Finance (Jersey) Law 1950

Jersey Law 4/1950 FINANCE (JERSEY) LAW, 1950. A LAW to continue certain expiring fiscal laws, to prescribe the standard rate of income tax for the year nineteen hundred and fifty, and to amend the Law relating to income tax, sanctioned by Order of His Majesty in Council of the 25th day of APRIL, 1950. ( Registered on the 8 th day of May , 1950). ____________ STATES OF JERSEY. ____________ The 19th day of January, 1950. ____________ T HE STATES , subject to the sanction of His Most Excellent Majesty in Council, have adopted the following Law: - PART I CONTINUATION OF EXPIRING FISCAL LAWS ARTICLE 1 The Laws mentioned in the Schedule to this Law, as amended and continued in force by any subsequent enactment, being Laws which expire on the thirty-first day of December, nineteen hundred and forty-nine, shall remain in force until the thirty-first day of December, nineteen hundred and fifty. PART II STANDARD RATE OF INCOME TAX FOR 1950 ARTICLE 2 There shall be levied and charged in the Island for the year nineteen hundred and fifty, in accordance with the provisions of the Income Tax (Jersey) Law, 1937, 1 as amended by any subsequent enactment including this Law, an income tax at the standard rate of four shillings in the pound. PART III AMENDMENT OF INCOME TAX LAW ARTICLE 3 For Article 3A of the Income Tax (Jersey) Law, 1937, as amended, 2 (in this Part of this Law referred to as “the principal Law”) there shall be substituted the following Article – “ARTICLE 3A ALLOWANCES IN RESPECT OF EARNED INCOME AND ALLOWANCES FROM TOTAL INCOME OF PERSONS OF AGE OF SIXTY-FIVE YEARS OR UPWARDS (1) An individual who delivers a statement in accordance with the provisions of Article 28 of this Law shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his earned income of a sum equal to one-sixth of the amount of that income, but not exceeding in any case two hundred and fifty pounds. In any case where the profits of a wife are deemed to be profits of the husband, references in this paragraph to the earned income of an individual shall be deemed to include the earned income of the wife. (2) Any individual who delivers a statement in accordance with the provisions of Article 28 of this Law and proves that at the commencement of the year of assessment either he or, in the case of a married man, his wife living with him, was of the age of sixty-five years or upwards and that his total income for the year of assessment does not exceed five hundred pounds shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his total income of a sum equal to one-sixth of the amount of that income, and any individual who would, but for the fact that his total income exceeds five hundred pounds, be entitled to an allowance as aforesaid shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to, but had not exceeded, five hundred pounds, and three-quarters of the amount by which his total income exceeds five hundred pounds: Provided that any deduction or relief under this paragraph shall be in substitution for and not in addition to the deduction under paragraph (1) of this Article.” ARTICLE 4 In paragraph (1) of Article 4 of the principal Law, 3 immediately after the word “assessment”, where that word secondly occurs, there shall be inserted the words “and that he is not entitled in paying the amount of his income tax for that year for the purposes of this Law to make any deduction in respect of the sums paid for the maintenance of his wife”. ARTICLE 5 For Article 5 of the principal Law 4 there shall be substituted the following Article – “ARTICLE 5 DEDUCTIONS IN RESPECT OF CHILDREN (1) If the individual proves that he has living at any time within the year of assessment any child who is either under the age of sixteen years or who, if over the age of sixteen years at the commencement of that year, was receiving full-time instruction at any university, college, school or other educational establishment, he shall, subject to the provisions of this Article, be entitled in respect of each such child to a deduction of sixty pounds. The expression ‘child’ in this paragraph includes a step-child and an illegitimate child whose parents have married each other after his birth. (2) If the individual proves that for the year of assessment he has the custody of and maintains at his own expense any child who is under the age of sixteen years at the commencement of that year or who, if over the age of sixteen years at the commencement of that year, is receiving such full-time instruction as aforesaid and that neither he nor any other individual is entitled to a deduction in respect of the same child under the foregoing provisions of this Article or under any of the other provisions of this Part of this Law, or, if any other individual is entitled to such a deduction, that that other individual has relinquished his claim