Income Tax (Amendment No. 38) (Jersey) Law 201-

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.

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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
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

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 11 May 2011:

Decision Reference: MD-TR-2011-0041
Decision Summary Title:	Income Tax (Amendment no. 38) (Jersey) Law 20-		Date of Decision Summary:	11/05/2011
Decision Summary Author:	Director of Tax Policy		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Income Tax (Amendment no. 38) (Jersey) Law 20-		Date of Written Report:	11/05/2011
Written Report Author:	Director of Tax Policy		Written Report : Public or Exempt?	Public
Subject: Lodge au Greffe Income Tax (Amendment no. 38) (Jersey) Law and an Acte Operatoire to repeal the deemed distribution and full attribution tax provisions with effect from 1 January 2012
Decision(s): The Minister decided to lodge ‘au Greffe’ the Income Tax (Amendment No.38) (Jersey) Law in order to repeal the tax legislation that relates to the deemed distribution and full attribution provisions with a request for debate in the States sitting on 5 July 2011. The Minister further decided to lodge an Acte Operatoire so that the legislation may have immediate effect.
Reason(s) for Decision: To enable the Income Tax (Amendment No. 38) (Jersey) Law to be lodged ‘au Greffe’ with a request for debate in the States sitting on 5 July 2011.
Resource Implications: There are no manpower implications. Forecasts suggest that the removal of these provisions would lead to a cash-flow effect from 2013/14 which in any one year is not expected to exceed £10m
Action required: Forward the Income Tax Amendment No. 38) (Jersey) Law to the Greffier of the States and request that the projet be lodged ‘au Greffe’ for consideration by the States at the sitting of 5 July 2011
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Income Tax (Amendment No. 38) (Jersey) Law 20-

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Treasury and Resources

Ministerial Decision Report

Income Tax (Amendment no. 38) (Jersey) Law 20-

Purpose of Report

The purpose of this report is to enable the Minister for Treasury and Resources to lodge the draft Income Tax (Amendment no. 38) (Jersey) Law to repeal the deemed distribution and full attribution provisions with effect from 1 January 2012.

Background

The EU Code of Conduct Group has formally assessed Jersey’s business tax regime and determined that the combination of the deemed distribution and full attribution provisions with the general rate of tax of 0% that applies to companies gives rise to harmful effects.

Current Position

The Council of Ministers at its meeting of 15 February 2011 decided to abolish the deemed distribution and full attribution provisions with effect from 1 January 2012, in order to deal with these concerns. The draft law is intended to repeal the relevant legislation so that the current rules apply only to profits that arise before 31 December 2011.

The final decision as to whether the abolition of the deemed distribution and full attribution provisions is sufficient to satisfy the EU sits with ECOFIN and is unlikely to be made until December 2011. However, lodging the draft legislation now provides clarity and certainty of Jersey’s intentions.

Recommendation

It is recommended that the Minister for Treasury and Resources approve the Law Amendment and the attached report and sign the declaration of compatibility with the European Convention on Human Rights and the Decision Summary and that the documents be lodged au Greffe so as to allow the Amendment to be debated by the States at the sitting of 5 July 2011.

Reason for Decision

To enable the Income Tax (Amendment No. 38) (Jersey) Law to be lodged ‘au Greffe’ with a request for debate in the States sitting on 5 July 2011.

Resource Implications

There are no manpower implications. Forecasts suggest that the removal of these provisions would lead to a cash-flow effect from 2013/14 which in any one year is not expected to exceed £10m.

Report author : Director of Tax Policy	Document date : 18.04.11
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2011-0039 - Income Tax (Amendment no. 38) (Jersey) Law 20 - WM\WR - Income Tax (Amendment no. 38) (Jersey) Law 20 - WM.doc
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