Finance (Jersey) Law 1995

Jersey Law 1/1995 FINANCE (JERSEY) LAW 1995 ____________ A LAW to continue certain expiring fiscal Laws; to prescribe the standard rate of income tax for the year nineteen hundred and ninety-three; to amend further the law relating to income tax in its application to small incomes and with respect to the treatment for taxation purposes of losses sustained in any trade, profession or vocation and to make new provisions for the taxation of companies; and to increase tobacco duty and oils and spirits duty; sanctioned by Order of Her Majesty in Council of the 2nd day of NOVEMBER 1994 ____________ (Registered on the 20th day of January 1995) ____________ STATES OF JERSEY ____________ The 8th day of December 1992 ____________ T HE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law – PART I CONTINUATION OF CERTAIN EXPIRING FISCAL LAWS ARTICLE 1 The Laws mentioned in the Schedule to this Law, as amended and as continued in force by any subsequent enactment, shall remain in force until the thirty-first day of December 1993. PART II Standard rate of income tax for 1993 ARTICLE 2 There shall be levied and charged in the Island for the year nineteen hundred and ninety-three in accordance with the provisions of the Income Tax (Jersey) Law 1961, 1 as amended 2 by any subsequent enactment, including this Law, income tax at the standard rate of twenty pence in the pound. PART III Amendment of Income Tax Law in relation to exemption from tax of small income ARTICLE 3 In Article 92A of the Income Tax (Jersey) Law 1961, 3 as amended 4 – (a) in paragraph (1) for the words “nine thousand one hundred pounds” and “fourteen thousand eight hundred pounds” there shall be substituted the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” respectively; (b) in the first proviso to paragraph (1) for the words “nine thousand one hundred pounds” and “fourteen thousand eight hundred pounds” there shall be substituted the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” respectively; (c) in the second proviso to paragraph (1) for the words “nine thousand one hundred pounds” and “fourteen thousand eight hundred pounds” there shall be substituted the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” respectively; (d) in the third proviso to paragraph (1) for the words “nine thousand one hundred pounds” and “fourteen thousand eight hundred pounds” there shall be substituted the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” respectively; (e) in the fourth proviso to paragraph (1) for the words “nine thousand one hundred pounds”, “one thousand one hundred pounds”, “fourteen thousand eight hundred pounds” and “two thousand two hundred pounds” there shall be substituted the words “nine thousand three hundred and seventy-five pounds”, “one thousand one hundred and twenty-five pounds”, “fifteen thousand two hundred and fifty pounds” and “two thousand two hundred and fifty pounds” respectively. ARTICLE 4 This Part of this Law shall have effect for the year nineteen hundred and ninety-two and ensuing years. PART IV Amendment of Income Tax Law with regard to the carrying back of losses ARTICLE 5 (1) In Article 107 of the Income Tax (Jersey) Law 1961, 5 as amended (hereafter in this Part referred to as “the principal Law”) – (a) in paragraph (1) for the words “one year” there shall be substituted the words “two years”; (b) in paragraph (3) for the words “subsequent year” there shall be substituted the words “previous or subsequent year”. (2) After Article 107 of the principal Law there shall be inserted the following Article – “ARTICLE 107A Right to carry back losses (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, he shall be entitled, on giving notice in writing to the Comptroller within two years after the end of the year in which the loss has been sustained, to claim that any portion of the loss for which relief has not been so given shall be carried back and, as far as may be, deducted from the amount of profits or gains on which he has been assessed under Schedule D in respect of that trade, profession or vocation for the immediately preceding year of assessment. (2) The Comptroller shall, on proof to his satisfaction of the amount of the loss and of the payment of tax for the immediately preceding year of assessment, authorise repayment of so much of the sum paid for tax as would represent the tax on income equal to the loss carried back; and 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. (3) In the application of this Article to a loss sustained by a partne r in partnership, ‘the amount of profits or gains on which he has been assessed’ shall, in respect of any year, be taken to mean such portion of the amount on which the partnership has been 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. (4) In this Article ‘the immediately preceding year of assessment’ means the year immediately preceding the year in which the loss has been sustained.”