Drafting instructions and correspondence relating to drafting of Income Tax (Jersey) Law 1961 (FOI)

​Request

Drafting instructions and correspondence in relation to the drafting of the Income Tax (Jersey) Law 1961. I'm particularly interested in anything setting out the purpose of Article 45 of the Law. I already have the Proposition but as this contains no Explanatory Note the drafting instructions may be of more use.

Response

A.

With regard to your request for drafting instructions and correspondence in relation to Article 45 of the Income Tax (Jersey) Law 1961, although the department does hold instructions and correspondence relating to the substitution of Article 45(3) by the Income Tax (Amendment No. 32) (Jersey) Law 2009, that information is exempt from disclosure under Article 32 of the Freedom of Information (Jersey) Law 2011. The department does not consider that the public interest in maintaining the legal professional privilege referred to in that Article is outweighed by any public interest in disclosure. Article 32 provides: “Information is qualified exempt information if it is information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

B.

Information on the history of Article 45 of the Income Tax Law 1961 prior to 2009 is sparse. It is hoped that the following documents will be helpful.

C.

Athough you say that there is no Explanatory Note in the Proposition, the Proposition for the 1961 Law (P-93 lodged au Greffe on 1st December 1960) does contain a short explanatory note as follows:

“This Bill consolidates the Income Tax (Jersey) Law, 1937, and its many amendments (including those comprised in the Bills presented to the States in the second statutory session of 1960). No amendments of substance are contained in this Bill, but a few provisions which are no longer necessary are omitted.

The lay-out of the Law has been redesigned: in particular, the Schedules, the Cases under the Schedules, the Cases under the Schedules and the rules applicable to the Cases are contained in the body of the Bill instead of being appended to it.”.

D.

The department holds no instructions to the draftsman relating to Article 45 of the 1961 Law as contained in P-93 The only drafting held by the department relating to Article 45 is a copy of the amended version of the Income Tax (Jersey) Law 1937 (“1937 Law”) with the predecessor to Article 45, that is Article 57A, crossed out and “58/2 – 45” written beside it.

E.

Article 57A of the 1937 Law was inserted by Income Tax (Amendment No. 5) (Jersey) Law 1945 during the German occupation. (The front page states that it was “approuvé pour et au nom de Monsieur le Platz Commandant des Troupes Allemandes en occupation de cette Ile, et sanctionné par Monsieur le Baili. Enregistré par Acte de la Cour Royale, en date du 7 Avril 1945”). The department does not hold any papers on this except a note of the Financial Committee’s decision to lodge the draft Law.

F.

Prior to the enactment of the 1961 Law, in the course of the regular amendments that were made to the 1937 Law (18 sets of amendments were made until the consolidated 1961 Law was enacted), consideration was given to amending Article 57A of the 1937 Law. There is a note of a joint meeting of the Finance and Legislation Committee held on 19th March 1951 relating to the Budget and signed by the Greffier of the States. There is also a letter dated 23rd April 1951 to the Jersey Law Society from the Greffier. Both documents refer to consideration being given by the Committee to amend Article 57A(3) of the 1937 Law so that income tax debts “should no longer rank for payment pari passu with other privileged debts in the event of bankruptcy. The Finance Committee feels, however, that it would not be desirable to undertake any such revision of the Law.”.

Below are are copies of the following:
1. Explanatory Note for P-93 lodged au Greffe 1st December 1960.
2. Income Tax (Amendment No.5) (Jersey) Law 1945;
3. (contained in a single document) Note of a joint meeting of the Finance and Legislation Committee held on 19th March 1951 relating to the Budget and letter dated 23rd April 1951 to the Jersey Law Society from the Greffier.”

Exemptions

32    Legal professional privilege

Information is qualified exempt information if it is information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.