FACTS ON INCOME TAX (2nd Edition)
Definitions
Threshold
Statutory Income
Emoluments
Prescribed Persons
Registration & TRN Requirements
Registering with the TAAD
How to treat having more than one TRN (Taxpayer
Registration Number)
When to quote the TRN
Changes of address
Filing Returns
Who must file a Return?
Individuals & Returns requirements
Treatment of losses
The self-employed individual
Consequences of failing to file a return
Benefits, Allowances & Penalties
Uniform & Laundry Allowances
Items exempt from emoluments
Employer and emoluments
Deduction of Tax
Calculating
Tax liability
PAYE
& Retroactive salaries
Resignations & the responsibility of
Employers
Submitting your own tax return
Tax treatment of two jobs
Employed with no other source of income
Self –employed and employed individuals and
the applicable rate of tax
Director’s fees and income tax
Treatment of Housing Allowances
Treatment
of Motor vehicle Allowances
Treatment
of Credit Card benefit
Treatment of Entertainment
allowances
Treatment of the Financial Industry
Hotel Gratuity payments & Income tax
Prescribed Persons
Pensioners & Non-residents Individuals
Exemptions
Double Taxation Treaty rates
Interest income
General
Motor vehicle Allowances Regulation 2
Income
tax is a tax on a person’s statutory (chargeable) income. It is important that
all taxpayers submit their returns and pay their taxes on time, as these funds
provide the necessary income for Government to finance its expenditure on such
social services as Education, health care, road maintenance, national and
social security.
The
Taxpayer Audit & Assessment Department (TAAD) administers the Income Tax
Act in respect of audits and assessments. Our responsibility is in ensuring
that all the requirements of the Act are adhered to, and all taxpayers shoulder
their fair share of the tax burden.
A. DEFINITIONS
1. (a) What does the word “threshold” mean?
Although
not defined in the Income Tax Act, the threshold normally refers to that part
of an individual’s statutory income which bears no tax.
2. (b) What is Statutory Income?
Statutory
Income is the aggregate amount of income of any person from all sources,
remaining after allowing for the appropriate deductions and exemptions given
under the Income Tax Act. (See below)
A 58 year old pensioner receives the
following gross income:
Salary $120,000.00
Net Rental $ 18,000.00
Interest Income (gross) $ 6000.00
Pension $ 30,000.00
Total: $174,000.00
The following deductions are made
from salary -
NHT $ 2760.00
Education tax $ 2400.00
NIS $ 480.00
Approved Superannuation $
6000.00
Total income as above $174,000.00
Less Allowable
Deductions:
NIS $ 480.00
Approved Superannuation $
6000.00
Pension Exemption $ 45,000.00
$ 51,480.00
Statutory
Income $122,520.00
The
income tax is charged on the amount of $122,520.00
3. What does the term “emoluments”
mean?
The
term includes salaries, wages, overtime pay, fees, bonuses, perquisites,
accommodation, entertainment utilities and other benefits of employment in
money or otherwise.
4. Who are “Prescribed Persons”?
Prescribed
persons include Banks, Building Societies, Co-operatives and Institutions
operating under The Financial Institutions Act.
B. REGISTRATION & TRN REQUIREMENTS
1. How do I register with the Taxpayer
Audit & Assessment Department?
·
Registration for all
tax types begin with the Taxpayer Registration Center (TRC). All taxpayers
should obtain a Taxpayer Registration Number (TRN) from the TRC, or any Revenue
Service Center. In addition,
·
Companies should
complete the registration form (AU28), which is available from the TAAD;
·
Employers should
complete the P.50 Form and the particulars of Employee Form P.46 (available
from the TAAD or the Inland Revenue Department (Tax Offices) island wide. These should be completed and submitted to
the TAAD.
·
Individuals with income
over the threshold (the nil rate) should notify the Department.
2. If I have more than one TRN, what
should I do?
·
Advise the TAAD and the
TRC immediately. You will be advised of the number to be used.
3. When should I quote my TRN?
·
TRN must be affixed on all
returns and correspondences with the TAAD and all other Tax Departments.
4. Should I inform the TAAD if I change
my business address? (See addresses...)
·
Yes, and this should be
done as quickly as possible.
