Jersey's J-Cat Workers May Be Forced To Contribute To Back Tax Payments

by Jason Gorringe, Tax-News.com, London

17 February 2003

If a proposal put forward by St Brelade Deputy, Peter Troy is accepted, Jersey's J-category workers may be obliged to pay back half of the tax that they owe on undeclared rent subsidies.

There was outrage earlier this year when Comptroller of Income Tax, Malcolm Campbell decided to backdate tax payments on rent subsidies afforded to vital workers such as doctors, teachers, social workers, and therapists by five years, with the affected workers arguing that they had never been told that the subsidies should be declared.

In mid-January, it appeared that a solution had been reached, as it was agreed that the employers (i.e the States Committees) should foot the bill on behalf of their employees. However, this announcement was not well-received by the public or the local media.

Reporting at the time, the Jersey Evening Post observed that: 'States cash raised from taxation will be used to pay the tax liability of public sector workers whose rents are also subsidised by the taxpayer.'

With his proposal, which he hopes to lodge at tomorrow's States sitting, Deputy Troy believes that he has hit upon the ideal solution. Referring to a recent question and answer session with Policy and Resources Committee President, Senator Frank Walker, the St Brelade Deputy told the Jersey Evening Post that:

'Senator Walker implied that there were errors on the part of the employers and errors on the part of the employees so I think each paying 50% is fair. My proposition has the chance of saving the taxpayer perhaps hundreds of thousands of pounds.'

The JEP reported that the Comptroller of Income Tax was a little more hesitant on the subject, as he has previously accepted payment from employers under similar circumstances, but never a 50-50 payment split.

'I would have to consider it carefully, it would be breaking new ground,' he announced.

Recommended