The estimated resultant increase in tax take if the core principle of the ‘20 means 20’ policy was also applied to 1(1)(k) residents
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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY T. M. PITMAN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 17th NOVEMBER 2009
Question
"Will the Minister confirm the estimated resultant increase in tax take (based on present numbers) if the core principle of the 20 means 20' policy was also applied to 1(1)(k) residents?"
Answer
By way of background information, the tax collected from 1(1)k's, through their companies, trusts and in their personal capacity for the 2007 year of assessment, which is the last year complete information is available, totalled £9 million.
Of the (1)k taxpayers held on the Comptroller's tax records for year of assessment 2008, some 40% or so of them pay their 1(1)k tax either through their company(ies) and / or trusts at the standard rate of 20%, so the 20% means 20% provisions could not apply to them.
Of the remaining 60% or so, whilst the actual impact of 20% means 20% will depend on the specific circumstances of each 1(1)k, the Comptroller calculates that the total increase in tax for 2008, if 20% means 20% were to be applied to all of these 1(1)k's, would be some £85,000.