Guidance to complete the Combined Notification for Partnerships

Question 3​

Question: Do you qualify for any exemptions?

This is a mandatory question for all Jersey resident entities selected in question 2 apart from LLC​s.

The responsible partner is required to select 1 from the dropdown list of 4, either:

• individuals all subject to Jersey Tax, all of the partners being individuals subject to income tax in Jersey
  
• collective investment fund vehicle, the partnership being a collective investment fund vehicle as defined in Article 4(2) of the TPES Law​
  
• domestic exemption, the partnership not being part of a multinational group and undertaking business solely in Jersey
• none, none of the above

Selecting one of the first 3 options indicates that the partnership is outside the scope of the TPES Law and the responsible partner will be directed to section 3.

Selecting the last option indicates that the partnership is within the scope of the TPES Law and the responsible partner will be directed to the economic substance questions in section 2.

If the partnership falls within the definition of a 'collective investment fund vehicle' as set out in Article 20E of the Income Tax (Jersey) Law, the responsible partner is asked to complete section 1 and section 7.​​

Question 4​​

Question: Are you exempt as a collective investment fund vehicle?

This is a mandatory question for Jersey resident LLCs selected in question 2.

Where yes is selected: the partnership falls within the definition of a 'collective investment fund vehicle' as set out in Article 20E of the Income Tax (Jersey) Law, the responsible partner is asked to complete section 1 and section 7.

Where no is selected the next question will be question 5.

Questio​n 5​

Question: Were financial accounts or statements produced ending in the year?

This is a mandatory question for all Jersey resident partnerships and LLCs which are not collective investment fund vehicle.

Where yes is selected the responsible partner can attach financial statements, tax computations and related partnership profit share statements in section 7.  

There is no obligation to attach partnership accounts. 

Where no is selected the next question will be question 7.​

Question 6

Question: Date of the latest accounting period ending in the year

Where yes is selected in question 5 this is a mandatory request for the date of the latest accounting period ending in the year.

Question 7

Question: Main a​ctivity

This is a mandatory question for all Jersey resident partnerships and LLCs which are not collective investment fund vehicles.

The responsible partner is required to select 1 main activity of the partnership from the dropdown list:

• trading in goods
• trading other
• holding investments in funds
  
• holding investments for funds
• holding investments other
• other activities
• dormant

Where dormant is selected the responsible partner will be taken​ to section 7.​

Question 8​

Question: Turnover

This is a mandatory question for all Jersey resident partnerships and LLCs which are not collective investment fund vehicles.

The responsible partner must select 1 from the dropdown list, the turnover of the partnership (by range and not a specific amount):

• £0 to £50,000
• £50,001 to £250,000
• £250,001 to £1 million
  
• £1,000,001 to £5 million
  
• more than £5 million
  

Question 9​

Question: Profits

This is a mandatory question for all Jersey resident partnerships and LLCs which are not collective investment fund vehicles.

The responsible partner must select 1 from the dropdown list, the profits of the partnership (by range and not a specific amount):​

• less than £0
• £0 to £50,000
• £50,001 to £250,000
• £250,001 to £1 million
  
• £1,000,001 to £5 million
• more than £5 million
  

Completion of these sections will fulfil the partnership's disclosure requirements of Article 11 of the TPES Law​.

The economic substance sections and questions mirror the economic substance reporting sections and questions in the corporate income tax return, amended as appropriate.​

Follow-up questions

​The economic substance questions are presented to all Jersey resident LLC's who answered no to question 4 and all other Jersey resident partnerships that selected none to question 3. 

Question: Which of the following relevant activities did the p​artnership or​ LLC carry on?

If the partnership is carrying on relevant activities as set out in Article 4 of the TPES Law you must tick the box ​of each relevant activity.

If the partnership is not carrying on any of the relevant activities you must tick question ES3n none of the above.​

Question: Gross income from the relevant activities in the financial period?​

This question will only be presented if you have ticked a relevant activity.

The responsible partner must declare the gross income from the relevant activity.

If there is no income from the relevant activity enter £0.​

If the gross income is greater than £0 the following are presented:

• Specific Core Income Generating Activities (CIGA)
  
• relevant activity (general)
• stage 2

​Specific Core Income Generating Activities (CIGA) 

​Find information on the specific CIGA ​of each relevant activity for economic substance for Jersey companies and partnerships.​

​ For each of the CIGA the partnership is carrying out the responsible partner must tick the box. If the partnership is not carrying out a particular CIGA leave the box blank.

There is a text box for adding other information.​

Question: Accounting profits attributable to the relevant activity in the financial period?

The responsible partner must enter the amount of the accounting profit attributable to the relevant activity.

If there is no profit or there is a loss, enter £0.​

Question: Number of employees (or equivalent) in Jersey? 

The responsible partner must enter the measure of full time equivalent (FTE) employees working on the relevant activities.

If this includes less than a whole FTE enter a part of an FTE.​

Question: Number of employees above with reportable qualifications?

