1

THE INCOME TAX ACT

ARRANGEMENT OF SECTIONS

I. Short title.
2. Interpretation.
.I dministration

3 . IDrIrted b,y Act 12 of1 Yh5, Schedule. 1

3 . Duty to regard documcnts, ctc., as secrct and to make dcclaration.

Imposi f ion qf Incvme 1ax

5. Chargcablc incomc.
SA. Trcatmcnt of concessionary loans.

Statutory lncomes

0. Slatutory incomcs.
7. Post-ccssation receipts.
8 . Provisions supplcmcntaq to scction 7.
9. Valuation of tradmg stock on cessation.
10. Valuation of work in progress at cessation.
1 I . Valuations for thc purposcs of sections 8 , 9 and 10.

Exemptions

12. lncomcs cxempt from incomc tax.

Ascertainment of Chargeable Income

13. Deductions allowed.

14. Debts set off against profits and subsequently released.
1 4 ~ . Deduction in respect of additional workers.
1 4 3 . Deduction in respect of specified workers.
15. Deductions not allowable.
15x. [Deleted bv Act 16 of 1991, S. 64.1
16. Artificial transactions, transfers to children and transfers in trust.
17. Anti-avoidance: high or low consideration.
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7 INCOME TRY

18. Anti-a\,oidance: transactions in securities.

19. Transfers to persons abroad.
20. Change of residence. etc.. by bodies corporate.

21.
22.
23.
24.
25. [Repenled b.v.-lct 4 of 1986.1
25A.
25B.
25C.
25D.

25E. Tas credlt in respect of payment of contractors levy.

.\bri-resrdents
26. IRepealed bv.4ct 4 o f 1986.1
27. Persons not domiciled or Commonwealth citizens not ordinarily
resident in this Island: basis of computation.
28. Temporary absentees.
29. Temporary residents.
Rates of Tax
30. Rates of income tax.
31. Rates of income tax payable by non-residents.
31A. Deduction from interest payments.
Income Tax on bodies corporate
32. Adjustment for contractor’s levy.
33. [Repealed hyAct 3 of 1987.1
33A. [Repealed by Act 16 of 1990.1
34. Company distributions: relevant acts.
35. Company distributions: loans to principal members, etc.
36. Company distributions: determination of amount.
Approved Venture Capita Company
36A. Venture capital company; designation etc. 1
36B. Qualifications for relief in any year of assessment.
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36c. Tax relief for approvcd venture capital cornpan!-.
.Agricitltural Incoi~re
7611. Rclief in rcspect of prescribed agricultural a d \ % ?
I)edircfion of 7iru
37. Dcduction of tas from dividend.
3%. Company distributions: deduction of tax.
38.1. Escmption of sharcholdcr in approved venture capital company.
38R Tax creht in respect of bonus shares.
39. Unit trust income payments: deduction of tax.
-10. Dcduction from payment to non-resident.
1O.A. Deduction from cmolumcnts in relation to certain rentals.
11. Paymcnt over of tas deducted at source.
12. Allowancc for tas chargcd.
13. Adjustmcnts of relicfs whcre reliefs not all given at the same time.
Superannuation Firritls
44. Approved Superannuation Funds.
-14.A. Approvcd retirement schcmes.
Industrial Societies, etc.
45. Industrial and Provident Societies and Building Societies.
16. Sharc intcrcst to be paid without deduction of tas.
17. Esemption from tax of profits allocatcd to rcscrvcs of building
society.
Insurance, Shipping and ;1ircrufi ('onipaiiies
48. Insurance. shipping and aircraft companies.
48A Dcduction of tax from intcrcst paymcnts on ccrtain dcposits or
investments with insurance companies.
Per.wns Chargeable
49. Scparatc asscssmcnt and chargc of wife's incomc.
SO. Elcction to joint asscssrncnt.
51. IHepnJed b-vAct 16 of 19XO.J
52. Corporations.
53. President or principal officer of rcgistcrcd socicty answcrablc.
54. Rcprcscntativcs of non-rcsidcnt pcrsons chargcablc.
55. Trustees. etc., and pcrsonal rcprcscntativcs answerable.
56. Reprcsentativcs may retain amount payable for income tax
57. Liability of rcprcsentatives for paymcnt of income tax.
 INCOME TAX

58, Delivery of list by persons in receipt of taxable income belongmg to

others.
Pension Rights of Directors and Eniplo-wes
59. Charge to tax in respect of proLision for retirement or other benefits
to directors and employees of bodies corporate.
60. Esemptions from charge to tax under section 59.
61. Approval of retirement benefits scheme.
62. Aggregation and severance of schemes.
63. Supplementaryprovisions.
64. Application to unincorpomted societies. etc.
Pavment of Estimated Tax During Current ]*earOfAssessnrent
65. Payment of estimated income tax
66. Duty to declare estimated tax
Returns
67. Returns of income.
68. Notice of income in excess of eight thousand five hundred and
eighty dollars.
69. Returns of trades. etc.. carried on by WOor more persons jointly.
70. Duty of persons served with notice to make returns. and powers of
Commissioner.
71. Duty of registered society to make returns, and basis of assessment.
,-Issessnients
72. Power of Commissioner to make assessments. and penalty for
fraudulent conversion of property or malurig fraudulent
statements. etc.
73. Formal assessment to be unnecessary in certain cases.
74. Assessment lists.
75. Notice of assessment and objection to assessment.
Appeals
76. Appeals.
Collection of Income T m
77. Extracts from assessment lists to be sent to Commissioner of Inland
Revenue for collection and collection of tax pending appeal.
78. When income trtv payable. Collection of income tax on certain
emoluments.
7 8 ~ . Designation of responsible officer by body corporate.
79. Enforcing payment of taxes.
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 INCOME TAX

Income tax may be recovered by suit.

Repayment of Tax
Repayment of tax, claims and appeals.
Recovery of overpayment of tax.
Relief against double income tax
Relief against double tax.
Power of Minister to make orders declaring arrangements to be in
force with other territories.
Credits of tax payable in other territories in respect of which
arrangements are in force.
Deduction of tax from dividends.
General
Power of Minister to remit tax.
Notices.
Power of Commissioner to demand payment of tax before a person
assessed leaves the Island, and to receive tax.
Traders, etc., to keep accounts in English.
Provisions as to evidence in cases of fraud or wilful default.
Power to obtain and verify information.
Regulations-power to make.
Power to make rules and vary, etc.
Regulations and rules in Second Schedule.
Power to name territories in the Commonwealth.
Commencement of regulations, etc.
Appointment of agent,
Treatment of farm animals for income tax purposes.
Penalties
Offences.
Penalty for other offences.
Penalty for refusing to allow deduction of tax and avoidance of
agreements for payment without deduction.
Proceedings.
Power of Commissioner to stay or compound proceedings
Minister may amend penalties, etc., by order.
SCHEDULES
FIRST SCHEDULE
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 INCOME TAX

ALLOWANCES FOR CERTAIN CAPITAL EXPENDITURE

PART I Industrial Building and Structures,
etc.
PART I1 Non-resjdential Buildings.
PART I11 Machinery and Plant.
PART IV Investment Allowances on certain
buildings, structures, etc., and on
certain machinery and plant.
PART IVA Special capital allowance on certain
machinery and plant.
PART IVB Special capital allowance on certain
machinery.
PART v Special Investment Allowances for
the Sugar Industry.
PART VI Investment Allowances for Expen-
diture on Agriculture.
PART VII Mines, Oil Wells, etc.
PART VIII Allowances for Expenditure on
Scientific Research.
PART IX Patents.
PART X Special Provisions as to Operation of
the Foregoing Parts in Relation to
Certain Sales.
PART XI Effect, in Certain Cases, of Succesb
sion to Trades, etc.
PART XI1 Manner of Making Balaricing
Charges,
SECOND SCHEDULE
PART I The Income Tax (Employments)
Regulations.
PART I1 The Income Tax Rules.
THIRD SCHEDULE
PART I Treatment of fatm animals for tax
purposes.
PART I1 Investment Allowances for Expen-
diture on livestock breeding.
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 INCOME TAX

