(Implementation) (International Tax Compliance) (Common Reporting Standard)
(Jersey) Regulations 2015
Made 1st December 2015
Coming into force 1st
THE STATES, in pursuance of Article 2 of the Taxation (Implementation)
(Jersey) Law 2004, and following the decision of
the States, taken on the day these Regulations are made, to adopt P.117 of 2015,
have made the following Regulations –
these Regulations, unless the context otherwise requires –
means the Income Tax (Jersey) Law 1961;
the Multilateral Competent Authority Agreement on Automatic Exchange of
Financial Account Information signed by the Government of Jersey on 29th October 2014
in relation to agreements with Parties to the Convention to improve international
tax compliance based on CRS;
means the Comptroller or any person authorized by the Comptroller to perform
functions under Regulation 20;
means any document –
relates to the carrying on of a business, trade, profession or vocation by any
forms part of any record under any enactment;
means premises used in connection with the carrying on of a business, trade,
profession or vocation;
“Commission” means a
Commission of Appeal constituted under Regulation 16(3);
the Comptroller of Taxes;
the Convention on Mutual Administrative Assistance in Tax Matters which, as
amended by the Protocol, entered into force on 1st June 2011 and was signed
on behalf of the United Kingdom as extended to Jersey, with effect, in respect
of Jersey, from 1st June 2014;
“CRS” means the
Common Reporting Standard for the Automatic Exchange of Financial Account
Information in Tax Matters as approved by the Council of the Organisation for
Economic Co-operation and Development (“OECD”)
on 15th July 2014 and published on the OECD’s website;
“Minister” means the
Minister for External Relations;
means a country or territory listed in Schedule 2, 3 or 4;
“Party to the Convention”
means a country or territory in respect of which the Convention is in force;
“relevant date” has
the meaning in Regulation 2(1);
“relevant year” has
the meaning in Regulation 2(2).
Regulations are to be construed as having effect for and in connection with the
implementation of the obligations of Jersey arising under the following
other international governmental agreement to which Jersey and another
participating jurisdiction is a party and which provides for the automatic
exchange of tax information.
Regulations have effect without prejudice to the Taxation (Implementation)
(International Tax Compliance) (United Kingdom) (Jersey) Regulations 2014.
(4) Schedule 1
sets out words and expressions used in these Regulations which are defined in
these Regulations, a word or expression which is defined in the CRS has that
meaning except to the extent that a reporting financial institution may use as
an alternative a definition in any other international governmental agreement if –
and a participating jurisdiction is, or has been, a party to that other
other agreement provides for the automatic exchange of tax information,
in so far as such use would not frustrate the purposes of the
Minister may by Order amend any of Schedules 2, 3 and 4.
of “relevant date” and “relevant year”
these Regulations “relevant date” for the purposes of Regulation 3(1)
December 2015, in relation to the participating jurisdictions listed in Schedule 2;
December 2016, in relation to the participating jurisdictions listed in Schedule 3;
date in relation to a participating jurisdiction listed in Schedule 4 as
the Minister may specify by Order under Regulation 1(6) in relation to
that participating jurisdiction.
these Regulations “relevant year” for the purposes of Regulations 5
and 8(1) means –
in relation to the participating jurisdictions listed in Schedule 2;
in relation to the participating jurisdictions listed in Schedule 3;
year in relation to a participating jurisdiction listed in Schedule 4 as the
Minister may specify by Order under Regulation 1(6) in relation to that
to treat accounts as reportable accounts
to paragraph (3), an account which is pre-existing entity account with an
account balance or value that does not exceed US $250,000 as of the
relevant date is not a reportable account for a calendar year unless an
election by a reporting financial institution is in force for that year to
treat the account as being a reportable account.
determining whether or not an account meets the description in paragraph (1),
the reporting financial institution must apply the account balance aggregation
and currency rules described in VII.C of the CRS.
applying the rules referred to in paragraph (2), an account balance that
has a negative value is treated as having a nil value.
election under paragraph (1) may be made –
relation to all accounts described in paragraph (1); or
relation to a clearly identified group of accounts.
election under paragraph (1) –
be made by being given to the Comptroller;
be in such form as may be determined by the Comptroller;
be made on or before the reporting date under Regulation 8(2).
representative of a non-resident reporting financial institution
Where a reporting financial institution is not resident or is not
regarded as being resident in Jersey for the purposes of the 1961 Law, any
permanent establishment of that institution in Jersey shall, to the extent that
it is not itself a reporting financial institution be deemed to be a reporting
financial institution for the purposes of these Regulations.
diligence procedures for identifying, reviewing and reporting reportable
reporting financial institution must establish and maintain arrangements which,
in relation to the relevant year and every following calendar year –
the applicable due diligence requirements set out Sections II to VII of
the CRS concerning the review, identification and reporting of all the
reportable accounts which it maintains; and
that the evidence used in accordance with this Regulation or, if applicable a
record of the steps taken in accordance with this Regulation, is kept for a
period of 6 years beginning with the end of the year in which the
requirements applied to the reportable accounts.
