SOME of Jersey’s richest citizens are contributing less tax than they were four years ago and need to pay more to hit current States targets.
Treasury Minister Terry Le Sueur (pictured) explained in the States yesterday that he plans to introduce new measures to achieve higher rates of tax for 1(1)K residents.
Deputy Geoff Southern had asked the minister to explain why the total figure of tax paid by 1(1)K residents had fallen from £10.7 million in 2004 to £8 million in 2006. Why, he said, was the average contribution of 1(1)K residents £60,000 when the law required them to contribute an average of £250,000 per year?
Senator Le Sueur said that there were many different 1(1)K residents in Jersey and that they were paying different rates depending on when they came to the Island. ‘In their rate of averages, some pay a lot more and some pay a lot less,’ he said. ‘Arrangements with long-standing 1(1)Ks cannot be changed because the arrangements were made on an individual basis with those taxpayers concerned. It is a matter of privacy between the taxpayer and Income Tax, and it is not appropriate for it to be discussed in this Chamber.’
Article posted on 9th September, 2008 - 2.54pm
28 Article Comments
Everyone knows that the 1(1)k fraternity ‘do’ a deal with the Income Tax Dept through one of many ‘Mediators’ . Is it just and proper that these wealthy individuals, who mostly only use Jersey as a Holiday (meaning Tax Dodge) Home should contribute far less than the 20% of their declared Income the ITIS would dictate? I wonder what would happen the average Taxpayer if they tried to ‘do’ a deal with the Tax Dept?
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I’m sick. Sick of reading articles like this one telling me about people who pay a miniscule amount of tax in proportion to their income, spend a miniscule amount of time in the island, spend a miniscule amount of money in the island.
I’m sick of politicians afraid to make a stand and realise the negatives of the 1(1)K system far outweigh the positives.
I’m sick of paying 17% tax.
I’m sick of paying tax for earnings of last year.
I’m sick of having to fill in so many forms for what could so easily be done a lot cheaper in a PAYE system.
I’m sick of the states keeping people in jobs processing all these documents.
I’m sick of them sending me documents at least 3 times a year.
I’m sick of looking for refunds of overpaid tax, year in, year out.
I’m sick of the states haemoraging cash through the inefficiencies of our ridiculous taxation system.
I’m sick of paying for it.
I’m sick that I cannot buy a house here (even if I could afford one).
I’m sick that those mentioned at the start can buy here.
I’m sick for my local ‘bean’ friends who are allowed to buy property that they’re priced out of the market by 1(1)Ks.
Think I’ll lie down now…I feel sick…
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So my his own words he admits that the 1(k) residents are paying less tax then they are meant to be. They have privatly negociated thier own personnel tax rate which could be less than what i pay in Itis. He states that some pay more and some pay less but they still pay a less percentage than the higher earners in Jersey who pay a higher tax rate. Isnt this one rule for the rich…….again! and the poor get hit with GST. If you are rich and want to move to Jersey then you should pay taxs like any other person on the island to benifit from what Jersey offers. One example of a 1(k)? Just go to St Brelades and look across the bay!
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When will the lower earners, manual workers wake up to the fact that you are NOT WANTED HERE!!!
The states are interested only in Jersey being the financial centre of the world and if that means we have to go – so be it, they are not concerned.
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Well said, if these 11k’s dont pay like the rest of us they should leave, all they do is meddle and in our way of life.They contribute absolutely nothing , they are only here to avoid paying tax in their country of origin.
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If the 1(1)K residents are paying less tax than they were four years ago, it can only be because they have less income, probably as a result of the ‘credit crunch’.
Your correspondents should be offering them sympathy and support rather than coldly criticising them.
Of course, if the Treasury Minister, Terry Le Sueur, did find evidence that they had managed to find more favourable tax arrangements by sheltering some of their income in an offshore tax haven, such as the British Virgin Islands, then he should come down hard on them indeed and send them a letter.
In the meantime, these are all just allegations and innuendoes with no substance behind them other than the facts.
In the meantime, perhaps the shortfall could be made up by introducing some kind of goods and services tax such as VAT in Europe. I know that would be an unpopular, regressive tax, but if the rich can’t afford to pay, someone has to.
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Rob i can not tell if you are been sarcastic in your last comment about introducing a local goods and services tax? If you live in Jersey which planet have you come from? GST is here and no doubt will rise over the years to pay for all the shortfalls as the rich find more ways to avoid taxs from countries around the world. Jersey for some reason believe that inviting more 1(k) residents is good for business but wheres the evidence? All i can see is the local Jersey beans been shafted international and the other unqualified workers been out priced in been able to live and work here. I have said it before… all us low paid unqualified people will take want we want out of Jersey and leave as soon as it goes down hill.