THE INCOME TAX ACT

Laws 18 of 1971, 1 of 1984,
59 of 1954, 29 of 1971, 12 of 1985
7 of 1956, 31 of 1971, Sch.,
29 of 1957, 37 of 1971, 15 of 1985,
42 of 1958, 1 of 1972, 21 of 1985
41 of 1959, 2 of 1972, S. 15,
37 of 1961. 23 of 1972, 4 of 1986,
Acts 49 of 1973, 9 of 1986,
9 of 1963, 53 of 1974, 3 of 1987,
10 of 1963, 46 of 1975, 24 of 1987,
33 of 1964, 48 of 1975, 25 of 1987,
23 of 1965, 36 of 1976 8 of 1990,
27 of 1965, Sch., 16 of 1990,
38 of 1965, 38 of 1976, 13 of 1991,
47 of 1965, 7 of 1977, 16 of 1991
48 of 1965, 22 of 1977, S. 64,
44 of 1966, 31 of 1977, 5 of 1992,
45 of 1966, 13 of 1979 7 of 1994
4 of 1968, S. 17, 6th Sch.,
16 of 1968, 16 of 1980, 9 of 1994,
29 of 1969, 5 of 1982, 12 of 1994,
42 of 1969, 13 of 1982 41 of 2002,
47 of 1969, S. 26, 28 of 2003.
24 of 1970, 21 of 1982, S. 2,
30 of 1970, 8 of 1983 12 of 2004.
34 of 1970,
[Ist January, 1955.1
1. This Act may be cited as the Income Tax Act. short title.

2.-(1) In this Act, unless the context otherwise requires- Interpreta-

tion.
"approved association" means any association which is an 911963
approved association under the Agricultural Marketing' S. 9 (1) (b).

Act, and any other association declared by the

Minister to be an approved association for the
purposes of this Act, so, however, that no association
shall be so declared by the Minister to be an approved
association for the purposes of this Act unless-

(a) a substantial proportion of its members

are engaged in the production of some
article produced in the Island; or
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 INCOME TAX

( b ) its membership comprises a number of

associations a substantial proportion of
the members of which are so engaged;
2111982 "approved farmer" means a person designated as such
S. 2 (a).
by the Minister pursuant to subsection ( I ) of sec-
911963
tion 36D; 0
S. 9 (1) (b).
"approved fund" means a fund constituted in a manner
approved by the Minister for purposes so
approved, and declared by the Minister to be an
approved fund:
Provided that no sum in respect of which no
income tax is payable by reason of its being part of an
approved fund, shall be used for any purposes other
than purposes approved by the Minister;
"approved overseas organization" means any
organization-
(a) being a corporation, or an association of
persons, not resident in the Island;
( b ) the business of which includes granting
loans, affording facilities for credit or
accepting deposits; and
(c) which is approved for the purposes of
paragraph (x) of section 12 by order
made by the Minister acting after
consultation with the Governor of the
Bank of Jamaica;
"approved public utility" means any undertaking which the
Minister is satisfied renders such services to the 0
community as to constitute the operation of a public
utility and which he declares by order to be an
approved public utility for the purposes of paragraph
(s)of section 12;
"approved retirement scheme" means a retirement scheme
311 987
S. 2 (b).
approved by the Commissioner under this Act;
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 INCOME TRY 9

“approved superannuation fund” means a superannuation 3,y:F) (a),

fund approved under this Act or under the Income Tax 1938
Law, Chapter 201 (now repealed); Rzviszd
Edition.
“approved venture capital company” means a company
designated as such by the Minister pursuant to
subsection (1) of section 36A;
“beneficiary”, in relation to an approved superannuation :o;::(a),
find, means a person whose right to benefits out of the
fund has accrued but has not yet been fully discharged,
or who is employed in service qualifying for a future
right to benefits out of the find;
“body corporate subject to income tax” means any body$ ,:::
corporate, wherever resident, other than one whose
entire income is by section 12 or any other enactment
exempted or relieved from income tax;
311987
“body of persons” means any body politic, corporate or s . 2 ~
collegiate, and any company, fraternity, fellowship
and society of persons, whether corporate or not
corporate;

“building society” means any society incorporated under

the Building Societies Act;

“chargeable income” means the aggregate amount of

income of any person from all sources remaining after
allowing the appropriate deductions and exemptions
under this Act;

“Commissioner” means the Commissioner of Taxpayer L.N.

Audit and Assessment appointed under section 11E of 165‘1999
the Revenue Administration Act;

“Commissioner of Taxpayer Appeals” means the LN.

Commissioner of Taxpayer Appeals appointed under *w2002
section 1lB of the Revenue Administration Act;
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I0 INCOME TAX

“the Commonwealth’ shall be deemed to include those

territories and their dependencies which are named in
any order made under section 95;

“company” means any company incorporated or registered

under any enactment in force in the Island and any
company which, though incorporated or registered
outside the Island, carries on business or has an ofice
or place of business therein;
3O/1970
S. 2 (1) (b). “connected persons” shall be construed in accordance with
subsection (2);
301 1970
s. 2 ( l ) ( c ) . “control”, in relation to a body corporate, means the power
of a person to secure by means of the holding or the
possession of voting power in or in relation to that or
any other body corporate, or by virtue of any powers
conferred by the articles of association or other
document regulating that or any other body corporate,
that the affairs of the first-mentioned body corporate
are conducted in accordance with the wishes of that
person, and, in relation to a partnership, means the
right to a share of more than one-half of the assets, or
of more than one-half of the income of the partnership;

3411970 “director” means, except where otherwise provided-

S. 6.

(a) in relation to a body corporate the affairs

whereof are managed by a board of directors or
similar body, a member of that board or similar
body;

(b) in relation to a body corporate the affairs

whereof are managed by a single director or
similar person, that director or person;
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 INCOME TAX 11

(c) in relation to a body corporate the affairs

whereof are managed by the members them-
selves, a member of the body corporate,

and includes any person, other than a person giving

advice purely in a professional capacity, on whose
direction or instructions any director (as so d e h e d )
is accustomed to act;

“distribution” has the meaning assigned to it by section 34/1970

34, and the amount of a distribution shall be ’ ‘’
determined in accordance with section 36:

“earned income” means in relation to any individual- 371 1971

s. 2.

(a) any income arising in respect of any

remuneration from any office or employ-
ment of profit held by the individual, or in
respect of any pension, superannuation or
other allowance, deferred pay or compensa-
tion for loss of office, given in respect of
the past services of the individual or of the
husband or parent of the individual in any
office or employment of profit, or given 10
the individual in respect of past services of
any deceased person, whether the individual
or husband or parent of the individual shall
have contributed to such pension, super-
annuation allowance or deferred pay or not;
and

(6) any income from any property which i s

attached to or forms part of the emoluments
of any office or employment of profit held
by the individual; and
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12 INCOME TAX

(c) any income which is immediately derived by

the individual from the carrying on or
exercise by him of his trade, business,
profession or vocation. either as an indivi-
dual or in the case of a partnership, a5 a
partner personally acting therein,
so, however, that where the income of a wife is
deemed to be the income of the husband, any
reference in this definition to the individual
includes either the husband or the wife;
4/1986
S. 2 (a).
“educational institution” has the meaning assigned to
it by the E.ducation Act;
4/1986
S. Z(al
“emoluments” includes, in relation to any office or
employment of profit-
(a) all salaries, fees, wages, all provision or
payment, as the case may be, in respect
of living or other accommodation, enter-
tainment, utilities, domestic or other ser-
vices and other benefits, perquisites and
facilities whatsoever (whether or not simi-
lar to any of the foregoing and whether
in money or otherwise); and
(b) without prejudice to the provisions of
section 13, all sums paid to any person by
an employer in respect of expenses
whether reimbursable or not;
(c) all annuities, pensions, superannuation or
other allowances payable in respect of
past services in any office or employment
of profit, whether legally due or voluntary,
and including lump sums paid in com-
mutation or in lieu of a pension or other
periodical superannuation payment, and
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 INCOME TAX 13

any payment of money made, or other valuable

consideration given, to any person being the
holder or past holder of any office or
employment of profit in consideration for, or
otherwise in connection with, the termination
of the holding of that office or employment
(otherwise than by death) or any change in its
nature or terms, or any undertaking given by
that person as to his future conduct, whether
the payment is made to that person or to his
relative or dependant (in which case it shall be
treated as made to that person, unless he is
dead, when it shall be treated as made to the
recipient thereof);

“immediate relative” means a relative other than a brother, 30 1970

sister, uncle, aunt, nephew or niece; S . 2 (1) (d).

