Solution To 'J-Category' Back Taxes Row Found, Report Reveals

by Amanda Banks, Tax-News.com, London

16 January 2003

A solution to the backdated tax bills on rent subsidies faced by around 100 'J-category' essential states employees has been reached, according to the Jersey Evening Post.

Reporting this week, the JEP revealed that during a meeting of committee presidents it was agreed that the employers (in this case the affected States committees themselves) should foot the bill on behalf of the J-category employees, who had not been informed that their rent subsidies were a taxable benefit.

However, the newspaper rejected the suggestion that this was the most equitable solution to the problem, arguing 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.'

Speaking to the JEP, Comptroller of Income Tax, Malcolm Campbell, expressed his satisfaction that a solution has been found, explaining that:

'I must have my back taxes and I will have them. I am pleased to say that a satisfactory solution has been found and I will be paid the back taxes relating to the rental subsidies for the five years for all those J-category employees.'

The affected workers, including doctors, teachers, social workers, and therapists had protested Mr Campbell's recent decision to backdate tax payments on their rent subsidies for five years, arguing that they were never informed that such a benefit needed to be declared to the tax authority.

Recommended