Income Tax
(Amendment No. 24) (Jersey) Law 2005
A LAW to amend further the Income Tax
(Jersey) Law 1961.
Adopted by the
States 19th January 2005
Sanctioned by
Order of Her Majesty in Council 7th June 2005
Registered by the
Royal Court 8th
July 2005
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
PART 1
INTERPRETATION
1 Interpretation
In this Law, “principal Law” means
the Income Tax (Jersey) Law 1961.[1]
Part 2
Introduction of income tax instalment
system
2 Article
A15 inserted
At the beginning of Part IV of the principal Law[2] there shall be inserted the
following Article –
“A15 Interpretation
of Part IV
(1) In this Part, unless the context otherwise
requires –
‘building
contractor’ means, subject to paragraphs (4) and (5) of this
Article, a person carrying on any business in the building or construction
industry;
‘earnings’ means
all salaries, fees, wages, perquisites or profits or gains arising from an
office or employment;
‘effective rate’
means the rate applicable in a person’s case in accordance with Article
41B(2) of this Law;
‘employee’
includes –
(a) a director of a company;
(b) a person engaged in the management of a
company; and
(c) any office holder, whether or not of a
company,
and any reference to a person
being employed or commencing employment shall be construed accordingly;
‘exemption
certificate’ means a certificate issued under Article 41F of this Law.
(2) For the purposes of this Part, a person is a
sub-contractor of a building contractor if, under a contract for building or
construction work –
(a) the person is under a duty to the building
contractor to carry out building or construction work or to furnish his or her
own labour (that is to say, in the case of a company, the labour of employees
or officers of the company) or the labour of others in the carrying out of the
work or to arrange for the labour of others to be furnished in the carrying out
of the work; or
(b) the person is answerable to the building
contractor for the carrying out of the work by others, whether under a contract
or under other arrangements made or to be made by the person.
(3) In determining, for the purposes of
paragraph (2) of this Article, whether a person is carrying out building
or construction work or furnishing labour for another person, the supply by or
on behalf of the first-mentioned person to the other person of any materials
which are incidental to the work shall be disregarded.
(4) Subject to paragraph (5) of this
Article, where a building contractor is not resident in the Island, any officer
(by whatever name called) of the building contractor or other person who
is –
(a) engaged in the management of the building
contractor; and
(b) resident in the Island,
shall be deemed to be the
building contractor.
(5) Where a building contractor is a body of
persons, the secretary of the body or other officer (by whatever name called)
performing the duties of secretary shall, if resident in the Island, be deemed
to be the building contractor.
(6) Subject to paragraph (7) of this
Article, where an employer is not resident in the Island, any officer (by
whatever name called) of the employer or other person who is –
(a) engaged in the management of the employer;
and
(b) resident in the Island,
shall be deemed to be the
employer.
(7) Where an employer is a body of persons, the
secretary of the body or other officer (by whatever name called) performing the
duties of secretary shall, if resident in the Island, be deemed to be the
employer.”.
3 Article
19A inserted and Schedule 5 amended
(1) After
Article 19 of the principal Law[3] there shall be inserted the
following Article –
“19A Duty
of employer or building contractor to register
(1) A person who becomes an employer shall, no
later than one month after so becoming, notify the Comptroller, in writing, of
the date the person became an employer.
(2) A building contractor shall, no later than
one month after first entering into a contract with a sub-contractor, notify
the Comptroller, in writing, of the date the building contractor first entered
into such a contract.
(3) A person who fails to comply with paragraph
(1) or (2) of this Article shall be guilty of an offence and liable to a fine
of level 3 on the standard scale.[4]
(4) Where the secretary or another officer of a
body corporate or any other person engaged in the management of the body
corporate is deemed to be the employer by virtue of paragraph (6) or (7) of
Article A15 of this Law, the body corporate, as well as that person, shall
be liable to a penalty for failure to comply with paragraph (1) of this
Article.
(5) Where the secretary or another officer of a
body corporate or any other person engaged in the management of the body
corporate is deemed to be the building contractor, by virtue of paragraph (4)
or (5) of Article A15 of this Law, the body corporate, as well as that
person, shall be liable to a penalty for failure to comply with
paragraph (2) of this Article.”.
(2) After
paragraph 1 of Schedule 5 to the principal Law[5] there shall be added the
following paragraph –
“2 Income Tax
(Amendment No. 24) (Jersey) Law 200-: transitional provisions for Article
19A
(1) Article 19A of this Law shall apply to
a person who, on 31st December 2004, is an employer but who has not, at any
time in 2004, delivered a return pursuant to Article 20 of this Law, as if
the person became an employer on 1st January 2005.
(2) Article 19A of this Law shall apply to
a building contractor who, on 31st December 2004, has a contract with a sub-contractor
but who has not, at any time in 2004, delivered a return pursuant to
Article 20A of this Law, as if the building contractor first contracted
with a sub-contractor on 1st January 2005.”.
4 Articles
20 and 20A substituted
For Articles 20 and 20A of the principal Law[6] there shall be substituted
the following Articles –
“20 Returns
of information regarding employees
(1) An employer shall, when required to do so by
a general notice or by a notice served on the employer by the Comptroller, and within
the time limited by the notice, prepare and deliver to the Comptroller a true,
complete and correct return containing, as required by the notice, all or any
of the specified information for the period or year of assessment specified in
the notice in respect of each person employed by the employer at any time
during that period or year.
(2) The specified information in respect of each
person employed by the employer at any time during the period or year specified
is –
(a) the person’s full name and place or
places of residence;
(b) in the case of a woman, the full name of the
woman’s spouse (if any);
(c) the reference number (if any) assigned to
the person by the Comptroller;
(d) the reference number (if any) assigned to
the employer by the Comptroller;
(e) the reference number assigned to the person
for the purposes of the Social Security (Jersey) Law 1974;[7]
(f) a description of the person’s
employment;
(g) the earnings paid to the person in respect
of the employment;
(h) the benefits provided to the person, whether
by the employer or by a person connected with the employer, other than any
benefit left out of account by virtue of Article 65B(2)(b) of this Law,
and the amount attributable to each benefit determined in accordance with the
said Article 65B;
(i) the amounts deducted from the earnings
paid to the person in respect of superannuation;
(j) the amounts required, pursuant
to Article 41B of this Law, to be deducted from
the earnings paid to the person and the effective rate applied to each deduction;
(k) where the employment commenced in the period
or year of assessment in question, the date of such commencement; and
(l) where the employment ceased in the
period or year of assessment, the date of such cessation.
