Personal Tax Reforms Review

The Panel have reviewed the Proposals set out in the proposition Personal Tax Reforms (P.119/2019), which was lodged on 22nd November 2019, and assessed its overall appropriateness and deliverability against its strategic priorities. 

This proposition sets out the Government's tax system reform plans for 2020, together with indicative plans for the future. This includes the aim to provide equal rights for married couples and couples in civil partnerships. Under the current tax system, married couples are required to file all tax receipts under the husband's name, and a wife's income is considered to be the husband's income.

These reforms aim to provide equal rights of access to tax information, and creates joint and several liabilities for the payment of outstanding taxes, except for where couples have opted for individual assessment.

The Panel have considered the disparities in the level of taxation presented to families under the different tax regimes proposed, the administrative effects of the Personal Tax Reforms on tax collection, and the fiscal soundness of the reforms and their potential impacts on revenue raising. 

The Panel intends held a public hearing with the Minister for Treasury & Resources and sought the views of Industry Experts to collect evidence and insight into these reforms. A comments paper has been published, outlining the work the Panel has undertaken and their conclusions.

The Panel is currently gathering evidence for its review.

1.    Undertake a review of the proposals within the Personal Tax Reforms (P.119/2019) to assess their suitability as a transition measure towards tax system modernisation. 

2.    Consider the timings and staging of reforms, especially in relation to the equitable treatment of all taxpayers and, in particular, whether the first stage of reform addresses the inequitable treatment of married women in the current tax system.

3.    Consider the financial, social and administrative implications that these reforms and policies may have on taxpayers and families.

4.    Consider the financial and administrative implications that these reforms and policies may have on Jersey's taxation revenue.