C. FILING RETURNS
·
Companies
·
Partnerships
·
Self-employed
Individuals (including Partners) and employees with other sources of Income.
·
Other
Bodies
2. Should an individual file
returns?
·
Yes , if any of the
following applies -
(i)
If you are an individual whose income in any year of assessment exceeds the
threshold.
(ii) If you are a self-employed
person & Companies - even if they have suffered a loss.
NB:
However, a person in employment with no other source of income who believes
that all his tax is deducted by his employer and whose name appears on the
employer’s annual return (IT06) need not file.
3. Should my Income Tax return
be submitted even when I suffer a loss in any Year of Assessment?
·
Yes. An Income Tax return is to be submitted even
where the net result is a loss.
4. I am self-employed, and
did not submit any of my yearly returns. I am applying for a Tax
Clearance Certificate (TCC). Do I have to file income tax returns for the
last six(6) years.
·
Yes. All Companies, self-employed individuals,
other bodies and employees with other sources of income must file a final Tax return for the previous year and an
estimated Tax return for the current year, no later than March 15.
·
The estimated Income
Tax should be paid quarterly to the Collector of Taxes by March 15, June 15,
September
15, and December 15.
5. What happens if I fail
to file an Annual return?
·
The Commissioner,
Taxpayer Audit & Assessment Department (TAAD) may send you an estimated
assessment inclusive of penalty, or the Commissioner, Inland Revenue
Department (IRD) may issue a Court Summons for the return.
D. BENEFITS, ALLOWANCES & PENALTIES
1. Are Uniforms and Laundry allowances
taxable?
·
Yes, since January 1,
1995. However, there are certain categories of employees who are exempt (See Appendix B, Regulation 12). The exemption limits the uniform allowance to $5,739
per annum, and laundry allowance at $3395 per annum.
·
Where uniforms are
supplied by employers, they must do the following:
(a)
where an employee falls in the exempt category, deduct tax at 25%
the cost to the
employer,
in excess of $5739.00 e.g.
Cost to Employer $10,000
Exempt amount $5,739
excess $4261 x
25%
(b)
where an employee does not fall in the exempt category, deduct tax at 25% on 33
1/3 of the cost of the uniform e.g.
$10,000 x 25%.
2. What items should not be included in emoluments?
·
Uniform and laundry
allowances not exceeding $5739 and $3395 respectively, paid to any
employee required to wear a uniform, as approved.
·
Meal allowances in
relation to work done outside of normal working hours.
·
Material allowances
paid to persons employed as teachers in educational institutions.
·
The amount of any approved
or reimbursable expenses incurred by an employee on behalf of his employer.
NB: Employers must seek approval from the Commissioner (TAAD), for
the approval of the payment of traveling allowances.
3. Should my Employer deduct tax
from all my emoluments?
·
Yes. Your employer has
the responsibility of deducting tax and paying it over to the Collector of
Taxes, within fourteen (14) days after the end of the calendar month in which
the tax was deducted.
4. How is tax deducted from an
Employee’s earnings?
·
Arrive at the
employee's total emoluments less allowable deductions -(e.g. NIS, and Approved
Superannuation Contributions) - subtract nil rate (tax free) income (weekly:
annual nill rate/ 52 = x ), or (monthly :
annual nill rate / 12 = y) and then apply rate of tax
of 25% to the remainder.
5. How do I calculate my tax
liability?
·
Arrive at your
statutory income (i.e. total income less allowable deductions), deduct nil rate
(tax free) from statutory income and tax the remainder at 25%.
6. If I am due a refund, is my Employer
responsible for refunding this amount?
·
Yes, but only those
refunds due within the current calendar year. Refund claims for previous years
are processed and settled by the Taxpayer Audit & Assessment Department.
7. Can an
employee arrange with his Employer to deduct less or no tax?
·
No. An Employer has an obligation to deduct
tax from an employee’s emoluments and pay over these sums to the Collector of
Taxes.
8. Do P.A.Y.E deductions
apply to retroactive salaries? How are they taxed?
·
Yes, tax deductions are
to be made from retroactive salaries. Employers should add back pay to weekly
or monthly emoluments and tax accordingly.