“incapacitated person” means any infant, person of

unsound mind, idiot or insane person;

“investment income” means income which would be the S34’1970

. 6.
chargeable income of a body corporate if there were
left out of account receipts and deductions so far as
they entered into the computation of its trading and
estate income;

“Jamaica Stock Exchange” means a body of persons which 30/1970

the Minister has certified to be the Jamaica Stock s.z(l)(e).
Exchange;

“new consideration7’,in relation to a distribution by a body S. 6.

3411970
corporate, means consideration not provided out of the
assets or at the cost of the body corporate;
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14 INCOME TAX

“person” means any individual and also any body of

persons;
4112002
s. 2. “personal services)’ includes services of a professional,
clerical, technical, administrative or managerial
nature;
3411970
S. 6 . “preference capital” means preference shares or preferred
shares;
3411970
S. 6 .
“preference dividend, means-

(a) a dividend payable on preference capital at a

fixed gross rateper ceiitum; or

(b) where a dividend is payable on preference

capital partly at a fixed gross rate per cenhlm
and partly at a variable rate, such part of that
dividend as is payable at a fixed gross rateper
ceiitum;
“prescribed” means prescribed by the Commissioner;

“principal member” means a person who, in relation to a

body corporate, is beneficially entitled to exercise
more than five per ceiitzim of the voting power or is
beneficially entitled to shares the paid-up value of
which amounts to at least five per centum of the paid-
up share capital, or is, together with other persons
connected with him, beneficially entitled to exercise
more than ten per ceiitirm of the voting power or
beneficially entitled to shares the paid-up value of
which amounts to at least ten per centum of the paid-
up share capital;

IXIlY7I
“qualified unit trust scheme” means a scheme which,
s.2. throughout the year of assessment (or, where the
scheme is registered under the Unit Trusts Act during
the year of assessment, throughout the part
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 INCOME TAX 15

thereof subsequent to that registration) is a

registered uiiit trust scheme (within the meanin;:
of that Act) in which there are not less than two
hundred unit holders, treating as one unit holder
persons who form a group of two or more, each
of whom is connected with the other member or
members of the group;
“recognized stock exchange” means- 34/1970
s. 6.
(a) the Jamaica Stock Exchange; 3711971
s. 3.
(b) any other stock exchange recognized by the
Minister by order for the purposes of this
Act, such recognition ts be from such date
as i s specified in the order;
“relative” as respects any pcrson, means his or her 3011970
husband or wife, or brother, sister, uncle, aunt, $$l$l]h(g).
nephew, niece or lineal ancestor or descendant (the Sch.
stepchild or adopted child of any person being
taken into account as a relative or to trace a
relationship in the same way as that person’s
child);
“security” means any evidence of indebtedness, whether 341 1970
S. 6 .
or not evidencing a charge on assets;
“shares” includes stock, and any other interest of a 34,,y,o
member as such in a body corporate; 6. 6.

“statutory income” means, subject to section 6 , the 4/1986

aggregate amount of income of any person from all ’. @).

sources remaining after allowing the appropriate

deductions and exemptions under this Act;

“trade” includes every trade, manufacture, adventure or

concern in the nature of trade;
“trading and estate income” means so much of the 38jly70
income of a body corporate (computed in accord- s. 6.
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16 INCOME TAX

ance with the rules governing the calculation of

chargeable income) as is referable to the carrying
on of a trade, business or profession or the owner-
ship or occupation of land, and in calculating
trading and estate income payments deductible
under section 13 shall be apportioned between that
and any investment income of the body corporate
as may be appropriate;

15/1971 “unit holder”, in relation to a qualified unit trust

s. 2. scheme, means a holder of securities (as defined in
the Unit Trusts Act) created jn pursuance of the
scheme, whether described as units or otherwise;
34/1970 “voting power” means the totality of the rights to cast
S. 6.
votes on any resolution proposed at a general
meeting of the body corporate;

“year of assessment” means the period of twelve months

commencing on the first day of January in each
year.

30/L970 (2) For the purposes of this Act the following per-
s. 2 (2). sons shall be treated as being connected with a given person
(“A”) and he with them, and shall be so treated notwith-
standing that at the relevant time any of the persons in
question (not being individuals) had not yet come into exis-
tence or had ceased to exist-

(a) A’s relatives;

( b ) the husband or wife of any relative of A;

(c) A’s partners;

(d) where A is a trustee of a settlement (other than a

settlement where the sole trustee is a trust corpora-
[me inclus3on of this page is authorizbd by L.N. 172/1986l
 INCOME T A X 17

tion for the purposes of the Judicature (Trusl

Corporations) Act, or all the trustees are such cor-
porations, and none of the beneficianes is con-
nected with a settlor of the settlement or with a
person connected with a settlor, or would be so
connected if he were the sole beneficiai owner of the
property comprised in the settlement)-
(i) any settlor of the settlement,
(ii) any person connected with a settlor of the
settlement,
(iii) any body corporate a principal member of
which is a trustee of the settlement;
(e) where A is a settlor or beneficiary of a settlement,
any body corporate a principal member of which
is a trustee of the settlement;
(f, any person acting together with A to secure 01
exercise control of a body corporate;
&) any person acting on the directions of A to secure
or exercise control of a body corporate;
(h) bodies corporate of which A has control;
(11 bodies corporate of which A and persons con-
nected with him together have control;
( j ) where A is a body corporate (and without pre-
judice to the application of any of the preceding
paragraphs where A is a body corporate&
(i) bodies corporate under the control of the
same person who has control of A,
(ii) bodies corporate under the control of per-
sons (other than individuals) connected with
the person who has control of A,
(iii) bodies corporate under the control of the
following persons, namely, a person who
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I8 INCOME T A X

has control of A and persons (other than

individuals) connected with that person,
(iv) bodies corporate under the control of a
group of two or more persons which has
the same membership as a group having
control of A or could be so regarded by
treating a member of either group as re-
placed by ii person with whom he is con-
nected,
(v) the trustees or other persons having the
management of an approved ruperannua-
tion fimd in relation to which A is the
employer (for the purposes of section 44
only);
(k) where A is a principal member of a body cor-
porate-
(i) the body corporate,
(ii) (for the purposes of section 44 only) the
trustees or other persons having the man-
agement of an approved superannuation
fund in relation to which the body cor-
porate is the employer.

(3) Where the Commissioner notifies a body cor-

porate in writing that, in relation to that body corporate,
he proposes to treat specified persons as being connected
persons, the notification shall have effect for the purposes
of this Act until varied or revoked by a subsequent notifica-
tion in writing sent to the body corporate by the Commis-
sioner.

