Employer sentenced for Tax offences

07 November 2023

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Sentencing on Monday 6 November, the Magistrate ordered Erlinda Carter of St Helier to pay a fine of £4,000 and to settle her outstanding ITIS bill exceeding £8,000 – or face up to 36 weeks in prison.

Carter pleaded guilty to persistently failing to file monthly employer returns for her business, Erlinda's Café Fish and Chip Shop Bar, and the individuals she employed. These offences took place between 1 January 2022 and 1 April 2023. 

The Magistrate expressed his deep concern over Carter's failure to engage with Revenue Jersey despite repeated requests to do so. He emphasised the unnecessary time incurred by the Court and Revenue Jersey due to her non-compliance, as well as the support that would have been available to her had she responded to Revenue Jersey Officers. 

The Magistrate further underscored the broader implications of such behaviour on the community. 

Commenting on the case, Assistant Comptroller of Revenue, Amanda Sloan, said: “Whilst taxpayers failing to file a return for any tax type concerns Revenue Jersey, the Combined Employer Return particularly concerns us due to the unfair impact on employees: Non-filing means we do not know what tax the employer has already deducted from employees’ salaries, and can’t know whether the employer has been paying the correct, or any amount over to us. 

“Non-filing can lead to very serious situations where employees, for instance needing sickness benefit, find themselves ineligible as their deducted contributions have not been paid over by their employer resulting in large gaps on their employees’ records. It can also cause employees’ ITIS rates to rise sharply: ITIS deducted from their salaries if not declared on a return, is sometimes not paid to Revenue Jersey when it should be, leaving their tax bill unpaid.” 

Erlinda Carter's case serves as a reminder of the importance of adhering to tax regulations and working in cooperation with Revenue Jersey to maintain a fair and effective tax system. The sentence also emphasises the significance of timely and accurate tax filings for businesses and individuals alike. Revenue Jersey is committed to pursuing criminal prosecutions where it is considered necessary to do so.