9. I recently resigned my job.
What should I get from my Employer?
·
If you leave your
employment within the calendar year (January
to December), you should obtain parts two(2) and three (3) of the
leaving Certificate (P45). The employer will send Part One to the Commissioner
(TAAD). If you get a new job, you should give Parts two(2) and three(3) to your
new employer who will use the information on the Leaving Certificate to
continue the deduction of tax.
·
If you are not employed
after six(6) weeks then you may apply to the Commissioner (TAAD), for an
unemployment refund using Parts two(2)
and three(3) along with the completion of Forms P1 and P22, which are
available from the TAAD, or any of the Tax Offices island wide.
NB:
Employers must deduct tax on the week 1 and month 1 basis, where they have new employees
during the year, and these employees did not supply them with parts 2 and three
of the P45.
·
Yes, you should get
your Certificate of pay and tax deducted (P24). Please note that once an
employer issues a leaving Certificate (P45) to an employee and that employee is
not re-employed by the employer, a P24 should not be issued by this employer.
11. I have two jobs. How should I be
taxed?
·
You must apply to the
Commissioner (TAAD), for a “Determined Rate”, and your employers will be
advised.
12. I am employed and have no
other source of income, do I have to make a return?
·
You are not required to
make a return; but may be requested to so by the Commissioner (TAAD).
13. How is a Taxpayer to be
treated who is both employed and self-employed?
·
Your employer is
obligated to deduct tax from employment income (emoluments)
·
As a self-employed
individual, it is your responsibility to determine your liability and to submit
your returns on, or before the filing date of March 15th. An estimated
return for the current year based on the previous year’s liability should be
made and the estimated tax paid in four quarterly installments.
NB:
Your returns must include income from all sources. Any tax deducted by your
employer is allowable as a credit against your liability.
14. I am an employee and also self-employed. What
rates of tax applies to me?
·
For year of assessment 2009 :
For the
first $270,504 - nil
For every
dollar of income exceeding $270,504 - 25%
15. Are Director’s fees taxable?
·
These fees form a part of
emoluments and should be taxed when the income which arise, is paid.
16. I am paid a cash allowance for housing by my
employer; how should it be treated?
Where
a cash allowance is paid in lieu of housing, the full amount must be added to
all other emoluments and taxed.
17. If I am entitled to accommodation,
should there be a contract between my employer and the landlord?
·
Yes, there needs to be
a written contract between your employer and the landlord.
18. If an employee is entitled to accommodation,
how should it be treated?
·
Where an employer
provides an employee with living accommodation, the annual value of the accommodation should be determined by
the Commissioner. The annual value to be taxed should not
exceed
15% of the employee’s total emoluments - (excluding the value of the
accommodation)- and should be taxed. Since January 1996, where the annual value
of the accommodation is greater than the emoluments, the taxable amount will be 15% of the average of:
(a) the annual value of
the accommodation plus
(b) other
emoluments paid by “connected persons”
·
Yes, you can enter into
a contract with your employer as landlord. However, where the emoluments of an
employee include the provision of living accommodation and the employer
provides this consequent to a Tenancy Agreement between himself and the
employee, any amount payable under the agreement should be taxed at the rate of
25cents in the dollar. A portion of the tax deducted will relate to the value
of the accommodation as tax on emoluments. The balance will be regarded as a
prepayment of tax on rental income and depending on the outcome, tax may be
retained or refunded. Any loss incurred in that
operation
will only be allowed against income from that property.
20. I live in a house owned by my employer, should I be taxed on
this benefit?
·
Yes, you should be
taxed on the value of the benefit which should not exceed 15% of your
total emoluments, but where the annual value of the accommodation is greater
than the emoluments, the taxable amount will be fifteen percent(15%) of the
average of :
(a) the annual value of the
accommodation paid plus
(b) the other emoluments including
emoluments paid by “connected persons”.
NB:
The annual value of such accommodation should be determined by the
Commissioner.
21. I am a landlord in
receipt of rental income, what expenses am I entitled to?
·
You are entitled to
expenses, wholly and exclusively incurred in earning this income e.g. payment
of land/property tax, insurance, repairs and interest on mortgage repayments -
not principal.
