ORDER IN COUNCIL. ratifying a ProJet de Lol ENTITLED. (Registered on the Records of the Island of Guernsey on the 18th January
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1 ORDER IN COUNCIL ratifying a ProJet de Lol D 1982 ENTITLED The Income Tax (Amendment) (GueIDsey) Law, 1982 (Registered on the Records of the Island of Guernsey on the 18th January ) 1983 Printed b) GUl'fflsey Herald Ltd., Victoria Road, Guernsey.
2 ORDER IN COUNCIL IN THE ROYAL COURT OF THE ISLAND OF GUERNSEY The 18th day of January, 1983 before Charles Keith Frossard, Esquire, Bailiff; present;'-stanley Walter Cavey, Esquire, a.b.e., Albert Richard McCartney Straw, Esquire, Frederick William Winslow Chandler, Esq1Jire, D.S.a., D.F,C' J Lionel Walter Sarre, Esquire, M.B.E., K.P.M., Donald '..?escott Plummer, Esquire, Sydney Haydn Heard, Esquire, M.B.E., Charles Henry Hodder, Esquire, a.b.e., Harry Wilson Bisson, Herbert Nicolle Machon, James desausmarez Carey and John Christopher Bulstrode, Esquires, Jurats. The Ba:iliff having this day placed before the C6urtan Order of Her Majesty in Council dated the 22nd day of December, 1982, ratifying a Projet de' Loientitled "The Income Tax (Amendment) (Guernseyr Law, 1982 ", the Court, a:fter the -readiflg-<of -the said Order irtcouncil and after having heard Her Majesty's Comptroller thereon, ot1iered -that the said Order in Council be registered on the ;-records of this Island and' that :m extract of this 'present Act" together with a copy of the said Order 'ihc6uncil, be sent by Her Majesty'S' Greffier to the :Clerk of-the. Court of Alderney, of which Oider in -Council the tenor followed:
3 2 at :tbe onrt at.ucltingbam t}alatt The 22nd day of December 1982 PRESENT, vrbe caueen'15.motst excellent jilajttstp in (:ountil WHEREAS there was this day read at the Board a Report from the Right Honourable the Lords of the Committee of Council for the Affairs of Guernsey and Jersey dated the 8th day of December 1982 in _ the words following, viz.:- " YOUR MAJESTY having been pleased, by Your General Order of Reference of the 22nd -day of February 1952, to refer unto this Committee the humble Petition of the States of the Island of Guernsey setting forth:- 1. That, in pursuance of their Resolutions of the 28th day of October 1981 and the 25th day of February 1982 the States of Deliberation at a meeting held on the 26th day of May 1982 approved a Bill or "Projet de Loi" entitled "The Income Tax (Amendment) (Guernsey) Law, 1982 ", and requested the Bailiff to present a most humble Petition to Your Majesty in Council praying for Your Royal Sanction ther-eto. 2. That the said Bill or.. Projet de Loi t, is in the words and - figures set forth in the Schedule hereunto annexed. And most humbly praying that Your Majesty might be graciously pleased to grant Your Royal Sanction to the Bill or "Projet de L6i " of the States of Guem-
4 3 sey entitled "The Income Tax (Amendment) (Guernsey) Law, 1982", and to order that the same shall have force of law in the Islands of Guernsey and Herm. "THE LORDS OF THE COMMITTEE, in obedience to Your Majesty's said Order of Reference, have taken the said Petition and the said Projet de Loi into consideration and do this day agree humbly to report, as their opinion to Your Majesty, that it may be advisable for Your Majesty to comply with the prayer of the said Petition and to approve of and ratify the said Projet de Loi." HER MA TESTY having taken the said Report into consideration is pleased, by and with the advice of Her Privy Council, to approve of and ratify the said Projet de Loi, and to order, as it is hereby ordered, that the same shall have the force of Law within the Islands of Guernsey and Herm. AND HER MAJESTY doth hereby further direct that this Order, and the said Projet de Loi (a copy whereof is hereunto annexed), be entered upon the Register of the Island of Guernsey and observed accordingly. AND the Lieutenant Governor and Commanderin-Chief of the Island of Guernsey, the Bailiff and Jurats, and all other Her Majesty's Officers for the time being in the said Island, and all other persons whom it may concern, are to take notice and govern themselves accordingly. N. E. Leigh
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6 Projet de Loi referred to in the foregoing Order incouncu. PROJET DE LOI ENTITLED The Income Tax (Amendment) (GuerDsey) Law, 1982 THE STATES, in pursuance of their Resolutions of the twenty-eighth day of October, nineteen hundred and eighty-one, and of the twenty-fifth day of February, nineteen hundred and eighty-two, have approved the following provisions which, subject to the Sanction of Rer Most Excellent Majesty in Council, shall have force of law in the Islands of Guernsey and Rerm. 1. The Income Tax (Guernsey) Law, 1975(a), as Amendamended(b) is hereby further amended as follows: _ ments to the. ' Law of (a) in the Arrangement of Sections thereto the entry relating to section twenty-four thereof is deleted and the following entry is substituted therefor:- "24. Investment income from sources in Guernsey."; (b) paragraph (h) of subsection (3) of section seven thereof is repealed and the following paragraph is substituted therefor:- " (h) a sum equal to- (i) the annual rental value of any dwelling, as determined under the (a) Ordres en Conseil Vol. XXV, p (b) Ordres en Conseil Vol. XXVI, pp. 146, 200 and 292; No. IV of 1979; No. VII of 1979; No. II of 1980; No. VIlI of 1981.
