Now more than ever, Revenue Jersey are carrying out a variety of compliance based activities in an effort to minimise Jersey's tax gap and raise additional revenue for the island.
But what does this mean for islanders?
While it is the aim of Revenue Jersey to target businesses and individuals that have failed to discharge their income tax obligations, there are often times where islanders who believe they are wholly up to date will be subject to a compliance review and will be required to justify their original income tax declarations to Revenue Jersey.
In these cases, even though there may not be any deliberate non-compliance to uncover, the burden of administration and stress of Revenue's examination can be overwhelming for the everyday taxpayer, and can sometimes lead to a misrepresentation of the facts, or an oversight of the various legal rights available.
In certain circumstances, such as cases of genuine error or mistake, or technical dispute, the end result of Revenue's investigations may give rise to a variety of excessive consequences for the taxpayer, such as imposing, and unachievable payment deadlines, disproportionate penalties, or in extreme cases, inaccurate assessments.
Arguably, a broad application of compliance activity is necessary for Revenue Jersey to ensure that no foul play has occurred. However, the legislation underpinning Jersey tax is extremely complex, and without expert support, it is unrealistic to expect taxpayers to be fully aware of the available legislative frameworks in place while under review.
Earlier in the year, Revenue Jersey have published their commitment to focus 2024 compliance efforts on the following taxpayer groups, giving fair warning of the additional scrutiny to come:
- Landlords & property developers;
- High net-worth individuals;
- Estate agents;
- Self employed individuals; and
- New employers.
If you find yourself subject of compliance activity of any kind by Revenue Jersey, and you are unsure of your obligations, or if you just need a steady hand to guide you through the process, please do not hesitate to reach out to a member of the Grant Thornton Channel Islands Tax team. Our dedicated and highly experienced team of local experts would be happy to help.
Originally published 19 Jun 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.