(a) may require a return to be in a form, and
delivered in a manner, approved by the Comptroller; and
(b) may require an employer to sign a
declaration that the information given in the return is true, complete and
correct to the best of the employer’s knowledge.
(4) Where the secretary or another officer of a
body corporate or any other person engaged in the management of the body
corporate is deemed to be the employer, by virtue paragraph (6) or (7) of
Article A15 of this Law, the body corporate, as well as that person, shall
be liable to a penalty for failure to deliver a return when required to do so
by or under this Article.
20A Returns
of information regarding building sub-contractors
(1) A building contractor shall, when required
to do so by a general notice or by a notice served on the building contractor
by the Comptroller, and within the time limited by the notice, prepare and
deliver to the Comptroller a true, complete and correct return containing, as
required by the notice, all or any of the specified information for the period
or year of assessment specified in the notice in respect of each person who is
a sub-contractor of the building contractor at any time during that period or
year.
(2) The specified information in respect of each
person who is a sub-contractor of the building contractor at any time during
the period or year specified is –
(a) the person’s full name and place or
places of residence;
(b) in the case of a woman, the full name of the
woman’s spouse (if any);
(c) the reference number (if any) assigned to
the person by the Comptroller;
(d) the reference number (if any) assigned to
the building contractor by the Comptroller;
(e) the reference number assigned to the person
for the purposes of the Social Security (Jersey) Law 1974;[8]
(f) the payments made to the person, or to
a person he or she has nominated for the purpose, under or in relation to the
contract and the date such payments are made;
(g) the amounts required, pursuant to
Article 41E of this Law, to be deducted from the payments described
in sub-paragraph (f) in respect of tax;
(h) the making of any payment without deduction
of tax pursuant to Article 41E of this Law, by virtue of
paragraph (2) of that Article;
(i) where the contract commenced in the
period or year of assessment in question, the date of such commencement; and
(j) where the contract ceased in the
period or year of assessment, the date of such cessation.
(a) may require a return to be in a form, and
delivered in a manner, approved by the Comptroller; and
(b) may require a building contractor to sign a
declaration that the information given in the return is true, complete and
correct to the best of his or her knowledge.
(4) Where the secretary or another officer of a
body corporate or any other person engaged in the management of the body
corporate is deemed to be the building contractor, by virtue of paragraph (4)
or (5) of Article A15 of this Law, the body corporate, as well as
that person, shall be liable to a penalty for failure to deliver a return when
required to do so by or under this Article.”.
5 Article
A39 inserted
At the beginning of Part VII of the principal Law[9] there shall be inserted the
following Article –
“A39 Interpretation
of Part VII
Expressions defined in
Article A15 of this Law shall, unless the context otherwise requires, have
the same meaning in this Part.”.
6 Article
39 amended
At the beginning of Article 39 of the principal Law[10] there shall be inserted the
words “Subject to Articles 41A, 41B and 41E of this Law,”.
7 Articles
41A to 41I inserted
After Article 41 of the principal Law[11] there shall be inserted the
following Articles –
“41A Duty
to pay instalment in April
(1) Subject to paragraph (12) of this
Article, a person who is not a body corporate shall, in accordance with this
Article, pay an instalment of income tax for a year of assessment.
(2) The instalment –
(a) shall be due and payable no later than
6 p.m. on the last Friday in April of the year next following the year of
assessment; and
(b) subject to this Article, shall be an amount
equal to 50% of the person’s liability to income tax for the year
preceding the year of assessment, less the amount of any tax already paid in
respect of the year of assessment (disregarding any amount paid by way of
deduction under Article 41B or 41E of this Law).
(a) part of a person’s income for the year
preceding the year of assessment comprises earnings; and
(b) those earnings comprise 25% or less of the
person’s total income for that year,
paragraph (2)(b) of this
Article shall have effect with the substitution for the amount
“50%” of the amount “40%”.
(4) A person shall not be required to pay an
instalment pursuant to this Article where the instalment would be less than
£100.
(5) A person shall be liable to pay the instalment
whether or not an assessment has been raised for the year of assessment for
which the instalment is due.
(6) The Comptroller may, on an application made
by a person no later than the end of March preceding the day an instalment is
due, reduce the amount of the instalment or waive the instalment where the
Comptroller is satisfied –
(a) that 50% of the person’s liability to
income tax for the year of assessment is likely to be substantially less than
the instalment determined in accordance with paragraph (2)(b) of this
Article; or
(b) that the person’s income for the year
of assessment from sources other than earnings is likely to be substantially
less than the person’s income for the preceding year from such sources.
(7) Where a person applies for a reduction or
waiver under paragraph (6) of this Article, the Comptroller shall give
notice to the person of whether or not the Comptroller has reduced the amount
of or waived the instalment.
(8) A person aggrieved by the
Comptroller’s refusal to reduce the amount of or waive an instalment
under paragraph (6) of this Article may appeal to the Commissioners, on
giving notice in writing to the Comptroller, within 40 days of the issue
of the notice under paragraph (7) of this Article.
(9) The instalment determined in accordance with
paragraph (2)(b) of this Article shall be due and payable notwithstanding
that an appeal is pending under paragraph (8) of this Article.
(10) On the determination of an appeal under
paragraph (8) of this Article, any balance of the instalment due in
accordance with the determination shall be paid, or any amount determined to
have been overpaid shall be repaid, as the case may require.
(11) Save as provided in paragraphs (8) to (10) of this
Article, Part VI of this Law shall apply, with the necessary
modifications, to an appeal under paragraph (8) of this Article as it
applies to an appeal against any assessment.
