2022 compliance programme
Revenue Jersey is publishing a programme of compliance activities it will undertake during 2022 in accordance with its compliance strategy based on the Promote, Prevent and Respond model.
Revenue Jersey is mindful of the continuing impact of COVID 19 on the taxpayers of the Island. This programme is intended to ensure that no undue pressure is placed upon these taxpayers and we will be focusing on those sectors of the economy that have not been unduly affected.
Promote
- Active promotion and encouragement for individuals to file their 2021 tax return online
- Highlight the use of deterrents for non-compliance with filing obligations and requests to provide information
- Encourage voluntary compliance by publicising our ability to use prosecution when necessary
- Continue to improve our web-based guidance
- Providing employers with assistance to comply with the new Combined Employer Returns
- Identifying entities that have incorrectly classified themselves for Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) reporting with a view to improving data quality and accuracy
Prevent
- Continue to emphasise the benefits of personal taxpayers filing online which helps prevent some of the more common errors when using paper
- Making improvements to the personal tax return (paper and online) to prevent the most common errors, including the incorrect declaration of pence
- Appropriate imposition of behavioural penalties for inaccurate declaration
- Review of the rationale for CRS/FATCA reporting by service providers
- Enhancement of FATCA and CRS validations for Jersey's Automatic Exchange of Information (AEOI) Portal in order to improve the quality of information provided
- Exploring opportunities to improve accuracy of tax filing – specifically the expansion of reporting requirements regarding bank interest in respect of Jersey residents
- Analysis of business activities in order to target areas of greatest risk of necessary economic substance
Respond
- Examination of compliance with tax law by persons (including companies) within the estate agent sector
- A preliminary review of a sample of Fund Managers particularly to identify any risks related to employment and other personal tax issues
- Review of cash rich trades with a focus on takeaway businesses
- Continue with the review of the building and construction industry focusing on labour only sub-contractors
- Risk based and occasional random checks on compliance with GST law, the Income Tax Instalment System and Social Security Contribution law. This will involve the use of desk-based audits and site audits where appropriate
- Continue to use the mechanisms available, such as the removal of approved trader status to ensure compliance with all revenue types. Where non-compliance with filing and payment obligations are detected, the approved trader status can be removed to enforce engagement
- Risk based compliance checks into claims made for government assistance under the Co-Funding Payroll Scheme
- For GST, focus on failure to register for those entities where turnover exceeds the threshold
- Compliance interventions with financial institutions which present the highest risk of not complying with the FATCA and CRS rules, or the highest reputational risk to Jersey
- Identification and investigation of the cases of non-compliance with the Economic Substance Law
- Routine enquiries will also continue in all sectors of the economy
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