Reviews on GST returns by registered companies (FOI)

​Request

Since the introduction of GST how many GST registered companies have been visited by an authorised states officer to review their GST returns and associated accounts/documentation?

How many businesses were found to have made incorrect GST returns?

What is the total amount of fines levied for incorrect GST returns if any?

Response

Since the introduction of GST, 566 GST registered entities have had a compliance / audit visit undertaken by an authorised States officer. 

This equates to 21% of the taxpayer base. 

Some entities will have been visited more than once but for the purposes of this request they have only been counted once.

This is in addition to the advisory visit programme available at the commencement of the Goods and Services Tax Law where in excess of 200 businesses requested a visit from a States officer to discuss and review the processes and record keeping to ensure that the requirements of the Goods and Services Tax (Jersey) Law 2007 would be adhered to.

Of the 566 visits, 266 registered taxpayers were found to have made errors on their returns which required correction.  

In addition to the assessments raised following a visit, there have been 393 registered taxpayers identified as making errors on their returns. 

This includes desk reviews by officers as well as voluntary disclosures, where having identified a mistake in their calculations the registered taxpayer contacted the department with evidence of incorrect figures in respect of a previously submitted return.

It should be recognised that the role of the authorised States officers is to ensure that the right tax is paid at the right time. 

Where appropriate, this will include notifying / advising taxpayers when they may not have correctly reclaimed tax due in addition to establishing when tax has not been charged correctly.

The law allows for penalties to be applied in the event of dishonesty, fraud or deliberately providing false information. 

To date, no offences of this nature have been established and therefore no fines have been issued.