(2) Paragraph (1) does not apply to an
6 Modification of due diligence requirements
A reporting financial
institution may do either or both of the following –
(a) apply the due diligence requirements
referred to in Regulation 5 for new accounts to pre-existing accounts; and
(b) apply the due diligence requirements
referred to in Regulation 5 for high value accounts to lower value accounts.
for reporting financial institutions to comply with Regulations in relation to
participating jurisdictions listed in Schedules 3 and 4
(1) A reporting financial
institution may, in relation to a participating jurisdiction listed in Schedule 3
comply with Regulation 5 in relation to reportable accounts of that
participating jurisdiction for the year 2016 as if that participating
jurisdiction were listed in Schedule 2 and apply Regulations 3, 4 and
(2) A reporting financial institution may, in
the absence of a relevant date and relevant year being specified in relation to
a participating jurisdiction listed in Schedule 4 comply with Regulation 5
in relation to reportable accounts of that participating jurisdiction as if
that participating jurisdiction were listed in Schedule 2 or Schedule 3
and apply Regulations 3, 4 and 6 accordingly.
(3) Regulation 8 does not apply to a
reporting financial institution to the extent that the institution complies
with Regulation 5 under paragraph (1) or (2).
(4) In paragraphs (1) and (2) references to
“reportable accounts of that participating jurisdiction” refer to
“[Jurisdiction A] reportable accounts” or
“[Jurisdiction B] reportable accounts” as the context
and timing of returns
reporting financial institution must, in respect of the relevant year and every
following calendar year, prepare a return, in such form and manner as the
Comptroller shall determine, setting out the information specified in
Section I of the CRS in relation to each reportable account that is
maintained by the institution at any time during the calendar year in question.
reporting financial institution must send a return under this Regulation to the
Comptroller on or before 30th June in the year following the calendar year to
which the return relates (the date for return under this paragraph being
“the reporting date”).
of service providers
As referred to in Section II(D) of the CRS, a reporting
financial institution may use a service provider to undertake the due diligence
requirements under Regulations 5 and 6 and the reporting obligations under
Regulation 8 but in such cases those obligations continue to be the
obligations of the reporting financial institution.
10 Penalty for
failure to comply with Regulations
A person is liable to a
penalty of £300 if the person fails to comply with any obligation under
11 Daily default
(a) a penalty under Regulation 10 is
(b) the failure in question continues after the
person has been notified of the penalty,
the person is liable to a
further penalty, for each subsequent day on which the failure continues, of an
amount not exceeding £60 for each day.
12 Penalties for
(1) a person is liable to a penalty not
exceeding £3,000 if –
(a) in complying with an obligation under Regulation 8
the person provides inaccurate information; and
(b) condition A, B or C is met.
(2) Condition A is that the inaccuracy is –
(a) due to a failure to comply with the due
diligence requirements in Regulation 5 (as modified by Regulation 6
where that Regulation applies); or
(b) deliberate on the part of the person.
(3) Condition B is that the person knows of
the inaccuracy at the time the information is provided but does not inform the
Comptroller at that time.
(4) Condition C is that the person –
(a) discovers the inaccuracy after the
information is provided to the Comptroller; and
(b) fails to take reasonable steps to inform the
13 Matters to be
disregarded in relation to liability to penalties
(1) Liability to a penalty under Regulation 10
or 11 does not arise if the person satisfies the Comptroller or, (on an appeal
notified by the Comptroller to the Commission) the Commission, that there is a
reasonable excuse for the failure.
(2) For the purposes of this Regulation, neither
of the following is a reasonable excuse –
(a) that there is an insufficiency of funds to
(b) that a person relies upon another person to
(3) If a person had a reasonable excuse for a
failure but the excuse has ceased, the person is to be treated as having
continued to have the excuse if the failure is remedied without unreasonable
delay after the excuse has ceased.
14 Imposition of
(1) If a person becomes liable to a penalty
under any of Regulations 10 to 12 the Comptroller may impose the penalty.
(2) If the Comptroller imposes a penalty, the
Comptroller must notify the person.
(3) A penalty under Regulation 10 or 11 may
only be imposed within the period of 12 months beginning with the date on
which the person became liable to the penalty.
(4) A penalty under Regulation 12 may only
be imposed –
(a) within the period of 12 months
beginning with the date on which the inaccuracy first came to the attention of
the Comptroller; and
(b) within the period of 6 years beginning
with the date on which the person became liable to the penalty.
15 Right of appeal against penalty
(1) A person upon whom a penalty is imposed may appeal
against it on the ground that liability to a penalty under Regulations 10
to 12 does not arise.