22. I am provided with a motor vehicle by my employer,
how will this be treated?
·
Provided the vehicle is
used for both private and business purposes, the value of the benefit accruing
to the employee will be as set out in the Schedule of the Income Tax Act and
taxed accordingly. In the event that the motor vehicles are leased, the employer
must obtain the age and original cost of these vehicles to determine the
benefit to be taxed on the employees concerned. (Regulation 2)
23. I own a motor vehicle which I use to perform official
duties, and I receive a traveling allowance. Is this taxable?
·
Where traveling is paid
in cash to an employee, in which the allowance represents a reimbursement of
expenses incurred in the performance of duties, and the Commissioner is
satisfied that it is reasonable, permission may be given for payments to
be made without the deduction of tax.
·
Each time the card is used
for private purposes - namely the purchasing of goods or services or providing
money - the employee is to be treated as having received emoluments equal to
the expense incurred by the person providing the card. The expense incurred by
the employer must be reduced by any portion made good to him by the employee.
25. Is an
entertainment allowance taxable?
·
Yes; Where the
Commissioner is satisfied that the expenses were incurred wholly and
exclusively in acquiring the income, the amount so determined will not be
taxed.
·
Yes, there are.
Effective January 1, 1999 employees in specified Financial Institutions, (see
below), are liable to pay tax on the difference in interest payment between the
concessionary rate and a prescribed rate of 18% arising from any loan exceeding
$1,500,000. The tax is deductible under the PAYE system.
Specified
Financial Institutions - Section 5 (A) of Income Tax Act.
(a) Bank of Jamaica
(b) Merchant Banks
(c ) Development Banks
(d) Insurance Companies
(e) Building Societies licensed
under the Building Societies Act
(f) Trust Companies and
(g) any other institution licensed
under the Banking Act or the Financial Institutions Act, as the case may be.
Only
loans up to a maximum of $1,500,000, if used for the following purposes will
be exempt:
(a) purchasing house for owner
occupancy
(b) purchasing a motor vehicle, for
private use
(c ) purchasing land
(d) education
(e) training
(f) emergency needs (compassionate
loan); and
(g) furnishing of residence for
owner occupation
·
Yes. Effective 1st January 1992, income earned from an
Approved Gratuity Scheme of a licensed Tourist
accommodation has granted a relief from Income Tax - subject to the limitation that , the total
amount for distribution under an Approved Gratuity Scheme, in any one year of
assessment, must not exceed ten (10%) of the billed sales.
NB
: Effective July 1, 2000 the maximum non-taxable benefit to any individual
should not exceed $250,000 per annum. Employees earning taxable emoluments of
$500,000 or more, will no longer benefit from relief on gratuity payments.
28. Should a Prescribed Person deduct
tax from my interest income?
·
Yes, interest from a
deposit or an investment of money paid, or credited, to a depositor by a
prescribed person will be subject to a Withholding Tax, at the rate of 25cents
on the dollar for individuals, and 33 1/3 cents on the dollar for Companies,
and other ‘body of persons’.
29. I am a Prescribed Person: Who do I make payments to and when
do I make payments of
deductions from Interest Income?
·
The tax deducted must
be paid over to the Commissioner - IRD, at any of the 28 Collectorates
island wide by the 14th day of the month following that in which the
payment or credit was made. Additionally, a quarterly return must be submitted
to the Commissioner (TAAD) by the 15th day of March, June, September and
December accompanied by supporting documents.
E. PENSIONERS & NONRESIDENT INDIVIDUALS
1. Are there Exemptions for Pensioners?
·
Yes.
(a) A person receiving a pension
from a Statutory Pension Scheme, or from a Superannuation Scheme - approved by
the Commissioner (TAAD) - will if he/she is less than 55 years old, be exempt
to a maximum of $80,000.00 of pension only.
(b) If that person is 55 years and
over, or permanently incapacitated, he/she will be exempt from tax on $80,000 of income from pension and any
other source.