Administration
3. (Deleted by Act 12 of 1985, Sch.1
inclusian
['I% < of t&is p g e is aUmorized by L.N.79119961
 INCOME TAX 19

4.-(1) Every person having any official duty or being 2

;
employed in the administration of this Act shall regard and deal documents,
with all documents, information, returns, assessment lists and ZieTmd to
copies of such lists relating to the income or items of the income make
of any person, as secret and confidential, and shall make-and dec*aration.
subscribe a declaration to that effect before a Justice of the
Peace.

(2) Every such person having possession of or control

over any documents, information, returns or assessment lists, or
copies of such lists relating to the income or items of income of
any person, who at any time communicates or attempts to
communicate such information or anything contained in such
documents, returns, lists or copies to any person-
(a) other than a person to whom he is authorized by the
Minister to communicate it; or 911963
S. 9 (1) (b).

( b ) otherwise than for the purposes of this Act,

shall be guilty of an offence against this Act.
Imposition of Income Tax

5.--(1) Income tax shall, subject to the provisions of this Act, Chargeable
be payable by every person at the rate or rates specified
hereafter for each year of assessment in respect of all income, s. 3 (a).
profits or gains respectively described hereunder-
(a) the annual profits or gains arising or accruing-
(i) to any person residing in the Island
fiom any kind of property whatever, whether
situated in the Island or elsewhere; and

(ii) to any person residing in the Island fiom

any trade, business, profession,
employment or vocation whether carried on
in the Island or elsewhere; and
~

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20 INCOME TAX

(iii) to any person, whether a Commonwealth

citizen or not, although not resident in the
Island, from any property whatever in the
Island, or from any trade, business, profession,
employment or vocation exercised within the
30 1970
Island, or fiom the provision to any person
S . 3 (b). residing in the Island of industrial or
commercial information or advice, or
management or technical services, or similar
services or facilities, or plant or equipment on
hire (otherwise than under a bona fide hire-
purchase agreement as defined in subsection (1)
of section 2 of the Hire-purchase Act);

( b ) profits or gains accruing in or derived from the Island

or elsewhere, and whether received in the Island or not
in respect of-
3411970
S . 6. (i) dividends (other than those falling within
exception (b) of paragraph (1) of the table
911994 contained in section 34), discounts, interests
S . 2 (a).
(including interest referred to in section
31A), annuities, pensions or other annual
sums;
(ii) rents, royalties, premiums and any other
profits arising fiom property;
4211958
S . 2 (b). (iii) any employment or vocation;
3411970
S. 6.
(iv) distributions (not falling within subparagraph
1611990 (i)) by a body corporate subject to income tax;
s. 2.
(v) the accretion realized on the encashment,
4 112002
S. 3 (a).
disposal or redemption of any units or other
form of investment in a money market fund

[The inclusion of this page IS authorized by L N. 88/2003]

 INCOME TAX 21

(within the meaning of section 3 1A) which

had been acquired under a policy of insurance
issued on or after the 1st June, 1999;

(vi) the accretion realized on the encashment, 1

ly
disposal or redemption, on or after the 1st June,
1999, of any units in a money market h n d
(within the meaning of section 31A) operated
by a qualified unit trust scheme.
(c) all emoluments arising or accruing to any person (or 4ims
S . 3 (a) (i).
any member of his family or household) by reason of
his o f i c e or employment of profit:
Provided that-
(i) the said emoluments shall not include- 41 1986
S . 3 (a) (ii).

(A) any payment made to an employee in

respect of meal allowance in relation to
work done outside of normal working
hours; or
(B) any payment of an allowance in respect 41/2002
of the provision of a uniform or the s.3(b).
laundering thereof to an employee who
falls within any of the categories
specified in Appendix B of Part I of the
Second Schedule, or who the Schedule.
Commissioner is satisfied is required to
wear a uniform for the purpose of
protection or identification or in the
interest of safety, security or public
health; or for any purpose as may be
required by law or pursuant to any
international agreement so, however,
that, the maximum amount of
allowance allowable shall be $5,739

(The isclusion of this page is authorized by L.N. 88120033

22 INCOME TAX

per annum in respect of the provision

of uniform and $3,395 per annum in
respect of laundry, or such other
amounts as the Minister may by order
prescribe;
(ii) the said emoluments shall not include
emoluments of an ofice or employment of
profit held by a person in the course of a trade,
profession or business if either-
(A) any emoluments of that ofice or
employment were taken into account
in the case of that person in
computing the profits or gains of that
trade, profession or business for the
purposes of income tax for the year
of assessment; or
(B) the office or employment is such that
the emoluments thereof would
ordinarily be taken into account in
computing the profits or gains of that
trade, profession or business;
41/2002 (iii) the annual value of accommodation provided
s. 3 (c). among the emoluments of any person shall, for
the purposes of this paragraph, be determined
by the Commissioner having regard to such
regulations (if any) as may be prescribed by the
Minister but, subject to section 4 0 4 as regards
any person-
(A) where the annual value is not greater
than the total emoluments (other than
the value of accommodation) paid or
payable for the year of assessment to
such person, such annual value shall
be deemed not to exceed 15 per cent
of such emoluments;
(B) where the annual value is greater than
the total emoluments, (other than the
(The inclusion of lliis page is d i o n z e d by L N 88/2003]
 INCOME TAX 23

value of accommodation) such annual

value shall be deemed to be fifteen per
cent of the average of the annual value
plus other emoluments including emolu-
ments paid by connected persons;
(iv) the said emoluments shall not include- 30/ I970
S. 4 (b).
(A)any lump sum paid ' o u t of the
Consolidated Fund or any other h n d
or account designated by the Minister
as being a public h n d or account; or
(B) such other sums as may be excepted
by the Minister by order subject to
affirmative resolution by the House
of Representatives, being sums (or
portions of sums) paid in respect of
termination of employment whether
by way of commutation of pension,
terminal gratuity, severance pay or
compensation for accident, illness,
redundancy, loss of ofice or
wrongful dismissal, or otherwise,
and any order under sub-paragraph (€3) may
include provision whereby portions of sums
mentioned in that sub-paragraph which are not
excepted by the order may be treated as
income accruing over such period as may be
specified in the order;
where by reason of a person's employment a 41986
motor vehicle is made available (without any s.3(a)(iv).
transfer of the property in it) for the private
use of that person or members of his family
or household, then the value of any benefit
accruing therefrom shall be determined by
the Commissioner having regard to such
regulations (if any) as may be prescribed by
the Minister;
of this page i s authonzed by L N
(The IIIC~LISIOII 88n003]
24 INCOME TAX

NI986 (vi) the said emoluments shall not include any

S. 3 (a) (iv).
sum paid in respect of the maintenance of a
telephone made available at the residence of
a person and used for purposes connected
with his employment;
411986 (vii) where a credit card is provided for any
S. 3 (a) (iv).
person (hereinafter in this section referred
to as the employee) by reason of his
employment then-
(A) without prejudice to the provisions of
section 13, on each occasion that the
employee uses the credit card to
obtain money, goods or services, he
shall be treated as having received
fiom his employment an emolument
of an amount equal to the expense
incurred by the person providing the
credit card in or in connection with
the provision of the money, goods or
services obtained but the actual
money, goods or service obtained by
the employee by the use of the credit
card, shall be disregarded; and
(B) the expense incurred by the person
providing the credit card shall be
treated as reduced by any part of that
expense made good to that person by
the employee;
711994 (viii) the said emoluments shall not include any
Sixth Sch.
sums used by employees to acquire shares
or share options pursuant to a plan
approved under the Employees Share
Ownership Plan Act to the extent that the
sums so used are relieved of income tax
under that Act;
I'llic ~ ~ ~ c l u s ol'lliis
i o i i page IS niitliorized by L N 88/2003]
 INCOME TAX 25

(ix) where under the terms of a contract or J I 2002

arrangement any person (hereinafter in this S. 3 (d).
section called “the employee”) is under an
obligation to render personal services to another
person (hereinafter in this section called “the
employer”) whether on his own behalf or on
behalf of a company, and-

(A) the employee is subject to, or to the

right of, supervision, direction or
control by the employer as to the
manner in which he renders those
services; and
(B) the remuneration for the services
would not, apart from this paragraph,
be treated as emoluments,
then the relevant services shall be treated as
duties of an office or employment of profit held
by the employee and the income arising or
accruing therefrom shall be treated as
emoluments of that ofice or employment, and
accordingly, the employer shall deduct from
the remuneration the income tax payable.