(12) This Article shall not apply –
(a) where more than 25% of a person’s
total income for the year preceding the year of assessment comprises earnings;
or
(b) in the case of a trustee liable to tax for
the year of assessment by virtue of Article 6(2) of the Income Tax
(Superannuation Funds) (Jersey) Order 1972.[12]
41B Duty
of employer to deduct and account for tax
(1) An employer shall, in accordance with this
Article, deduct tax at the effective rate from earnings payable by the employer
to an employee.
(2) The effective rate shall be –
(a) where the employer has received a copy of a
notice issued by the Comptroller under Article 41C of this Law specifying
a rate applicable on the day the deduction is made, the rate so specified;
(b) where the employer has not received a copy
of such a notice –
(i) for
deductions made in the years 2006 and 2007, 15%,
(ii) for
deductions made in the year 2008 and ensuing years, 20%.
(3) When making a deduction under
paragraph (1) of this Article, an employer shall give the employee written
notice of the amount of the deduction and the effective rate applied to the
deduction.
(4) An employer shall maintain a record of the
amount of tax deducted and the effective rate applied to the deduction in
respect of each of his or her employees.
(5) An employer shall, no later than
15 days after the end of each month, remit to the Comptroller an
amount equal to the aggregate of the amounts required to be deducted under
paragraph (1) of this Article during the month in respect of each of his
or her employees.
(6) An employer shall, no later than the end of
January following a year of assessment, give each of the persons in his or
her employment at the end of that year a written summary of the deductions made
pursuant to this Article from the employee’s earnings for that year.
(7) Where an employee ceases employment before
the end of a year of assessment, the employer shall, upon the employment
ceasing, give the employee a written summary of the deductions made
pursuant to this Article from the employee’s earnings for that year.
(8) An employer shall not be required to deduct
tax and remit it to the Comptroller in the case of an employee who, on the 31st
December in the year in which the deduction would otherwise be made, will be
under the age of 17 years.
(9) An employer who fails to comply with
paragraph (5) of this Article shall be guilty of an offence and liable to
a fine of –
(a) level 4 on the standard scale;[13] and
(b) an amount not exceeding the monies not
remitted, in contravention of that paragraph.
(10) Where the secretary or another officer of a body
corporate or any other person engaged in the management of the body corporate
is deemed to be the employer by virtue of paragraph (6) or (7) of
Article A15 of this Law, the body corporate, as well as that person, shall
be liable to a fine under paragraph (9) of this Article.
(11) The imposition of a fine under paragraph (9)(b) of
this Article shall not discharge the employer’s liability to remit the
monies required under paragraph (5) of this Article.
(12) Where an employee proves, to the satisfaction of
the Comptroller, that a deduction has been made from the employee’s earnings,
in accordance with paragraph (1) of this Article, the employee shall be
entitled to have the deduction treated as a payment of tax by the employee,
notwithstanding that the employer has failed to remit the amount to the
Comptroller in accordance with paragraph (5) of this Article.
(13) An employer who fails to make a deduction in
accordance with paragraph (1) of this Article but who remits to the
Comptroller the amount required by paragraph (5) of this Article in
respect of an employee may recover that amount from the employee as a civil
debt.
(14) Deductions shall be made, in accordance with this
Article, from the earnings of a married woman not withstanding that, by virtue
of Article 121(1) of this Law, her income is deemed to be that of her
husband.
(15) An agreement shall be void to the extent that it
provides for the payment of earnings without deduction of tax in contravention
of this Article.
‘payment year’
means the year in which the rate applies to deductions made under Article 41B
of this Law;
‘the year of
assessment’ means the year preceding the payment year.
(2) Subject to this Article and Article 41D
of this Law, the rate applicable in an employee’s case shall be
determined in accordance with the following formula –
L x
100 = percentage effective rate
I
Where –
L is the sum of –
(a) the employee’s liability to tax for
the year of assessment;
(b) an amount not exceeding the aggregate of any
arrears of tax for any earlier year of assessment (whether or not judgment has
been obtained in respect of the arrears); and
(c) any costs recoverable in respect of such
arrears,
less any amount of tax
already paid for the year of assessment (disregarding any amount paid by way of
deduction under Article 41B or 41E of this Law); and
I is the total of the sums
for which the employee has been or is liable to be assessed for the year of
assessment and the sums in respect of which the employee is liable to allow the
deduction of tax in the year of assessment.
(3) The percentage rate determined in accordance
with paragraph (2) of this Article shall be rounded up to the nearest
whole number.
(4) The Comptroller may, before an employee has
delivered a statement for the year of assessment pursuant to Article 16 of
this Law, determine, in accordance with paragraph (5) of this Article, a
provisional rate and issue a notice, in writing, to the employee of the rate
and the day from which the rate applies.
(5) For the purposes of determining a rate
pursuant to paragraph (4) of this Article, paragraph (2) of this Article
shall have effect with –
(a) in sub-paragraph (a) of the definition
‘L’, the insertion after the words “liability to tax
for” of the words “the year preceding”;
(b) in the definition
‘I’ –
(i) the
insertion after the words “assessed for” of the words “the
year preceding”,
(ii) the
insertion after the words “deduction of tax in” of the words
“the year preceding”.
(6) The Comptroller may, after an employee has
delivered a statement for the year of assessment pursuant to Article 16 of
this Law, determine the rate applicable to the employee and issue a notice, in
writing, to the employee and the employee’s employer, of the rate and the
day from which the rate applies.
(7) Where it appears to the Comptroller at any
time that, by reason of any change in the information by reference to which the
rate is determined, the rate applicable in an employee’s case has
altered, the Comptroller may issue a notice, in writing, to the employee and
the employee’s employer, of the revised rate and the day from which the
rate applies.
(8) Subject to paragraph (9) of this
Article –
(a) an employee may, at any time, make an
election, in writing, to the Comptroller to have a rate applied in the
employee’s case that exceeds the rate determined in accordance with the
foregoing paragraphs of this Article; and
(b) upon an election being made, the Comptroller
shall issue a notice in writing to the employee of the rate and the day from
which the rate applies.
(9) The rate shall not exceed –
(a) in a case where the employee has no arrears
of tax, 20%;
(b) in a case where the employee has arrears of
tax for one year of assessment, 25%;
(c) in a case where the employee has arrears of
tax for 2 years of assessment, 30%;
(d) in a case where the employee has arrears of
tax for 3 or more years of assessment, 35%.
