Government unsure of tax losses from non-resident landlords

Jersey's government has no idea if landlords living overseas are paying tax on their rental income on island.

Answering a question in the States from Deputy Sam Mezec today, the Treasury Minister stated there is "no estimate of tax loss from undeclared rents or unpaid tax" when it comes to non-resident landlords.

Senator Alan Maclean said, "The Taxes Office is currently exploring the feasibility of calculating Jersey’s “tax gap” - the difference between what should theoretically be declared and what is actually collected."

He added, "Based on experience in other jurisdictions, this could take some years to achieve and to be statistically valid. It would be most useful as a longer-term indicator of trends in tax compliance."

Income from Jersey property is taxed at 20% regardless of the landlord's residency status.

But Deputy Mezec is concerned that the island has no measure of how much money the island is losing out on.