(2) [Deleted by Act 4 of 1984.1

(3) For the purposes of this Act a trade, business, 30/1970
employment, profession or vocation shall not be treated as being :;;,977
exercised otherwise than within the Island solely by reason that S.2 (e).
contracts made in the course thereof are made outside the Island,
if they are made as a result of or in connection with activities
pursued within the Island.
(4) Where a person (in this subsection called the s.
30’197”
5.
operator) carries out a transaction which apart from this
subsection would not be treated as the exercise by him of a trade
or business, it nevertheless shall be so treated if-
[The inclusion of this page i s authonred by L N 88i20031
26 INCOME TAX

(a) similar transactions are carried out by other persons

(whether before or after the first-mentioned
transaction), otherwise than in the course of
activities which (apart from this subsection)
constitute a trade or business, but in circumstances
which make those similar transactions relevant (as
mentioned below) for the purposes of this subsection;
and

(b) the first-mentioned transaction would, if those similar

transactions had instead been carried out by the
operator, be treated (apart from this subsection) as the
exercise of a trade or business,
and a similar transaction is relevant for the purposes of this
subsection if it is carried out-

(i) by an immediate relative of the operator’s, or

(ii) where the operator or an immediate relative of

his is a trustee or settlor of a settlement, by any
settlor or trustee of that settlement, or

(iii) by a body corporate of which the operator or

the operator and immediate relatives of his, has
or have control, or

(iv) where the operator is a body corporate, by a

body corporate which has control of the
operator,
or if it is carried out by any other person under an agreement or
arrangement between him and the operator whereby the whole
or a part of any profit arising from the transaction passes to the
operator or any person mentioned in subparagraphs (i) to (iv):
~~

[The iiicliisioii of h i s pabw IS authorized by L N 88L20031

 INCOME TRY 26.01

Provided that a similar transaction carried out by a person

mentioned in sub-paragraphs (i) to (iv) is not so relevant if the
operator proves that it was not carried out under an agreement or
arrangement with him.

1 1986
(5) For the purposes of subsection (1 )- s. 3 ( c ) .

(a) references to the members of a person’s family or

household are references to that person’s spouse, his
children and their spouses, his parents, servants,
dependants and guests;

(b) “credit card’ includes a card, token, document,

object or other thing given to a person by another
person who undertake-

(i) that on the production of it (whether or not

some other action is also required) he will
supply money, goods and services (or any of
them) on credit; or

(ii) that where, on the production of it to a third

party (whether or not some other action is
also required) the third party supplies
money, goods and services (or any of
them) he will pay the third party for them
(whether or not taking any discount or
commission),
and the use of any object to operate a machine
provided by the person giving the object or by a third
party shall be treated as production of the object to
that person or third party, as the case may be.

[The inclusion of this page IS authonzed by L N 88/2003]

26.02 INCOME TAX

2111982 (6) For the year 1983 or any subsequent year of

s. 3.
assessment, the income derived exclusively from the carrying on
by an approved farmer of a prescribed agricultural activity as
defined in subsection (14) of section 36D, shall be relieved from
income tax.

41i2002
s. 3(2). (7) Where a person acquires the right to receive the
amount (with or without interest) stated in a bond, certificate of
deposit, debenture, note or other similar instrument issued to
him or any other person, then any profits or gains accruing to
him-

(a) from the disposal of that right; or

(b) except so far as it is a right to receive interest, from

the exercise of that right,
which would, but for this provision, not be taken into account as
profits of a trade or business or be otherwise chargeable to tax,
shall be treated as profits or gains chargeable to tax under
subsection (1) (b).

Treatment of 5A.41) Subject to subsection (7), this section applies to a

conces-
sionary loans.
loan or loans (whether made before or after the 24th September,
4 112002 2002) made to a person-
s.4.

(a) by reason of his employment in a specified financial

institution, whether as a director or employee;

(b) at a rate of interest (hereinafter in this section referred

to as the concessionary rate) which is less than thc
prescribed rate.
ITIIc I I I C ~ I I S I O I (it'
I tliis 1i;ige IS nutlionzed by L N 88/2003]
 INCOME TAX 26.03

(2) In this section the prescribed rate means such rate of

interest as the Minister may by order prescribe.

(3) The cash equivalent of the benefit of a loan or loans

to which this section applies shall, in respect of any year in
which the loan or loans remain outstanding, be treated as
emoluments and shall be calculated in the manner specified in
subsection (5).

(4) For the purposes of this section, a loan or loans shall

be regarded as being made to a person by reason of his
employment if made by-

(a) the person’s employer;

(b) any company over which the employer has control; or

(c) any company by which the employer is controlled.

( 5 ) The cash equivalent of the benefit of a loan is an

amount representing the difference between the amount of
interest which would have been payable on the loan at the
prescribed rate and the amount of interest actually paid on the
loan at the concessionary rate.
(6) In this section-

“specified financial institution” means-

(a) the Bank of Jamaica;
(b) a merchant bank;

(c) a development bank;

[The inclusion of this page IS authonzed by L N 88/2003]
26.04 INCOME TAX

(6)an insurance company;

(e) a building society licensed under the Building

Societies Act;

v) a trust company; and

(g) any other institution licensed under the Banking Act

or the Financial Institutions Act, as the case may be.

(7) This section does not apply to any loan or loans

made for any or all of the purposes specified in paragraphs (a) to
(g) of this subsection, to the extent of any amount outstanding
on the principal of such loan or loans which in the aggregate
does not exceed 1.5 million dollars, namely-

(a) purchasing a house for owner occupation;

(b) purchasing a motor vehicle for private use;

(c) purchasing land;

(d) education;

(e) training;

V, emergency needs (compassionate loan); and

(8) finishing of a residence for owner occupation.

Statutory Incomes

statutory 6.-(1) Subject to the provisions of this section the statutory

incomes.
29t1969
income of any person for any year of assessment shall be the
s. 2. income of that person for such year.
~~~~~~ ~

[The iticliision of this page i s authonzed by L N 88i20031

 INCOME T A X 21

(2) Notwithstanding the provisions of subsection (1).

where the Commissioner is satisfied that any person usually
makes up the accounts of his trade, profession or business
to some date other than the 31st day of December in thc
year of assessment the Cornmissioner may permit the gains
or profits of that trade, profession or business to be
computed for the purposes of this Act upon the income for
the period of twelve months terminating on that date in the
year of assessment to which the accounts of that trade,
profession or business are usually made up.
(3) Where a person commencing to carry on a trade, 30/1970
profession or business satisfies the Commissioner that he s. 22.
intends to make up the acconnts thereof to a date other than
the 31st day of December, the Commissioner may grant
permission under subsection (2) notwithstanding that the
first accounts of the trade, profession or business have not
yet been drawn up; and where the first accounts of a trade,
profession or business cover a period which exceeds twelve
months the income of the period shall be treated for the
purposes of this section as aFportioned at an even rate
between the twehe months terminating on the date to which
the accounts are made up and the remainder of the period.
(4) If a person departs from his permitted accounting :1:969
terminal date then-
(a) in respect of the year of assessment in which the
departure occurred and the next succeeding year cf
assessment, the permitted accounting period of that
person shall be such period as the Commissioncr
may determine, and (without prejudice to the
generality of the foregoing) the period so deter-
mined by the Commissioner in respect of the year
of assessment in which the departure occurred
my include any interval between the permitted
accomting terminal date of the old permitted
accounting period and the commencement of the
new permitted accounting period and
~~~ ~~ ~ ~ ~ ~~~ ~~~~~~~~~ ~~

me inclusion of this page is aukhorized by L H . 79/1996]

28 INCOME TAX

(6) in respect of the years of assessment af‘ter the year

next succeeding the year in which the departure
occurred, the terminal date of the new permitted
accounting period shall be regarded as that person’s
permitted accounting terminal date, unless and
until a different accounting period is adopted in
accordance with the provisions of this section.
( 5 ) Subject to the provisions of section 7 where any
person permanently ceases to cany on or exercise a trade,
profession or business, his statutory income tberefrom for
the year of assessment in which the cessation occurs shall be
the amount of the income of the period between the 31st day
of December (or, as the case may be, the permitted account-
ing terminal date) in the immediately preceding year of
assessment and the cessation.

