Corporation Tax profit registered

Published on: 26 April 2016

Question type: Written

Asked by: Sam Mézec

Answered by: Minister for Treasury and Resources

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1240/5(9383)

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY S.Y. MÉZEC OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 26th APRIL 2016

Question

Further to the Minister's answer to question 9341, tabled on 12th April 2016, regarding the collection of Corporation Tax, could he provide a breakdown of how much profit was registered for those companies in each tax band?

Answer

In researching this question, the Taxes Office has identified adjustments in respect of data provided in answer 9341 which are corrected in the table below. The previously provided data is included in brackets.

	2009	2010	2011	2012	2013
Number of companies registered with the Jersey Financial Services Commission (as at 31 December)	33,074	32,722	32,508	32,503	32,479

Number of 0% companies that paid no tax	30,592 (30,601)	30,357 (30,361)	30,196 (30,198)	30,261 (30,265)	30,230 (30,232)

Number of 0% companies that paid tax on specific sources of income (income from Jersey property, quarrying in Jersey or from the import and/or supply of hydrocarbon oil)	1,410 (1,425)	1,395 (1,406)	1,321 (1,333)	1,294 (1,300)	1,295 (1,299)

Total 0% Companies	32,002 (32,026)	31,752 (31,767)	31,517 (31,531)	31,555 (31,565)	31,525 (31,531)

Number of 10% Financial Services Companies	913 (888)	881 (865)	910 (894)	932 (920)	938 (929)

Number of 20% Utility Companies	16 (17)	16 (17)	17 (19)	16 (18)	16 (19)

Number of International Business Companies (the International Business Company Regime ceased with effect from 1 January 2012)	143	73	64	0	0
	£	£	£	£	£
Tax paid by 0% companies in respect of income from Jersey property, quarrying in Jersey or from the import and/or supply of hydrocarbon oil	17,694,219 (21,915,857)	20,084,167 (22,167,072)	17,937,304 (18,749,485)	17,203,789 (19,208,841)	16,876,696 (18,113,554)

Tax paid by 10% Financial Services Companies	43,766,086 (41,309,147)	39,092,589 (37,348,704)	48,137,495 (47,340,971)	67,011,500 (65,936,728)	62,691,300 (61,584,809)

Tax paid by 20% Utility Companies	3,058,447 (No change)	5,056,365 (No change)	4,356,392 (4,501,010)	3,396,318 (3,460,942)	2,607,880 (2,704,616)

Tax paid by International Business Companies	15,454,876	11,789,259	8,747,720	0	0

Total tax paid re profits etc on above companies	79,973,628 (81,738,327)	76,022,380 (76,361,399)	79,178,911 (79,369,187)	87,611,607 (88,606,494)	82,175,896 (82,402,979)

Summary of Profits	2009	2010	2011	2012	2013

Net taxable income - 0% companies that paid tax on specific sources of income (excludes income taxed at source and sources of income subject to tax at 0%)	91,285,287	102,848,035	92,489,382	89,760,587	88,431,427

Net taxable profits – 0% companies that paid no tax	Not available	Not available	Not available	Not available	Not available

Net taxable profits – 10% Financial Services Companies	496,046,058	470,375,340	564,467,632	769,015,169	837,668,362

Net taxable profits – Utility Companies	15,292,233	25,281,368	21,781,961	16,981,596	14,592,352

Net taxable profits – International Business Companies	Not available	Not available	Not available	Not applicable	Not applicable

Further Detail on Profits – Financial Services Companies:-

	2009	2010	2011	2012	2013
Tax adjusted business profits before capital allowances and losses brought forward	657,162,623	478,501,766	623,674,784	840,930,248	842,094,113
Capital Allowances	22,192,092	20,234,003	18,605,056	20,774,529	19,529,206
Losses Brought Forward	140,092,547	8,449,552	47,930,835	56,008,061	18,879,042
Net Business Profits	494,877,984	449,818,211	557,138,893	764,147,658	804,160,976

Income from property	1,168,074	1,629,929	1,595,473	1,781,346	910,479

Other income (including dividends that have been taxed at source and carrying credits at 10% and 20%)	0	18,927,200	5733266	3086165	32596907

Summary of Profits (see main table)	496,046,058	470,375,340	564,467,632	769,015,169	837,668,362

Further Detail on Profits – Utility Companies:-

	2009	2010	2011	2012	2013
Tax adjusted business profits before capital allowances and losses brought forward	40,481,295	46,794,590	54,959,334	49,429,888	39,171,733
Capital Allowances	27,040,691	24,095,548	29,404,704	34,625,640	26,045,708
Losses Brought Forward	0	6,961	6,019,040	0	0
Net Business Profits	13,440,604	22,692,081	19,535,590	14,804,248	13,126,025

Income from property	1,851,629	2,589,287	2,246,371	2,177,348	1,466,327

Summary of Profits (see main table)	15,292,233	25,281,368	21,781,961	16,981,596	14,592,352

Notes:

Further quality-assurance checks on the data have identified minor changes to the original table provided in the answer to question 9341. These changes are incorporated into this answer and the original data is included in brackets.
The difference in total tax paid in this answer to that reflected in the answer to question 9341 is due to the inclusion in the former answer of tax paid by companies not in respect of profits but in respect of, for example, tax retained in respect of interest payable and taxes withheld and paid to the Taxes Office.
No information is available regarding profits of 0% companies that pay no tax on income taxable at 10% or 20%. The Taxes Office is gathering some information in this respect during 2016 and expects to be able to publish information during 2018.
International Business Company profits could not be made available without significant redeployment of staff to search files.
The relationship between taxable profits and tax paid will be variable over the years in line with a number of factors, including, for example, the amount of tax credits available for offsetting by individual entities.
Significant resource has been applied in the provision of this answer and in the analysis and cleansing of information extracted from the Taxes Office systems. The existing systems, first introduced in the 1980s, were not designed in such a way to ease the provision of detailed data sets. Work is in progress to introduce new Taxes Office systems which, alongside the other benefits they will provide, will enhance the provision of management information.