The Corporate Services Scrutiny Panel has launched a review of the Minister for Treasury and Resources’ proposal to introduce a tax equivalent to stamp duty on the transfer of property which is “enveloped” (e.g., held within a company). This new tax would cover transactions involving enveloped residential and commercial properties which currently fall outside the Stamp Duty Law and Land Transactions Law.
The Panel’s review will examine the Minister’s draft Enveloped Property Transactions Tax (EPTT) Law to assess:
- Its economic and distributional impact;
- How it will be imposed and administered;
- What process of appeal is available;
- Whether it is robust enough to deter avoidance;
- Its effect on Revenue Jersey’s resources; and
- Whether it will maintain low, simple, and fair taxes
The Panel will hold public hearings with the Minister for Treasury and Resources and key stakeholders, after which it intends to present a comments paper to the States Assembly by the end of January 2022. The proposition is due be debated during the States Meeting commencing 8 February 2022.
Vice Chair of the Panel and lead member of the review, Deputy Steve Ahier, said: “We intend to thoroughly assess what effect this new tax for enveloped property transactions will have on both an economic and administrative level, should it be adopted. We look forward to receiving submissions from key stakeholders. This will help the Panel to conduct comprehensive scrutiny of this draft law. We will particularly ask whether it aligns with the Government’s commitment to keep taxes low, broad, simple and fair. Our aim will be to produce a comments paper to assist States Members in its deliberations ahead of February’s debate.”
Scrutiny Press Release