(6) (a) The profits and gains arising or accruing to a

trustee from a trust estate or to a personal representative
from the estate of a deceased person shall be liable to the
payment of income tax on the statutory income a t the rate
9,1994 of 25 cents in the dollar, and the trustee or the personal
s. 3. represenhtive, as the case may be, may deduct any payments
made under this subsection out of the trust estate or out nf
the assets nnd effects of the person deceased:
ProviJed that the Commissioner may authorize any trustee
or personal representative to pay or to sanction payment
to or on behalf of a beneficiary without deducting the tax,
where he is satisfied that such beneficiary is not liable to
make a return in accordance with the provisions of this Act.
(6) The income of a beneficiary in the estate or
trust for the purposes of this Act shall be the share of the
statutory income of the estate or trust to which he is entitled.

(7,In this section-

‘‘permittd accounting period”, in relation to any
person, means the accounting period in respect of
[The inclusion of this page is a u t h o r i d by LN. 79119961
 INCOME T A X 29

which the gains or profits of any trade, profession

or business carried on or exercised by that person
are permitted or required to be computed pursuant
to subsection (2), (31, (4) or (5);
“permitted accounting terminal date”, in relation to
any permitted accounting period, means the ter-
minal date of that period.

7 . 4 1 ) Where any person permanently ceases to carry 011 Port-

cessation
or exercise a trade. profession or business, tax shall be ren,pb.
291 1‘16Y
charged in respect of any sums to which this section applies S. 3.
which are received after the cessation, subject to any such A8[1971
deduction as is authorized by subsection (4).
(2) This section applies to the following sums arising
from the carrying on or exercise of the trade, profession or
business during any period before the cessation (not being
sums otherwise chargeable to income tax), that is to say-
(a) where the profits or gains for that period were
computed by reference to total earnings, all such
sums in so far as their value was not brought into
account in computing the profits or gains for any
period before the cessation;
( h ) where those profits or gains were not so computed.
any sums whatever that were earned before the
cessation.

(3) Any sums chargeable to tax by virtue of this

section shall be brought into charge as income of the year
of assessment in which they are received.

(4) In computing the charge to tax in respect of sums

which are chargeable to tax by virtue of this section, there
shall be allowed as a deduction the amount of any expense
incurred in collecting such sums which the Commissioner is
F e hclusim of this page is authwized by L.N 172/1986]
30 INCOME T.4.X

sstisficd is reasonable and proportionate to thc sums

received.
(5) For the purposes of this section profits 01' gains
from a trade, profession or business in any period shaU k
trealcd as computed by r2ference to total earning&where all
credits and liabilities accruing during that period as a con-
sequence of the carrying on or exercise of the trade,
profession or business are brought into account in com-
puting those profits or gains for tax purposes and not other-
wise; and the value of any sum received in payment of a
debt shall be treated as not brought into account in the com-
putation to the extent that a deduction has been allowed in
l%/lY71
respect of that sum under paragraph ( d ) of subsection ( 1 )
s. 5. of section 13 (which relates to bad and doubtful debts).

Provisions 8. In the case of a transfer for value of the right to

6Uppk-
mcntnryto receive any such sums as are described in subsxtion (2)of
Kction7.
section 7, any tax chargeable by virtue of that section shall
he charged in respect of the amount or value of the con-
sideration (or, in the case of a transfer otherwise than ut
arm's length, in respect of the value of the right transferred
as between parties at arm's length), and references in that
section to snms received shall be construed accordingly.

VaIuntioL
of trading
9.41) In computing the profits or gains of any person
rtmton who permanently ceases to carry on or exercise a trade or
cca t i o n .
29,1969 business, any trading stock belonging to the trade or business
s. 3. zt the cessation thereof shall be valued as follows-
18/15-71
s.s. (0) in the case of any such trading stock-
(i) which is sold or transferred for valuable
consideration to a person who carries on or
intends to carry on a trade or business; and
(ii) the cost whereof may be deducted by the
purchaser as an expense in computing the
~-
[The inclusion o l this page i n authorized by L.C. 172/1986]
 INCOME TLY

profits or gains of that trade or business,

the value thereof shall be taken to be the amount

realized on the sale or the value of the considera-
tion given for the transfer;

(b) in the case of any other such trading stock, the

value thereof shall be taken to be the amount
which it would have realized if it had been sold in
the open market at the cessation of the trade or
business.

(2) For the purposes of this section, "trading stock,

in relation to any trade or business means property of any
description whether real or personal, being either-

(a) property such as is sold in the ordinary course of

the trade or business, or would be so sold if it were
mature or if its manufacture, preparation or
construction were complete; or

(b) materials such as are used in the manufacture,

preparation or construction of any such property
as is referred to in paragraph (a),

and includes any services, article or material which would, if the

trade or business were a profession, be treated as work in
progress thereof for the purposes of section 10, and references in
this section to the sale or transfer or trading stock shall be
construed accordingly.
[The inclusion of this page is authorized by L.N. 87120041
Valuatimo~' 10. Where, in computing the profits or gains of any
work in
progress at person who permanently ceases to carry on or exercise a
wssaticm. profession, a valuation is taken of the work of the profession
2911069
S. 3. in progress at the cessation, that work shall be valued as
follows-

( a ) if the work is transferred for money or any other

valuable consideration to a person who carries on or
intends to carry on a profession and the cost of the
work may be deducted by that person as an expense
in computing his profits or gains from that profession,
the value of the work shall be taken to be the amount
paid or other consideration given for the transfer;

( h ) if the work does not fall to be valued under para-

graph ( a )of this subsection its value shall be taken to
be the amount which would have been paid for
a transfer thereof on the date of cessation as
between parties at arm's length.

Valuations for 11. Where-

the purposes
of sections 8.
9 and 10.
29 1969
S 3.
( a ) pursuant to section 8, the value of a right trans-
ferred as between parties at arm's length;

( b ) pursuant to paragraph ( b ) of subsection ( 1 ) of

section 9, the value of any trading stock; or
[The inclusion of this page 1s authorized by L.N. 87120041
 INCOME TAX

(c) pursuant to paragraph (b) of subsection (1) of

section 10, the value of any work transferred as
between parties at arm's length,

is required to be ascertained, that value shall be determined

by the Commissioner having regard to such factors as may
be reasonable and appropriate in the circumstances of each
case.

