Jersey raises GST late-payment surcharge to 10% of unpaid tax

A Jersey business that disputes a Goods and Services Tax decision must still pay on time any GST it does not dispute. A person who fails to pay an amount of GST on time is liable to a surcharge of 10% of the amount under Article 74 of the Goods and Services Tax (Jersey) Law 2007Jerseylaw, up from the 2.5% previously described in Revenue Jersey appeal guidanceGOV.

The surcharge sits alongside separate return-failure surcharges: £100 for failing to furnish a required return on time for a prescribed accounting period, with a further £100 for each month after the specified date the return remains unfurnished up to 9 months. A failure that has already led to conviction or to penalty tax under Article 73 does not also attract a surcharge under Article 74 for the same failure.

The amount stated in Article 74 is a maximum. Article 79 provides that the surcharge assessed or imposed in any case may be less than that amount or zero, with the Comptroller taking into account matters prescribed by the States and any further matters the Comptroller thinks fit where consistent with the Law and Regulations. Article 80 allows the Comptroller to waive liability where the person satisfies the Comptroller there is a reasonable excuse and the failure did not involve dishonesty. Liability to a surcharge is additional to liability to GST.

Appeals remain subject to a 40-day limit running from the date of the decision. A business may first ask for review by an officer not originally involved; the review may uphold, amend or reverse the decision, with a written report within 20 working days of Revenue Jersey receiving all relevant information. The 40-day appeal clock stops during the review, and a business that still wishes to appeal to the Commissioners of Appeal has 40 days from the review report. Appeals are submitted through the online form with the grounds of appeal and supporting documents.

Late appeals are possible where absence, sickness or other reasonable cause prevented filing within 40 days, provided the appeal is submitted without unreasonable delay with an explanation for the delay. The Commissioners will only hear an appeal where the appellant is up to date with GST returns, has paid all GST except the disputed amount, has deposited the disputed amount with the Comptroller, has complied with the Commissioners' instructions and has supplied information requested before the hearing. The Commissioners may uphold, revoke or vary a direction or decision, substitute their own decision, refer the matter back to the Comptroller, or direct payment of sums due with interest.

Legal basis is the Goods and Services Tax (Jersey) Law 2007, Articles 74 to 75, 79 to 81 and 84 and Part 16.