In addition to the above benefits,
Pensioners resident in the Island, are also entitled to the following threshold
nil rate (tax free) amounts
Income Tax Threshold
($) 1997 - 2010
1997 $ 80,496.00
1998 $ 80,496.00
1999 $100,464.00
2000 $100,464.00
2001 $120,432.00
2002 $120,432.00
2003 $120,432.00
2004 $120,432.00
2005 $144,768.00
2006 $193,440.00
2007 $193,440.00
2008 $196,872.00
2009 $270,504.00
2010 $441,168.00
NB:
Effective July 1, 2009, Golden
Agers (persons 65 years and over), receive an additional exemption of $80,000.
2. I am elderly person, am I entitled to any
Exemptions?
·
Yes you are. An
individual aged sixty-five (65) years and over will be exempt from tax on
$80,000.00 of his income from all sources, and an additional $80,000.00, if he
is a pensioner. (A total Tax exemption $160,000.00)
In
addition to these exemptions if you are a resident, you are also entitled to
the threshold nil rate (tax free income)
3. I am non-resident Pensioner. Am I entitled to any exemptions
and tax-free amounts?
·
As a non-resident
pensioner, you are entitled to the Pensioner’s exemption. However you are not
entitled to the nil rate amounts (tax-free)
4. I am a non-resident individual and I have income in Jamaica.
What rate of income tax applies?
·
From 1993, 25% of your
Statutory Income. A non resident individual residing in a country which has a
Double taxation Treaty with Jamaica is
subject to the following rates of income tax. (See Table below)
Countries
whose residents benefit from Concessionary Withholding Tax rates
Double Taxation Dividends Interest (%) Royalties (%) Management
Treaty Country Portfolio Substantial Fees
(%)
Investments (%) Holdings
(%)
Canada 15.0 22.5 15.0 10.0 12.5
Denmark 15.0 10.0 12.5 10.0 10.0
Germany 15.0 10.0 12.5 10.0
33 1/3 Company
25 individual
Israel 22.5 15.0 15.0 10.0 33 1/3 Company
25 individual
Norway 15.0 15.0 12.5 10.0 10.0
Sweden 22.5 10.0 12.5 10.0 10.0
United
Kingdom 15.0 10.0 12.5 10.0 12.5
United States 15.0 10.0 12.5 10.0 taxed as
Business
profit
Caribbean - - 15.0 15.0 15.0
Community
Switzerland 15.0 10.0 10.0 10.0 10.0
People’s Republic 5.0 - 7.5 10.0 -
of China *
France 15.0 10.0 10.0 10.0 10.0
*
Effective January 1, 1998.
Notes
1.
Portfolio Investments - investments by an individual or small investment by a
Company.
2.
Substantial Holdings - direct
substantial investment by a non-resident company in the company paying the
dividends
Members States of Caribbean Community
Antigua
& Barbuda
Barbados
Grenada
Jamaica
Dominica
Montserrat
Belize
Guyana
Trinidad
& Tobago
St
Lucia.
St.
Vincent & the Grenadines
Signatories to the Caribbean Community Treaty;
Barbados
Jamaica
Belize
Montserrat
Dominica
St. Lucia
Grenada
NB:
Non- resident individuals are not eligible for the nil rate (tax-free income)
·
Apply to the
Commissioner TAAD for an exemption or a refund. Where the Commissioner is satisfied
that the individual depositor is not liable to Income tax -
a) a certificate of
exemption will be issued to the individual and or
b) a refund any tax
which was deducted will be made.
·
For individuals to
obtain an exemption or a refund the prescribed form has to be completed, and
the relevant documents attached. (Form 1R for residents and Form 1N for non–
residents)
F. OBJECTIONS:
1. How does a Taxpayer object to an Income Tax Assessment?
·
Objections must be done
in writing stating the specific grounds of objection within thirty days from
the date of service of the Notice of Assessment.
2. What happens if I have further objections to the findings of the
initial Objections?
·
The case may be taken
to the first the Commissioner Taxpayer Appeals, then to the Director General
Tax Administration. If you are still dissatisfied the matter may then be taken
to the Courts.
1. I am physically disabled. Am I entitled to any tax exemptions?
·
Yes; the law provides
for any person suffering from a permanent physical or mental disability, but
who is capable of being gainfully employed to be exempt from Income Tax on
emoluments. The individual must however be certified as being disabled by the
Minister responsible for Social Security, on the advice of the Chief Medical
Officer, Ministry of Health.
