Gov Told To 'Ensure Joint Taxation Remains'

Jersey's government has been told to make sure married couples can continue to file a joint tax return.

Deputy Lyndon Farnham narrowly won a States vote demanding the Treasury Minister take steps to ensure joint taxation remains available.

His victory was by a single vote on just one part of his proposition pushing back at compulsory independent taxation.

States members voted 21 in favour 20 against part B:

"to request the Minister for Treasury and Resources to take the necessary steps to ensure that joint taxation remains available for any such married couples and civil partners;"

Chief Minister Deputy Kristina Moore questioned how that would work when all other parts of the proposition didn't pass.

"It was clear to most members that Part B should have fallen away following the outcome on Part A"

Part A - which was lost 20 in favour to 21 against - asked 'that independent taxation should not be mandatory for married couples and civil partners who currently complete a joint tax return and who chose not to elect for independent taxation prior to 29th July 2022.'

The States have approved paragraph b) of my Proposition P32/2023 which states: to request the Minister for Treasury and Resources to take the necessary steps to ensure that joint taxation remains available for any such married couples and civil partners.

The government… https://t.co/sxch7sB79t pic.twitter.com/APiFF8dECk

— Dep. Lyndon Farnham (@lyndonfarnham) July 5, 2023

During the debate, Assistant Education Minister Deputy Louise Doublet said that joint taxation contributes to financial coercion.

"So many women, a lot more than you would be able to conceive of, from all different income levels and backgrounds are currently being subjected to financial abuse in their relationships.

We are facilitating that with our laws."

Jersey Women's Refuge says that independent taxation is crucial to allow people to 'break free' from abusive situations.

Deputy Doublet quoted the charity in her speech.

"Economic abuse causes immense devastation to victim's lives.

I want members to think of the balance of harms. We have huge devastation with some very vulnerable women and children and we have difficulty filling out forms which we, the government, can help with."

However, many of the States Members were in favour of allowing couples to have a choice.

Deputy Farnham told the Assembly that many other countries have the option to submit in joint returns.

"The UK and the US are examples. The primary purpose is to simplify the tax filing process for couples and provide certain benefits.

They are also more cost-effective for the authorities to process. They offer advantages such as lower tax rates and increased eligibility for tax credits.

They are encouraged in other jurisdictions for that reason."

Parts C and D of the proposition were narrowly defeated:

C)    to request the Minister for Treasury and Resources to take the necessary steps to modernise joint taxation returns to ensure married couples and civil partners, who choose to remain subject to joint taxation, will have shared responsibility for their tax return, and that both parties to the tax return will be required to sign; and

(D)    that for those who married or who entered into a civil partnership after 31st December 2021, and those who married or entered into a civil partnership before 31st December 2021 and moved to the Island after this date, who are automatically assessed independently for tax, there should be the ability to opt for application of the current marriage and civil partnership exemption thresholds and allowances.

Treasury Minister, Deputy Ian Gorst says that he will work with the Bailiff's Chambers to figure out how part B can be honoured after the rest of the proposition failed to pass.