18 May 2015
Jersey’s tax agents are being asked to provide their views on a review of the rules applying to the taxation of distributions from Jersey resident companies.
The review is being undertaken by the Tax Policy Unit and the Taxes Office who have written directly to tax agents asking them to take part in an online questionnaire. The Treasury will also hold invited workshops to canvas the agents’ views.
The Treasury and Resources Minister Senator Alan Maclean said the intention of the review was to improve the framework of the distribution rules and, where possible, reduce the administrative burden for taxpayers.
The current distribution rules aim to ensure that Jersey resident individuals will be subject to income tax on the value they have taken out of a company where there are profits in the company which have been taxed at a rate less than 20%. A distribution could include a dividend paid (income or capital), a repayment of share capital or a loan repayment.
Options for improvements
The rules came into effect for the 2013 year of assessment and Senator Maclean said that the time was now right to look at the rules and set out options for improvements.
Senator Maclean said "The Treasury has been preparing this review for a few months and we are now at a stage where we want to seek the input of industry and gather their views before making changes to the rules.
"The department are considering a number of options, including the extension of the distribution rules to Jersey trustees and we hope that agents will welcome the review and our desire to ensure that any amendments to the distribution rules following the review are the right ones for the Island. The appropriate changes will be contained within the 2016 Budget."