(2) A person upon whom a penalty is imposed may
appeal against its amount.
16 Commission of
Appeal and procedure on appeal against penalty
(1) Notice of an appeal under Regulation 15
must be given to the Comptroller –
(a) in writing; and
(b) before the end of the period of 30 days
beginning with the date on which notification to the person under Regulation 14
(2) The notice under paragraph (1) must
state the ground of appeal.
(3) A Commission of Appeal shall be constituted
for the purpose of hearing –
(a) an appeal under Regulation 15; or
(b) an application under Regulation 17(2),
as it would be constituted from
the Commissioners of Appeal appointed under Article 10(1) of the 1961 Law
for the purpose of hearing appeals under the 1961 Law.
(4) The Comptroller shall notify the Commission
of an appeal under Regulation 15.
(5) On an appeal under Regulation 15(1)
that is notified to the Commission by the Comptroller, the Commission may
confirm or cancel the penalty.
(6) On an appeal under Regulation 15(2)
that is notified to the Commission by the Comptroller, the Commission may –
(a) confirm the penalty; or
(b) substitute another penalty that the
Comptroller has power to impose under these Regulations.
(7) Subject to this Regulation and Regulation 18,
the provisions of Part 6 of the 1961 Law shall have effect in
relation to appeals under Regulation 15 as they have effect in relation to
an appeal against an assessment to income tax.
17 Increased daily
(1) This Regulation applies if –
(a) a penalty under Regulation 11 is
imposed under Regulation 14;
(b) the failure in respect of which that penalty
is imposed continues for more than 30 days beginning with the date on
which notification of that penalty is given; and
(c) the person has been told that an application
may be made under this Regulation for an increased daily penalty to be imposed.
(2) If this Regulation applies, the Comptroller
may make an application to the Commission for an increased daily penalty to be
imposed on the person.
(3) If the Commission decides that an increased
daily penalty should be imposed then for each applicable day on which the
failure continues –
(a) the person is not liable to a penalty under Regulation 11
in respect of the failure; and
(b) the person is liable instead to a penalty
under this Regulation of an amount determined by the Commission.
(4) The Commission must not determine an amount
exceeding £1,000 for each applicable day.
(5) If a person becomes liable to a penalty
under this Regulation, the Comptroller must notify the person.
(6) The notification must specify the day from
which the increased penalty is to apply.
(7) That day and any subsequent day is an
“applicable day” for the purposes of this Regulation.
18 Enforcement of
(1) A penalty under these Regulations must be
paid before the end of the period of 30 days beginning with the date mentioned
in paragraph (2).
(2) That date is the later of –
(a) the date on which the penalty is imposed
under Regulation 14 or notification under Regulation 17(5) is given
in respect of the penalty; or
(b) if notice of appeal under Regulation 16
is given, the date on which the appeal is finally determined or withdrawn.
(3) A penalty under these Regulations may be
enforced as if it were income tax charged in an assessment and due and payable.
(a) a person enters into any arrangements; and
(b) the main purpose, or one of the main
purposes, of the person in entering into those arrangements is to avoid any requirement
of these Regulations,
these Regulations shall
have effect as if the arrangements had not been entered into.
20 Power to enter
business premises and examine business documents
(1) An authorized person may examine and take
copies of any business document that is located on business premises.
(2) The power under paragraph (1) may be
exercised only for the purpose of investigating any issue relating to compliance
with these Regulations.
(3) An authorized person may at any reasonable
hour enter business premises for the purpose of exercising the power under paragraph (1).
(4) An authorized person may by notice require
any person to produce any specified business document at the business premises
where the business document is located for the purpose of enabling the
authorized person to exercise the power under paragraph (1) in relation to
(5) An authorized person shall not exercise the
powers under this Regulation in respect of any document which a person would,
in an action in Court, be entitled to refuse to disclose or produce on the
grounds of legal professional privilege.
an authorized person
(1) A person shall be guilty of an offence if,
without reasonable excuse, the person –
(a) obstructs an authorized person in the
exercise of the authorized person’s powers under Regulation 20; or
(b) fails to provide such reasonable assistance
as an authorized person may require when the authorized person is exercising
his or her powers under Regulation 20.
(2) A person who intentionally alters,
suppresses or destroys any business document that has been specified in a
notice under Regulation 20(4) shall be guilty of an offence.
(3) A person who is guilty of an offence under paragraph (1)
shall be liable to imprisonment for a term of 6 months and to a fine.
(4) A person who is guilty of an offence under paragraph (2)
shall be liable to imprisonment for a term of 2 years and to a fine.
22 Citation and commencement
These Regulations may be cited as the Taxation (Implementation)
(International Tax Compliance) (Common Reporting Standard) (Jersey) Regulations 2015
and shall come into force on 1st January 2016.
Deputy Greffier of the States