(10) A notice issued by the Comptroller under this
Article shall have effect until whichever is the earlier of –
(a) the day stated in the notice;
(b) the day on which a rate specified in a
further notice has effect; or
(c) the end of the current year.
(11) An employee aggrieved by the rate applicable in
his or her case, or by a refusal by the Comptroller to issue a notice under
this Article, may appeal to the Commissioners, on giving notice in writing to
the Comptroller –
(a) within 40 days of the issue of a notice
under of this Article; or
(b) where the Comptroller has not issued a
notice to the employee, within 40 days of providing the Comptroller with
sufficient information to determine a rate under this Article.
(12) The rate notified to the employee or, in the case
where no rate has been notified to the employee, the rate applicable by virtue
of Article 41B(2)(b), shall apply in the employee’s case
notwithstanding that an appeal is pending under paragraph (11) of this
Article.
(13) Save as provided in paragraphs (11) and (12) of
this Article, Part VI of this Law shall apply, with the necessary
modifications, to an appeal under paragraph (11) of this Article as it
applies to an appeal against any assessment.
(14) The fact that, in determining the rate applicable
in an employee’s case, the sum ‘L’ referred to in
paragraph (2) of this Article includes an amount described in
sub-paragraph (b) or (c) of that paragraph shall not prevent the
Comptroller pursuing the recovery of that amount by other means.
(15) A person who gives another person –
(a) a document purporting to be a notice issued
by the Comptroller under this Article, knowing it to be false; or
(b) a notice issued by the Comptroller under
this Article, knowing that the notice has been altered by a person other than
the Comptroller,
shall be liable to a fine of
level 4 on the standard scale.[14]
41D Deductions
in respect of husbands and wives
(1) In the case of a husband and wife to whom
Article 121(1) of this Law applies –
(a) a rate shall be determined in accordance
with Article 41C(2) of this Law as if the husband were the employee,
whether or not he is in employment; and
(b) subject to paragraph (2) of this
Article, where the Comptroller has issued a notice under Article 41C
specifying a rate, that rate shall apply to both the husband and the wife.
(2) Where the husband and wife are each in
employment they may jointly elect for the rate applicable to the earnings of
one of them to be increased and the rate applicable to the earnings of the
other of them to be correspondingly reduced.
(3) The increased rate applicable to the
earnings of one of them may exceed the limit in Article 41C(9), if the
husband and wife so elect and the Comptroller so agrees.
(4) The aggregate of the deductions made when
applying the rates, adjusted pursuant to this Article, to the earnings of the
husband and wife shall not be less than the aggregate of the deductions that
would have been made had the adjustment not been made.
(5) An election shall cease to have effect
upon –
(a) either the husband or wife ceasing to be in
employment;
(b) paragraph (4) not being complied with;
(c) a new rate applying pursuant to a further
notice issued under Article 41C of this Law; or
(d) an effective rate described in
Article 41B(2)(b) of this Law applying.
41E Duty
of building contractor to deduct and account for tax
(1) A building contractor shall, in accordance
with this Article, deduct tax at the specified rate from payments made to a
sub-contractor or to a person nominated by the sub-contractor for the purpose.
(2) Paragraph (1) of this Article shall not
apply at any time when –
(a) the sub-contractor has produced an exemption
certificate to the building contractor; and
(b) the building contractor is satisfied that
the exemption certificate is in force at the time the payment is made.
(3) When making a deduction under
paragraph (1) of this Article a building contractor shall give the
sub-contractor or the person nominated by the sub-contractor to receive the
payment written notice of the amount of the deduction.
(4) A building contractor shall maintain a
record of the amount of tax deducted in respect of each of his or her
sub-contractors.
(5) A building contractor shall, no later than
15 days after the end of each month, remit to the Comptroller an
amount equal to the aggregate of the amounts required to be deducted under
paragraph (1) of this Article during the month in respect of each of his
or her sub-contractors.
(6) Where, before the end of a year of
assessment, a person ceases to be a sub-contractor of a building contractor,
the building contractor shall give the sub-contractor a written summary of the
total deductions made, pursuant to this Article, during that year, from the
payments made under the contract to the sub-contractor or person nominated by
the sub-contractor for the purpose.
(7) A building contractor shall, no later than
the end of January following a year of assessment, give each person who is, at
the end of the year, his or her sub-contractor, a written summary of the total
deductions made, pursuant to this Article, during that year, from the payments
made under the contract to the sub-contractor or person nominated by the
sub-contractor for the purpose.
(8) A building contractor who fails to comply
with paragraph (5) of this Article shall be guilty of an offence and
liable to a fine of –
(a) level 4 on the standard scale;[15] and
(b) an amount not exceeding the monies not
remitted, in contravention of that paragraph.
(9) Where the secretary or another officer of a
body corporate or any other person engaged in the management of the body
corporate is deemed to be the building contractor by virtue of
paragraph (4) or (5) of Article A15 of this Law, the body corporate,
as well as that person, shall be liable to a fine under paragraph (8) of this
Article.
(10) The imposition of a fine under
paragraph (8)(b) of this Article shall not discharge the building
contractor’s liability to remit the monies required by paragraph (5) of
this Article.
(11) Where a sub-contractor proves, to the satisfaction
of the Comptroller, that a deduction has been made in accordance with
paragraph (1) of this Article from payments made to the sub-contractor or
to a person nominated by the sub-contractor for the purpose, the sub-contractor
shall be entitled to have the deduction treated as a payment of tax by the
sub-contractor, notwithstanding that the building contractor has failed to
remit the amount to the Comptroller in accordance with paragraph (5) of this
Article.
(12) A building contractor who fails to make a
deduction in accordance with paragraph (1) of this Article but who remits
to the Comptroller the amount required by paragraph (5) of this Article
may recover that amount from the sub-contractor as a civil debt.
(13) A contract shall be void to the extent that it
provides for payments to be made without deduction of tax, in contravention of
this Article.
(14) Where a sub-contractor has arrears of tax for any
year of assessment, the fact that deductions are made in accordance with this
Article from payments made to the sub-contractor or to a person nominated by
the sub-contractor for the purpose shall not prevent the Comptroller pursing
the recovery of those arrears by any means.