Exemptions

12. There shall be exempt fiom tax- lncornzs

zsenipt
from
income tan.
(a) emoluments payable to the Governor-General and an 2 3 ~ 5
S.9.
Acting Governor-General under any provisions of the
Governor-General (Expenditure, Personal Staff, Tax
Exemptions and Pensions) Act;

(b) the income of any Parish Council, of the Kingston 2812003

and St. Andrew Corporation, of any Municipality and S.2.
of any public body or department of Government
other than the following-

(i) the Airports Authority;

(ii) the Betting, Gaming and Lotteries

Commission;

(iii) the H.E.A.R.T. Trust;

(iv) the Jamaica Development Bank;

[The inclusion of this page i s authorized by L.N. 87120041
 INCOME TAX

(v) the Jamaica Mortgage Bank;

(vi) the Jamaica Racing Commission;

(vii) the National Housing Trust;

(viii) the National Insurance Fund;

(ix) the National Water Commission;

(x) the Petroleum Corporation of Jamaica;

(xi) the Urban Development Corporation;

911963 income derived from such wounds and disability

S. 9 (1) (b).
pensions and war gratuities as the Minister may
declare to be exempt from income tax;

the emoluments payable from United Kingdom

funds or the hnds of any territory of the Com-
monwealth (other than this Island) to members of
Her Majesty's Forces and to persons in the
permanent service of the United Kingdom Govern-
ment or of any temtory of the Commonwealth
in respect of their ofices under the United
Kingdom Government or such temtory of the
Commonwealth;

the income (not exceeding two thousand dollars

in any year) of any Friendly Society established
under the Friendly Societies Act;
[The inclusion of this page is authorized by L.N. 87120041
 INCOME TAX 34.01

the official salaries and emoluments of Consuls,

Vice-Consuls and members of the permanent
Consular Services of foreign countries who are
citizens of the countries they represent in respect
of their offices or in respect of services rendered
by them in their official capacities;

the income derived from sources outside of the

Island of any person arriving in the Island for the
purpose of rendering any technical assistance,
where agreement is made with the Government
concerned;

the income of any corporation or association

organized and operated exclusively for religious,
charitable, scientific, or educational purposes, no
part of the net income of which enures to the
benefit of any private stockholder or individual:

Provided that it shall be in the discretion of the

Commissioner to determine whether or not a
corporation or association comes within the meaning
of this provision;

the income of an approved find;

subject to sections 44 and 4 4 ~ the

, income of an 311987
S. 4 (a).
approved superannuation h n d or an approved re-
tirement scheme, as the case may be;

any amount paid to any person by Her Majesty's

Government in the United Kingdom as compensation
in respect of tax paid or payable by such person to the

[The inclusion of this page is authorized by L.N. 87120041

 INCOME TAX

Government of India or Pakistan in respect of any

pension paid t o such person by the Government of
India or Pakistan;

(4 any moneys paid or income received, which is

exempted fiom the payment of income tax by any
enactment of the Island;

(m) the interest of any loan charged on the Consolidated

Fund in so far as the Minister by order in the Gazette
shall provide;

(n) the income arising fiom a scholarship, exhibition,

bursary or any other similar educational endow-
ment held by a person, receiving full-time instruct-
tion at a university, college, school or other
educational establishment;

42/ 19%
(0) the income derived fiom investments or deposits
S. 3 (b).
in the Island of a superannuation or pension fund
or plan administered in the United Kingdom or in
Canada or in any other country which the
Minister has for the purposes of this paragraph
specified by order, being a fund or plan in respect
of which the Commissioner is satisfied, on produc-
tion of a certificate issued by or on behalf of the
Government department responsible for collecting
taxes corresponding to tax charged under this Act,
that such income is exempt fiom such taxes as
aforesaid;

(p) such training expenses allowances as may be pre-

scribed by the Commissioner and which are pay-
able out of moneys provided by Parliament to
persons who serve on a part-time basis in the

[The inclusion of this page is authorized by L.N. 87120041

 INCOME T A X 35

Jamaica Nstional Reserve and payments from such

moneys by way of bounty to such persons in con-
sideration of their undertaking prescribed training
and attaining a prescribed standard of efliciency;
( q ) any ailorwince to any person in the service of the z!iy$-
Crown which is certified by the Minister to
represent compensation for the cxtra cost of having
to live outside the Island in order to perform his
duties;
(r) any education allowance to any person in the 9/1963
scrvice of the Crown iii Jamaica which is made S. 4 (1).
pursuant to an agreement between the Government
of Jamaica and the Gvvernment of the United
Kingdom under the Overseas Service Aid Scheme;
(I+) any ni?.le:.ial allow~nceto persons employed as 4/1986
s. 4 (a).
t:a~hcrs in any educational institution;
13/1964
(s) income derived as interest of money from- S. 3 (b).

(i) investments or deposits in a building

society; or
(ii) investments in a scheme approved by the
appropriate authority under the Housing
Act; or
(iii) investments in an approved public utility 16/1968
or in an approved hotel enterprise or s. 7.0.
approved extension of a hotel within the
meaning of the Hotels (Incentives) Act or ~ I / I V I
S. 18.
a recognized resort cottage or a recognized
extension under the Rescrt Cottages
(Incentives) Act,
made on or after the 1st day of January, 1963: by
a person who-
(1) is not resident-
(A) in the Island; or
~

[The inclusion of this p0ge is authorized by L.N. 172/1986]

 rlvcolv~T A X
(Bj in a territory to which section 82
applies; or
(c) in a territory in relation to which
there is an order in force under
section 83; or
(D) in a territory i n which unilateral
relief from double taxation on that
income is granted in respect of tax
paid on that income in the Island; or
(2) is resident in a territory in which the Com-
missioner is satisfied upon production of
a certificate issued by or on behalf of such
authority in the territory as the Commis-
sioner may specify that such income is
exempt from income tax;
l8/197l ( E ) income accruing to a body corporate resident in
s. 2. the Island in its capacity of trustee under a qualified
unit trust scheme;
3011970 ( 1 0 any interest paid by the Commissioner of Inland
s. 7.
IZ/lOSS
Sch.
Revenue to any person under this Act:
50/1970
s. 3. (14profits or gains from transactions carried out on
the Jamaica Stock Exchange in shares, stock or
securities accruing to an individual who does not
hold himself out as a dealer therein, being profits
or gains which do not exceed one-half of his
statutory income from all other sources for the
year of assessment, or (where he so elzcts) being
profits or gains which, taken with profits or gains
(or losses) on such transactions by him in the two
immediately preceding years of assessment, do not
exceed one-half of the aggregate of his statutory
income from all other sources for the year of
assessment and those two preceding years;
18/11)71
s. 4. ( w ) income consisting of dividends from an investment
mentioned in sub-paragraph (s) (iii) received by R
[The inclusion of this page is aumorized by L.N. 172/1986]
 INCOME TAX 37

person resident in a country which the Minister has

for the purposes of this paragraph specified by order
to be one where such income is exempt fiom taxes
corresponding to tax charged under this Act;
(x) interest- 16 1975
s. 3.
(i) paid, otherwise than by way of distribution, to
an approved overseas organization by-
(A) a local bank as defined in section 2 of
the Banking Act; or
(B) a company licensed under the
Financial Institutions Act and
approved by the Minister, by order, for
the purposes of this paragraph; and
(ii) which the Commissioner is satisfied accrued to
the said organization from any amount made
available by it to such local bank, or company,
by way of deposit therein or the grant thereto of t l 1982

any loan; S.4 (a)

the emoluments in the year 1983 or any subsequent 2 1 1982
year of assessment, payable to an individual who is S.4(h)
certified by the Minister responsible for social
security, on the advice of the Chief Medical Officer to
be-
(i) a person suffering from a disabling permanent
physical handicap, that is t o say, a physical
disability, infirmity, malformation or
disfigurement of indefinite duration, resulting
from illness, injury or congenital defect; or
(ii) a person suffering from a disabling permanent
mental handicap, but capable of being gainhlly
employed,
so, however, that the exemption shall cease if that
individual either, on such medical examination as the
Minister responsible for social security may at any
[The iticliision of this page IS anthorized by L N 880003)
 INCOME TAX

