2021 compliance programme
Revenue Jersey is publishing a programme of compliance activities it will undertake during 2021 in accordance with its compliance strategy based on the Promote, Prevent and Respond model.
However, Revenue Jersey is acutely aware of the impact of COVID 19 on taxpayers in Jersey. With that in mind, the programme is designed to minimise the burden on individuals and businesses struggling with the effects of the pandemic.
Promote
- Active promotion and encouragement for individuals to file their 2020 tax return online
- A broadcast campaign to those in the building and construction industry to review their compliance with all of their obligations and in particular the operation of the labour-only sub-contractor scheme
- 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
- Provision of better web based guidance will continue
- Proactive publicity and engagement with employers during 2021 ahead of the new Combined Employer Return to ensure the data they provide is accurate
- Visits to newly registered GST businesses will be made to help them meet their obligations
- Publishing a list of common errors with FATCA and CRS reports before the next reporting deadline
- Identifying entities that have incorrectly classified themselves for FATCA and CRS reporting
- Implementation of Mandatory Disclosure Rules for CRS Avoidance Agreements and Opaque Offshore Structures Regulations
Prevent
- Emphasis on the benefits of personal taxpayers filing online which helps prevent some of the more common errors when using paper
- Appropriate imposition of behavioural penalties for inaccurate declarations
- Continue to increase use of data from third parties (such as banks) and overseas financial institutions
- Review of the rationale for entities submitting FATCA and CRS returns
- Enhancement of FATCA and CRS validations for Jersey's AEOI Portal in order to improve the quality of information provided
- Analysis of business activities in order to target areas of greatest risk of necessary economic substance
Respond
- Examination of compliance with tax law by entities within the building and construction industry
- Continue with the review of the legal profession focusing on any arrangement which currently reduce their partnership liabilities to tax at the 20% rate
- Use of desk based audit for all revenue types to check compliance with GST law, the Income Tax Instalment System and Social Security law by Jersey employers
- Increased use of mechanisms, such as the removal of approved trader status, to ensure compliance with all revenue type obligations
- Non-compliance with return filing or requests for provision of information will result in decisive action. If individuals, employers and companies fail to file returns or provide information, court action is a potential outcome
- Continue updating all relevant legislation that provides the ability to prosecute to ensure, where prosecution is appropriate, the process is seamless
- Risk based and occasional random checks on compliance with GST law, the Income Tax Instalment System and Social Security Contribution law by Jersey employers
- Routine enquiries will also continue in all sectors of the economy
- 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 most apparent cases of non-compliance with the Economic Substance Law
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