Key focus areas for 2026 will be:
- Observing compliance levels for overseas retailers in relation to GST
- Monitoring of large-scale importers, ensuring all goods remain relevant to business activities
- Non-compliance with the Economic Substance Law (including partnerships)
- Targeted educational reviews (desk and on site) of new employers
- Targeted review of effective rate application by employers
- Ongoing reviews of employers who fail to register as an employer or do not submit their Combined Employer Returns (CERs) by the legal deadline
- Identification and investigation of cases of non-compliance with the Jersey Minimum wage
- Restaurant businesses where cash is prevalent
- Self-employed individuals
- Undeclared property income
- FATCA and CRS compliance
- GST Law, Income Tax Instalment System, and Social Security Contribution Law
- Creating, maintaining, and retaining adequate records in accordance with the 2013 regulations
- Reviews of Land Transaction Tax (LTT) to ensure that the correct rates have been applied.
But what does this mean for islanders?
While it is the aim of Revenue Jersey to target businesses and individuals that have failed to discharge their income tax obligations, there are often times where islanders who believe they are wholly up to date will be subject to a compliance review and will be required to justify their original income tax declarations to Revenue Jersey.
Even those who believe they are fully compliant may face reviews requiring justification of prior tax declarations. Without expert guidance, this process can be stressful and may lead to errors or disproportionate consequences.
In certain circumstances, such as cases of genuine error or mistake, or technical dispute, the end result of Revenue’s investigations may give rise to a variety of excessive consequences for the taxpayer, such as imposing unachievable payment deadlines, disproportionate penalties, or in extreme cases, inaccurate assessments.
Arguably, a broad application of compliance activity is necessary for Revenue Jersey to ensure that no foul play has occurred. However, the legislation underpinning Jersey tax is extremely complex, and without expert support, it is unrealistic to expect taxpayers to be fully aware of the available legislative frameworks in place while under review.
The Grant Thornton tax team has a wealth of Jersey tax experience gained from exposure to a wide range of clients, from locally owned businesses to multi-national groups. We are ideally placed to assist you in managing the ever-increasing risk that accompanies more onerous tax requirements. Further, our suite of advisory services which we offer make us an advisor of choice to many clients and administrators who are looking to mitigate potential tax exposures.
