TREASURY AND RESOURCES MINISTER
GOODS AND SERVICES TAX ( JERSEY ) LAW 200- AMENDMENT
1. Purpose of Report
The purpose of this Report is to gain Ministerial approval for the lodging of amendments to the Goods and Services Tax (Jersey) Law 200- on 3rd April 2007.
2. Background
The States Assembly agreed on 13th May 2005 (P.44/2005) to introduce a broad-based, 3% Goods and Services Tax (GST) as from 2008.
3. Comments
In the light of this decision, and following extensive consultation during 2006 with the business community and the wider public, law drafting on the above law has now concluded and the final draft of the law was lodged au Greffe for debate by the Assembly on 17th April 2007.
4. Amendments
Following subsequent representations from Jersey Finance Limited, the Minister is advised that the following amendments to the Law should be made:
to prepare amendments for the purpose of removing any uncertainty regarding the treatment of finance vehicle under Part 12. (They are not within the definition of ‘taxable person’).
- Reasons for the Amendments
As a result of recent detailed analysis of the law, it has become apparent that the current
approach will result in significant complexity for the finance industry, requiring the need for additional administrative (non value adding) resources for industry, as well as the additional government resources necessary to administer the complexity.
Furthermore, complex law undermines the simplicity of Jersey based structures and client advice and may damage the competitiveness of the finance industry.
The proposed approach will address the first two points and allow a more measured first step that can be assessed for effectiveness within a year. In particular the proposed approach will provide greater certainty regarding the ability to raise the targeted £5m - £10m, whilst not ruling out the ability to apply greater complexity if found to be necessary in due course.
6. Recommendation
That the Minister approves the lodging au Greffe of the amendments to the Goods and Services Tax (Jersey) Law 200- outlined above and agrees to direct the Director, GST to instruct the Law Draftsman to make the necessary changes and lodge these amendments au Greffe on 3rd April 2007.
Financial and Manpower Implications
There are no financial or manpower implications resulting from these amendments.
States Treasury For Ministerial Decision meeting on 2nd April 2007