Scrutiny to review Independent Taxation of Jersey couples
6th August 2021
The Corporate Services Scrutiny Panel has launched a review of the Minister for Treasury and Resources' proposed amendment law to separately tax both partners in a marriage or civil partnership from 1 January 2022.
The draft amendment, which is due for debate by the States Assembly in September, proposes a three-phase approach to the introduction of independent taxation – the first of which will begin in January next year. The Minister estimates that by 2026, all Islanders will be taxed independently.
As part of its review, the Panel will examine how the proposed Independent Taxation Law will impact:
Taxpayers, especially those of lower income households and those with children
The future of existing tax allowances, such as Child Allowance and Married Couples Allowance
The tax liability of spouses in marriages and civil partnerships
Revenue Jersey's resources
Loss or gain in the Government's revenue
Chair of the Panel, Senator Kristina Moore, said "The proposed legislation for independently taxing married couples and those within civil partnerships is an opportunity to address the barriers our tax current system presents to achieving gender equality. Whilst the Panel very much support this in principle, as expressed in our response to the original proposal, we remain particularly concerned about the potential impact that this revised tax system could have on lower income families and children, the tax liability of couples, and Revenue Jersey's resources.
"The Panel will, therefore, undertake a comprehensive scrutiny of the new system to ascertain whether these factors, amongst others, have been adequately taken into account. It will also determine how effectively these changes are communicated to the public to ensure the implementation of independent taxation is fair and successful."
The Panel will deliver a comments paper in response to the Minister's proposed law by September 2021.
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