1. How is Contractor’s Levy treated under the law?
·
The levy can only be applied
as a tax credit to reduce the income tax payable for that year in which the
levy was paid.
·
Where there is no tax
payable, the amount deducted as Contractor’s Levy cannot be claimed as a refund
or carried forward as a credit against future tax liabilities.
·
Where the Contractor’s
Levy exceeds the income tax payable, the excess cannot be refunded or carried
forward as a credit against future tax liability.
I. GENERAL
Employees
entitled to relief in respect of uniform & laundry allowance.
1.
Members of the Jamaica
Constabulary Force, Island Special
Constabulary Force and the Jamaica Defense Force
2.
Members of the Jamaica Fire
Brigade
3.
Persons registered under the
Dental, Medical, Opticians, Veterinary Acts, Professions Supplementary to
Medicine Act, and Nurses and Midwives Act.
4.
Porters employed to hospitals
5.
Correctional Officers
6.
Attorneys-at-Law
7.
Resident Magistrates
8.
Judges
9.
Legal officers in the service
of the Government of Jamaica, whose job requires them to be robed in court.
10.
Customs Officers
11.
Air Traffic Controllers
12.
Postal workers employed in the
delivery of mail
13.
Teachers required to wear
protective clothing
14.
Drivers & conductors of
public passenger vehicles
15.
The crew of any aircraft or
ship
16.
Port workers
17.
Attendants at petroleum
filling stations
18.
Messengers
19.
Drivers
20.
Watchmen
21.
Private security Guards
22.
Cleaners
23.
Gardeners
24.
Workers employed in the
hospitality or manufacturing industry, restaurants, Agriculture, Mining or in
refrigerated facilities.
Other
employees approved by the Commissioner having regard to paragraph 1(B) of the
provision to Section 5(1) ( c) of the Income Tax Act.
Asset Initial allowance% Annual
allowance%
Adding
Machines 20 10
Bicycles 20 10
Buildings
(concrete) 20 21/2
others 3
industrial 5
Cash
Registers 20 10
Compressors
electric) 20 10
other 20 7
1/2
Computers 20 22
1/2
Dipping
tanks 0 25
Drilling
Machines 20 20
Dry
Docks 20 10
Electrical
Appliances 20 10
Fencing 0 2
1/2
Furniture
& Fixtures 20 10
Generators
(steam) 20 5
Hoists
& Cranes 20 7
1/2
Lighting
Plants (electrical) 20 10
(other) 20 7
1/2
Machinery
& Plants 20 7
1/2
Motor
Cycles 12 1/2 12
1/2
Motor
Vehicles (trade)* 12 1/2 12
1/2
Private
cars + 0 12
1/2
Scales 20 10
Spraying
Machines (gas) 20 20
Spraying
machines (other) 20 7
1/2
Tractors
(gasoline) 20 20
Wells
(concrete) 0 2
1/2
(perforated) 2
Wharves
& Pipes
(wood) 0 5
(concrete) 2
1/2
*Allowances
for computers and motor vehicles are calculated on a straight line basis on the
actual cost of the asset.
The
annual allowance for private motor vehicles is to be computed on the deemed
cost of $3,200. No initial allowance is granted.
