Jersey Extends GST Consultation

by Jason Gorringe, Tax-News.com, London

23 June 2006

The Jersey public has been given an extra few days to submit their views on the proposed legal framework for Jersey’s forthcoming goods and services tax (GST), following an extension to the consultation by Senator Terry Le Sueur, Treasury and Resources Minister.

The public consultation on the draft primary goods and services tax (GST) law has been extended by nine days in response to requests from the general public and community and business groups, and will now end on 30 June this year.

Le Sueur explained that since GST will affect everyone who lives in or does business in Jersey, it is important that the government receives responses from as wide a spectrum of the public as possible.

"I want to make sure as many individuals and organisations are involved in the process of formulating it. We want to achieve a tax that is fair and efficient and right for Jersey’s specific needs," the minister stated.

"It is for this reason that we have decided to extend the consultation period on the draft primary law - to give everyone sufficient time to express their views," he added.

Another consultation is due to begin, this time on the GST draft regulations, on July 3. While Mr Le Sueur noted that this too will be open to the wider public, it is likely to be of most interest to those potentially liable to register GST businesses, lawyers and accountants.

Jersey is moving to introduce GST in order to compensate for revenues lost as a result of its decision to introduce a zero rate of corporate tax (10% for financial institutions), as it tries to compete with other offshore jurisdictions.

The States are expected to debate the draft primary law towards the end of this year and consider the regulations early in 2007. Enactment of the GST legislation is planned in time for registration during the second half of 2007, and the introduction of the new tax early in 2008.

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