(15) For the purposes of this Article, the
‘specified rate’ is –
(a) for deductions made in the years 2006 and
2007, 15%;
(b) for deductions made in the year 2008, and
ensuing years, 20%.
41F Exemption
certificate
(1) A sub-contractor may apply to the Comptroller
for an exemption certificate.
(2) An application for an exemption certificate
shall be made in such form and manner, and accompanied by such
information, as the Comptroller may require.
(3) The Comptroller may issue an exemption
certificate where the Comptroller is satisfied that the sub-contractor has
consistently complied with the requirements of this Law in full and without
delay.
(4) An exemption certificate shall, unless
cancelled under paragraph (5) of this Article, have effect for the year specified
in it, and may be issued subject to conditions.
(5) The Comptroller may cancel an exemption
certificate at any time when –
(a) the Comptroller is no longer satisfied that
the sub-contractor has consistently complied with the requirements of this Law
in full and without delay; or
(b) the conditions attached to the certificate
have not been complied with.
(6) Upon cancelling an exemption certificate,
the Comptroller shall publish a notice of cancellation in such a manner that
the notice is likely to be seen by persons affected by it.
(7) The cancellation of an exemption certificate
shall take effect upon publication of the notice required by paragraph (6)
of this Article.
(8) A person who gives another
person –
(a) a document purporting to be an exemption
certificate issued by the Comptroller under this Article, knowing it to be
false; or
(b) an exemption certificate, knowing that the
certificate has been altered by a person other than the Comptroller,
shall be liable to a fine of
level 4 on the standard scale.[16]
41G Treatment
of amounts received by Comptroller
(1) Subject to paragraphs (2) to (4) of this
Article, the Comptroller shall receive an amount remitted under
Article 41B or 41E of this Law as a payment of tax for the preceding year
of assessment by the employee from whose earnings, or the sub-contractor from
whose payments, the amount was deducted.
(2) Where the Comptroller receives an amount
remitted under Article 41B or 41E of this Law which has been deducted from
the earnings of, or payments made to, a married woman whose income, by virtue
of Article 121(1) of this Law, is deemed to be that of her husband, the
Comptroller shall receive the amount as a payment of tax by her husband.
(3) Where, in determining the rate applicable to
an amount remitted under Article 41B of this Law, the amount
‘L’ defined in Article 41C(2) of this Law includes an amount,
in accordance with sub-paragraph (b) or (c) of that definition, in respect
of arrears of tax or costs recoverable with them, the Comptroller shall apportion
any amount remitted under that Article between the employee’s liability
to pay tax for the year of assessment and his or her liability to pay the
arrears or costs, in the same proportion that those liabilities bear to each
other.
(4) Where, in the case of a sub-contractor who
has arrears of tax, or costs recoverable with arrears, accruing from a previous
year of assessment, the deductions received by the Comptroller in a year of
assessment exceed the sub-contractor’s liability to tax for the preceding
year, the Comptroller shall –
(a) receive the excess as a payment of those
arrears or costs; and
(b) where the sub-contractor has outstanding
arrears or costs from more than one previous year of assessment, apply the
excess so as to reduce or discharge the arrears or costs from the earliest year
of assessment first.
(5) This Article shall apply notwithstanding
that an assessment has not been served on the employee or sub-contractor under
Article 25.
41H Arrangements
for new taxpayers
(1) This Article applies to a
person –
(a) who was resident in the Island in any of the
years of assessment 2002, 2003 and 2004 but who has not, before 1st September
2005, delivered to the Comptroller a statement, pursuant to Article 16 of
this Law, for any of those years;
(b) who is resident in the Island on 31st
December 2005 but who has not, before that date, provided the Comptroller with
information that would be sufficient to enable the Comptroller, in accordance
with Article 41C of this Law, to determine a rate to apply in the
person’s case for the year 2006; or
(c) who first commences employment or becomes a
sub-contractor, in the Island, on or after 1st January 2006 and who was not
liable to tax, as a person residing in the Island, for the year of assessment
preceding the year in which the employment or contract commences.
(2) A person to whom this Article applies who,
on 1st January 2006, is in employment or a sub-contractor of a building
contractor shall be treated as a new taxpayer for the period of 7 years
beginning on that date.
(3) A person to whom this Article applies who,
after 1st January 2006, commences employment or becomes a sub-contractor of a
building contractor shall be treated as a new taxpayer for the period
consisting of the year in which the employment or contract commences and the 6
ensuing years.
(4) Where a person treated as a new taxpayer,
whether by virtue of paragraph (2) or (3) of this Article or by virtue of
this paragraph –
(a) ceases to reside in the Island before the
end of the period applicable in the person’s case pursuant to, as the
case may be, paragraph (2) or (3) of this Article or this paragraph; and
(b) returns to the Island to commence or resume
employment in the Island, or to become or resume as a sub-contractor in the
Island,
the person shall be treated
as a new taxpayer for the period consisting of the year in which the employment
or contract commences or resumes and the 6 ensuing years.
(5) A person described in paragraph (2) of
this Article shall, no later than 1st March 2006, notify the Comptroller, in
writing, of the information described in paragraphs (7) and (8) of this
Article.
(6) A person described in paragraph (3) or
(4) of this Article shall, no later than one month after commencing or resuming
the employment or entering into or resuming the contract, notify the
Comptroller, in writing, of the information described in paragraphs (7)
and (8) of this Article.
(7) The information required is –
(a) the person’s full name and place or
places of residence;
(b) the reference number assigned to the person
for the purposes of the Social Security (Jersey) Law 1974;[17]
(c) the person’s date of birth;
(d) if the person is married, the date of the
marriage;
(e) the number of children dependent upon the
person;
(f) the date (if any) the person arrived
in the Island;
(g) the name and address of –
(i) if
the person is an employee, his or her employer,
(ii) if
the person is a sub-contractor of a building contractor, the building
contractor;
(h) the date the employment or building contract
commenced;
(i) an estimate of the
person’s –
(i) earnings
from the employment or payments under the building contract, and
(ii) income
from all other sources,
in the year in which the
employment or contract commences.