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Can someone say what law states that there is a specific sum these people are required to pay? The Housing Regs simply say that they are permitted to live in Jersey on “social or economic grounds”
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I AM FURIOUS!
As a Jersey taxpayer paying taxes through the nose and then having to watch this hard earned money squandered on ridiculous projects (such as the Victoria Avenue money wasting scam for example) by our so called “elected” “Council of Ministers and CO”. Terry Le Sewer has now blatently and publicly admitted that “certain wealthy 1(1)K members” of our community are not paying enough tax and have not been since 2004 and to add insult to injury can “NEGOTIATE” YES “NEGOTIATE” what amount of tax they pay? (Exactly what hold do these 1(1)K residents have over our politicians) Talk about having salt rubbed into our tax-itis wounds.
I cannot believe it, I am absolutely furious and WELL DONE DEPUTY SOUTHERN for managing to extract this information from Terry Le Sueur for us all to see.
No wonder the Islands finances are in such a mess – if our ministers were not so complacent and in the pocket of the “Upper Crust 1(1)K residents” the black hole tax burden could have been more equally shared and I am sure we would not have needed GST, ITIS, ETC,
Talk about showing a “RED RAG TO A BULL”
All Jersey’s lower and middle income tax payers should start a revolution – OR PERHAPS VOTE WISELY IN THE FORTHCOMING ELECTIONS IN OCTOBER.
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rob kent are you blind? we already have vat and gst on top of that!! if the rich can’t pay hpw on earth are you expecting the poor to??
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Ab – re “Are you mad?”
No, just ironic.
I was trying to point out that Jersey can hardly complain if rich people avoid paying taxes, because that is why they are in Jersey in the first place.
It’s pretty obvious that having once sheltered their money in Jersey, they will then seek to minimize their taxes even further by finding further offshore schemes.
Don’t you find it ironic that Jersey might be losing its tax revenue to the Cayman or Virgin Islands?
I was also trying to point out that introducing a regressive tax on everyone because the rich don’t pay enough is an outrage. That’s what GST is all about, so I was simply connecting the two things.
Drat, you’ve spoiled the joke now…
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Jersey is run for the rich, by the rich – the rest of us are just ’staff’ as far as they are concerned. And the worst thing is that we vote in this system every time we are asked to because we have been told, and genuinely believe, that it is for the best and that we all benefit. We don’t. This island is turning into a wage slave colony for the finance industry and the 1(1)ks and we are being robbed blind. When will you turkeys wake up and vote against Christmas for everyone else but you?
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What a surprise. The rich get richer, the poor make up for it. I tell you all now, if GST isnt taken off food and fuel etc things needed to survive we’re off to england! it might not be much better over there, but its better than taking our chances with the states!
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Right ok, I am all ears. I am 28 and don’t have a clue what to do voting wise, cos no one ever explains it really.
Come on then, who do I vote for who has the same views as I have, That the States are all a bunch of rich, arrogant ************s?????
If someone stood up and spoke out for everything I believe in I would be first in line at the Polling station!!
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Good luck in England, you will need it
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Voting won’t make much difference.
A large number of country Deputies and Constables are returned unopposed each time and they are the most rightwing of the lot.
There will be plenty of votes there to sustain another ‘junta’ under either Le Sueur or Ozouf, all well lubricated with a slather of cronyism.
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Jersey became hell on Earth for average hard working folks, rich will get richer and the rest of us will pay for their luxuries. I would like to renegotiate my tax rate, Mr Le Sueur, because I cannot keep my head above the water. This winter my kids will freeze to death or die of hunger. My only crime is to get up and work every day. Why States is working against own voters?????
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Having read the comments above it seems to me that most of the people who are annoyed that 11Ks are not paying enough tax are obviously jealous of people who have been successful. Not all 11Ks are tight with their money, i for one who earns around £450 a week do not like paying tax just as most people, but the richer people spend more, look at the amount of money they spend with local builders, plumbers, electricians ect, keeping the building industry bouyant. I am quite sure many of the richer people support many of our local charities, Mr Kirsch giving our more senior citizens a generous christmas bonus each year. Dont blame the rich on not paying enough tax blame the people who decide on what the rich should pay
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There are a lot of great comments on here, some brilliant humour and some obvious fury. Mr Sensible is correct in where this needs to be pointed. If you were a 1(1)K resident you would do your utmost to secure the best deal for yourself too. The States seem to show a warped sense of reason on a lot of their ideas to claim our money.
