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Modification of ITIS rates

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22.03.01

8 Senator K.L. Moore of the Minister for Treasury and Resources regarding

modification of ITIS rates (OQ.30/2022)

Will the Minister inform the Assembly how many times, in the past 4 years, Revenue Jersey has received requests to modify I.T.I.S. (Income Tax Instalment Scheme) rates and on how many occasions those requests have been agreed?

Deputy S.J. Pinel (The Minister for Treasury and Resources):

The Comptroller of Revenue advises me that this information is not available. The Income Tax Instalment Scheme, I.T.I.S., enables over 50,000 employees to build up the money to pay towards their annual tax bill. An I.T.I.S. effective rate dictates monthly deductions from salary and it is sensitive to changes in employee circumstances, which need to be reported to Revenue Jersey in a timely fashion. Employees' effective rates are reviewed at least twice annually, even where employees do not report a change of circumstances. Firstly when employees file their tax returns and receive their annual tax assessments, and secondly in November each year to help update employers' payroll systems for the coming year. Many employees seek to reduce their I.T.I.S. effective rate for a number of reasons. During 2020 and 2021, to alleviate financial distress during the pandemic, Revenue Jersey significantly relaxed the rules around agreeing temporary reductions in effective rates. This will have allowed employees to build up tax debts, which normally will be built into future years' effective rates.

[11:00]

3.8.1 Senator K.L. Moore :

The Corporate Services Scrutiny Panel has on a number of occasions raised concerns on behalf of members of the public with the Minister and the Comptroller of Revenue Jersey. Does the Minister accept now that there are significant issues with regards to accuracy and satisfaction with the work of Revenue Jersey and it is a matter that must be addressed immediately?

Deputy S.J. Pinel:

The matter is being addressed. The chair of the Scrutiny Panel is quite right, it has been raised and there have been several briefings with the Scrutiny Panel with myself and the Comptroller and members of Revenue Jersey in order to address the concerns of the Scrutiny Panel. So it is being addressed but it is not a perfect system. We are working towards improving it.

The Bailiff :

That brings us now to question 10 that Deputy Gardiner will ask the Minister for Infrastructure. Deputy Gardiner is absent, yes. Very well, then question 10 falls away. Question 11 falls away because Deputy Morel is also absent.