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.
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____________
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PART I
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PRELIMINARY
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Article No.
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1.
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Charge of income tax.
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2.
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Yearly assessments.
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PART II
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INTERPRETATION
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3.
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General provisions as to
interpretation.
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4.
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Meaning of, and provisions as
to, total income.
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PART III
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ADMINISTRATION
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5.
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Interpretation of Part III
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6.
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Comptroller of Income Tax.
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7.
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Removal of Comptroller.
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8.
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Deputy Comptroller, Assistant
Comptroller and staff.
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9.
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Exercise of functions of Comptroller in event of absence or vacancy
in office.
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10.
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Commissioners of Appeal.
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11.
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Oath of office.
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12.
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Audit.
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13.
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Power of Comptroller to
disclose statistical information.
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14.
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Power to administer oaths.
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PART IV
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RETURNS
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15.
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Comptroller to ascertain income
liable to tax.
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16.
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Delivery of statements in
pursuance of notices.
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17.
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Delivery of statements by
persons acting for others.
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18.
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Delivery of lists by persons in receipt of taxable income belonging
to others.
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19.
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Lists of lodgers and inmates.
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20.
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List of employees.
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21.
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Parochial taxation lists.
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PART V
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ASSESSMENT
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22.
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Assessment of income.
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23.
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Provision for making assessments where no returns are received.
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24.
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Additional assessments.
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25.
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Notices of assessment.
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26.
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Books of assessment.
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PART VI
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APPEALS AND RELIEF FOR
MISTAKE
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27.
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Right of appeal.
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28.
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Other provisions as to appeals.
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29.
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Procedure on appeals.
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30.
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Power to cause land to be
valued on appeal.
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31.
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Power to Commissioners on
appeal to issue precepts.
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32.
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Objection by Comptroller to
schedules.
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33.
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Power on appeal to confirm or
amend assessments.
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34.
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Power of putting questions as
to assessments or schedules.
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35.
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Power to summon and examine
witnesses.
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36.
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Appeals to the Royal Court.
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37.
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Provision against double
assessment.
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38.
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Relief in respect of error or mistake.
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PART VII
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COLLECTION AND
REPAYMENTS
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39.
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Tax when due.
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40.
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Demand for payment.
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41.
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General notice to persons by
whom tax is payable.
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42.
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Proceedings for recovery of
tax.
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43.
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Recovery of arrears of tax by
deduction from earnings.
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44.
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Certificate of Comptroller
admissible in evidence.
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45.
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Arrears of tax.
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46.
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Payment of receipts to
States’ Treasurer.
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47.
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Repayments to be made by
States’ Treasurer.
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48.
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Proof of payment of tax before
repayment.
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49.
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Time limit for repayment.
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PART VIII
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SCHEDULE A AND PRINCIPAL PROVISIONS RELATING THERETO
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50.
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Interpretation of Part VIII.
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51.
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Schedule A.
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52.
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Deductions under Schedule A.
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53.
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Allowance for losses.
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54.
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Unoccupied premises.
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55.
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Persons chargeable.
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56.
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Deduction of tax on annual payments in respect of hypothecs and other
charges.
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PART IX
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SCHEDULE C AND
PRINCIPAL PROVISIONS RELATING THERETO
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57.
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Interpretation of Part IX.
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58.
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Schedule C.
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59.
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Payment of tax under Schedule
C.
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60.
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Tax exemption certificates.
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PART X
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SCHEDULE D AND
PRINCIPAL PROVISIONS RELATING THERETO
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61.
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Schedule D.
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62.
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Mode of charge under Schedule D
; the six Cases.
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63.
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Farming and other commercial occupation of land in the Island to be
charged under Schedule D.
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Cases I and II
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64.
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Full tax to be charged.
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65.
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General provisions as to period of computation under Cases I and II.
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66.
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Period of computation at commencement of trade, profession or
vocation.
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67.
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Option as to period of computation for the two years next after
commencement of trade, profession or vocation.
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68.
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Period of computation on discontinuance of trade, profession or
vocation.
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69.
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Exclusion from computation of annual value of premises in Jersey.
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70.
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General rules as to deductions
not allowable.
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71.
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Losses may be set off against
profits.
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72.
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Deduction on account of wear
and tear of machinery or plant.
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73.