The responsible partner must enter the number of employees working on the relevant activities which have reportable qualifications. Enter the number of FTEs with reportable qualifications. If this includes less than a whole FTE enter a part FTE.​

For example, ​Partnership T has 4 and a quarter FTEs working on the relevant activities. The partnership should enter 4.25 alongside this question.​

Question: Premises addresses in Jersey?

The responsible partner must enter the address of the premises in Jersey used in the relevant activity. If there is more than one click​​ 'Add another premise'.​

Question: Total gross expenditure in Jersey?

The responsible partner must enter the total gross expenditure incurred by the partnership on the relevant activity. They must enter a positive whole number and ignore pence. 

If there was no expenditure incurred enter £0. ​

Question: Total gross expenditure incurred on outsourcing providers in Jersey?

If the partnership incurs expenditure on outsourcing providers in the financial period the responsible partner must enter the gross amount expended. They must enter a positive whole number and ignore pence. 

If there was no expenditure incurred enter £0. 

Where the amount entered is greater than £0 then additional questions are presented.​

Specific Core Income Generating Activities (CIGA) - intellectual property holding business

There are questions relating to intellectual property (IP) holding business. Where an IP holding business is high risk additional questions are presented.

Where a partnership is selected in question 2 and Specific Core Income Generating Activities (CIGA) - intellectual property holding business is chosen then questions ES11p to ES19p are presented.

Where a LLC is selected in question 2 and Specific Core Income Generating Activities (CIGA) - intellectual property holding business is chosen then questions ES11(LLC)p to ES19(LLC)p are presented.

The wording of these questions differ slightly.

Where no is selected for question ES10p these questions are presented where question ES8p is not ticked.

Where no is selected for question ES10p and question ES8p is ticked then these additional questions are not presented.​

Question ES10p​

Question: Is the partnership, LLC a high risk partnership or LLC as defined in the legislation?

If the partnership or LLC is a high risk IP holding business as defined in Article 1 of the TPES Law you should answer yes.

If the partnership or LLC is not a high risk IP holding business as defined in Article 1 of the TPES Law you should answer no.​

Questions ES11p and ES12p

Question: Controlling partner and address of controlling partner

The responsible partner is required to state the full name of the controlling partner and the address of the controlling partner.​

Questions ES13p and ES14p​

Question: Ultimate holding body of the controlling partner and address of ultimate holding body of the controlling partner

The responsible partner must state the full name and address of the ultimate holding body of the controlling partner.

Questions ES15p to ES17p 

Question: Number of ultimate beneficial owners of the partnership, name of the ultimate beneficial owner and address of the ultimate beneficial owner

T​he meaning of an ultimate beneficial owner is aligned with the definition used by the Jersey Financial Services Commission (JFSC) for collecting beneficial ownership and control of a partnership information.

The responsible partner must enter the number of ultimate beneficial owners in question ES15p. If there are no ultimate beneficial owners which meet the definition, enter 0.

The responsible partner must provide the name and address for each of the ultimate beneficial owners. If there is more than 1, select ​'Add ultimate beneficial owner'.​

The number of ultimate beneficial owners in question ES15p must equal the number provided.  If this does not match, the error message 'invalid count' will be displayed.

Question ES18p

Question: Net book value of the tangible assets held in the course of carrying out the relevant activities

The responsible partner must ​enter the net book value of the tangible assets of the partnership for the financial period, which are held in the course of carrying out the relevant activities.​

Question ES19p

Question: Are you attaching evidence to rebut the presumption that the partnership fails the economic substance test?

If the responsible partner wishes to rebut the presumption that the partnership fails the economic substance test they must attach evidence to support the rebuttal.

Answering yes will require the relevant document to be attached in s​ection 7.

No document is required if answering no to this question. ​

Questions ES11(LLC)p to ES19(LLC)p

Question: Request details of immediate parent (or other holding body), ultimate parent (or other ultimate holding body) and ultimate beneficial owners.

Outsourcing

Question: H​as one or mor​e of the CIGA been outsourced?

If any of the expenditure incurred on outsourcing relates to the outsourcing of a CIGA the responsible partner must answer yes to this question.

Where the answer is yes there will be additional questions regarding the outsourcing provider.

Where the answer​ is no there will be no additional questions.

Question: To how many outsourcing providers has the CIGA been outsourced?

The responsible partner must enter the number of outsourcing providers.

For each outsourcing provider the following information is re​quired:

• name of the outsourcing provider
• expenditure on this outsourcing provider
• TIN (if known) of this outsourcing provider
• address of this outsourcing provider
• whether or not this outsourcing providers' employees have been included within the employee FTEs carrying on the relevant activity
• whether or not there are premises provided by this outsourcing provider
  

If there is more than one outsourcing provider click 'Add outsourcing provider'.

