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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Insolvency Benefit: Data Sharing Agreement with Income Tax

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.

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  • 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

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there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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

 

Data Sharing Agreement with Income Tax: Insolvency Benefit

 

Data Sharing Agreement GOV276 between the Jersey Taxes Office

& the Social Security Department in respect of Insolvency Benefit paid under the Social Security (Jersey) Law 1974

 

 

Purpose

 

The aim of the Ministerial Decision and Data Sharing Agreement (DSA) GOV276 is to allow the Social Security Department (SSD) to deduct the correct effective rate of income tax from any relevant payments of insolvency benefit and to enable the Jersey Taxes Office to validate and correctly allocate such deductions to the correct person.

 

Background

 

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 benefit will provide financial assistance to employees whose employment has ended, on or after 1 December, due to the formal insolvency of their employer.

Previously, a ‘temporary insolvency scheme’ paid statutory notice pay to employees whose employment ended from January 2009 to November 2012 due to the insolvency of their employer. That temporary scheme will close to new claims as of 30 November 2012.

The Income Tax (Amendment No. 40) (Jersey) Law 2012 introduced via the insertion into the Law of Article 41HA 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 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.

 

Recommendation

 

As per Article 13A of the Income Tax (Jersey) Law 1961, the Comptroller of Taxes has authority to disclose information to SSD for any purpose approved by the Minister for Treasury and Resources as requested by the Minister of Social Security.

 

Further to the Chief Officer for SSD signing DSA GOV276 the Social Security Minister decided to request that the Minister for Treasury and Resources approves authorisation to disclose information as specified in this agreement.

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