Chamber: Tax reforms will cause more problems for married women

Friday 31 January 2020

Jersey's key business lobby group is urging politicians to throw out the first major change to the island's personal tax system in almost a century, arguing it would create "further issues" for married women and civil partners.

States Members are next week due to debate the first in a series of reforms to the island's personal tax system - which has been largely left untouched since 1928 - put forward by Treasury Minister Deputy Susie Pinel.

If passed, the plans to create wholly independent taxation would put an end to married women needing their husband's permission to handle the couple's tax affairs - something that led them to being barred from using the new online filing system - and make married and unmarried taxpayers more equal.

But representatives from the Chamber of Commerce say that, having closely reviewed the proposals, and having met with the Comptroller of Taxes, Corporate Affairs Scrutiny Panel and Treasury Minister herself, they're not convinced the reforms will have the desired effect.

Pictured: The tax proposals put forward by Treasury Minister Deputy Susie Pinel will be debated by States Members next week.

According to Chamber Vice President John Shenton, the part of the proposals that seeks to create joint and several liability for the payment of outstanding taxes, except where couples have opted for ‘separate assessment', is the "complete opposite of a move to independent taxation".

"To create equality you would expect the liability of the married man / first civil partner to be reduced to the tax on his income rather than the liability of the wife / second civil partner to be increased so that they have to also pay the liability of what should be, over as yet an undetermined time period, an ‘independent taxpayer’," he explained.

"We cannot reconcile this part of the Proposition, with the aim of the accompanying report which states 'the end goal of independent taxation would give Jersey a personal income tax system that fundamentally treats married and unmarried taxpayers the same way' and also refers 'to overdue reforms to the most egregious aspects of our existing married couple regime'. We are unable to see how part three is not diametrically opposed to these goals."

The lobby group is therefore calling on all States Members to reject the tax reform plan "in its entirety", arguing that any potential benefits are outweighed by the increased burden on married women and civil partners.

If this part of the proposal passes, however, Chamber is suggesting that married women and civil partners contact Revenue Jersey as soon as possible to make a claim for separate assessment.

This, they say, will help them "avoid being faced in the future with the liability of 'an independent taxpayer' being collected from them".

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