Goods and Services Tax (Jersey) Law 200- Commentary on Amendments.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (12/04/2007) regarding: Goods and Services Tax (Jersey) Law 200- Commentary on Amendments.

Subject:	Goods and Services Tax (Jersey) Law 200- Commentary on Amendments
Decision Reference:	MD-TR-2007-0039	Exempt clause(s):		N/A
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		SL/3/04/04/07
Written Report – Title	Goods and Services Tax (Jersey) Law 200- Commentary on Amendments	Written report - author		Steve Lowthorpe – Director, GST
Decision(s): The Minister agreed to lodge the attached Commentary on the Amendments to the Goods and Services Tax (Jersey) Law 200-
Reason(s) for decision: On the 3rd April 2007 the Corporate Affairs Scrutiny Panel lodged au Greffe Amendments to the Goods and Services Tax (Jersey) Law 200- . Following analysis of these amendments a Commentary in response to these Amendments is found in the attached Report.
Action required: Deputy Treasurer to arrange for the Commentary on Amendments to the Goods and Services Tax (Jersey) Law 200- to be lodged au Greffe.
Signature: (Minister / Assistant Minister)			Date of Decision: 12th April 2007

Goods and Services Tax (Jersey) Law 200- Commentary on Amendments.

TREASURY AND RESOURCES MINISTER

Goods and Services Tax (Jersey) Law 200- COMMENTARY ON Amendments

1. Purpose of Report

The purpose of this Report is to gain Ministerial approval for the lodging of

a Commentary on Amendments to the Goods and Services Tax (Jersey) Law 200-.

2. Background

The States Assembly agreed on 13th May 2005 (P.44/2005) to introduce a broad-based, 3% Goods and Services Tax (GST) as from 2008. In the light of this decision, and following extensive consultation during 2006 with the business community and the wider public, law drafting on the above law has now concluded and the final draft of the law was lodged au Greffe for debate by the Assembly on 17th April 2007. The Corporate Affairs Scrutiny Panel lodged Amendments to the GST Law on 3rd April 2007

3. Responding to the Amendments

Following detailed analysis of the proposed Amendments to the Law a Commentary is given in Annex A.

4. Recommendation

That the Minister approves the lodging au Greffe of the Commentary on Amendments to the Goods and Services Tax (Jersey) Law 200- outlined above and agrees to direct the Deputy Treasurer to make the necessary changes and lodge the Commentary to the Amendments au Greffe.

States Treasury For Ministerial Decision meeting on 12th April 2007

Annex A

COMMENTS OF THE TREASURY AND RESOURCES MINISTER ON AMENDMENTS TO P.37 (GOODS AND SERVICES TAX : DRAFT LAW) LODGED BY THE CORPORATE SERVICES SCRUTINY PANEL

The Panel has raised a number of issues, and the Treasury and Resources Minister has the following brief comments to make on each of them:

Article 8 : remove the three year restriction on an increase in rate.

The Minister opposes this amendment on the basis that he has given an undertaking to the States and to the public, and wishes to honour that commitment. To vary the commitment might also suggest that the States was simply anxious to have a more positive cash flow and was less concerned about constraining growth in expenditure.

Article 41 :

The Minister is prepared to accept the views of the Corporate Affairs Scrutiny Panel

Article 51 : property conversions

Whilst originally it was planned that all building works, including repairs and maintenance, might be zero rated for GST, the prevailing view of States Members when the matter was discussed last Autumn was that to exclude repairs and maintenance was taking a step too far.

The Law as currently drafted is specific as to its scope, but the amendment as currently drafted would lead to anomalies between building contractors and DIY conversions, and it would also be necessary to amend Schedule 6(2)(4). However the difficulty in trying to determine when a ‘conversion’ is actually akin to a ‘new build ‘ could give rise to considerable problems and appeals. If Members feel that certain conversions or building extensions should qualify, then there might need to be a link to ‘an additional unit of accommodation’ as defined in Housing Regulations.

The current amendment is accordingly rejected.

Articles 88, 89 and 92 :

The Minister is prepared to accept the views of the Corporate Affairs Scrutiny Panel

Schedule 8, Para 7

Although the heading of this paragraph may suggest heavy-handed connotations, the intention behind it is simply to ensure that audit visits to a place of business can take place, and that the business proprietor cannot unreasonably deny entry.

Contrary to the assertions of the Scrutiny Panel, this legislation mirrors the situation on Singapore, as well as that pertaining elsewhere in the world. The extract quoted from Singapore relates to the Singapore Customs Act, but their Singapore GST Act (Art.84(1)(a) gives powers similar to those proposed in the draft law.

The Minister accordingly cannot accept the amendment.