Jersey to launch tax crackdown

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Jersey to launch tax crackdown

Jersey's government is planning to launch a crackdown on islanders not paying their due tax, as it estimates to generate an extra arund £40m over the next four years with the initiative.

Authorities will focus on 'high-risk' taxpayers who are getting their taxes wrong "either mistakenly or deliberately". Last month it emerged that tardy tax filers could raise around £1.3m in fines, as those responsible for the 5,400 returns which missed the deadline at the end of May faced penalties of up to £250 each.

Under the proposed crackdown,  Revenue Jersey plans to spend £1,562,000 a year for each of the four years from 2020 through to 2023, the Bailiwick Express reports. The tax office will hire an extra 21 full-time specialists "which will drive improved compliance in the tax system and deliver additional revenues. Without such investment, it is likely that tax compliance in Jersey will continue to deteriorate," the proposal said.

It is expected that  some of that money will be used to fund other projects proposed by Revenue Jersey, including spending £7.5m over the period of the new plan to build its team, and maintain the face-to-face Helpdesk:

The detailed figures estimate that the island's current tax gap could be improved by as much as £5m next year, increasing to £13m by 2023. 

The proposed government plan will be debated in November.  

 

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