Goods and Services Tax

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A decision made (02.04.07) to make amendments to the Goods and Services Tax (Jersey) Law.

Subject:	Goods and Services Tax (Jersey) Law 200- Amendments
Decision Reference:	MD-TR-2007-0037	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/1/02/04/07
Written Report – Title	Goods and Services Tax (Jersey) Law 200- Amendments	Written report - author		Steve Lowthorpe – Director, Goods and Services Tax (GST)
Decision(s): The Minister agreed to direct the Director, GST, to instruct the Law Draftsman to make the following amendments to the Goods and Services Tax (Jersey) Law 200- and to lodge these amendments au Greffe: to prepare amendments for the purpose of removing any uncertainty regarding the treatment of finance vehicle under Part 12. (They are not within the definition of ‘taxable person’).
Reason(s) for decision: Following a submission from Jersey Finance Limited, as summarised in the attached Report, the Minister is recommended to direct the Director, GST, to instruct the Law Draftsman to make the appropriate amendments to the Goods and Services Tax (Jersey) Law 200- and lodge au Greffe on 3rd April 2007.
Action required: Director, GST to instruct the Law Draftsman to make the appropriate amendments and to lodge these revisions to the Goods and Services Tax (Jersey) Law 200- au Greffe.
Signature: (Minister/ Assistant Minister)			Date of Decision: 2nd April 2007

Goods and Services Tax - Amendments

TREASURY AND RESOURCES MINISTER

GOODS AND SERVICES TAX ( JERSEY ) LAW 200- AMENDMENT

1. Purpose of Report

The purpose of this Report is to gain Ministerial approval for the lodging of amendments to the Goods and Services Tax (Jersey) Law 200- on 3rd April 2007.

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.

3. Comments

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.

4. Amendments

Following subsequent representations from Jersey Finance Limited, the Minister is advised that the following amendments to the Law should be made:

to prepare amendments for the purpose of removing any uncertainty regarding the treatment of finance vehicle under Part 12. (They are not within the definition of ‘taxable person’).

Reasons for the Amendments

As a result of recent detailed analysis of the law, it has become apparent that the current

approach will result in significant complexity for the finance industry, requiring the need for additional administrative (non value adding) resources for industry, as well as the additional government resources necessary to administer the complexity.

Furthermore, complex law undermines the simplicity of Jersey based structures and client advice and may damage the competitiveness of the finance industry.

The proposed approach will address the first two points and allow a more measured first step that can be assessed for effectiveness within a year. In particular the proposed approach will provide greater certainty regarding the ability to raise the targeted £5m - £10m, whilst not ruling out the ability to apply greater complexity if found to be necessary in due course.

6. Recommendation

That the Minister approves the lodging au Greffe of the amendments to the Goods and Services Tax (Jersey) Law 200- outlined above and agrees to direct the Director, GST to instruct the Law Draftsman to make the necessary changes and lodge these amendments au Greffe on 3rd April 2007.

Financial and Manpower Implications

There are no financial or manpower implications resulting from these amendments.

States Treasury For Ministerial Decision meeting on 2nd April 2007