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Submission - Member of the public re Prior Year Basis Tax Reform Review - 7 September 2020

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From: Member of the public

Many thanks for your prompt reply. I would be delighted if you would forward my email to the relevant parties and wish you every success in your endeavors.

For your information, I originally sent the email to each standing Senator as well as the Deputy and Connetable of St. Peter

With kind regards and thanks

As a voter and parishioner of St Peter I write to ask your view on the proposal by the Minister of Treasury and Resources to bring into law the change in Income Tax to bring PYB taxpayers into a CYB. I understand that the proposal will be debated in the Assembly over the coming months, and I feel it is important for you hear from voters in advance of the debate.

I feel it is abhorrent for the Jersey government to even consider this proposal as publicized at a time when Individual taxpayers are suffering the worst economic impact for a generation. Even being able to spread the burden of an increase in the amount of tax they pay over a number of years will prolong the economic burden for ordinary people for many years and only increase their suffering. The changes proposed are unnecessary and are an obvious shallow attempt by the Council of Ministers to gain a quick win' for government at the expense of the taxpayer.

The Treasury and Resources Minister has put forward arguments about unfairness to CYB taxpayers should the 2019 tax burden be abolished for those on a PYB as well as being unable to meet the financial demands that COVID impose on the economy. These are flawed arguments to simply gain a rapid pay back of the financial packages that have had to be implemented in order to maintain or replenish the Rainy Day fund'.

The government has been opportunist in trying to fast track a plan that has been on the books for many years and, unlike other jurisdictions ( eg Guernsey), are proposing that ordinary working people foot the bill in quick time. I, like most people understand the need to pay our taxes and am willing to do so, but I am disappointed at this government's shallow and obvious tactics.

In my view, the government would be seen to act in fairness and with foresight and compassion if, instead of their focus being on the 2019 income tax proposals, the target was made for 2020 instead. As such:

1 All personal income tax liability would be waived for 2020, although contributions would continue as normal.

  1. All contributions made during 2020 by PYB Taxpayers would be used for the 2019 assessment, and CYB taxpayers's payments would be used towards the 2021 tax liability thereby acting in fairness to both sections of the community. As such, all taxpayers would become CYB taxpayers in 2021.
  2. Most working people in Jersey will have seen a drop in income during 2020 so the perceived accountancy exercise write off by the Treasury will be much less than in other years.
  3. The uplift in economic activity due to a feel good' factor by taxpayers would be substantial in my

view And would act as a boost.

  1. There would be no significant impact in annual income tax receipts for the Treasury as, at no time will anybody stop paying income tax.

In summary, I take the view that the proposals by the Treasury Minister and Council of Ministers will have far reaching impacts on the Jersey voting public which in turn will shape the well-being of this island for generations to come. This is an opportunity to demonstrate that the government and the public are in this COVID situation together and that it is not being used to simply railroad policies through at the expense of the public.

With kind regards