thereto, he shall be entitled in respect of the child to the same deduction as if the child were a child of his. (3) No deduction shall be allowed under this Article in respect of any child who is entitled in his own right to an income exceeding sixty pounds a year : Provided that in calculating the income of the child for the purposes of this paragraph no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary or other similar educational endowment.” ARTICLE 6 In Article 7 of the principal Law, 5 for the words “forty-five pounds” there shall be substituted the words “fifty pounds”. ARTICLE 7 (1) Immediately after Article 14 of the principal Law 6 there shall be inserted the following Article – “ARTICLE 14A RELIEF TO LIFE ASSURANCE COMPANIES AND OTHERS IN RESPECT OF EXPENSES OF MANAGEMENT (1) Where an assurance company carrying on life assurance business, or any company whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom , or any savings bank or other bank for savings, claims and proves to the satisfaction of the Comptroller of Income Tax that, for any year of assessment, it has been charged to tax by deduction or otherwise, and has not been charged in respect of its profits in accordance with the rules applicable to Case I of Schedule D, the company or bank shall be entitled to repayment of so much of the tax paid by it as is equal to the amount of the tax on any sums disbursed as expenses of management (including commissions) for that year : Provided that – ( a ) relief shall not be given under this Article so as to make the tax paid by the company or bank less than the tax which would have been paid if the profits had been charged in accordance with the said rules ; and ( b ) the amount of any fines, fees, or profits arising from reversions in the case of an assurance company, and, in the case of any other company or any such bank, the amount of any income or profits derived from sources not charged to tax, shall be deducted from the amount treated as expenses of management for the year ; and ( c ) in calculating profits arising from reversions, the company may set off against those profits any loss arising from reversions for any previous year during which any enactment granting this relief was in operation. (2) Notice of any claim under this Article, together with the particulars thereof, shall be given in writing to the Comptroller of Income Tax within twelve months after the expiration of the year of assessment in respect of which the claim is made, and, where the Comptroller of Income Tax objects to such claim, the Commissioners of Appeal shall hear and determine the same in the like manner as in the case of an appeal to them against an assessment under Schedule D, and the provisions of this Law relating to appeals to the Royal Court shall apply. (3) Where an assurance company, not having its head office in Jersey, is charged under Case III of Schedule D on a proportion of the income from the investments of its life assurance fund, the relief in respect of expenses of management shall be calculated by reference to a like proportion of its total expenses of management for the year, estimated according to the provisions of this Law. (4) Where income arising from the investments of the foreign life assurance fund of an assurance company has been relieved from tax in pursuance of the provisions of this Law, a corresponding reduction shall be made in the relief granted under this Article in respect of the expenses of management.” (2) Paragraph (4) of Rule 4 of the Rules applicable to Case III of Schedule D of the principal Law 7 is hereby repealed. ARTICLE 8 At the end of Article 16 of the principal Law 8 there shall be inserted the following sub-paragraph – “( k ) The accumulated interest payable in respect of any savings certificate issued by His Majesty’s Treasury through the Post Office, provided that the amount of the certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which an individual is for the time being authorized to hold under regulations made by His Majesty’s Treasury.” ARTICLE 9 At the end of sub-paragraph ( b ) of paragraph (1) of Article 31 of the principal Law 9 there shall be inserted the words “or, if the employment is for less than a year, a proportionately reduced amount”. ARTICLE 10 (1) For Article 52 of the principal Law 10 there shall be substituted the following Article – “ARTICLE 52 TAX WHEN DUE Income tax contained in an assessment for any year shall be deemed to be due and payable on the day next after the day on which the assessment is made.” (2) For Articles 54 and 55 of the principal Law 10 there shall be substituted the following Article – “ARTICLE 54 GENERAL NOTICES TO PERSONS BY WHOM TAX IS PAYABLE The Comptroller of Income Tax shall, as the need may be, cause to be published in at least two newspapers circulating in the Island, one being a