Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 on 15 June to lodge the Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-

Decision Reference: MD-C-2010-0052
Decision Summary Title :	Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-		Date of Decision Summary:	8th June 2010
Decision Summary Author:	Project and Research Officer		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-		Date of Written Report:	15th April 2010
Written Report Author:	Advisor – International Affairs		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-
Decision(s): The Chief Minister, acting on the recommendation of the Council of Ministers, agreed to lodge ‘au Greffe’ a report and proposition that would give effect to an Arrangement amending the 1952 Arrangement between the United Kingdom Government and the States of Jersey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Reason(s) for Decision: On 16th July 2009 the States ratified an Agreement for the exchange of information relating to tax matters (TIEA) between Jersey and the United Kingdom (P.96/2009). Associated with the TIEA was an Arrangement amending the 1952 Arrangement between Jersey and the United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This Draft Act therefore gives effect to the amended Arrangement and provides, among other things, that pensions and other similar remuneration paid to an individual who is resident of one of the territories shall be taxable only in that territory. The Act gives effect to an “Arrangement” rather than to an “Agreement” because it is an amendment to what was referred to as an Arrangement in 1952 (Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 1952). At the meeting held 29th April 2010 the Council of Ministers agreed that the Chief Minister should proceed to lodge the Draft Act for consideration by the States.
Resource Implications: There are no implications for the financial or manpower resources of the States arising from the adoption of the Act. There is expected, however, to be an estimated £2-3 million gain in tax revenues resulting from the adoption of the Act.
Action required: The Greffier of the States is asked to arrange for the Draft Act to be lodged ‘au Greffe’ for debate.
Signature:		Position: Senator T.A. Le Sueur, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 201-

Draft Report for Inclusion in the Act

On the 16th July 2009 the States ratified an Agreement for the exchange of information relating to tax matters (TIEA) between Jersey and the United Kingdom (P96/2009). Associated with the TIEA was an Arrangement amending the 1952 Arrangement between Jersey and the United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This amendment provides, among other things, that pensions and other similar remuneration paid to an individual who is resident of one of the territories shall be taxable only in that territory.

The Arrangement can mean significant savings in terms of tax paid for some Jersey residents, who could have been paying 40% tax on their pension and who may in future be subject to tax of 50%. The Arrangement means that, subject to a claim being made and accepted by the UK tax authorities, Jersey residents will be paying tax in Jersey, at a maximum rate of 20%, on their UK pension.

The Arrangement also affects residents in the United Kingdom who have been paying Jersey tax on their Jersey pension. Under the Arrangement UK residents will be able to apply to the Comptroller of Income Tax to stop having Jersey tax deducted from their Jersey pensions and only pay tax in the United Kingdom.

The other provisions of the Act are largely concerned to update the existing Arrangement.

The Act gives effect to an “Arrangement” rather than to an “Agreement” because it is an amendment to what was referred to as an Arrangement in 1952 (Double Taxation Relief (Arrangement with the United Kingdom) (Jersey) Act 1952).

The Act provides that Jersey and the UK will notify to the other Party the completion of the procedures required by its law for the bringing into force of the Arrangement. The Arrangement shall enter into force on the date of the later of these notifications and shall thereupon have effect.

Financial and Manpower Implications:

There are no implications for the financial or manpower resources of the States arising from the adoption of the Act. There is expected, however, to be an estimated £2-3 million gain in tax revenues resulting from the adoption of the Act.