Jersey Unreported Judgments

2002/147

ROYAL COURT

(Samedi Division)

9^th August. 2002

The Attorney General

-v-

Christopher Stanley Blondel

Age:     44

Plea:    facts admitted.

Details of Offence:

Defendant failed to file income tax returns for 1997, 1998, 1999 and 2000.  In the absence of any returns estimated assessments were made.  Appeals against the estimated assessments were received but no information was provided.  The Comptroller sent 16 reminders and 4 warnings regarding potential penalties under Article 136 of the Law.  Comptroller obtained Petty Debts Court judgment £1,626.07, being recommended "payment on account" for 1998 plus 10% surcharge.  Current outstanding tax liability estimated at £10,412.70, representing recommended "payments on account" following appeals lodged.

Details of Mitigation:

Defendant impecunious.  Had operated as a sole trader to March, 1998, then forming a limited liability company which was dissolved in October, 2001.  The business accounts were never finalised by the defendant's accountants because he failed to pay their fees.  His personal income tax liability was inextricably would up with the business accounts and ostrich like, he hoped matters would go away.  After the summons was issued defendant attended Income Tax Department filing all four outstanding returns, albeit with details to follow.  Analysis of information provided could result in a nil demand for tax.

Previous Convictions:

Two minor irrelevant convictions in 1975 and 1981.

Conclusions:

Sentence and Observations of Court:

Mrs S. Sharpe, Crown Advocate.

Advocate P.C. Harris for the Defendant.

JUDGMENT

THE DEPUTY BAILIFF:

1.        The Defendant failed to file income tax returns for the years 1997, 1998, 1999 and 2000, despite several reminders and 5 specific warnings of the potential penalties which he faced.  As the Court has said previously the provision of essential services depends upon the collection of income tax and that in turn depends upon the filing of tax returns.

2.        The maximum penalty payable in respect of failing to file a return was increased recently from £500 to £2,000.  We take into account the circumstances in which this occurred as outlined to us by Advocate Harris.  It is clear that the Defendant began trading through a company, the company got into financial difficulties and the company accounts were not prepared.  This in turn meant that his personal tax position could not be clarified.  Nevertheless, the defendant did not explain this to the Income Tax Department.  He simply ignored them.

3.        The Crown has moved for a fine of £1,000 per count.  We think, taking into account the totality principle, that that is too high, notwithstanding that the defendant is now gainfully employed and earning a reasonable wage.  We think the right sentence is as follows.  The fine will be one of £500 on each count making a total of £2000, together with costs of £250.  There will be a period of 2 weeks' imprisonment in default on each count consecutive and we order that the fine be paid at not less than £75 per week.

Authorities

A.G. -v- Warden (29^th July, 2000) Jersey Unreported: [2000/153].

A.G. -v-Connolly (1^st September, 2000) Jersey Unreported: [2000/170].