Companies will have an extra month to file their 2019 tax returns online before late filing penalties are levied, following agreement by Revenue Jersey.
Late penalties are levied on corporate tax returns which are not filed by midnight on 31 December. However, given the disruption caused by COVID-19, this year companies will have until midnight on 31 January 2021 to file their returns before a penalty will be raised.
To date, only 7,000 out of an expected 42,000 returns have been filed, 15% of the total.
This year, companies will need to provide more documentation when they file their corporate tax return. The Taxation (Companies – Economic Substance) (Jersey) Law 2019 means that, for the first time, companies will need to provide additional information, including accounts and information about their business activities.
Because of the more complex filing requirements, companies should aim to file in good time to avoid a late filing fee. They should also allow up to 5 days if they need to request a password reset for their account.
Comptroller of Revenue, Richard Summersgill, said: “We recognise that the disruption caused by COVID-19 and by lockdown has created adverse working conditions, which mean that tax agents may be hard-pressed to meet the standard corporate tax deadline of 31 December.
“In light of this, Revenue Jersey have agreed to waive any late fees for returns which are filed before midnight on 31 January, 2021. I would, however, advise companies to make sure that they are prepared ahead of that date, including ensuring they have access to their online account.”
More information on the new regulations is available online: https://www.gov.je/taxesmoney/incometax/companies/guidelines/pages/economicsubstanceforcompanies.aspx
Government of Jersey News Release.