(8) A married person shall also provide the
information described in paragraph (7) of this Article in respect of his
or her spouse.
(9) The Comptroller may –
(a) require a return of information under
paragraph (7) of this Article to be in a form, and delivered in a manner,
approved by the Comptroller; and
(b) require the person making the return to sign
a declaration that the information given is true, complete and correct to the
best of his or her knowledge.
(10) Whilst a person is treated as a new taxpayer, this
Part shall apply with the following modifications –
(i) in
the definition ‘L’, for sub-paragraph (a) there shall be
substituted the following sub-paragraph –
‘(a) the employee’s
estimated liability to tax for the payment year;’,
(ii) in
the full out words to the definition ‘L’, for the words “the
year of assessment” there shall be substituted the words “the
payment year”,
(iii) for
the definition ‘I’ there shall be substituted the following
definition –
‘ ‘I’
is the total of the sums for which the employee is estimated to be liable to be
assessed for the payment year and the sums in respect of which the employee is
estimated to be liable to allow the deduction of tax in the payment
year.’;
(b) in paragraphs (1) and (4) of
Article 41G for the words ‘preceding year’ there shall be
substituted the words ‘that year’.
(11) For the last 2 years of assessment for which
a person is treated as a new taxpayer, this Part shall apply with the
additional modification that in Article 41C(2) for the amount
‘100’ there shall be substituted the amount ‘50’.
41I Late
payment surcharge
(1) In this Article, ‘specified
time’, in relation to a year of assessment, means 6 p.m. on the
Friday following the first Monday in December of the year next following the
year of assessment.
(2) Any person chargeable to tax, whether or not
an assessment has been served on that person, shall be liable to pay an amount
in addition to that tax (hereafter referred to as the ‘surcharge’)
equal to 10% of that tax which remains unpaid, if the tax chargeable on that
person for the year of assessment is not paid in full by the specified time.
Provided that the Comptroller
may waive payment of the surcharge –
(a) if it amounts to £50 or less for any
year of assessment;
(b) where failure to pay the tax by the specified
day is caused by the action of a person, in accordance with Article 3A of
this Law, not connected with the person liable to the surcharge and the failure
is remedied without unnecessary delay; or
(c) the Comptroller is satisfied that death,
serious illness or other grave and exceptional circumstance prevented payment
by the specified time.
(3) Paragraph (2) of this Article shall not
apply where the aggregate of the amounts received by the specified time by the
Comptroller, pursuant to Article 41G of this Law, as payment of a
person’s tax for the year of assessment, is 70% or more of the
person’s liability to tax for that year.
(4) The Comptroller shall issue a written notice
to a person of his or her liability under paragraph (2) of this Article.
(5) A person may, within 40 days of the
issue of a notice under paragraph (4) of this Article, apply to the
Comptroller in writing for a waiver under paragraph (2) of this Article.
(6) Where a person applies under
paragraph (5) of this Article, the Comptroller shall give notice to the
person of whether or not he has waived the person’s liability.
(7) A person aggrieved by the
Comptroller’s refusal to waive liability under paragraph (2) of this
Article may appeal to the Commissioners, on giving notice in writing to the
Comptroller within 40 days of the issue of notice of refusal.
(8) The following provisions of this Law shall
apply, with the necessary modifications, to an appeal under paragraph (7)
of this Article as they apply to an appeal against any assessment –
(a) the
proviso to Article 27(1);
(b) Article 27(2);
(c) Article 28(1);
(d) Article 29,
with the omission of paragraphs (4) and (5);
(e) Articles 29A and 31 to 36.
(9) All monies received by the Comptroller in
payment of the surcharge shall be applied to meet the costs of collection of
the Income Tax Department and any remainder paid to the Treasurer of the
States.”.
8 Consequential
amendment and repeals
(1) In
Article 17A(12) of the principal Law[18] for the words “Article
26(2)” there shall be substituted the words “Article 41I(2)”.
(2) The
following provisions of the principal Law shall be repealed –
(a) Article
26;[19]
(b) Article
102;[20]
(c) Article
136(4).[21]
9 Bankruptcy
(Désastre) (Jersey) Law 1990 amended
In Article 32(1)(c)(i) of the Bankruptcy (Désastre)
(Jersey) Law 1990,[22] for the words “Article
45” there shall be substituted the words “Articles 41B, 41E and
45”.
10 Commencement
of Part 2
(1) The
following provisions of this Part shall come into force on 1st January
2005 –
(a) Articles
2 and 3;
(b) Article
5;
(c) Article
7, to the extent that it inserts the following Articles in the principal
Law –
(i) Article
41C,
(ii) Article
41D,
(iii) Article 41F.
(2) The
following provisions of this Part shall come into force on 1st January
2006 –
(a) Article
4;
(b) Article
6;
(c) Article
7, to the extent that it is not already in force by virtue of paragraph (1)(c);
(d) Articles
8 and 9.
Part 3
Extension of trades chargeable under
Schedule D
11 Article
3 amended
In Article 3(1) of the principal Law[23] –
(a) after
the definition “enactments” there shall be inserted the following
definition –
“ ‘fixed
place of business’ includes a building
site or a construction project;”;
(b) in
the definition “trade” after the word “includes” there
shall be inserted the words “every disposal, on a commercial basis, of
property deriving its value from land or from any building or structure or from
any part thereof, and”.
12 Article
61 amended
In Article 61 of the principal Law[24] –
(a) in
paragraph (1)(a)(iii) for the words “from” (in the first place
where it appears) to the end of the clause there shall be substituted the
following words –
(A) any property whatever in the Island;
(B) any trade exercised in the Island, whether
or not through a fixed place of business in the Island;
(C) any profession, employment, vocation or
office exercised within the Island; or
(D) any pension arising in the Island;”;
(b) after
paragraph (1) there shall be inserted the following paragraph –
“(1A) In the case of a trade of disposing of property
deriving its value from land or from any building or structure or from any part
thereof, which is situated in the Island, the land, building or structure shall
be a fixed place of business through which the trade is exercised, whether or
not the disposal is made or concluded in the Island.”.
