Income
Tax (Payment of 2019 Liability) (Jersey) Regulations 2021
1 Interpretation
In these
Regulations –
“2019 liability” means the amount of income tax
assessed (or to be assessed) for the year beginning 1st January 2019;
“Law” means the Income Tax (Jersey) Law 1961;
“pensionable age” has the same meaning as in the
Social Security
(Jersey) Law 1974.
2 Application of these Regulations
These Regulations apply
to a person whose 2019 liability is deferred by paragraph 23 of Schedule 5
to the Law.
3 Due dates for payment of 2019 liability – general[1]
If no other Regulation
applies, one-seventeenth of a person’s 2019 liability is due and payable annually,
with –
(a) the first one-seventeenth
due and payable on 31st December 2027; and
(b) the final one-seventeenth
due and payable on 31st December 2043.
4 Payment holidays
(1) A person whose 2019 liability is due and
payable under Regulation 3 may apply to the Comptroller for a payment
holiday for a year.
(2) The Comptroller –
(a) must approve a person’s
first application for a payment holiday; and
(b) may approve an
application by the person for any subsequent year.
(3) If the Comptroller approves a person’s
application for a payment holiday for a year, –
(a) the person is not
required to pay the amount that would otherwise be due and payable by 31st
December of that year; and
(b) the remainder of the
person’s 2019 liability is due and payable in equal instalments on 31st
December each year, –
(i) starting on 31st December of the year
after the year to which the payment holiday applies, and
(ii) ending on 31st December 2043.[2]
5 Election for deferred
payment (by 30th September 2026)[3]
(1) A person may elect to pay the person’s 2019
liability by deferred payment.
(2) An election must –
(a) be in writing;
(b) be received by the
Comptroller no later than 30th September 2026; and
(c) contain a declaration
that, to the best of the person’s knowledge, the person will have sufficient
means to pay the 2019 liability 12 months after the person reaches
pensionable age.[4]
(3) If a person elects to pay by deferred
payment, the person’s 2019 liability is due and payable 12 months after
the date on which the person reaches pensionable age.
6 Application for deferred payment (after 30th September 2026)[5]
(1) A person who has not made an election under
Regulation 5 by 30th September 2026 may, at any time after that date,
apply to pay the person’s 2019 liability by deferred payment.[6]
(2) An application must –
(a) be in writing; and
(b) contain a declaration
that, to the best of the person’s knowledge, the person will have sufficient
means to pay the 2019 liability 12 months after the person reaches pensionable
age.
(3) The Comptroller may request evidence in
support of the declaration.
(4) The Comptroller may approve an application
if the Comptroller is satisfied that the person will have sufficient means to
pay the 2019 liability 12 months after the person reaches pensionable age.
(5) If the Comptroller approves the
application, –
(a) the amount of the
person’s 2019 liability due and payable on 31st December 2027 under
Regulation 3 remains due and payable on that date;
(b) any further amounts that
were due and payable under Regulation 3 before the person applied remain
due and payable in accordance with that Regulation; and
(c) the remainder of the
person’s 2019 liability is due and payable 12 months after the date on
which the person reaches pensionable age.[7]
7 Deferred payment – change of
circumstances
(1) This Regulation applies to a person
who –
(a) has made an election
under Regulation 5; or
(b) has had an application
approved under Regulation 6.
(2) A person must inform the Comptroller, as
soon as practicable, if the person’s circumstances change in a way that means
that they will no longer have sufficient means to pay the 2019 liability 12 months
after the person reaches pensionable age.
(3) The Comptroller may, at any time, request
evidence that a person will have sufficient means to pay the 2019 liability 12
months after the person reaches pensionable age.
(4) If the Comptroller considers that a person
will not have sufficient means to pay the 2019 liability 12 months after the
person reaches pensionable age, the Comptroller may require the person to pay
the 2019 liability under this Regulation.
(5) If the Comptroller requires a person to pay
the 2019 liability under this Regulation, –
(a) the Comptroller must
notify the person, in writing, of the requirement; and
(b) the amount of the
person’s 2019 liability that has not yet become due is due and payable in equal
instalments on 31st December each year, –
(i) starting on 31st December of the year that
the notice is issued, and
(ii) ending on 31st December 2043.[8]
8 Change of payment methods – deferred
payment to annual instalments
(1) A person who has made an election under
Regulation 5 or had an application approved under Regulation 6 may apply in
writing to the Comptroller to no longer pay by deferred payment.