7 6 (c~ Cadastre Rules from time to time in force, owned by the person carrying on the business and occupied by a person employed in the business in such circumstances that.an amount equal to the annual rental value thereof forms part of the emoluments of the occupier's office or employment; or (ii) the difference between the annual rental value of any dwelling, as determined under the Cadastre Rules from time to time in fcirce, and the rent receivable for such dwelling, owned by the person carrying on the business and occupied by a person employed in the business in such circumstances that an amount equal to the difference between the annual rental value and the rent payable by the occupier forms part of the emoluments of the occupier's office or employment: Provided that no other deductions shall be permitted to the person carrying on the business in respect of the cost of maintenance, repair, insurance and management of such dwellingj"; section nine thereof is repealed and the following. section is substituted therefor:- "Income 9. (1) Subject to the provisions from the f b. (3) f ho ownership of 0 su sectlon 0 t IS section, land and the assessable income arising buildings. f rom t h e. owners ho Ip f 1 d 0 any an
8 '1 or building situate in Guernsey shall, except as provided in sections ten to sixteen of this Law, be'the annual value thereof. (2) The annual value of any land or building situate in Guernsey shall be the annual rental value thereof subject to the authorised deductions specified in section eleven of this Law. (3) The provisions of the preceding subsections of this section shall not apply to any land or building situate in Guernsey which is- (a) occupied by the owner thereof; or (b) used for the purposes of a business carried on by a partnership in which the owner is a partner in such circumstances that no rent is payable therefor; or (c) owned by a company and occupied by the individual who has the control of that company."; (~ in subsection (1) of section ten thereof the words "to which subsections (2) and (3) of section nine of this Law relate" are repealed and the words "to which section nine of this Law relates'" are substituted therefor; (e) in section eleven thereof the words "or the annual value, as the case may be," are repealed;
9 8. (f) section fourteen thereof is repealed and the following section is substituted therefor: "Interest on 14. (1) Where any land has borrowed money. been acquired or any building has been acquired, constructed, reconstructed or repaired with borrowed money, the income which would otherwise be assessable in respect of that land or building in accordance with the provisions of this Part of this Law in any year of charge shall be reduced by the amount of the interest paid on the borrowed money in the basis period relating to the said income for that year of charge. (2) Where any land has been acquired or any building has be~n. acquired, constructed, reconstructed or repaired with borrowed money, and the provisions of subsection (3) of section nine of this Law apply to such land or building, the interest payable on such borrowed money shall be allowed to the person paying the interest in the same. basis.. period for any year of charge as it would be allowed. if the said land or building were land or a building to which subsections (1) and (2) of the said section nine apply. (3) In any case where the whole amount of any interest which may be ae"ducted or
10 allowed under the provisions of subsection (1) or subsection (2) of this section cannot be deducted or allowed because there is no assessable income for that 'year of charge or because the income is less than the said interest, an amount equal to the said interest or to such part of it as has not been deducted or allowed, whichever is the less, shall, for the purposes of section one hundred and thirty-seven of this Law, be treated as if it were a loss sustained in relation to the, year of charge for which it would otherwise have been deductible or all9wable. (4) No deduction shall be made under the provisions of this section df'_ad~duction has been made in respect of the amount of such interest under any: other of the provisions of this Law."; ~', _ ' (g) in subsection (2) of section sixteen thereof the words "one year" are repealed and the words "two years " are substituted therefor; (h) section twenty-four thereof 'is:t;epealed and the following section is substi:tuted therefor:- ' " Inve.st- 24: Where in any, year of mentmcome h - h.. 1" d 'd-' h from sources C arge t ere IS mc U '-e In t e in Guernsey. assessable income of any person, any income to which this Chap- 'ter applies and in the same year
