Monday, 10 October 2011

GST and the Senators

Philip Bailhache on GST: "No one likes paying tax, but GST is an effective and reliable way to raise revenue. GST should be broad, simple and low. It should not be allowed to rise beyond 5% for the foreseeable future. In the interests of simplicity and cost efficiency, it should be a flat tax with few or no exemptions.

Voteje - Freddie Cohen on GST: " ". Yes, he says nothing.

Rose Colley on GST: "Maintaining a stable low tax economy with income tax not increasing above 20% and the immediate abolition of GST on food."

Linda Corby on GST: "Remove GST off food and other essential items. It should never have been passed in the first place against the wishes of the people."

Lyndon Farnon on GST: "GST must not be allowed to increase above 5%".
Translation: I won't vote for exemptions, so there.

Mark Forskitt on GST: Hasn't made a clear statement on But he states here, and in speeches against GST:

 "GST is a regressive tax and I believe in progressive taxation. I campaigned against its introduction because of that. I would rather have consumption taxes on inessential , planet and life damaging, and luxury items. There is no sign of that happening soon locally, so I support the next best option on the table - removal from essentials like food, domestic power and water."

Ian Gorst on GST: Hasn't made a clear statement on or his online manifesto, but did vote in favour of both parts of "Goods and Services Tax: exemption or zero-rating for health foods"

Syvia Lagadu on GST. Hasn't made a clear statement on or her online manifesto. "Let's see if we can move back to a low tax economy" doesn't really commit her to anything.

Frances Le Gresley: doesn't mention GST on On manifesto site says "I have been consistent in voting against GST exemptions as I have been convinced by the arguments that compensating low income households through the benefits system is the best way to mitigate the effects of this tax. I voted against the increase in the rate of GST to 5%." However, did vote for
exemptions on healthy food.

Darius Pearce: Apparently will vote on any matter by collecting votes from the public, and voting that way. God help us all if he gets elected. He might vote for exemptions one day, and against the next! An idiot choice.

David Richardson: doesn't mention GST on In the JEP says "That there should be no exemptions."

Stuart Syvret: consistently in favour of exemptions to GST.

Chris Whitworth: doesn't mention GST on May propose an exemption on cardboard cut-outs.

A Note on Exemptions

There are huge exemptions to GST of course. All the banks and trust companies don't pay it, and have it at zero rate (exempt) on any invoices. They pay 10% of their profits, and a notional sum to ensure they have a special status. And for this privilege they pay NO GST, and businesses have to flag them up in their accounts as ISE status - so much for "complexity". If they have electrical work done, or buy expensive computer equipment, they also get all that GST free.

A pensioner pays GST on winter fuel. A bank or trust company can turn the heating up, and claim it as a business expense, and NOT pay any GST on it. How that can be right is beyond me!

Now if fuel was exempt, it would be simple to sort, because all the utility companies have a domestic tariff, and their software already has that classified. Food would be more problematic, but fuel can hardly be fiddly. They have to keep separate GST codes for all the banks and trust companies which are ISEs as zero rated anyway!

Banks and trust companies pay a flat annual fee as an ISE. The ISE fees are NOT GST. They are a standard rate paid annually. They are more like the equivalent of the old exempt tax fees or corporation tax fees.

ISE status can be obtained by a Jersey Trust company through an annual registration and payment to the Comptroller of Income Tax who will maintain a list of ISE's.

The following fees are payable, in aggregate, for each calendar year regardless of the date of application (no apportionment for period of less than one year):

. Banks (deposit-taking business) - £30,000;

. Trust company business - £7,500 for affiliation leader plus £200 for each participating member and £200 for each ISE administered (and listed by it);

. Fund services business (not registered as a managed manager) - £2,500;

. Entity holding a CIF permit as a functionary (but not a managed manager nor collective investment fund) - £2,500;

. Entity holding a CIF permit as a managed manager - £500;

. A collective investment fund (if listed by the Comptroller)- £200;

. An entity which is a body corporate or partnership, limited partnership or limited liability partnership, which is not included in any of the other entities in this list - £200

. An entity that is a trustee, which is not included in any of the other entities - nil

. A collective investment fund (which is not included in any of the other entities in this list) - £200

. An Anstalt, Stiftung or foundation - £200


Anonymous said...

I think Dr Forskitt made a clear statement on his election site in September See GST

Anonymous said...

One point in response to Francis Le Gresley: compensation via the benefits system is divisive when anyone who hasn't got five years continuous residence is ineligible for benefit.

Anonymous said...

You might want to look at this - research which would appear to indicate correlation between progressive taxation and personal well-being. GST is about as regressive a tax as you can get.