Corporate tax return guidance notes: Section 6

Additional reporting

Section 6 will be presented to those entities where we require more information e.g. larger entities where the gross turnover in Question 3d greater than £1 million, registered pension companies and intermediary service vehicles. It will only present those questions which are relevant.

Question 26: Does the entity have an ultimate parent company?

An ultimate parent company is the company at the head of a corporate group.

If the entity has an ultimate parent company you should answer yes to question 26.

If the entity does not have an ultimate parent company you should answer no to question 26.

Where the answer to question 26 is yes you will be required to provide more information in respect of the ultimate parent company.

Question 26a: In which country is the ultimate parent company resident?

Select the country from the drop down box in which the ultimate parent company is tax resident.

Question 26b: Enter the name of the company’s ultimate parent company

You are required to provide the full name of the ultimate parent company.

Question 26c: Address of the company’s ultimate parent company

You are required to provide the full address of the ultimate parent company.

Question 26d: Company TIN

If the ultimate parent company is tax resident in Jersey you may provide the TIN. This is not a mandatory requirement of the return.

Question 27: Enter the gross profit of the attached financial accounts / statements

You are required to declare the gross profit of the financial accounts / statements attached.

The gross profit is the profit an entity makes after deducting the costs associated with making and selling its products or the costs associated with providing its services.

Question 28: Enter the amount of the employment costs deducted in the attached financial accounts / statements

You are required to declare the amount of the employment costs which are deducted in the attached financial accounts / statements.

This will include for example salary / wages, social security contributions, pension costs, directors remuneration etc. (Note: directors remuneration should also be declared separately in question 29.)

Benefits in kind should not be included in the declaration.

If there are no employment costs deducted in the attached financial accounts / statements then enter £0.

Question 29: Enter the amount of the directors remuneration deducted in the financial accounts / statements

You are required to declare the amount of directors remuneration deducted in the financial accounts / statements.

This will include remuneration for directors who are resident in Jersey and remuneration for directors who are not resident in Jersey.

If there is no directors remuneration deducted in the financial accounts / statements then enter £0.

Question 30: Enter the amount of the finance costs deducted in the attached financial accounts/statements

You are required to declare the amount of finance costs deducted in the attached financial accounts / statements.

Finance costs will include for example interest on loans, lease premiums, loan arrangement fees etc.

If there are no finance costs deducted in the attached financial accounts/statements then enter £0.

Question 31: Do the attached financial accounts/statements include deductions totalling £250,000 or more made to a connected person?

A connected person is defined in Article 3A of the Income Tax Law.

If the financial accounts/statements include deductions to a connected person which total £250,000 or more you should answer yes.

If the financial accounts/statements do not include deductions to a connected person or the deductions to a connected person total less than £250,000 you should answer no.

If you answer yes you will be required to complete questions 31a to 31f inclusive.

Question 31a: Number of connected persons

Enter the number of connected persons in respect of who deductions of £250,000 or more is made in the attached financial accounts / statements.

You will need to provide details for each connected person. If the number of connected persons in question 31a does not match the number of connected persons for who details are entered then the form will display invalid count alongside question 31a.

You will either need to:

change the number in question 31a
add connected person.

Question 31b: In which country is the connected person resident?

Select from the drop down the country in which the connected person is tax resident.

Question 31c: Name of connected person

Enter the full name of the connected person.

Question 31d: Address of the connected person

Enter the address of the connected person.

Question 31e: TIN of the connected person

Enter the Jersey TIN of the connected person if known.

Question 31f: Payment purpose

You can provide a brief description of the purpose of the payment. For example interest on loans, purchase of stock, rent etc.

Note: Where there is more than one connected person click on add connected person to enter the details of each connected person.

Questions 32 to 34

Not presented for the 2019 corporate tax return.

Question 35: Enter the value of the finance assets included in the balance sheet of the attached financial accounts / statements

You are required to enter the value of the finance assets included in the balance sheet of the attached financial accounts / statements.

Finance assets will include for example cash, fund held in a bank, investment bonds, loans advanced etc.

If there are no such finance assets included in the balance sheet or the financial accounts / statements do not include a balance sheet then enter £0.

Question 36: Enter the value of finance liabilities included in the balance sheet of the attached financial accounts / statements.

You are required to enter the value of finance liabilities included in the balance sheet.

Finance liabilities will include for example borrowings, overdrafts, finance lease obligations etc.

If there are no such finance liabilities included in the balance sheet or the financial accounts / statements do not include a balance sheet then enter £0.

Questions 37 to 38

Not presented for the 2019 corporate tax return.

Questions 39 and Q.39a will only appear if the company has selected the status in section 1 as Intermediary Service Vehicle (ISV).

Question 39: Is all the income of the ISV taxed on individuals under Article 77B?

ISV guidance notes

If all of the income of the ISV is treated as earnings of an individual in accordance with Article 77B ITL you should answer yes to question 39.

If some of the income of the ISV is not treated as earnings of an individual in accordance with Article 77B you should answer no to question 39.

Question 39a: Are there any individuals assessable under Article 77B?

If there are individuals who are treated as earning the payments made to the ISV under Article 77B ITL you should answer yes to question 39a.

If there are no individuals who are treated as earning the payments made to the ISV under Article 77B ITL you should answer no to question 39a.

If you have answered yes to question 39a you will be required to complete questions 40 to 43 inclusive.

Question 40: How many individuals are assessable under Article 77B?

Enter the number of individuals who are treated as earning the payments made to the ISV under the provisions of Article 77B of the ITL.

You will be required to provide details in respect of each individual treated as earning the payments made to the ISV under the provisions of Article 77B of the ITL. If the number of individuals in question 40 does not match the number of individuals for who details are entered then the form will display invalid count alongside question 40.

You will either need to:

change the number in question 40
add Individuals.

Questions 41 to 43: Name, TIN and attributable earnings of individual

You are required to enter the following information in respect of the individual(s) treated as earning the payments to the ISV:

the full name of the individual
the TIN of the individual
the amount of the attributable earnings.

Questions 44 to 47 will only appear if the company has selected the status in section 1 as Registered Pension Company.

Question 44: Do all of the investments / assets held by the company fall within the permitted investments in appendix 2 of the tax guidance notes for pension scheme administrators?

If any of the investments / assets are prohibited as set out in appendix 2 of the tax guidance notes for pension scheme administrators you should answer no to question 44.

If none of the investments/assets are prohibited as set out in appendix 2 of the guidance notes you should answer yes to question 44.

Pension administrator tax guidance notes

Question 45: Has the pension company made any payment to the annuitant(s) or connected person(s) in the year?

If the pension company has made any payment to the annuitant(s) or a person(s) connected with the annuitant you should answer yes to question 45

A connected person is defined in Article 3 of the Income Tax Law.

If the pension company has not made any payment to the annuitant(s) or person(s) connected with the annuitant you should answer no to question 45.

Question 46: Are all the assets of the annuity contract held in the name of the company?

If all of the assets of the annuity contract are held directly by the company you should answer yes to question 46.

If any of the assets of the annuity contract are not held directly by the company you should answer no to question 46.

Question 47: What is the fund value in the financial accounts/statements attached to this return?

You should enter the amount of the value of the fund calculated in accordance with Article 130B(1)(c) of the Income Tax Law.

If the fund value is a negative amount or there is no fund value then you should enter £0 in question 47.