11 to of charge that person is entitled to receive income from investments, other than income to which section nine of this Law relates, in such circumstances that the source of the income is in Guernsey, the year of computation in respect of the said income shall be determined, and the preceding provisions of this Chapter in relation to the assessment of tax and the payment of the tax charged in consequence of the assessment shall apply, as if the said income arose from a source outside Guernsey."; (l) in sub-paragraph (iv) of paragraph (a) of section thirty thereof- (i) the words " two years" are repealed and the words "three y.ears " are substituted therefor; (ii) in the proviso thereto the words.. twelve months" are repealed and the words " two years" are substituted therefor; (1) in the proviso to sub-paragraph {iii) of paragraph (b) of section thirty thereof the words "twelve months" are repealed and the words "two years" are substituted therefor; (k) section thirty-eight thereof is repealed and the following section is substituted there for:-.. Relief for interest- orr money borrowed. 38. (1) Subject to the succeeding provisions of this section, where. any person resident in
12 11 Guernsey is required to pay, in respect of money borrowed, any annual interest which cannot be deducted under any other provision of this Law, in computing the income or profits arising or accruing or deemed to arise or accrue to that person for any year of charge, the said interest may be deducted in accordance with the provisions of the following paragraphs from the income or profits which, but for this section, would be assessable to tax:- (a) in the case of an individual who is resident but not solely or principally resident in Guernsey in the year of charge, the amount of interest payable by him in the year of charge which he is able to prove to the satisfaction of the Administrator that he was required to payout of income which would, but for this section, be assessable to tax for that year of charge; (b) in the case of an investment company to which the provisions of Part XIV of this Law apply, the amount of interest payable by that com-
13 12 pany in the year of computation; (c) in any other case, the amount of interest payable in the calendar year preceding the year of charge: Provided that no deduction shall be made to any individual who became principally resident in the year preceding such year of charge for interest payable by him in respect of any period prior to the date on which he first arrived in Guernsey in that year. (2) The said interest shall, as far as possible, be deducted from that person's unearned income and then, to the extent that it cannot be so deducted, from his earned income. (3) If the whole of the said interest cannot be deducted because there is no assessable income for that year of charge or because the income is less than the said interest, an amount equal to the said interest or to such part of it as has not been deducted, whichever is the less, shall, for the purposes of section one -hundred and thirty-seven of -this Law, be treated as if it were a loss substained in relation to
14 13 the year of charge for which it would otherwise have been allowable."; (D the full stop at the end cif paragraph (bb) of section forty thereof is deleted and a semi-colon and the following paragraph are substituted therefor:- "(cc) any interest arising in Guernsey upon money deposited with a bank or other person registered or exempted from the requirement to register under the provisions of the Protection of Depositors (Bailiwick of Guernsey) 'Ordinance, 1971, as amended, which interest is paid or credited on or after the first day of January, nineteen hundred and eighty-two, to a person not resident in Guernsey."; (m) in the second proviso to paragraph (b) of.," subsection (2) of section forty-two thereof the words" twelve months after the change took place" are repealed and the words "two years after the end of the year in which the change took place" are substituted therefor; (n) in section one hundred and fifteen thereof the words "within the year" are repealed and the words "within the two vears" are substituted therefor;. (0) in subsection (1) of section one hundred and twenty-three thereof the words "the basis period for" are repealed; (p) in subsection (1) of section one hundred and twenty-five thereof the words "one year"
15 14 are repealed and the words " two years" are substituted therefor; (q) in subsection (3) of section one hundred and twenty-five thereof the words "two years" are repealed and the words "three years" are substituted therefor; (r) in subsection (1) of section one hundred and thirty-two thereof the words "the basis period for" are repealed; (5) in section one hundred and sixty-nine thereof in the definition of the expression "investment company" the words " whose business consists" are repealed and the words "whose activities consist" are substituted therefor. Commencement. 2. This Law shall come into force on the first day of January, nineteen hundred and eighty-three. Citation and collective title. 3. (1) This Law may be cited as the Income Tax (Amendment) (Guernsey) Law, (2) This Law and the Income Tax (Guernsey) Laws, 1975 to 1981, may be cited together as the Income Tax (Guernsey) Laws, 1975 to K. H. TOUGH, Her Majesty's Gre,flier.
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