Tax

  1. GST charge for online purchases over £135 comes into effect

    Rebecca Thorn

    BBC News

    Islanders must now pay goods and services tax (GST) on any online purchases imported into the island worth £135 or more.

    Previously, the 5% charge was only applied to goods bought for personal use costing £240 or above.

    The change to the "de minimis" value was outlined in the government plan for 2020-2023, and agreed by the States Assembly in December 2019.

    It was originally due to come into effect from 1 July, but was delayed due to the coronavirus pandemic.

    A lower threshold for chargeable goods aims to encourage people to buy locally and allow businesses to compete more fairly with off-island retailers, the government said.

  2. Video content

    Video caption: Trump denies New York Times story he avoided paying taxes

    The president denies claims in the New York Times that he paid just $750 income tax in 2016 and 2017.

  3. Government would 'lose vital money if tax debts written off'

    BBC Radio Jersey

    Jersey's government would miss out on vital money to pay for schools and health care if it agrees to a call to write off people's tax debts before moving to a new system, a business consultant has said.

    At the moment, the majority of people in Jersey pay tax on previous year's earnings, but the treasury department wants to change that so they pay on the current year's earnings instead.

    It would mean people having to pay off the missing year, and there is debate about how that should happen.

    Senator Kristina Moore, who leads a scrutiny panel looking into the matter, said she was concerned it might be too much of a financial burden for many.

    More than 5,500 people have signed a petition asking that the previous year's bills should be written off so the new pay-as-you-earn system could start.

    However, business consultant Kevin Keen said that would be unfair on people who had already paid on a "current year" basis earnings, and would leave the States short of millions of pounds to pay for schools, health and other services.

    He added: "I don't think the treasury is in the best position to be doing this anyway."

  4. Changes to tax year plans will 'remove disposable income'

    BBC Radio Jersey

    A scrutiny panel is to review plans to tax everyone in Jersey on their current year's earnings instead of a year in arrears.

    At the moment people pay tax on what you earned last year, but the treasury wants to make changes so that people gradually paid that off and started paying on current earnings.

    Treasury Minister Suzie Pinel argued it would help people who had earned less this year due to coronavirus.

    Scrutiny leader Senator Kristina Moore is worried that might cause hardship to some islanders, and said she wanted to see how it might work after hearing people's concerns about the proposals.

    Quote Message: Some people who've contacted so far have expressed concern that, not only will they have to pay back their current year tax, but, for a five to ten-year period, they'll have to pay 10% to 20% of their tax bill for 2019 at the same time, which will of course remove disposable income from their household." from Senator Kristina Moore is Scrutiny leader
    Senator Kristina Moore isScrutiny leader
  5. Scrutiny panel to review prior year tax reform proposal

    Rebecca Thorn

    BBC News

    Jersey's corporate services scrutiny panel will review a tax reform proposal that could see all islanders pay based on their current annual earnings.

    The Prior Year Basis Tax Reform, put forward by the Treasury Minister, could see two thirds of earners in Jersey moved from an older system under which they pay their tax bill a year later.

    However, these individuals would still owe a year of tax after being moved on to the new system, and the government will have to consider how they plan to spread that cost.

    Corporate Services Scrutiny Panel Chair Senator Kristina Moore said: "Whilst these proposals could be beneficial in the short term, the panel will look at how the financial implications will impact on the taxpayer and public finances in the longer term as the 2019 tax still needs to be paid.

    "The panel will also review if the proposals are fair and transparent and will confirm they meet the criteria of the Government Plan 2020 – 2023 as presented."

    The review is expected to finish in October, after which a report will be published by the panel.

  6. States may debate writing off islanders' 2019 tax bill

    BBC Radio Jersey

    Jersey's government ministers could debate whether to write off last year's tax bill for thousands of islanders.

    More than 5,000 people have signed an online petition - the threshold needed for ministers to consider a States debate.

    It follows plans from Jersey's treasury minister to put all islanders on a pay-as-you-earn tax system.

    Currently, some islanders pay for the previous year's tax liability during the current year.

    However, Susie Pinel said it was not reasonable to write off the 2019 tax bill, which amounted to £320m, because of ongoing costs related to the coronavirus outbreak.