If the number of outsourcing providers declared does not match, ​the warning 'invalid count' will appear. ​

Activities: Economic Substance Stage 2

The questions will be presented if the gross income from the relevant activities in the financial period is an amount greater than £0.

Economic substance for Jersey companies and partnerships​

Question ES4

Question: Have there been board meetings of the governing body in Jersey, with a majority of the governing body physically present, at an adequate frequency?  

Based on the partnership's own analysis the responsible partner must state whether there have been board meetings of the governing body in Jersey (with a majority of the governing body present) at an adequate frequency.

If they consider that such board meetings were held at an adequate frequency, answer yes.

If they do not consider that such board meetings were held at an adequate frequency, answer no.  ​

Question ES5

Question: How many governing body meetings were held as above?

The responsible partner must enter the number of board meetings held in Jersey with a majority of the governing body physically present.​

Question ES6 

Question: Were strategic decisions made at those meetings?

If strategic decisions were made by the governing body at the meetings stated in question ES5 the responsible partner must answer yes.

If no strategic decisions were made by the governing body at the meetings stated in question ES5 answer no.​​

Question ES7

Question: Are the records includi​ng those of the strategic decisions of the governing body kept in Jersey?

If all of the records including those of the strategic decisions of the governing body are kept in Jersey the responsible partner must answer yes. If some of these records are not kept in Jersey answer no.​

Question ES8

Question: Does the governing body have sufficient expertise and knowledge?

Based on the partnership's own analysis the responsible partner must state whether the governing body has as a whole, necessary knowledge and expertise to discharge their duties.

If on this analysis it is considered that the governing body has sufficient knowledge and expertise answer yes.

If it is considered that the governing body does not have sufficient knowledge and expertise answer no.​​

Question ES9

Question: Does the partnership or LLC meet the test for substance in respect of relevant activity or activities?

Based on the partnership's own analysis the responsible partner must state whether the partnership meets the substance test in Article 8 of the TPES Law.

If on this analysis it is considered that the partnership meets the substance test answer yes. If it is considered the partnership does not meet the substance test answer no.​​

Section 3: Tax declaration questions​

These are mandatory questions for all entities that have not been directed to section 6 or section 7.

The questions in this sect​ion determines if the partnership is a 'relevant partnership'.

For partnerships (not LLCs) this confirmation is required by Article 20E(1) of the Income Tax (Jersey) Law 1961. ​

​​​​Question 10

Question: Does the partnership or LLC have Jersey tax resident partners (who are entitled to partnership income)?​​

​Question 10a

Question: Does the partnership or LLC have Jersey source income on which non-resident partners would be liable to tax?

If the responsible partner answers yes to both questions 10 and 10a, or either, the partnership is a relevant partnership. The responsible partner is directed to section 4.

If the partnership is not a releva​nt partnership the responsible partner is directed to section 6 and section 7.

​Section 4: Partnership and LLC tax information

​​​​​​These are mandatory questions for all entities that answered yes to question 10 or question 10a.​

Question 10b

Question: Is the partnership or LLC required to provide further information by the general notice, or a specific notice? For example because they have Jersey resident individual partners.​

T​he partnership is required to provide further information under a notice. This requirement can arise further to the general notice issued each January in the Jersey gazette or a notice issued by the Comptroller issued against the partnership itself.

If the responsible partner answers no to question 10b, the notification takes the partner to section 6 and section 7.

If the responsible partner answers yes​, the partner is asked to provide the following headline financial and tax information in respect of the partnership.​

Question 11​ 

Question: Turnover

The responsible partner must enter the turnover amount as recorded in the financial accounts or statements.​

Question 12

Question: Profit or loss

The responsible partner must enter the amount of the accounting profit or loss as recorded in the financial accounts or statements.

If there is a loss enter a minus in front of the number.​

Question 13

Question: Are you due capital allowances?

If the responsible partner answers no, questions 14, 15, 16 and 17 are not presented

Question 14

Question: Capital allowances due for the period

The responsible partner must enter the capital allowances due for the period.

Question 15

Question: Capital allowances brought forward​

Where an amount was entered in question 17 previously, this amount is automatically entered in question 15.

This amount can be edited.

Ques​tion 16

Question: Capital allowances utilised

The responsible partner must ​enter the capital allowances utilised for the period.​

Question 17 

Question: Capital allowances carried forward

The notification will automatically calculate the amount to carry forward (question 14 add question 15 minus question 16).

This amount can be edited.​

Question 18

Question: Taxable profits of period

This question defaults to £0. If the partnership made a loss the responsible partner must leave the amount as £0.

This amount can be edited if the partnership made a profit.​

Question 19 

Question: Taxable losses of period

This question will not be presented where the answer to question 18 is greater than £0.

Should this question be presented the responsible partner must ent​er the amount of the losses of the period.

There is no requirement to enter a minus in front of the number.

For questions 11 to 19, this information should be available from the financial statements of the partnership and ​tax computations. ​​

Section 5: Partner and member tax information​​