25

Part III.

Income Tax (Amendment No. 13) (Jersey) Law, 1956).26

The whole Law.

Finance (Jersey) Law, 1956.27

Part III.

Income Tax (Amendment No. 14) (Jersey) Law, 1956.28

The whole Law.

Finance (Jersey) Law, 1958.29

Part III.

Income Tax (Amendment No. 15) (Jersey) Law, 1958.30

The whole Law.

Income Tax (Amendment No. 16) (Jersey) Law, 1959.31

The whole Law.

Finance (Jersey) Law, 1960.32

Part III.

Income Tax (Amendment No. 17) (Jersey) Law, 1960.33

The whole Law.

Income Tax (Amendment No. 18) (Jersey) Law, 1961.34

The whole Law.

Finance (Jersey) Law, 1961.35

Part III.

 

F. DE L. BOIS,

 

Greffier of the States.



1        Tome 1951–1953, page 669.

2        Tome 1946–1948, page 72.

3        Tome II, page 114.

4        Tome 1949–1950, page 497.

5        Tome 1951–1953, page 87.

6        Tome 1949–1950, page 497.

7        Tome II, page 429.

8        Tome 1957–1960, page 519.

9        Tome 1937–1938, page 142.

10      Tome 1937–1938, page 135.

11      Tome 1939–1945, page 288.

12      Tome 1939–1945, page 300.

13      Tome 1939–1945, page 433.

14      Tome 1939–1945, page 449.

15      Tome 1939–1945, page 461.

16      Tome 1946–1948, page 47.

17      Tome 1946–1948, page 205.

18      Tome 1946–1948, page 373.

19      Tome 1946–1948, page 517.

20      Tome 1949–1950, page 71.

21      Tome 1949–1950, page 349.

22      Tome 1951–1953, page 21.

23      Tome 1951–1953, page 121.

24      Tome 1951–1953, page 277.

25      Tome 1954–1956, page 61.

26      Tome 1954–1956, page 281.

27      Tome 1954–1956, page 285.

28      Tome 1954–1956, page 289.

29      Tome 1957–1960, page 247.

30      Tome 1957–1960, page 267.

31      Tome 1957–1960, page 395.

32      Tome 1957–1960, page 441.

33      Tome 1957–1960, page 445.

34      Page 127 of this volume.

35      Page 169 of this volume.


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