. ARTICLE 6 This Part of this Law shall apply to losses sustained in the year nineteen hundred and ninety-two and subsequent years. PART V Taxation of companies ARTICLE 7 (1) In Article 123A of the Income Tax (Jersey) Law 1961, 6 as amended (hereafter in this Part referred to as “the principal Law”) – (a) in sub-paragraph (b) of paragraph (1) for the words “Commercial Relations Officer” there shall be substituted the word “Director”; (b) in paragraph (10) for the definition of “Commercial Relations Officer” there shall be substituted the following definition – “ ‘Director’ means the chief officer for the time being of the Department established as the Commercial Relations Department by Act of the States dated 9th February 1971 and renamed Financial Services Department by Act of the States dated 26th May 1992;”. (2) After Article 123A of the principal Law there shall be inserted the following Article – “ARTICLE 123B International business companies (1) A company (referred to in this Article as an “international business company”) shall, on application in that behalf made in such manner, within such time (not being later than the thirty-first day of October in the year of assessment or within three months of the company having become resident in the Island, as the case may be) and accompanied by such information as the Comptroller may require and on payment of the tax specified in paragraph (4) of this Article, be charged to tax as provided in paragraphs (2) and (3) of this Article in respect of profits or gains derived from international activities if – (a) no person resident in the Island has, at any time during the year of assessment, any beneficial interest in the company other than as a shareholder in or debenture holder of a body corporate which – (i) has a beneficial interest in such company, and (ii) is listed on a recognised Stock Exchange, and disclosure has been made to the Director, to his satisfaction, of either the full name and address of the ultimate beneficial owners of the shares of the company or, where the shares of the company are held on trust, the names and addresses of the persons who provided the trust property and the name and address of the instigator of the trust, if different, together with, upon request, the names of all persons having a beneficial interest in the company; or (b) any company resident in the Island which holds shares in the company is itself wholly owned by persons who satisfy the requirements of sub-paragraph (a) of this paragraph. (2) Notwithstanding anything in Part X of this Law as it relates to the charging of tax on profits or gains arising from any trade by reference to Case I of Schedule D, tax in respect of profits or gains derived from international activities shall be charged to tax under Case VI of Schedule D. (3) Notwithstanding Article 1 of this Law, tax shall be charged in respect of profits or gains derived from international activities at the following rates of tax – on the first three million pounds of profits or gains at the rate of two pence in the pound; on the next one million five hundred thousand pounds of profits or gains at the rate of one and one-half pence in the pound; on the next five million five hundred thousand pounds of profits or gains at the rate of one penny in the pound; on any remaining part of profits or gains at the rate of one-half of one penny in the pound. (4) Notwithstanding that no notice of assessment has been served under this Law, tax of one thousand two hundred pounds shall be paid to the Comptroller when application is made under paragraph (1) of this Article and that sum shall be allowed as a credit against the tax subsequently determined as payable by the international business company. (5) Paragraph (1) of this Article shall not apply in any year of assessment to a company which – (a) was resident in the Island (or, in the case of the branch of a non-resident company, commenced trading) prior to the first day of January 1993; or (b) has not been for all previous years of assessment an international business company; or (c) has failed or omitted to make a return of income for any previous year of assessment; or (d) has failed or omitted to pay income tax payable for any previous year of assessment. (6) If, during the year of assessment, a person residing in the Island, not being a company to which sub-paragraph (b) of paragraph (1) of this Article applies, acquires a beneficial interest in an international business company, he shall notify the Comptroller forthwith and the provisions of this Article shall cease to apply from the date on which that beneficial interest was acquired. (7) For the purposes of Article 137 of this Law, a statement made or information given in connexion with an application under this Article shall be treated as a statement made in