MORE questions have been raised about the Treasury Minister’s plan to charge non-Jersey companies according to the property they occupy.
The so-called Blampied proposals are due to come into force from January, if the States approve them. The charge, based on the estimated rental value of the premises, is designed to claw back some of the revenue lost under the new zero-ten corporate tax scheme. Although the directors of Jersey-based companies will pay tax on their company profits, non-Jersey firms will pay no tax at all.
Accountants have suggested that if the property charge is enforced it could deter businesses from coming to the Island, because they will still have to pay the full tax charges at home. This could include firms about to move into the newly refurbished abattoir site on the Waterfront.
John Shenton, tax partner at Ernst & Young CI, said that the way the consultation had been set up made it look as if the States were not taking public response seriously. He said: ‘I find it odd that a paper dated 16 September, but released on 7 October — only one full working day after the consultation period closed — states that the minister will consider the responses, but that matters will be addressed in the draft law. It appears that there was no real intention to consult.’
• Picture: Hotels like the Radisson will be hit by the Blampied proposals, says John Shenton