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Deduction in respect of
replacement of machinery or plant.
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74.
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Partnership statements and
assessments.
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75.
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Changes of proprietor.
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76.
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Partnerships controlled abroad.
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Case II
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77.
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Fees and subscriptions to professional bodies, learned societies,
etc.
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Case III
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78.
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Basis of computation under Case
III.
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79.
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Pensions chargeable under Case
III.
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Cases IV and V
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80.
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Basis of computation under
Cases IV and V.
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Case VI
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81.
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Basis of computation under Case
VI.
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Miscellaneous
provisions as to Schedule D.
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82.
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Persons chargeable.
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83.
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Deduction from profits of
interest paid by coupon.
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84.
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Tax computed on profits of previous period to be charged though no
profits in year of assessment.
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85.
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Statement of profits to include all sources of income chargeable
under Schedule D.
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PART XI
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PRINCIPAL PROVISIONS
AS TO INTEREST, DIVIDENDS, ANNUAL PAYMENTS, ETC
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86.
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Payments out of profits or
gains already taxed.
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87.
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Payments not made out of
profits or gains already taxed.
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88.
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Deduction of tax from Jersey
dividends.
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89.
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Explanation of income tax deductions to be annexed to dividend warrants,
etc.
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90.
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Relief in respect of interest
paid to banks.
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91.
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Small maintenance payments.
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PART XII
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PERSONAL ALLOWANCES
AND RELIEFS
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92.
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Earned income and old age
allowances.
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93.
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Deductions from assessable
income.
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94.
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Personal allowances.
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95.
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Children.
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96.
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Person taking charge of widower’s or widow’s children, or
acting as his or her housekeeper.
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97.
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Person employed or maintained
to take charge of children.
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98.
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Relative taking charge of unmarried person’s young brother or
sister.
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99.
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Dependent relatives.
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100.
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Individual dependent on
services of daughter.
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101.
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Insurance premiums.
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102.
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Reduced rate of tax.
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103.
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No relief unless statement
delivered.
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104.
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No relief in respect of charges
on income.
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105.
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Partners.
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106.
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Non-residents.
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PART XIII
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RELIEF FOR LOSSES, ETC
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107.
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Right to have income for year of assessment adjusted by reference to
losses.
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108.
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Right to carry forward losses
to future years.
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109.
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Extension of period for
carrying forward losses in certain cases.
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110.
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Amount of assessment under Article 87 to be allowed as a loss for
certain purposes.
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PART XIV
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RELIEF FROM DOUBLE
TAXATION
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111.
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Double taxation arrangements.
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112.
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Tax credits.
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113.
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Effect on dividends of double
taxation relief.
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114.
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Power to make orders.
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PART XV
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EXEMPTIONS
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115.
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Miscellaneous exemptions.
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116.
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Exemption for certain friendly
societies.
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117.
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Exemption in respect of wounds
and disability pensions.
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118.
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Exemption for savings banks.
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119.
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Exemption in respect of United
Kingdom savings certificates.
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120.
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Exemption of consular officers
and employees.
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PART XVI
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SPECIAL PROVISIONS AS
TO MARRIED PERSONS
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121.
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General rule as to income tax
on husbands and wives.
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122.
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Construction of references to married women living with their
husbands, and special provisions as to certain spouses geographically
separated.
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PART XVII
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SPECIAL PROVISIONS AS
TO BODIES OF PERSONS, PERSONS UNDER DISABILITY AND PERSONAL REPRESENTATIVES
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123.
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Bodies corporate.
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124.
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Individuals under disability.
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125.
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Personal representatives of a
deceased person.
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PART XVIII
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SPECIAL PROVISIONS AS
TO INDIVIDUALS TEMPORARILY ABROAD, AND NON-RESIDENTS
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126.
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Individuals temporarily abroad.
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127.
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Method of charging
non-residents and absent residents.
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128.
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Responsibilities and indemnification of persons in whose name a
non-resident or absent resident is chargeable.
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129.
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Position under Schedule D of
temporary residents.
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PART XIX
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SPECIAL PROVISIONS AS
TO PENSIONS AND PENSION SCHEMES, ANNUITIES, ETC
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130.
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Insular Insurance and Family
Allowances.
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131.
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Exemption of superannuation
funds.
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132.
