Income Tax (Amendment No. 8) (Jersey) Law 1971

Jersey Law 11/1971 INCOME TAX (AMENDMENT No. 8) (JERSEY) LAW, 1971. A LAW to amend further the provisions of the Income Tax (Jersey) Law, 1961, sanctioned by Order of Her Majesty in Council of the 25th day of MAY, 1971. ____________ ( Registered on the 2 nd day of July , 1971). ____________ STATES OF JERSEY. ____________ The 15th day of December, 1970. ____________ T HE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law : - ARTICLE 1 After paragraph (2) of Article 72 of the Income Tax (Jersey) Law, 1961, 1 as amended (hereafter in this Law referred to as “the principal Law”) there shall be inserted the following proviso – “Provided that this paragraph shall not apply to any machinery or plant unless the Comptroller is satisfied, having regard to all the relevant circumstances of the case, that the burden of the wear and tear of the machinery or plant will in fact fall directly on that person.” ARTICLE 2 In paragraph (3) of Article 86 of the principal Law, 2 after the word “retain” there shall be inserted the word “out”. ARTICLE 3 After Article 119 of the principal Law 3 there shall be inserted the following Article – “ARTICLE 119A EXEMPTION OF CONSULS AND OTHER OFFICIAL AGENTS (1) Income arising from any office or employment to which this Article applies shall be exempt from income tax, and no account shall be taken of such income in estimating the amount of income for any income tax purposes. (2) The offices or employments to which this Article applies are the following, that is to say – ( a ) the office of a consul in the Island in the service of any foreign state ; and ( b ) the employment of an official agent in the Island for any foreign state, not being an employment exercised by a citizen of the United Kingdom, Islands and Colonies or exercised in connexion with any trade, business or other undertaking carried on for the purposes of profit. (3) In this Article – ‘consul’ means a person recognised by the Royal Court as being a consul-general, consul, vice-consul or consular agent ; and ‘official agent’ means a person, not being a consul, who is employed on the staff of any consulate, official department or agency of a foreign state, not being a department or agency which carries on any trade, business or other undertaking for the purposes of profit.” ARTICLE 4 (1) After paragraph (2) of Article 132 of the principal Law 4 there shall be inserted the following paragraph – “(2A) Where, in the case of any purchased life annuity to which this Article applies, the amount of any annuity payment (but not the term of the annuity) depends on any contingency other than the duration of a human life or lives – ( a ) the capital element shall be determined by reference – ( i ) to the amount or value of the payments made or other consideration given for the grant of the annuity (in this paragraph referred to as the ‘purchase price’ of the annuity) ; and (ii) to the expected term of the annuity, as at the date when the first annuity payment began to accrue, expressed in years (and any odd fraction of a year), and determined by reference to the prescribed tables of mortality; and in clause (ii) of this sub-paragraph the word ‘term’ means the period from the date when the first annuity payment begins to accrue to the date when the last payment becomes payable ; ( b ) the capital element in any annuity payment made in respect of a period of twelve months shall be an amount equal to a fraction of the purchase price, where E is the said expected term ; ( c ) the capital element in any annuity payment made in respect of a period of less than, or more than, twelve months shall be the amount referred to in sub-paragraph ( b ) of this paragraph, reduced or, as the case may be, increased, in the same proportion as the length of that period bears to a period of twelve months ; ( d ) paragraph (2) of this Article shall not apply, but sub-paragraphs ( a ) and ( b ) of paragraph (3) thereof shall apply, as they apply to that paragraph ; and in applying sub-paragraph ( d ) of paragraph (2) of this Article, where both the amount and the term of the annuity depend on any contingency other than the duration of a human life or lives, regard shall be had to this paragraph (and not to sub-paragraph ( c ) of the said paragraph (2)) as well as to the contingencies affecting the annuity.” (2) The provisions of this Article shall apply in relation to the year nineteen hundred and seventy and ensuing years. ARTICLE 5 (1) This Law may be cited as the Income Tax (Amendment No. 8) (Jersey) Law, 1971. (2) The provisions of this Law, with the exception of Article 4, shall apply in relation to the year nineteen hundred and seventy-one and ensuing years. A.D. LE BROCQ, Greffier of the States. 1 Tome 1961–1962, page 236. 2 Tome 1961–1962, page 248. 3 Tome 1961–1962, page 275. 4 Tome 1961–1962, page 286.