A CUNNING SCHEME

New Zealand Times, Volume LIII, Issue 12643, 31 December 1926, Page 20

A CUNNING SCHEME

ISLAND OF TAX DODGERS PALACES OCCUPIED FOR HALF YEAR REFUGE IN JERSEY Miniature palpcec on land; re- ' Miniature. palaces -on land, replete with every- luxury, and standing empty for half the year; floating palaces on the water, in the * form of steam yachts fitted with every comfort that wealth can provide, are the attributes, of the score or more of wealthy people who Have sought refuge in Jerseys from the payment of British income tax. Well able to pay—in many 'cases they are millionaires—these people: acquire domicile by living only naif their time ' amid the gorgeous surroundings of their exile homes, and for the rest of the year flaunt their wealth in. England and elsewhere, knowing that Inland Revenue cannot touch' them or their money. Ordinary residents in Jersey, and the officials of the local government of the island, are indignant • about the “tax-dodging millionaires” who acquire nominal residence in the island. The presence of these millionaires, who have made their money out of England and acquire a Jersey domicile of which they make little use, threatens the island with • the payment of English income tax. ISLANDERS’ OBJECTIONS Should this be enfolded on the people of Jersey, they reckon that they, will have to suffer for the . ' sake , of a section of the community whom they do not want, and who are’ of no use tp them. Having amassed a fortune of six millions, the, late Sir Robert* Houston acquired a Jersey domicile which rendered him. not -only independent of income tax, but absolved his ‘ estate from the death duties—upwards of £3,ooo,ooo— when his will was proved. In Parliament he was a prominent figure for some years. At the distribution of honors consequent on the war he was awarded a baronetcy. Then he set a fashion by establishing himself -in. Jeisey. After, this he paid only occasional visits to England, up to the time of his-death, which occurred in April of the present year. . The bulk of the vast fortune was left to Lady Houston, who .was formerly Lady Byflbn, .widow of thq ninth Lord Byron. -Her marriage took place in 1924, when the bridegroom' was 71 years old. _ , On bis trip to the island, Sir Robert Houston .achieved the height .of luxury by chartering the s.s. for his own personal use. . The; total number of this party, including his wife and attendants, was nine persons, and the cost of the trip was £SOO.

LUXURIOUS VILLAS Luxurious villas, tenanted for only half the year, testify to the .existence in Jersey of many wealthy'men; splendid steam yachts lie at anchor, waiting to take these masters of commerce wherever they elect to go. Ana, in view of the vast sums lost to the British Treasury 1 annually by their evasions, the Privy Council has recommended a Jersey contribution to Imperial taxation. • “ Normal Jersey inhabitants regard the tax-dodgers as useless to the island from every ' point of view. In order to prove domicile, they are .compelled to reside in the' islandvfor six months and a day of each year. but their presence more than doubles the rent of many small houses in comparison with prer.war rates. Jersey estimates: that there are lir or seven millionaires on the- • island and over a dozen people whose fortunes are counted in hundreds of thousands.; f pounds. They comply, with the technical requirements' regarding residence, and for - the rest ,of the time the island sees nothing of them. ' Jersey, with-its own taxation to provide for,, is' dependent almost entirely on agriculture for its revenue. It is estimated that with .four bad potato seasons in* the past four years, the people are £500,000 poorer than they were in 1922. In view of the present state of the island’s finance, it is intended to resist Imperial taxation by every means in the people’s power. • QUAINT LAWS The. quaint old laws of the island vary in many respects from the practice of British courts, especially in regard to rights' over property.: The viscount of Jersey, chief executive officew, was, able 'in Lady Houston’s case to impose restraints which made her virtually a prisoner Until her case was finally decided. But Jersey law is powerless to oust the millionaires who desert their own country rather . than pay their dues like ordinary citizens. The islanders bitterly resent the situation into which these luxurious part-time residents have dragged them, and are determined to resist Imperial taxation “to the last ditch.”