Jersey Unreported Judgments

2000/228

4 pages

ROYAL COURT

(Samedi Division)

 

17^th November, 2000

 

Before:  Sir Philip Bailhache, Bailiff, and

Jurats de Veulle and Bullen

 

The Attorney General

-v-

Peter John Lagadu

 

17 counts of:    contravening Article 10(1) of the Social Security (Collection of Contributions) (Jersey) Order, 1975, as amended, by failing to return to the Social Security Department a completed Class 2 payment slip, in respect of the following Contribution Quarters:

 

Count 1:   A of 1996;

Count 3:   B of 1996;

Count 5:   C of 1996;

Count 7:   D of 1996;

Count 9:   A of 1997;

Count 11: B of 1997;

Count 13: C of 1997;

Count 15: D of 1997;

Count 17: A of 1998;

Count 19: B of 1998;

Count 21: C of 1998;

Count 23: D of 1998;

Count 25: A of 1999;

Count 27: B of 1999;

Count 29: C of 1999;

Count 31: D of 1999;

Count 33: A of 2000.

 

17 counts of:    contravening Article 36(1) of the Social Security (Jersey) Law, 1974, by failing to pay Social Security Contributions, for which he was liable in respect of the following Contribution Quarters:

 

Count 2:   A of 1996;

Count 4:   B of 1996;

Count 6:   C of 1996;

Count 8:   D of 1996;

Count 10: A of 1997;

Count 12: B of 1997;

Count 14: C of 1997;

Count 16: D of 1997;

Count 18: A of 1998;

Count 20: B of 1998;

Count 22: C of 1998;

Count 24: D of 1998;

Count 26: A of 1999;

Count 28: B of 1999;

Count 30: C of 1999;

Count 32: D of 1999;

Count 34: A of 2000.

 

Age:     60.

 

Plea:    Facts admitted.

 

Details of Offence:

 

Following a routine investigation in April 2000, the Social Security Department discovered  that the accused had, as a self employed person, failed to pay contributions from February 1982 to May 1982 and from September 1983 to March 2000.  An examination of the accused's Social Security record established no contributions had been made since 1978.  Between the years 1986 and 1992, the accused had worked in other jurisdictions, but admitted to not having paid Social Security in any jurisdiction.  Following his return to Jersey in 1992, he was self-employed.  He was aware of his legal obligation to make contributions and, in fact, he had been interviewed on a previous occasion in the early 1980's in respect of non-payment of contributions, at which point he had fled the Island.  As time went by, he had found it increasingly difficult to contact the Social Security Department about his predicament.  On 18^th May, 200, he was advised that his arrears of contributions had been calculated at £20,753.82 and, on 2 June 2000, the accused paid the arrears in full, having apparently borrowed the funds from an individual.  By not making the contributions as and when they fell due, Lagadu had gained from that fact in that the liability was not subject to interest.

 

Details of Mitigation:

 

The accused had made full and frank admissions when interviewed by the Social Security Department and had been co-operative throughout the investigation.  He had borrowed money to repay the debt and had repaid the debt in full.  The accused, who was unrepresented, acknowledged his guilt for every charge and stated that it was his intention to pay the fines.  He expressed remorse for his actions.  The Court did not have before it an Affidavit of Means and the only information that it had as to the accused's financial circumstances were that he earned approximately £1,600 per month and was paying Social Security at the rate of £150 per week.

Previous Convictions:

 

A number of previous convictions for offences of dishonesty, common assaults, and motoring offences.  No previous offences for infractions of Social Security Law or associated orders.

 

Conclusions:

 

Counts: 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31, 33:        £25 fine on each count or 1 week's imprisonment, consecutive in default of payment, on each count.

Counts: 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 24, 26, 28, 30, 32, 34:      £400 fine on each count or 2 weeks' imprisonment, consecutive in default of payment, on each count.

                                                                                                  TOTAL: £7,245 fine or 34 weeks' imprisonment, in default of payment; £2,000 costs.

 

Sentence and Observations of the Court:

 

Counts: 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31, 33:        £25 fine on each count or 1 week's imprisonment, consecutive in default of payment, on each count.

Counts: 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 24, 26, 28, 30, 32, 34:      £300 fine on each count or 2 weeks' imprisonment in default of payment, on each count.

                                                                                                  TOTAL: £5,525 fine or 34 weeks' imprisonment, in default of payment, £1,000 costs.

 

The consequence of offences under the Social Security Law is the imposition of the burden of those who fail to pay onto those who do pay.  The accused had failed to pay contributions over a long period of time and, to that extent, he has benefited as no interest was paid on the overdue contributions.  However, the accused had put himself in debt and had paid the arrears.  The Court had taken into count his immediate acknowledgement and co-operation and had given weight to those matters.  The Court therefore felt able to make a slight variation in the Crown's conclusions and, in respect of the Article 36(1) offences, the individual fine was varied to £300, making a total of £5,100 and, under Article 10(1) offences, fines of £25 were imposed on each offence, making a total of £425.  The accused would need time to pay and it was accepted that he could pay at the rate of £50 per week.

 

 

J.C. Gollop, Esq., Crown Advocate.

The Defendant on his own behalf.

 

JUDGMENT

 

THE BAILIFF:

 

1.            The vice of offences under the Social Security Law is the prospective burden which those who fail to pay their Social Security Contributions place upon other contributors to the Fund.  In addition, because of the long period of time during which this failure to comply with the obligation has continued there has been a benefit, albeit small perhaps, in terms of interest on unpaid contributions.

 

2.            Nonetheless we take into account that the defendant has now put himself in order with the Social Security Fund and has repaid the arrears.  We also take into account that there has been an immediate acknowledgement that the offences were committed and co-operation with the investigating authorities.  We give weight to that and we are prepared to modify slightly the conclusions of the Crown Advocate.

 

3.            Mr Lagadu, you will be fined on each of the principal charges, the sum of £300, and on each of the offences for breach of the order the sum of £25, making a total fine of £5,525 and as moved for by the Crown Advocate, 34 weeks' imprisonment in default of payment.  Furthermore, you will pay £1,000 towards the prosecution costs.  We order that the fine be paid at the rate of £50 per week.

Authorities

 

 

A.G -v- Hall (20^th July, 1990) Jersey Unreported.

 

A.G. -v- Houghton (25^th February, 1994) Jersey Unreported.