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FOCUS: The push for "truly independent taxation"

FOCUS: The push for

Friday 08 March 2024

FOCUS: The push for "truly independent taxation"

Friday 08 March 2024


Creating an "independent taxation" system which doesn't discriminate against women in Jersey has been a long, and sometimes divisive, road... Now, a backbencher is pushing for a final tweak to make it "truly" independent.

Deputy Louise Doublet wants to remove the option for married couples to file joint returns and enshrine “truly independent taxation” in Jersey's legislation.

She wants the draft law, due to come before the States Assembly, which seeks to make independent taxation in Jersey compulsory – and make the island compliant with Convention of the Elimination of all forms of Discrimination Against Women (CEDAW).

She said the move would allow the island "to continue with the direction set by the previous States Assembly and ensure that our legislation implements truly independent taxation in the island". 

And it comes after Chief Minister Lyndon Farnham last year succeeded in retaining the option for married couples and civil partners to file joint returns, despite the Assembly approving the move toward independence in 2021.

So, how did we get here? If Deputy Doublet's amendment is a "redirection", then what does the road travelled look like?

Floating independence for the first time

Jersey's tax system, dating back to 1928, assesses married couples and civil partnerships as one unit.

For opposite- sex couples, the husband is automatically given the title of 'primary taxpayer' and given legal responsibility for tax payment, and for same-sex couples the eldest person usually takes this title. This 'primary speaker' was the sole person in the partnership allowed to speak to Revenue Jersey about their tax.

Former Treasury Minister Susie Pinel put forward the plans to change that in September 2021 and the States Assembly approved the move toward separate tax returns 15 September.

What next?

From 2022, all single people and all new arrivals to the Island, including couples in marriages or in civil partnerships, will be in​dependently taxed. People who marry or become a civil partner after 31 December 2021, will also be independently taxed.

And each year until independent taxation is made compulsory, married couples and civil partners are being offered the option to file separate tax returns.

Retaining the "option" to file separate returns

Chief Minister Lyndon Farnham last year succeeded in retaining the option for married couples and civil partners to file joint returns, after the States Assembly approved in 2021 the move toward separate tax returns.

He said that some older married couples were "uneasy" at the prospect of being "forced" to move to independent taxation.

He insisted that his proposition "fully supports" the previously agreed position of independent taxation as the "default position" for all new married couples and civil partners.

After some debate, one part of the proposition passed by one vote, narrowly securing that "option".

Legislation lodged...

The draft legislation, with Deputy Farnham's altered article, was lodged in January. If the States Assembly vote it through, all remaining couples will move to the new tax system by 2026, and if their tax bill is higher under independent taxation, they can claim a compensatory allowance.

...but does it offer "truly independent taxation"?

Deputy Doublet is now looking to remove Deputy Farnham's changes from the draft legislation.

This would take away the option for married or civil partnered couples to complete a joint tax form.

Doublet_Louise.jpg

Pictured: Deputy Louise Doublet has supported the move for a long time.

She explained: "It's really important that we continue with the direction set by the previous States Assembly and ensure that our legislation implements truly independent taxation in the Island.

"Women should be empowered to have independence with regards to their finances and full autonomy over their economic situation."

Deputy Doublet added that awareness of economic abuse had increased since the publication of the Violence Against Women and Girls Taskforce report, which found that 57% of victim-survivors surveyed had experienced financial or economic abuse.

She hoped these findings could sway the Assembly when asked again to consider compulsory independent taxation and noted that Deputy Farnham's proposition passed by only one vote.

She said: "Much of the domestic abuse that occurs on our Island is enabled by abusive partners having some level of control over their victim's finances.

"If we include a joint filing option in this legislation, it will give abusers a tool to initiate or continue economic abuse against vulnerable partners, the majority of which are women.

"Not all relationships are abusive, and couples who aren't in an abusive relationship may wonder why this is important.

"I call on those women who aren't being abused to act in solidarity with those women who are and act for those women who can't speak up for themselves because of the vulnerable position that they're in."

She encouraged women to access community clinics and other resources to gain confidence in filing their tax return, saying: "I can empathise with people who don't like filling in tax forms, and I can understand the reluctance to do that. I am certain that there will be support in place to empower every Islander to fill in their own form.

"I'm also certain that if a joint option is taken forward, then that will be used as a tool by abusers and I'm not willing to let even one women be subjected to abuse when it can be avoided."

What is economic abuse?

  • "Economic abuse can include exerting control over income, spending, bank accounts, bills and borrowing. "It can also include controlling access to and use of things like transport and technology, as well as property and daily essentials like food and clothing. It can include destroying items and refusing to contribute to household costs." (survivingeconomicabuse.org/what-is-economicabuse/)

  • Jersey's Violence Against Women and Girls Taskforce report found that 57% of victim-survivors surveyed had experienced financial or economic abuse.

  • One in six women in the UK has experienced economic abuse by a current or former partner.

  • Extrapolating that statistics for Jersey suggests that of the 44,128 women in the Island over the age of 16 years some 7,354 will experience economic abuse in their lifetime.

READ MORE...

Older islanders "uneasy" about independent taxation

Married women to be taxed independently from next year (2021)

Tax reform: “With equal rights come equal responsibility" (2020)

Comment: Women – taxation DOES have to be taxing (2019)

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