(2) If the Comptroller accepts the application,
the person’s 2019 liability is due and payable in equal instalments on 31st
December each year, –
(a) starting on 31st December
of the year that the notice of acceptance is issued; and
(b) ending on 31st December 2043.[9]
9 People becoming non-residents
(1) This Regulation applies if an individual
who was resident in Jersey on 31st December 2019 becomes non-resident
before the individual’s 2019 liability is due and payable under another
Regulation.
(2) Any unpaid amount of the
individual’s 2019 liability is due and payable 6 months after these
Regulations come into force or on the date that the individual becomes a
non-resident, whichever is later.
10 Non-residents in receipt
of rental income
(1) This Regulation applies if –
(a) an individual was a
non-resident on 31st December 2019;
(b) the individual’s 2019
liability arises solely from rental income from Jersey property; and
(c) before the 2019 liability
is due and payable under another Regulation, –
(i) the individual sells the property, if the
rental income is from one property, or
(ii) the individual sells all
of the properties, if the rental income is from more than one property.
(2) Any unpaid amount of the individual’s 2019
liability is due and payable on the later of 6 months after these Regulations
come into force and –
(a) the date that the
individual sells the property, if the rental income is from one property; or
(b) the date that the
individual sells the last property, if the rental income is from more than one
property.
11 People aged 65 or older
facing financial hardship
(1) A person who was 65 years of age or
older on 31st December 2020 may apply to pay some or all of the person’s 2019
liability upon the person’s death.
(2) An application must be in writing and
contain a declaration that the person would experience financial hardship if
required to pay the person’s 2019 liability in accordance with the applicable
Regulation.
(3) The Comptroller may request evidence in
support of the declaration.
(4) The Comptroller may approve an application
if the Comptroller is satisfied that the person would experience financial
hardship if required to pay the person’s 2019 liability in accordance with the
applicable Regulation.
(5) In considering whether a person would
experience financial hardship, the Comptroller may consider –
(a) the person’s reasonable
living expenses;
(b) any assets the person
owns or has an interest in; and
(c) any other factor the
Comptroller considers relevant.
(6) If the Comptroller approves the
application, the person’s 2019 liability is due and payable in accordance with
the approval.
12 Deceased people
(1) The 2019 liability of a person who died
before these Regulations come into force is due and payable 12 months
after these Regulations come into force.
(2) Any unpaid amount of the 2019 liability of
a person who dies after these Regulations come into force but before the full
amount of the person’s 2019 liability is due and payable under another
Regulation is due and payable on the date of the person’s death.
(3) An amount due and payable under this
Regulation is a debt due from and payable out of the person’s estate.
13 Trusts and estates
(1) This Regulation applies to a trust or
estate, except for a trust that is an interest in possession trust in which a
beneficiary is entitled to the income of the trust and is in receipt of the
income directly.
(2) The trust or estate’s 2019 liability is due
and payable 6 months after these Regulations come into force.
14 Partnerships
A 2019 liability that arises from an assessment under Article 74
of the Law (partnership statements and assessments) is –
(a) divided between the
partners in the same proportion as the share of the partnership profits that
each partner was entitled to for the 2019 year of assessment; and
(b) is due and payable by
each partner as if it formed part of the partner’s own 2019 liability.
15 Taxpayers in default
(1) The Comptroller may, in writing, demand
immediate payment of a person’s 2019 liability if –
(a) some or all of the
person’s 2019 liability is due and payable under Regulation 3, 4(3)(b), 6(5)(a),
6(5)(b), 7(5)(b) or 8(2); and
(b) the person does not pay
an amount due under one of those provisions by 3 years after the amount is
due and payable.
(2) If the Comptroller issues a demand under
this Regulation –
(a) the amounts of the
person’s 2019 liability that have already become due and payable under another
Regulation remain due and payable from the original due dates; and
(b) the remainder of the
person’s 2019 liability becomes due and payable on the date the demand is
issued.
16 Review of these Regulations[10]
No later than 30th June 2033, –
(a) the Comptroller must
review the operation of these Regulations to –
(i) establish the number of taxpayers who have
elected to pay by deferred payment,
(ii) establish the total
amount of 2019 liability that is still outstanding, and
(iii) consider whether these
Regulations should be amended for the purpose of ensuring that the outstanding
amount can be collected; and
(b) the Minister must present
a report to the States Assembly that summarises the review’s findings.
17 Appeals
(1) A person may appeal to the Commissioners
against a decision made by the Comptroller under these Regulations by giving
notice in writing to the Comptroller within 40 days of receiving
notification of the decision.
(2) Part 6 of the Law applies, with the
necessary modifications, to an appeal under paragraph (1) as if it were an
appeal against an assessment.
18 Citation and commencement
These Regulations may be cited as the Income Tax (Payment of 2019
Liability) (Jersey) Regulations 2021 and come into force 7 days after they
are made.