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Purchased life annuities.
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PART XX
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SPECIAL PROVISIONS AS
TO LIFE ASSURANCE COMPANIES, INVESTMENT BUSINESSES AND SAVINGS BANKS
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133.
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Relief to life assurance companies and others in respect of expenses
of management.
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134.
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Taxation of investment income on life assurance companies with head
office outside Jersey.
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PART XXI
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SPECIAL PROVISIONS AS
TO MINISTERS OF RELIGION
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135.
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Deduction in respect
of expenditure and houses of ministers of religion.
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PART XXII
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GENERAL PROVISIONS AS TO PROSECUTIONS AND PENALTIES
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136.
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Penalties for failure to
deliver statements, etc.
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137.
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Penalties for fraudulently or negligently making incorrect
statements, etc.
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138.
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Penalty for assisting in making
incorrect statements, etc.
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139.
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Penalty for refusing to allow deduction of tax, and avoidance of
agreements for payment without deduction.
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140.
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Time limit for prosecutions.
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141.
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Penalties to belong to
States’ Revenues.
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PART XXIII
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MISCELLANEOUS
PROVISIONS
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142.
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Provisions for giving effect to any increase, during any year of
assessment, in the standard rate of income.
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143.
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Solemn affirmation.
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144.
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Power to make orders.
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145.
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Delivery and service of notices
and forms.
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PART XXIV
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COMMENCEMENT, REPEALS,
SAVINGS, TEMPORARY AND TRANSITIONAL PROVISIONS AND SHORT TITLE
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146.
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Commencement and repeals.
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147.
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This Law to apply to tax for
years before 1962 in certain cases.
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148.
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Saving of appointments.
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149.
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Construction of references, etc.
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150.
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Short title.
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FIRST SCHEDULE
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Oaths of office.
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SECOND SCHEDULE
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Enactments repealed.
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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.
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, 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”, 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, 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, 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.
(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” 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, 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, 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.
|
The whole Law.
|
Income Tax (Amendment No. 2)
(Jersey) Law, 1940.
|
The whole Law.
|
Income Tax (Amendment No. 3)
(Jersey) Law, 1940.
|
The whole Law.
|
Income Tax (Amendment No. 4)
(Jersey) Law, 1943.
|
The whole Law.
|
Income Tax (Amendment No. 5)
(Jersey) Law, 1945.
|
The whole Law.
|
Income Tax (Amendment No. 6)
(Jersey) Law, 1945.
|
The whole Law.
|
Income Tax (Amendment No. 7)
(Jersey) Law, 1946.
|
The whole Law.
|
Income Tax (Amendment No. 8)
(Jersey) Law, 1947.
|
The whole Law.
|
Income Tax (Amendment No. 9)
(Jersey) Law, 1947.
|
The whole Law.
|
Income Tax (Amendment No. 10)
(Jersey) Law, 1948.
|
The whole Law.
|
Finance (Jersey) Law, 1949.
|
Part III.
|
Finance (Jersey) Law, 1950.
|
Part III.
|
Finance (Jersey) Law, 1951.
|
Part III.
|
Income Tax (Amendment No. 11)
(Jersey) Law, 1952.
|
The whole Law.
|
Income Tax (Amendment No. 12)
(Jersey) Law, 1952.
|
The whole Law.
|
Finance (Jersey) Law, 1954.
|
Part III.
|
Income Tax (Amendment No. 13)
(Jersey) Law, 1956).
|
The whole Law.
|
Finance (Jersey) Law, 1956.
|
Part III.
|
Income Tax (Amendment No. 14)
(Jersey) Law, 1956.
|
The whole Law.
|
Finance (Jersey) Law, 1958.
|
Part III.
|
Income Tax (Amendment No. 15)
(Jersey) Law, 1958.
|
The whole Law.
|
Income Tax (Amendment No. 16)
(Jersey) Law, 1959.
|
The whole Law.
|
Finance (Jersey) Law, 1960.
|
Part III.
|
Income Tax (Amendment No. 17)
(Jersey) Law, 1960.
|
The whole Law.
|
Income Tax (Amendment No. 18)
(Jersey) Law, 1961.
|
The whole Law.
|
Finance (Jersey) Law, 1961.
|
Part III.
|
F. DE L. BOIS,
Greffier of the States.