Jersey Unreported Judgments

2000/153

3 pages

ROYAL COURT

(Samedi Division)

 

28^th July, 2000.

 

Before:    M. C. St J. Birt, Esq., Deputy Bailiff, and

                                                      Jurats Myles, and Bullen.

 

 

The Attorney General

 

-v-

 

Lee Victor Warden.

 

3 counts of   failing to deliver to the Comptroller of Income Tax the statement in writing mentioned in Article 16 of the Income Tax (Jersey) Law 1961.

 

                    Count 1:   year of assessment:  1996.

                    Count 2:   year of assessment:  1997.

                    Count 3:   year of assessment : 1998.                      

 

Age:   31.

 

Plea:   Facts admitted

 

Details of Offence:

 

the defendant failed to file his income tax returns in respect of the years 1996, 1997, and 1998.  In respect of 1996 he received 8 written reminders, in respect of 1997 he received 7 written reminders and in respect of 1998 he received 6 written reminders.  His last complete tax return was in respect of 1995 and in the absence of completed income tax returns for 1997 and 1998 estimated assessments were made.  On 14^th May, 1999, judgment was obtained in the Royal Court against the defendant in the sum of £3508.90 in respect of 1996 and 1997 liabilities, in respect of which £120 per week was being deducted from his wages.  At the date of sentence his outstanding income tax liability was in the sum of £6,177.18 in respect of 1997 and 1998b liability.

 

Details of Mitigation:

 

Poor financial position.  Was paying £60 per week maintenance for his child which would have to be reduced if a substantial fine was imposed.

 

Previous Convictions:    2 offences, non related, in 1991 in respect of which the defendant was fined.

 

Conclusions:               Count 1:    £500 fine, 1 month's imprisonment in default of payment

                      Count 2:   £500 fine, 1 month's imprisonment in default of payment, consecutive.

                      Count 3:   £500 fine, 1 month's imprisonment in default of payment, consecutive.

                                      £250 costs                                            

                     

Sentence & Observations of Court:

 

                      Count 1:  £150 fine, 1 month's imprisonment in default of payment

                      Count 2:   £150  fine, I month's imprisonment in default of payment, consecutive.

                      Count 3:  £150 fine, 1 month's imprisonment in default of payment, consecutive.

                      £250 costs; 4 month's to pay.                                                                                                                                  

 

The court noted that the Crown had invited it to send out a message that, in the light of the recent increase in respect of the maximum fine from £500 to £2,000, the tariff for similar cases should be £1,000 on each count.  However, the court did not feel it appropriate to issue such a statement given that each case will depend on its particular facts.  The court regarded the conclusions as appropriate but reduced the fines sought in the light of the defendants dire financial position.

 

 

 

                                          A. R. Binnington, Esq., Crown Advocate

                                      Advocate C. M. B. Thacker,  for the Accused.

 

 

 

JUDGMENT

 

THE DEPUTY BAILIFF:

 

1.    The defendant failed to file income tax returns for the years 1996, 1997, and 1998.  This was despite receiving written reminders:  8 of them in respect of 1996, 7 of them in respect of 1997, and 6 in respect of 1998.

 

2.    As the Court has said previously, income tax supports the essential services of the community, such as the provision of health and education, and it is the duty of individual citizens to file their tax returns so that income tax can be collected.

 

3.    The cases cited to us show that there has been a tariff of in the region of £250 for each count of failing to file a return, although on many occasions the Court has reduced this where there has been particular financial hardship or other particular mitigation.

 

4.    As the Crown has pointed out the maximum penalty for offences was increased recently from £500 to £2,000, and the Crown has asked us to indicate that in future the general tariff should be in the region of  £1,000.

 

5.    We decline to do that.  Each case has to be looked at individually.  Furthermore the penalty has been increased in accordance with the requirements of the standard scales, and we are not satisfied that an increase in the maximum penalty  has to be met with a proportionate increase in the standard level of fine.   However, we do think that in the absence of knowledge of the defendant's financial position, the conclusions in this case were right, namely fines of £500 on each count.  Nonetheless,  we have heard of the defendant's financial position and he has done the correct thing with the help of his lawyers in filing an affidavit of means which has set out his financial position on oath.   It is clear that he is in a dire financial position, and it is also clear that this is one of those cases where, despite not filing a return, he has in fact been paying tax throughout.   There are cases of this nature where there is also a failure to pay any tax at the same time as the failure to make returns.

 

6.    Given these matters we propose to make a reduction in the conclusions, as we think that to impose fines at the level sought by the Crown in the light of the defendant's financial position would simply lead to a vicious circle with his never being able to find his way out of debt.   Stand up please.   The sentence of the Court is that on each of the three counts you will be fined £150 together with £250 costs, you will have four months to pay, and you will be sentenced to 1 month's imprisonment in default, concurrent on each count, should you default in paying within the four months.  

 

 

Authorities

 

A.G -v- Campbell ( 21^st February, 1997) Jersey Unreported.

A.G -v- Granger (30^th May, 1997) Jersey Unreported.

A.G -v- Drummond ( 13^th March, 1998) Jersey Unreported.

A.G. -v- Bunton (25^th April, 1997) Jersey Unreported.

A.G -v- Zenonos (20^th March, 1998) Jersey Unreported.

A.G -v- Troalic (23^rd February, 2000) Jersey Unreported.

Troalic -v- A.G. (12^th June, 2000) Jersey Unreported. CofA.

A.G -v- European Employment Agency & Gas Consult, Limited (20^TH November, 1992) Jersey Unreported.