|
Original Cost of Motor Vehicle ($) |
Age of Motor Vehicle |
||||
|
(a) Under
5 years |
(b) 5 years or more |
||||
|
Usage During Year |
|||||
|
Up to 50% Private Use ($) |
Over 50% Private Use ($) |
Up to 50% private Use $) |
Over 50% Private Use ($) |
||
|
Up to 300,00 |
40,000.00 |
48,000.00 |
30,000.00 |
36,000.00 |
|
|
Over 300,000 - 700,000 |
50,000.00 |
60,000.00 |
40,000.00 |
48,000.00 |
|
|
Over 700,00 - 1,000,000 |
75,000.00 |
80,000.00 |
60,000.00 |
65,000.00 |
|
|
Over1,000,000 - 1,500,000 |
90,000.00 |
100,000.00 |
72,000.00 |
80,000.00 |
|
|
Over 1,500,000 |
120,000.00 |
140,000.00 |
98,000.00 |
100,000.00 |
|
|
Example: Original cost of
motor vehicle over $300,000 - $700,000 under 5 years old and up to 50%
private use. Taxable benefit on motor
vehicle $50,000.00 Tax thereon 25% per
annum $12, 500.00 |
|||||
Penalties for
Infringement of the Income Tax Act
|
|
PENALTY |
|
Failure to certify information re connected
persons or willfully giving a false certificate |
Fine of $1,000.00 or term of twelve (12) months |
|
Failure to pay over tax deducted at source |
Fine not exceeding $5000.00, or treble unpaid
tax, or term not exceeding twelve(12) months in default of payment. |
|
Failure (of persons) to deliver lists by persons
in receipt of taxable income belonging to others |
Fine not exceeding $5000.00 or term not exceeding
twelve (12) months |
|
Failure to deliver Declaration of Income tax by
15th march, and failure to comply within 30 days after service of notice by
Commissioner |
Penalty of not more than $200.00 determined by
the Commissioner and further penalty of $20.00 daily for each day default
continues |
|
Failure to file returns |
Fine not exceeding $5,000.00 or terms not exceeding twelve (12) months. |
|
Failure to give notice of income in excess of
$196,872
|
Treble the tax which he ought to be charged plus
penalty of $40.00 |
|
Failure to file return of trades carried on by
two or more persons jointly |
Fine not exceeding $5,000.00 or
term not exceeding twelve (12) months. |
|
Failure of person to comply with notice to file
returns served on him by Commissioner |
Fine not exceeding $5,000.00 or term not
exceeding twelve (12) months |
|
Knowingly and willfully aids and abets, incites
another person to make or deliver a false or fraudulent account, statement or
declaration of or concerning any profits. |
Fine not exceeding $1000.00 or term not exceeding
twelve (12) months. |
|
Refusing or neglecting to give evidence in
pursuance of a notice served on him to produce books or documents |
Fine not exceeding $5000.00 or term not exceeding
twelve (12) months. |
|
A responsible Officer failing to notify Collector
within fifteen (15) days after end on month of outstanding balances of income
tax payable pursuant to the Regulations. |
Fine not exceeding $1000.00 or term not exceeding
six(6) months and $500.00 daily for continuing offence after conviction. |
|
Knowingly making
false statements or false representations in any return statement or
declaration |
Fine not exceeding $10,000.00 and treble tax
which he ought to be charged or term not exceeding five (5) years. |
|
Person by himself, or by any person in his
employ, obstructs molest or hinders
an Income Tax Office in the execution of his duty |
Fine not exceeding $10,000.00 or treble tax which
he ought to be charged or term not exceeding five (5) years |
|
Failure to maintain proper books and records |
$5000 or term not exceeding 12 months |
|
Failure to notify the Commissioner of transfer of
machinery before three (3) years, which is subject of the grant of a special Capital Allowance |
Fine not exceeding $5000.00 |
|
Transfer outside of the Island of the residence
of a business or a Company located in the island without the permission of the Minister of Finance |
Fine not exceeding $20,000.00 or term of
imprisonment not exceeding two years, or both. |
|
Person by himself or by any in his employ obstructs, molests or hinders an Income
tax Officer in the execution of his duty |
Fine not exceeding $5000.00 or term not exceeding
twelve (12) months |
|
Failure to pay over PAYE tax deducted |
Employers are liable to an increase of tax
(penalty) of 50% per annum on all outstanding PAYE deductions |
REMINDER:
a) Individual
Returns - IT01
b) Organizations
Bodies Corporate - IT02
c) Organizations
- Unincorporated Bodies Other than Life Assurance - IT03
d) Life
Assurance Companies - IT04
e) Individuals
PAYE & Pensioners - IT05
f) Employers
Annual Returns - IT06
g) Estimated
Returns/Declaration of Estimated Income - IT07
Employers
with part-time workers are reminded to withhold tax at 25% of the gross amount,
and to advise these workers with no other employment to contact the Taxpayer
Audit & Assessment Department (TAAD).
Disclaimer:
This information is only a Guide and is not a
substitute for the Income Tax Act and other relevant Legislation. In any area
of conflict, the final authority is the Income Tax Act & Regulations.
