Income Tax (Deemed Dividends) (Jersey) Regulations 200-.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (09/10/2007) regarding: Income Tax (Deemed Dividends) (Jersey) Regulations 200-.

Decision Reference: MD-TR-2007-0106
Decision Summary Title:	Income Tax (Deemed Dividends) (Jersey) Regulations 200-		Date of Decision Summary:	9th October 2007
Decision Summary Author:	Malcolm Campbell – Comptroller of Income Tax		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Income Tax (Deemed Dividends) (Jersey) Regulations 200-		Date of Written Report:	9th October 2007
Written Report Author:	Malcolm Campbell – Comptroller of Income Tax		Written Report : Public or Exempt?	Public
Subject: Income Tax (Deemed Dividends) (Jersey) Regulations 200-
Decision(s): The Treasury and Resources Minister approved the lodging au Greffe of the attached Income Tax (Deemed Dividends) (Jersey) Regulations 200-on 9th October, 2007.
Reason(s) for Decision: To give legislative effect to the States Assembly decision of 7th July, 2004, (P.106/2004) to move to a new corporate system of taxation, the so called ‘0/10’ system. This draft Regulation gives effect to the States Assembly decision to introduce the deemed dividend regime which are part of the shareholder taxation provisions that are themselves closely related to the primary 0 / 10 legislation approved by the States Assembly on 30th January 2007.
Resource Implications: There are no financial or manpower implications.
Action required: For officers to lodge and send to the Greffe the attached draft Regulations.
Signature:		Position: Senator Terry Le Sueur, Treasury and Resources Minister
Date Signed: 9th October 2007		Date of Decision: 9th October 2007

Income Tax (Deemed Dividends) (Jersey) Regulations 200-.

REPORT

Income Tax (Deemed Dividends) (Jersey) Regulations 200-

The Income Tax (Amendment No. 29) (Jersey) Law 200- gives effect to the shareholder taxation provisions whereby actual and deemed distributions will be assessed as a personal tax measure on the Jersey resident shareholders of 0% corporate rate and 10% rate corporates. In the case of an investment holding company, there will be an assessment on the Jersey resident shareholder of 100% of the tax adjusted income under ‘look through’ provisions. Loans made from 0% rate and 10% companies to Jersey resident shareholders will also be subject to taxation on the hands of the Jersey resident. However, loans made to Jersey resident shareholders of investment holding companies subject to ‘look through’ will not be charged to tax in their hands.

These Regulations prescribe a percentage for the purposes of Article 81D(3)(a) of the Income Tax (Jersey) Law 1961. Where an unlisted trading company (taxed at 0%) distributes less than the prescribed percentage of its relevant profits of a financial period, an individual resident in Jersey who owns more than 5% of the ordinary share capital of the company will be deemed to have received a dividend in respect of the undistributed profits, payable in 2 stages, as an interim deemed dividend and a final deemed dividend. If the company were to distribute the prescribed percentage, or more, of those relevant profits, the individual would be liable to a single, final deemed dividend in respect of the undistributed profits.

Financial and Manpower Implications

There are no manpower and financial implications.