Tax owed to the Taxes Office at end of years 2010 to 2014 (FOI)Tax owed to the Taxes Office at end of years 2010 to 2014 (FOI)
Produced by the Freedom of Information officeAuthored by States of Jersey and published on
25 March 2015.Prepared internally, no external costs.
Request
How much was owed to the Taxes Office at the end of 2014 and at the end of the previous four years? (i.e. unpaid tax)
Response
The question seeks information relating to the amount of income tax outstanding at the end of December 2014. It is important to place this information in context. At any given point in time (such as 31 December 2014) not all tax that could have been collected will have been received by the Taxes Office. This could be for a number of reasons – for example the way that the ITIS (Income Tax Instalment System) operates (as outlined below), and the fact that some taxpayers will be under a monitored debt management plan in respect of the amount of tax they owe. As explained below the cumulative position over the last five years of assessment is that only 1.42% of tax due remains to be collected.
The outstanding Income Tax and Goods and Services tax owed to the Taxes Office at the end of 2014 is as follows:
[Note: in respect of personal income tax the position as at 31 December does not reflect the position for the entire year. The actual tax debt for the whole year – 2014 and previous years – is not fully calculated until December’s ITIS payments have been received in the following January – see further below]
| Personal income tax | £48.41m |
| Corporate tax | £1.88m |
| Goods and Services Tax | £5.67m |
The outstanding amounts owed to the Taxes Office for the previous 4 years are as follows1 :
| Personal Tax | £55.68m | £49.73m | £51.80m | £47.39m |
| Corporate Tax | £5.57m | £16.28m2 | £15.70m3 | £2.57m |
| GST | £2.26m | £3.23m4 | £4.55m | £7.28m |
In respect of personal income tax these figures do not reflect the fact that by the 15 January of each following year the Taxes Office receives approximately £22m in ITIS payments which relate to the month of December of the previous year. The effect of these ITIS receipts is shown in the following table:
| 2014 | £48.41m | £26.41m |
| 2013 | £47.39m | £25.39m |
| 2012 | £51.80m | £29.80m |
| 2011 | £49.73m | £27.73m |
| 2010 | £55.68m | £33.68m |
The figures for the personal and corporate income tax debt outstanding need to be placed in the context of the overall position of income tax assessed in the same period, as the table below demonstrates:
| 2013 | 2014 | 3.46% |
| 2012 | 2013 | 1.55% |
| 2011 | 2012 | 0.92% |
| 2010 | 2011 | 0.67% |
| 2009 | 2010 | 0.51% |
If all 5 years are considered together the tax that remains outstanding at the end of 2014 represents 1.42% of the total tax due.
Notes:
Figures extracted at 28 February 2015.
Corporate tax – year ended 31 December 2011 includes an exceptional tax liability of £12.9m. In view of the circumstances of the case this tax was held over until the Jersey Taxes Office was certain that the liability was due.
Corporate tax – year ended 31 December 2012 includes a ‘one off’ agreed tax liability of £12.9m.
In view of the circumstances of the case this tax was held over until the Jersey Taxes Office was certain that the liability was due.
GST – Increase in rate from 3% to 5% from 01 June 2011.
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