Land Transaction Tax- Administration and Collection Process

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A decision made (07.09.2009) to approve the process for administration and collection of Land Transaction Tax.

Decision Reference: MD-TR-2009-0047
Decision Summary Title:	Land Transaction Tax – Administration and Collection Process		Date of Decision Summary:	27 April 2009
Decision Summary Author:	Nick Collins Finance Manager, Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Land Transaction Tax – Administration and Collection Process		Date of Written Report:	16 April 2009
Written Report Author:	Nick Collins Finance Manager, Decision Support		Written Report : Public or Exempt?	Public
Subject: Land Transaction Tax (LTT) - Prescribed administration and collection process
Decision(s): The Minister decided: to approve the process for administration and collection of LTT as detailed in the attached report to approve the format and content of the LTT statement as detailed in the attached report to approve the format and content of the LTT receipt as detailed in the attached report to set the fee for a replacement LTT receipt at £50
Reason(s) for decision: The Minister intends to bring the Appointed Day Act to introduce the Taxation (Land Transactions) (Jersey) Law 200- to the States, together with relevant Regulations in due course. Under Article 21(a) of the draft Taxation (Land Transactions) (Jersey) Law 200- the Minister for Treasury and Resources may, by Order, prescribe any matters that shall or may be prescribed under this Law. The processes to administer and collect LTT in the accompanying Ministerial Report need to be approved by the Minister in order that Data Protection implications are clearly defined.
Resource Implications: Other than those detailed in the report there are no further financial or manpower Implications.
Action required: Head of Decision Support to request the Law Draftsman to prepare an Order for the prescribed items in the Ministerial Report. Head of Decision Support to send the Order, once prepared, to the States Greffe and request that it be tabled before the States immediately after the Regulations and Appointed Day Act associated with the Taxation (Land Transactions) (Jersey) Law 200- are approved.
Signature:		Position: Senator P. F.C. Ozouf, Minister for Treasury and Resources
Date Signed: 7th May 2009		Date of Decision: 7th May 2009

Land Transaction Tax- Administration and Collection Process

TREASURY AND RESOURCES MINISTER

Land Transaction tax (LTT)

Administration and Collection process

Purpose of Report

Under Article 21(a) of the draft Taxation (Land Transactions) (Jersey) Law 200- the Minister for Treasury and Resources may, by Order, prescribe any matters that shall or may be prescribed under this Law . This Ministerial Decision is to enable the Minister for Treasury and Resources to approve those items to be prescribed in order to permit the Law Draftsman to prepare an Order.

The Data Protection Registrar has requested that processes surrounding the administration and collection of LTT are approved by the Minister so that Data Protection implications are clearly defined.

Process

Administering LTT will involve the following processes:

One (or both) of two forms will be completed by the purchaser of shares (see Appendix A). This will be handed to a member of Treasury Cashiers who will stamp the form and issue a receipt from the JDE system detailing the amounts paid; and
The receipt and form will be delivered to the relevant Company Secretary by the purchaser in relation to the transaction in order to enable the transfer of the shares. The LTT Law places responsibility on the Company Secretary to only register the transfer of shares on receiving evidence that the relevant LTT has been paid.

At some point in future conveyancing lawyers may seek LTT information on behalf of clients in order to confirm LTT has been paid in accordance with the Law (in the same way that searches are carried out at the Judicial Greffe in respect of freehold transactions).

The above processes would mean Treasury Cashiers (and potentially other Treasury staff), the Company Secretary and possibly conveyancing lawyers would have access to the purchasers’:-

Name;
Current residential address;
Amounts paid in consideration for the shares;
Tax paid.

The proposed process and forms in Appendix A have been approved by the Data Protection Registrar.

Items to be prescribed by Order

3a. LTT Statement

Article 4(1) requires the occupier in relation to the transaction to deliver to the Comptroller of Income Tax, in respect of the transaction –

a statement containing the prescribed information and accompanied by such documents, or copies of documents, as may be prescribed.

It is proposed that this shall take the format of either of the forms in Appendix A.

3b. LTT Receipt

Article 9 Issue of LTT receipt states:

(3) An LTT receipt shall contain the prescribed particulars to be in the prescribed form.

It is proposed that this shall take the form of an official receipt from the States Treasury detailing the amount recovered together with one of the forms attached as Appendix A.

3c. Replacement Receipt Fee

Article 20 Issue of replacement LTT receipt states:

The Comptroller shall issue a replacement LTT receipt, upon an application made under paragraph (1) and upon payment of the prescribed fee, if he or she is satisfied that the original receipt or certificate is lost, destroyed or damaged.

It is proposed that this shall be a fee of £50.

4. Reason for Decision

The processes to administer and collect LTT need to be approved by the Minister in order that Data Protection implications are clearly defined

5. Recommendation

That the Minister for Treasury and Resources approves:

the processes for collection of LTT detailed in section 2 above and
the items to be prescribed by Order detailed in section 3 above.

States Treasury Nick Collins, Finance Manager Decision Support

16 April, 2009 for decision 30 April 2009