13 Commencement
of Part 3
This Part shall have effect for the year of assessment 2004 and
ensuing years.
Part 4
Persons Granted Housing Consent under
Regulation 1(1)(k)
14 Part
XXIA inserted
After Part XXI of the principal Law[25] there shall be inserted the
following Part –
“Part XXIA
Special provision for person
granted 1(1)(k) housing consent
135A Persons
granted 1(1)(k) housing consent
(1) This Article applies to any person who,
pursuant to a 1(1)(k) housing consent granted on or after 1st January 2005,
acquires land or property conferring a right to occupy land (whether or not
that person has previously been granted such a consent).
(2) This Article shall cease to apply to the
person upon –
(a) the revocation of the 1(1)(k) housing
consent; or
(b) the person ceasing to own the land or
property conferring the right to occupy land, unless, within the period of 6
months following such cessation, the person acquires other land or such
property pursuant to a further 1(1)(k) housing consent.
(3) Notwithstanding the rate of tax required by
Article 1 of this Law to be charged for a year of assessment, where, for
that year of assessment, so much of the person’s total income as is not
Jersey income exceeds the prescribed limit, the amount of the excess shall be
chargeable to tax at the prescribed rate.
(4) The States may by Regulations, for the
purposes of paragraph (3) of this Article, specify a prescribed limit and
either a single prescribed rate or different prescribed rates to apply to
different portions of so much of a person’s income as is chargeable to
tax in accordance with that paragraph.
(5) In this Article –
‘1(1)(k) housing
consent’ means consent under the Housing (Jersey) Law 1949[26] for the sale, transfer or
lease of any land in the case described in Regulation 1(1)(k) of the
Housing (General Provisions) (Jersey) Regulations 1970;[27]
‘Jersey income’
means –
(a) all annual profits or gains arising or
accruing from –
(i) any
rents or receipts described in Article 51 of this Law,
(ii) any
kind of property whatever, situated in the Island,
(iii) any
trade exercised in the Island, whether or not through a fixed place of business
in the Island,
(iv) any
profession, employment, vocation or office exercised within the Island, or
(v) any
pension arising in the Island;
(b) all interest of money and annuities arising
in the Island; and
(c) all sums paid to an individual or an
individual’s personal representative pursuant to Article 131D or 131E of
this Law,
and includes any payment to
be charged to tax by virtue of Article 86(2)(e) of this Law.
135B Exchange
of information for the purposes of Article 135A
(1) Notwithstanding anything in this Law or any
other enactment –
(a) the Comptroller may disclose information to
the Housing Committee or an officer of that Committee for the purposes of the
grant and revocation of 1(1)(k) housing consents;
(b) an officer of the Housing Committee may
disclose information to the Comptroller for the purposes of the administration
of this Article.
(2) A person to whom information is disclosed
pursuant to paragraph (1) of this Article shall use it only for the
purposes for which it is disclosed.
(3) In this Article –
‘1(1)(k) housing
consent’ has the same meaning as in Article 135A of this Law;
‘officer’ has the
same meaning as in Article 36A(6) of the States of Jersey Law 1966.[28]”.
15 Commencement
of Part 4
This Part of this Law shall come into force on 1st January 2005.
Part 5
Apportionment of allowances etc. for
individual absent from the island
16 Article
129A inserted
After Article 129 of the principal Law[29] there shall be inserted the
following Article –
“129A Apportionment
for individual in Island for part of year
(1) Subject to paragraph (2), this Article
applies, for any year of assessment, to an individual who is not –
(a) in the Island for the whole of that year; or
(b) assessed and charged to income tax for that
year in accordance with Article 126 of this Law.
(2) This Article shall not apply to an
individual whose allowances and reliefs for the year of assessment have
been reduced in accordance with Article 106 of this Law, and –
(a) who is not an employee or office holder or a
sub-contractor carrying on the duties of the employment, office or contract in
the Island; or
(b) who is a director of a company which is
incorporated in the Island or which, in the year of assessment, is resident in,
or carries on any part of its activities in, the Island.
(3) Where this Article applies to an individual
for a year of assessment, the exemption threshold applicable in the
individual’s case by virtue of Article 92A of this Law, and any
reliefs, reduction, allowances and deductions to which the individual would
otherwise have been entitled under Parts XI and XII and Article 65B(3) of
this Law, shall be reduced to an amount equal to, for each period of 7
complete, consecutive days in that year for which the individual proves, to the
satisfaction of the Comptroller, that he or she is in the Island, 1/52nd of the
amounts determined in accordance with the aforementioned provisions.
(4) In this Article –
‘office holder’
does not include a director of a company described in paragraph (2)(b) of
this Article;
‘sub-contractor’
has the same meaning as in Article A15 of this Law.”.
17 Commencement
of Part 5
This Part shall have effect for the year of assessment 2006 and
ensuing years.
Part 6
Removal of allowance for child in certain
cases
18 Article
95 amended
In Article 95 of the principal Law[30] –
(a) in
paragraph (1)(b) for the words “full-time instruction at any
university, college or other establishment for further education” there
shall be substituted the words “full-time higher education”;
(b) in
paragraph (2) for the words “such full-time instruction as
aforesaid” there shall be substituted the words “such full-time
instruction or full-time higher education as aforesaid”;
(c) after
paragraph (5) there shall be added the following paragraph –
“(6) In this Article ‘higher
education’ has the same meaning as in the Education (Jersey) Law 1999.[31]”.
19 Schedule
5 amended
After paragraph 1 of Schedule 5 to the principal Law[32] there shall be added the
following paragraph –
“2 Income Tax
(Amendment No. 24) (Jersey) Law 200-: transitional provision for Article
95
(1) In this paragraph ‘amending Law’
means the Income Tax (Amendment No. 24) (Jersey) Law 2005[33].
(2) In the case of an individual entitled, for
the year of assessment 2004, to a deduction under Article 95(1)(b) or (2)
of this Law in respect of a child receiving instruction at any university,
college or other establishment for further instruction, but who is not
receiving full-time higher education, Article 95 of this Law shall, for so
long as the child continues to receive such instruction at that university,
college, or other establishment for further instruction, continue to have
effect without the amendment made by Article 18 of the amending Law.
