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1240/5(2952)
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 4th JULY 2006
Question
Notwithstanding his written answer to my question on 20th June 2006, following the end of the consultation period and finalisation of the Zero/Ten Design Proposal', will the Minister undertake to provide a detailed breakdown of which sectors of the financial services industry will be subject to a 10% tax rate and which to 0%, along with estimates of the revenue to be raised by each and the overall revenue to be raised, and will he do so in a timescale which will allow proper examination of the figures prior to any debate of the proposals in the Assembly?
Answer
The sectors of the financial services sector that it is proposed will be subject to the 10% rate have already been outlined in my written answer on 20th June 2006. I can also confirm that those sectors liable at the 10% rate will be detailed in the draft tax legislation on the 0/10 proposals which will be ready for consultation within, it is anticipated, the next 8 weeks. Any sectors not so detailed in the legislation as liable to the 10% rate will be liable at the 0% rate.
I have already given information on the revenue to be raised in my written answer on 20th June 2006. I do not propose to add to States expenditure by incurring the very considerable cost in time and resources that would be necessary to provide the detailed information the Deputy is seeking at what is an extraordinarily busy time for the Comptroller of Income Tax and his staff, who are already under considerable additional pressure caused by currently shouldering the burden of the normal administration of the Income Tax (Jersey) Law and serving some 95,000 taxpayers, together with the final and full implementation of ITIS, the submission of details under the European Union Savings Directive Bilateral Agreements with 25 EU countries, and the provisional law drafting for the 20% means 20% and the 0/10 corporate tax reforms proposals. There is also time being spent by the Comptroller and his staff, of course, on the proposed Goods and Services Tax.
These approximate figures, which I have already given the Deputy , are quite sufficient to make a reasonable assumption of the likely revenue yield from these sectors in an ever-changing marketplace.