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Submission - Member of the public re Prior Year Basis Tax Reform Review - 28 September 2020

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From: Member of the public Dear Scrutiny Panel Members

I am writing to express my opposition to the proposition regarding the way Islanders pay their tax. The middle of the Covid19 pandemic would not seem the best time to bring in such dramatic changes to our tax system. There is nothing in the proposition to say how Islanders will be expected to repay the additional money they owe. If PYT payers are moved to CYT payers it would seem necessary to pay 105% each year (if it is to repaid over 10 years) and 110% (if it is to be repaid over 5 years.) This is not helpful to Islanders but rather an added tax burden at a time when many can least afford it.

The survey online does not give Islanders the opportunity to express their dissatisfaction with the idea. It would seem that this is being forced upon us with no consultation. Personally, we wish to be able to continue to pay our tax a year in arrears, as we have done for the last 40 years, i.e. when we actually know what our tax liability is.

It would also seem strange to wish to implement such change when the Department has recently spent some £9 million on an IT system to deal with both current and previous year's tax payers.

We fully appreciate that the Treasury Minister does not wish to write off' everyone's 2019 liability, as the Island cannot afford to lose this income. May we suggest that the simple solution would be to withdraw the proposition at this time.

P.S. Whilst writing I also wish to bring the following problems to your attention regarding the Tax Department, which currently seems in complete disarray:

The move from Cyril Le Marquand House has not been good for Islanders and must have been very difficult for the hard-working employees of the department. It was far easier when all tax advisors and files were in the same place. We are now not able to meet with/ talk to the same advisor when, prior to the move, this was possible.

Indeed, currently, La Motte Street is closed.. how can this constitute an enhanced' service for Islanders?

Why have Senior Advisors left and why are Staffing levels down?

 Accountants are finding it impossible to receive information and proper advice in a timely fashion.

 Some people have not paid their 2018 taxes as the tax department has been in a muddle and there are still outstanding bills to be issued.

The online system is not very user-friendly. Married women are not treated equally.

 It was indeed unfortunate that deceased Islanders received letters announcing proposed tax changes and married women were not even acknowledged, the letter merely written to their husbands.

We live on an Island specialising in Financial matters and yet, during the last eighteen months, it is questionable whether the Tax department is giving Islanders reassurance on this matter.

It would seem very unwise to implement any more change in a Department which is already not able to cope.

Addition:

How were the Government able to say that 52% respondents support the move to Current Year Payment, when we were not given the opportunity to answer this question?