(3) In sub-paragraph (2) of this paragraph
‘higher education’ has the same meaning as in the Education
(Jersey) Law 1999.[34]”
20 Commencement
of Part 6
This Part shall have effect for the year of assessment 2005 and
ensuing years.
Part 7
Closing Provision
21 Citation
This Law may be cited as the Income Tax (Amendment No. 24)
(Jersey) Law 2005.
M.N. DE LA HAYE
Greffier of the States.
[1] Volume 1961-1962, pages 197 and 443,
Volume 1963-1965, pages 97, 143, 178, 189, 423 and 454, Volume 1966-1967, page
523, Volume 1968-1969, pages 38 and 219, Volume 1970-1972, pages 209, 305 and
382, Volume 1973-1974, page 275, Volume 1975-1978, pages 47, 148 and 257,
Volume 1979-1981, pages 16, 157, 297 and 383, Volume 1982-1983, page 46, Volume
1984-1985, page 76, Volume 1986-1987, pages 192 and 208, Volume 1988-1989,
pages 222 and 380, Volume 1990-1991, pages 96, 432 and 1088, Volume 1992-1993,
pages 36 and 121, Volume 1994-1995, pages 220 and 366, Volume 1996-1997,
pages 264, 643 and 652, Volume 1998, pages 3 and 259, Volume 1999, pages 209,
390, 403 and 418, Volume 2000, page 290, Volume 2001, pages 123 and 145, Volume
2003, page 239 and Volume 2004, page 795.
[2] Volume 1961-1962, page 203, Volume
1963-1965, page 178, Volume 1986-1987, page 192, Volume 1996-1997, page 267,
Volume 2003, page 251 and Volume 2004, page 808.
[3] Volume 1961-1962, page 205.
[4] Volume 1992-1993, page 437.
[5] Volume 1961-1962, page 308 and Volume
2004, page 821.
[6] Volume 1961-1962, pages 205 and 206, Volume
1963-1965, page 178, Volume 1996-1997, page 268 and Volume 2003, page 251.
[7] Volume 1973-1974, page 319, Volume
1982-1983, pages 51, 53 and 239, Volume 1986-1987, pages 149 and 151, Volume
1990-1991, pages 467 and 1117, Volume 1992-1993, pages 433 and 437, Volume
1994-1995, page 423, Volume 1996-1997, pages 7 and 1063, Volume 1998, page 722,
Volume 1999, pages 419 and 515, Volume 2000, page 873, Volume 2002, pages 639
and 643, Volume 2004, page 839 and Nos. 7640, 7666, 8602 and 9112.
[8] Volume 1973-1974, page 319, Volume
1982-1983, pages 51, 53 and 239, Volume 1986-1987, pages 149 and 151, Volume
1990-1991, pages 467 and 1117, Volume 1992-1993, pages 433 and 437, Volume
1994-1995, page 423, Volume 1996-1997, pages 7 and 1063, Volume 1998, page 722,
Volume 1999, pages 419 and 515, Volume 2000, page 873, Volume 2002, pages 639
and 643, Volume 2004, page 839 and Nos. 7640, 7666, 8602 and 9112.
[9] Volume 1961-1962, page 217.
[10] Volume 1961-1962, page 217.
[11] Volume 1961-1962, page 217.
[13] Volume 1992-1993, page 437.
[14] Volume 1992-1993, page 437.
[15] Volume 1992-1993, page 437.
[16] Volume 1992-1993, page 437.
[17] Volume 1973-1974, page 319, Volume
1982-1983, pages 51, 53 and 239, Volume 1986-1987, pages 149 and 151, Volume
1990-1991, pages 467 and 1117, Volume 1992-1993, pages 433 and 437, Volume
1994-1995, page 423, Volume 1996-1997, pages 7 and 1063, Volume 1998, page 722,
Volume 1999, pages 419 and 515, Volume 2000, page 873, Volume 2002, pages 639
and 643, Volume 2004, page 839 and Nos. 7640, 7666, 8602 and 9112.
[18] Volume 1961-1962, page 204 and Volume
2004, page 808.
[19] Volume 1961-1962, page 209, Volume
1992-1993, page 121, Volume 1999, page 404 and Volume 2004, page 807.
[20] Volume 1961-1962, page 262, Volume
1986-1987, page 201 and Volume 1999, page 409.
[21] Volume 1961-1962, page 296.
[22] Volume 1990-1991, page 78.
[23] Volume 1961-1962, page 198, Volume
1963-1965, page 143, Volume 1975-1978, page 47, Volume 1996-1997, page 266,
Volume 1999, page 403 and Volume 2003, pages 241, 242 and 251.
[24] Volume 1961-1962, page 226, Volume 2002,
page 427, Volume 2003, page 242 and Volume 2004, pages 799 and 800.
[25] Volume 1961-1962, page 295, Volume
1963-1965, page 424, Volume 1975-1978, page 258, Volume 1979-1981, page 384,
Volume 1996-1997, page 269, Volume 1999, pages 213 to 215 and 418 and Volume
2004, page 807.
[26] Tome VII, page 535, Volume 1988-1989,
page 295, Volume 1990-1991, pages 545 and 1113, Volume 1992-1993, page 115,
Volume 1996-1997, pages 1 and 337, Volume 1999, pages 418 and 533, Volume 2002,
page 1215 and Volume 2004, page 773.
[27] R&Os 5444, 5981,
6284, 6651, 6720, 6903, 7167, 7572, 8170, 8592, 8866, 8919, 9446, 16/2001,
54/2001, 14/2002, 135/2002, 14/2003, 52/2003 and 148/2003.
[28] Volume 1966-1967, page 18, Volume
1996-1997, pages 11 and 803 and R&O 9176.
[29] Volume 1961-1962, page 282.
[30] Volume 1961-1962, page 255 and Volume 2000, pages 292 and 293.
[31] Volume 1999, page 439, Volume 2001, page
300 and R&O 130/2004.
[32] Volume 1961-1962, page 308 and Volume
2004, page 821.
[33] Volume 2005, page 419.
[34] Volume 1999, page 439, Volume 2001, page
300 and R&O 130/2004.