connexion with a claim for relief, and a failure to notify the Comptroller of the matter referred to in paragraph (6) of this Article shall be treated as the making of an incorrect statement. (8) A person aggrieved by a refusal by the Comptroller of an application under this Article shall be entitled to appeal to the Commissioners and the provisions of Part VI of this Law shall apply in the case of an appeal under this paragraph as they apply in the case of an appeal against an assessment, with such adaptations as may be necessary. (9) The Comptroller shall not pursue the liability to income tax of any person not resident in the Island in receipt of remuneration paid by an international business company. (10) 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 of the tax payable by the international business company. (11) This Article shall apply to the profits or gains derived from international activities applicable to any branch in the Island of a non-resident company as it applies to such profits or gains of a company resident in the Island, with the substitution in paragraph (1) of this Article of the words “having become resident” by the words “having set up a branch”. (12) Sub-paragraphs (1) and (m) of Article 70 and Articles 86 and 87 of this Law shall not apply to an international business company. (13) In this Article – “beneficial interest“ has the same meaning as in Article 123A of this Law, with the substitution of the words “exempt company” by the words “international business company”; “Director” has the same meaning as in Article 123A of this Law; “international activities” means business activities carried on outside the Island.”. ARTICLE 8 This Part of this Law shall have effect for the year nineteen hundred and ninety-three and ensuing years. PART VI Amendment of Tobacco Duty Law ARTICLE 9 In Article 1 of the “Loi (1937) sur la perception d’un impôt sur le tabac”, as amended 7 – (a) in sub-paragraphs (a), (b) and (c) of the first paragraph for the expressions “£19.07”, “£19.96”, “£20.63”, “£25.79” and “£21.92” there shall be substituted the expressions “£23.84”, “£24.95”, “£25.79”, “£32.24” and “£27.40” respectively. (b) in the second paragraph for the expression “£19.07” there shall be substituted the expression “£23.84”. ARTICLE 10 This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the 24th day of November 1992. PART VII Amendment of Oils and Spirits Duty Law ARTICLE 11 In Article 2 of the “Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”, as amended, 8 for sub-paragraph (b) there shall be substituted the following sub-paragraphs – “(b) sur l’essence en plomb (c’est à dire l’essence pour moteurs à explosion ayant teneur en plo m b supérieur à 0.020 grammes de plomb métal par litre) £7.39 par hectolitre (c) sur huile £6.29 par hectolitre”. ARTICLE 12 This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the 24th day of November 1992. PART VIII Short title ARTICLE 13 This Law may be cited as the Finance (Jersey) Law 1995. C.M. NEWCOMBE Deputy Greffier of the States. SCHEDULE (Article 1) Fiscal Laws continued in force Import Duties (Jersey) Law 1932. 9 “Loi (1937) sur la perception d’un impôt sur le tabac”. 10 “Loi (1937) sur la perception d’un impôt sur la bière”. 11 “Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”. 12 Revenue Duty on Oils and Spirits (Administration) (Jersey) Law 1940. 13 1 Volume 1961–1962, page 197. 2 Volume 1961–1962, page 445, Volume 1963–1965, pages 97, 115, 144, 178, 190, 423 and 424, Volume 1966–1967, pages 420, 523, 524 and 526, Volume 1968–1969 page 220, Volume 1970–1972, pages 204, 209, 210 and 382, Volume 1973–1974, pages 275 and 276, Volume 1975–1978, pages 47, 48, 257 and 258, Volume 1979–1981, pages 17, 157, 158, 159, 163, 297, 298, 383 and 384, Volume 1982–1983, page 47, Volume 1984–1985, page 76, Volume 1986–1987, pages 192, 193, 198, 201, 211, 219 and 299, Volume 1988–1989, pages 222, 223, 224, 380, 383 and 384, Volume 1990–1991, pages 97, 98, 99, 103, 104, 105, 431, 432, 434 and 435, and Volume 1992–199, pages 35, 36, 37 and 38. 3 Volume 1970–1972, page 204. 4 Volume 1982–1983, page 47, Volume 1988–1989, pages 223, 224 and 381, Volume 1990–1991, page 431, and Volume 1992–1993, page 36. 5 Volume 1961–1962, page 264. 6 Volume 1988-1989, page 384. 7 Tome VII, page 213, Volume 1979–1981, page 394, Volume 1990–1991, pages 107 and 108, and Volume 1992–1993, page 44. 8 Tome VII, page 321, Volume 1979–1981, pages 185 and 186, Volume 1988–1989, page 509, and Volume 1990–1991, page 108. 9 Tome VII, page 42. 10 Tome VII, page 213, Volume 1979–1981, page 394; Volume 1990–1991, pages 107 and 108, and Volume 1992–199 , page 44. 11 Tome VII, page 216, Volume 1979–1981, page 394, and Volume 1992–199 , page 44. 12 Tome VII, page 320, Volume 1979–1981, pages 185 and 186, Volume 1988–1989, page 509, and Volume 1990–1991, page 108. 13 Tome VII, page 323.