Revenue Jersey Unveils 2026 Compliance Programme to Strengthen Tax Oversight
Revenue Jersey has officially signaled an end to its "light touch" enforcement era, announcing a major shift toward stricter record-keeping compliance starting in 2026. The move, detailed in a letter to the Jersey Chamber of Commerce, marks a significant escalation in the island's efforts to align with international tax standards.
End of the "Light Touch" Approach
Since the statutory requirement for adequate business records was established in 2013, the tax administration has largely relied on a soft enforcement strategy. However, Treasury and Exchequer officials warned that international scrutineers, led by the OECD, are expected to place a much higher premium on record-keeping in upcoming peer reviews.
"Revenue Jersey plans to place greater emphasis on good record-keeping as part of our compliance activities," the department stated, noting that while most businesses maintain comprehensive records, those that do not will now face increased scrutiny.
Key Target Sectors for 2026
The 2026 Compliance Programme identifies several specific industries and practices that will be the focus of "routine" and "targeted" reviews:
Cash-Heavy Businesses: A particular focus will be placed on restaurant businesses where cash transactions are prevalent.
Beauty & Service Industries: Compliance reviews will expand to include hairdressers and nail technicians.
Employment & Payroll: Officials will target new employers for educational reviews and investigate cases of non-compliance with the Jersey Minimum Wage.
Financial Institutions: Highest-risk institutions will face interventions to ensure compliance with FATCA and CRS (Common Reporting Standard) rules.
New Tools and Tactics
Revenue Jersey is set to deploy a "mixture of desk-based and site audits" to identify non-compliance. The department is also ramping up its use of data analytics, cross-checking CRS data against tax returns to find discrepancies.
Beyond enforcement, the 2026 programme includes "Promote" and "Prevent" strategies, such as providing educational materials to students in Years 10 to 12 and using "nudges" during online filing to reduce common errors among the self-employed.
Why Now?
The crackdown comes as Jersey completes one of its most significant tax reforms in a century: the transition to Independent Taxation for all married couples and civil partners starting January 1, 2026. Officials believe the move to more transparent, individual reporting—combined with better record-keeping—will increase Revenue Jersey's capacity to offer targeted customer service while ensuring that "nobody is above the law".
Businesses are encouraged to review their current record-keeping practices ahead of the 2026 cycle to avoid potential civil penalties or investigations.
