Insolvency Benefit: Data Sharing Agreement with Income Tax

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 29 November 2012:

Decision Reference: MD-S-2012-0100
Decision Summary Title :	Insolvency Benefit – DSA with Jersey Taxes Office (GOV276)		Date of Decision Summary:	28 November 2012
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Insolvency Benefit – DSA with Jersey Taxes Office (GOV276)		Date of Written Report:	28 November 2012
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Insolvency Benefit – Data Sharing Agreement (DSA) between the Social Security Department (SSD) and the Jersey Taxes Office.
Decision(s): The Chief Officer for SSD has signed DSA GOV276. The Minister for Social Security has decided to request that the Minister for Treasury and Resources authorises the disclosure of information as specified in this agreement. As per Article 13A of the Income Tax (Jersey) Law 1961, the Comptroller of Taxes is authorised to disclose information to SSD for any purpose approved by the Minister for Treasury and Resources as requested by the Minister of Social Security.
Reason(s) for Decision: The Social Security (Amendment No.20) (Jersey) Law 2012 will amend the Social Security (Jersey) Law 1974, as of 1 December 2012, to introduce a new insolvency benefit. The Social Security Law will provide that if income tax is payable under the Income Tax (Jersey) Law 1961 and would have been deductible or payable in respect of any component of insolvency benefit if that component had been paid by the employer, the value of the income tax must be deducted from the component of benefit. The Income Tax (Amendment No. 40) (Jersey) Law 2012 (Article 41HA) introduced the requirement that, where the Minister for Social Security is required under the Social Security (Jersey) Law 1974 to deduct income tax from a component of insolvency benefit, that amount shall be at the same effective rate that the person’s employer would have been required to deduct. It further requires that the amount of any income tax deducted as a result is to be remitted to the Comptroller. Article 13A of the Income Tax (Jersey) Law 1961 provides that the Comptroller may disclose information to the Social Security Department for any purpose approved by the Minister for Treasury and Resources.
Resource Implications: There are no financial or resource implications associated with this data sharing agreement
Action required: Policy Principal to forward copies of this Ministerial Decision and the DSA to the Minister for Treasury and Resources for his approval.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):