I am not, however, too impressed with Pearls comment on voting not making much difference. It is people who think that and then don’t vote that allow the same faces to establish themselves each time. In the last election only a fraction of the island bothered to vote. If we can increase that then the chances of a difference within the chambers will be increased. It is very important for everyone to look at who is standing during the elections and vote for the right one. Nobody will be perfect for your vote, but at least vote for the one who suits you most! For most of us this is the best opportunity we have to make our say
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Mr Sensible-the 11K residents are not living in Jersey so they can pay local people to do work for them now and then-they are here so they can avoid paying tax and that is the one and only reason they are in Jersey.
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To Ben-why good luck in England you’ll need it? We left Jersey two years ago and are now much better off in every way and living very happily in a beautiful village in England-and I was Jersey born!Our quality of life is better and we regularly thank our lucky stars that we are out of Jersey now and each time we return to visit friends we find it a little bit worse and very claustrophobic.Some parts of England are no doubt terrible places to live in but where we are is friendly,safe and oh yes- a lot cheaper to live!Each to their own but we made a good choice -good luck to others who may do the same!
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To No. 21 Julie
What village in the UK are you….am seriously thinking about having to leave Jersey because of all the s*it that goes on over here with the rich getting richer and a village type area is what I’d prefer.
Thanks.
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I wonder how much he pays and how much he gets to give low rates * we don’t like you Terry please go we want to like but we can’t, people in Jersey want you to go please go you not doing a good job as Minester ,you don’t keep your word ,we don’t trust you
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Elections loom. Try asking your candidate whether they favour:
progressive or regressive taxation; and
how do they propose to ensure they will achieve their aim?
Then sit back and see how many candidates are still standing.
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Its much less ‘each according to his means’ than ‘the poorest can make up the short fall.’ We suffer but what is the real cause. Is it our fundementally unethical system that’s the problem. Our primary industry and financial security is based on making money off those who avoid paying what they should be in their own countries and then we are surprised that they are screwing us over as well? Perhaps in allowing Jersey to be a tax haven we have lined our own beds with nails. The trouble is once you realise what a poor deal you’ve made with the devil you don’t get a cash return on your soul. In throwing all our eggs (industries) into one basket Jersey has been made financially insecure. We rely on outsiders for everything and then have to pander to their whims. So even more lucrative deals keep being made to ensure the I.I K’s stay and the poorest are burdened by regressive taxes such as GST. Talk about a drowning man clutching onto floating drift wood in a storm. What about building our own arc? Finance isn’t the only thing we don’t have security in, food and fuel are also insecure. No one is even acknowledging this let alone putting in place plans as a safe guard. The next elections will see the most seats up for grabs in a long time, make sure you’re registered to vote and look for those new candidates that are: intelligent, visionary, compassionate, skillful and knowledgable. Vote for those who have the furture in mind and the ability to plan for it – it’s our only chance we can’t all be refugees in the UK,
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If you could move to a place which allowed you to keep a lot more of your money than where you were, would you go?
We cannot blame the 11k’s for this sorry situation. They are doing what we would all do – given the chance.
We have to blame those who allow this to happen. People like the Poison Pixie of The Public Purse, whose moral compass seems to have lost its polarity.
Why can’t we unpick the tax arrangements of the past? Why Terry would this be illegal? Don’t leave us hanging here, explain it.
Produce the ‘contracts’ the government signed with these individuals and let’s see how illegal it would be. Let’s see how legal these ‘arrangements’ were in the first place.
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But as he explained above;
Senator Le Sueur said that there were many different 1(1)K residents in Jersey and that they were paying different rates depending on when they came to the Island. ‘In their rate of averages, some pay a lot more and some pay a lot less,’ he said. ‘Arrangements with long-standing 1(1)Ks cannot be changed because the arrangements were made on an individual basis with those taxpayers concerned. It is a matter of privacy between the taxpayer and Income Tax, and it is not appropriate for it to be discussed in this Chamber.
He is going to make a great Chief Minister, can’t discuss that, that is a state secret, blah, blah.
He will make Uncle Frank look like a democrat and a proponent of open government.
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,they promise everything at elections but after they deliver nothing,and it does not matter who you vote or where you live in the world,so why bother is all i can say .
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