publication in French – ( a ) notice to the effect that income tax for the year specified in the notice is due and payable ; and ( b ) notice to the effect that persons who fail to pay the income tax due by them for the year specified in the notice before such date as may be so specified will be liable to legal proceedings for the recovery of the same : Provided that the publication of such a notice shall not be necessary before instituting legal proceedings for the recovery of tax.” (3) For the first paragraph of Article 56 11 of the principal Law there shall be substituted the following paragraph – “Proceedings for the recovery of income tax may be instituted by the Treasurer of the States, either in term or in vacation, at any time after the assessment to tax has been finally settled.” ARTICLE 11 Immediately after Article 63 of the principal Law 12 there shall be inserted the following Article – “ARTICLE 63A POWER OF COMPTROLLER TO DISCLOSE STATISTICAL INFORMATION Notwithstanding anything in this Law contained, the Comptroller of Income Tax may disclose to the President of the Finance Committee such statistical information as he may require for the purpose of the preparation of the general estimate of the revenue of the States for any year or for any other purpose affecting the revenue of the States.” ARTICLE 12 Immediately after Article 67 of the principal Law, 13 there shall be inserted the following Article – “ARTICLE 67A GENERAL PROVISIONS AS TO PROSECUTIONS. (1) Notwithstanding any enactment or rule of law to the contrary, proceedings which may be taken against any person under this Law may be taken at any time not later than five years from the date of the act or omission giving rise to the proceedings or within the period of one year from the date on which evidence, sufficient in the opinion of the Comptroller of Income Tax to justify the proceedings, comes to his knowledge or, where the person in question was outside the Island at that date, within the period of twelve months from the date on which he first lands in the Island thereafter, whichever of the said periods last expires. (2) For the purposes of paragraph (1) of this Article, a certificate, under the hand of the Comptroller of Income Tax, as to the date on which such evidence as aforesaid came to his knowledge shall be conclusive evidence thereof.” ARTICLE 13 Immediately after Rule 11 of the Rules applicable to Cases I and II of Schedule D of the principal Law 14 there shall be inserted the following Rule – “11A. Where a person has been assessed to tax for any year of assessment under Rule 13 of the General Rules applicable to Schedules A, B, C, and D in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall, for the purposes of Rule 11 of these Rules, be treated as though it were a loss sustained in that trade, profession or vocation, and, subject to the provisions of the last-mentioned Rule, relief in respect thereof shall be allowed in computing the person’s liability to tax in respect of the profits or gains of that trade, profession or vocation for the five years following the said year of assessment : Provided that no relief shall be allowed under this Rule in respect of any such payment or any part of any such payment which is not ultimately borne by the person assessed or which is charged to capital.” ARTICLE 14 This Part of this Law shall apply in relation to the year nineteen hundred and fifty and ensuing years. PART IV Short Title ARTICLE 15 This Law may be cited as the Finance (Jersey) Law, 1950. SCHEDULE FISCAL LAWS CONTINUED IN FORCE Import Duties (Jersey) Law, 1932; 15 “ Loi (1937) autorisant la perception d’un impôt sur le tabac; 16 “ Loi (1937) autorisant la perception d’un impôt sur la bière; 17 Entry Duties (Jersey) Law, 1939; 18 “ Loi (1939) imposant une taxe sur les divertissements”; 19 “ Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”; 20 Import Duty on Oils and Spirits (Administration) (Jersey) Law, 1940. 21 To be printed, published and posted. F. DE L. BOIS, Greffier of the States. 1 Tome 1937–1938, page 137. 2 Tome 1937–1938, page 137, Tome 1946–1948, pages 48 and 517 and page 72 of this volume. 3 Tome 1937–1938, page 137, Tome 1946–1948, pages 205 and 518 and page 72 of this volume. 4 Tome 1937–1938, page 138, Tome 1939–1945, page 250 and page 73 of this volume. 5 Tome 1937–1938, page 139. 6 Tome 1937–1938, page 142. 7 Tome 1937–1938, page 210. 8 Tome 1937–1938, page 147. 9 Tome 1937–1938, page 157 and Tome 1946–1948, page 518. 10 Tome 1937–1938, page 175. 11 Tome 1937–1938, page 175 and Tome 1939–1945, page 449. 12 Tome 1937–1938, page 178. 13 Tome 1937–1938, page 179. 14 Tome 1937–1938, page 205. 15 Tome 1929–1932, page 587. 16 Tome 1937–1938, page 95. 17 Tome 1937–1938, page 99. 18 Tome 1939–1945, page 121. 19 Tome 1939–1945, page 197. 20 Tome 1939–1945, page 253. 21 Tome 1939–1945, page 257.