The everyday impact of Revenue Jersey’s 2025 compliance plan

Revenue Jersey’s focus for 2025 will be:

• Non-compliance with the Economic Substance Law, including partnerships
• Financial services companies, specific aspect reviews around expense claims.
• Self-employed individuals
• Income from property
• Not complying with the FATCA and CRS rules
• CRS data and cross checking with personal income tax returns 
• Compliance with GST Law, the Income Tax Instalment System and Social Security
• Contribution Law
• Review of businesses potentially disguising employees as consultants
• Intermediary Service Vehicles (ISVs)
• Failure to register as an employer
• Routine checks on companies claiming to be non-resident
• 131B pension schemes to ensure that they comply with legislation.

But what does this mean for islanders?

While it is the aim of Revenue Jersey to target businesses and individuals that have failed to discharge their income tax obligations, there are often times where islanders who believe they are wholly up to date will be subject to a compliance review and will be required to justify their original income tax declarations to Revenue Jersey.

In these cases, even though there may not be any deliberate non-compliance to uncover, the burden of administration and stress of Revenue’s examination can be overwhelming and can sometimes lead to a misrepresentation of the facts, or an oversight of the various legal rights available.

In certain circumstances, such as cases of genuine error or mistake, or technical dispute, the end result of Revenue’s investigations may give rise to a variety of excessive consequences for the taxpayer, such as imposing unachievable payment deadlines and disproportionate penalties.

Arguably, a broad application of compliance activity is necessary for Revenue Jersey to ensure that no foul play has occurred. However, the legislation underpinning Jersey tax is extremely complex, and without expert support, it is unrealistic to expect taxpayers to be fully aware of the available legislative frameworks in place while under review.

The Grant Thornton tax team has a wealth of Jersey tax experience gained from exposure to a wide range of clients, from locally owned businesses to multi-national groups. We are ideally placed to assist you in managing the ever-increasing risk that accompanies more onerous tax requirements. Further, our suite of advisory services which we offer make us an advisor of choice to many clients and administrators who are looking to mitigate potential tax exposures.

If you find yourself subject of compliance activity of any kind by Revenue Jersey, and you are unsure of your obligations, or if you just need a steady hand to guide you through the process, please do not hesitate to reach out to a member of the Grant Thornton Channel Islands Tax team. Our dedicated and highly experienced team of local experts would be happy to help.