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ZERO TEN
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WHO PAYS JERSEY TAX? ….. WE DO!
These figures produced in the table below show how the Walker, Le Sueur, Ozouf Councils of Ministers have transferred the tax burden way from business and on to the shoulders of ordinary working people in Jersey.
“Back in 2000 companies contributed over half (52%) of the tax revenue needed to run the island” said Deputy Southern.
“That proportion has been steadily reduced and thanks to the zero-ten tax regime is now as little as 12% of the sum required. Over the same period workers and their families have seen their taxes double to 84% of the revenue needed
“Companies do not pay tax” says Treasury Minister Philip Ozouf, in the States in question time on 1st March.
Companies don’t pay tax – under zero/ten, and now that deemed distribution has been ruled out by the EU, all non-finance businesses, whether locally owned or not, will pay zero per cent on their profits. These companies contributed £82.5 million in 2007 (the last year for which figures are available) in 2010 this will be down to £13.5 million – that is £70 million of missing tax.
Why has Senator Ozouf not announced his policies for recouping some of this tax? Does he know what he can do?
Companies don’t pay tax – under zero/ten, finance companies will pay only £50.4 million in 2010 at the 10% rate on their 2009 profits of £809 million. Throughout the past decade their contribution has been around £150 million – that is a further £100 million of missing tax. The effective rate on finance company profits is a mere 6.3%.
Why is the full 10% not being paid? When will Senator Ozouf clamp down on this avoidance?
Who pays tax? We do! The total tax paid by ordinary working families will rise from £166m in 2000 to an estimated £436m in 2011. This is the deliberate policy of Senator Ozouf and his predecessors over the past 10 years. He has done this by imposing and raising GST, raising impots, freezing income tax allowances, and by the imposition of IT IS and “20 means 20”. We now pay 84% of the total tax needed. This means that all families, whether low or middle earners, including those like pensioners on fixed incomes, have been paying the price of Senator Ozouf’s failed zero/ten policy.
When will Senator Ozouf stop punishing ordinary Jersey workers and their families and rebalance his tax policies? When will business be made to pay its fair share of tax for trading in Jersey?
Company Tax versus Personal Tax 2000 - 2011
*2000-2006 Treasurer’s Report p.xi. Financial Report & Accounts, 2006 2007-2008 Treasurer’s Report Table 2, p.7. Financial Report & Accounts, 2008 2009 Treasurer’s Report Table 4, p.8. Financial Report & Accounts, 2009 (E) Estimates Draft Budget Statement 2011 Summary Table B p.74
FURTHER INFO: GEOFF SOUTHERN 07797 772 632
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Figures
produced today by JDA Deputy Geoff Southern show that in the past decade
the tax burden for running Jersey has shifted dramatically from business
to the ordinary workers of Jersey.