time require, is certified by the Chief Medical Officer

to be no longer suffering from the physical handicap
or mental handicap aforesaid or fails to submit to such
medical examination;
4 1986
s 4(c) (z) as regards the year 1994 and any subsequent year of
assessment-
24,1987 (i) $45,000 of the income of any individual
S 2 (a)
41 12002 derived from a superannuation allowance or
S 5 (a) (I) (11)
pension under either a statutory pension
scheme or a scheme for payment from a
3 1987 superannuation fund approved by the
S. 4 (b).
Commissioner pursuant to subsection (2) of
section 44 or an approved retirement scheme
approved by the Commissioner pursuant to
section 44A; or
(ii) if the individual referred to in sub-paragraph
(i) of this paragraph has attained the age of
fifty-five years or is found to be permanently
incapacitated as described in paragraph 01) of
41 12002 this section, $45,000 of his income derived
S. 5 (a) (ii). from any of the sources referred to in sub-
paragraph (i) aforesaid and from any other
source;
2411987
S. 2 (b).
(ab) as regards the year 1994 and any subsequent year
4 1/2002 of assessment, $45,000 of the income of an
S . 5(b)(i)(ii). individual who has attained the age of sixty-five
years or attains that age at any time during the
year of assessment;
FiHh (ac) interest to which the Fifth Schedule applies;
Schedule.
RI 1990 (ad) interest credited or paid by a body corporate not
S. 2 (b). resident in Jamaica or an association of persons not
so resident to an approved person as defined in the
Fifth Schedule, accruing from any amount made
available to that body corporate or association of
persons by way of deposit or loan from funds
deposited with that approved person in a specified
[The iiicliisioii of this page is authorized by L.N. 88/2003]
 INCOME TAX 39

account as defined in paragraph 2 (a) of the Fifth Schedule

Provided that nothing in this section shall be construed to
exempt in the hands of the recipients any payments other than
those referred to above made wholly or partly out of the income
so exempted;
(ae) income received pursuant to a productivity incentive 5 1992
scheme which is- S 203)

(i) established in relation to such categories of

employment as may be specified by the
Minister by order for the purposes of this
paragraph; and
(ii) approved for the purposes of this paragraph
by the Minister by order, subject to such
terms and conditions as may be specified in
the order;
(afi income of an amount not exceeding $250,000 in 5 1992
any year, received by an employee earning S41,2002 2(b)

emoluments (excluding payments made pursuant to s 5 ( c )

such a scheme) of not more than $500,000 in that
year, pursuant to a gratuity scheme which is-
(i) established in relation to such categories of
employment as may be specified by the
Minister by order for the purposes of this
paragraph; and
(ii) approved for the purposes of this paragraph
by the Minister by order, subject to such
terms and conditions as may be specified
in the order;
(ag) interest paid or credited in respect of deposits or 4112002
other investments of money, as the case may be, S 5 ( d )
made by one or more individuals with one or
more prescribed persons which satisfy the
following conditions-
(i) each relevant deposit or investment
account is held for a period of five years
without any withdrawal from the principal
sum;
(The inclusion of this page is authonzed by L N 88/2003]
 INCOME TAX

the aggregate amount deposited or

invested in any year of assessment (other
than interest accrued or credited) does not
exceed one million dollars;
not more than seventy-five per cent of the
interest accrued in any year of
assessment has been withdrawn;
pursuant to the terms agreed, the amount
deposited or invested is not transferable,
except on the death or bankruptcy of the
depositor or investor, assignable nor
available as collateral;
at least eighty per cent of the assets in
which the account’s funds are invested are
debt securities, securities issued or
guaranteedby the Government or the
Bank of Jamaica, or are other instruments
having an initial maturity of not less than
five years and approved for the purposes
of this paragraph by the Minister;
information on the account has been
Sixth supplied in accordance with the Sixth
Schedule Schedule;
4 112002
s.5 (d). (uh) interest or appreciation earned by an individual in
relation to a life insurance contract where the
following conditions apply-
(i) the policy contract has been approved by
the Superintendent of Insurance or the
Financial Services Commission, as the
case may require, for the purposes of this
paragraph;
(ii) the contract is expressed to be in effect
for a period of not less than five years;
(iii) a distinct charge is made against the
policy for insurance coverage; and
~ ~ ~~ ~ ~~ ~~

[The iiicliisioii of this page IS authonzed by L N 88/2003]

 INCOME TAX 40.01

(iv) the annual premium does not exceed one-

eighth of the amount of insurance
coverage, or in the case of an equity-
linked or interest-sensitive life insurance
contract, contractual premium does not
exceed $5,000 per month or $60,000 per
annum or such other amount as the
Minister may determine;
(ai) interest or appreciation earned on an equity-linked 41;zooz
S . 5 (d).
policy where-
(i) in relation to any period up to the 31st
December, 1999 a minimum of seventy
per cent; and
(ii) in relation to any period fiom the 1st
January, 2000, a minimum of fifty-one
per cent,
of the assets to which the policy is linked consist of
or are invested in stocks, shares or real estate;
(nj) interest or appreciation earned by an individual on 41~002
S. 5 (d).
any investment in relation to any interest-sensitive
insurance contract where the following conditions
apply-
(i) the contract has been approved by the
Superintendent of Insurance or the
Financial Services Commission, as the
case may require, for the purposes of this
paragraph;
(ii) the amount other than regular
contractual premium, invested in any such
contract or contracts in any year of
assessment does not exceed in the
aggregate one million dollars, and inany
case does not exceed five million dollars in
any five year period;
40.02 INCOME TAX

(iii) the investment has been held for a

period of five years without any
withdrawal from the principal sum;
(iv) not more than 75 per cent of the interest
accrued in any year of assessment has
been withdrawn, so, however, that, in
relation to h n d s other than regular
contractual premiums invested after the
1st June, 1999, then the conditions
specified in paragraph (ag) (v) and (vi)
shall apply;

4 1/2002 (uk) accretions realized on the encashment, disposal or

S. 5 (d).
redemption of units in a money market h n d (within
the meaning of section 3 1A) operated by a qualified
unit trust scheme, which have been acquired on or
&er the 1st June, 1999 where the following
conditions apply-

(i) the units are to be held by individuals

for a period of not less than five years;

(ii) the units are not transferable except on

the death or bankruptcy of the investor;
(iii) not more than 75 per cent of the
accretions realized in any year have
been paid out;
(iv) the amount invested in the acquisition of
any such units in any year does not
exceed one million dollars,
and for the purposes of this paragraph the valuation
of a money market h n d shall be determined on the
basis of its average monthly value during the prior
three-month period.
[The inclusion of this pageis authorized by L.N 8800033
 INCOME TAX 40.03

Ascertaniment of Chargeable Imome

13.-( 1) For the purpose of ascertaining the chargeable &ductions
income or statutory income, as the case may require, of any allowed 22 1977
person, there shall be deducted all disbursements and expenses s 3 ( a )
wholly and exclusively incurred by such person in acquiring the
income-
(i) where the income arises from emoluments 371971
specified in paragraph (c) of subsection (1) of
section 5 during the year of assessment; and
(ii) where the income arises from any other source,
during such time as is provided for in section 6,
and such disbursements and expenses may include-
(a) any sum paid by such person by way of interest upon
any money borrowed by him, where the
Commissioner is satisfied that the interest was paid
on capital employed in acquiring the income:
Provided that-
(A) the interest is paid to a person resident in this
Island; or
(B) the interest is paid to a person resident 3311964
s 4
elsewhere than in this Island and that either-
(i) no tax is required to be deducted from
the interest or such tax as is required by
this Act to be deducted has been
deducted from the interest and has been
accounted for to the Commissioner; or
(ii) there is in the Island some person who
can be assessed in respect of the
interest, or who is liable to pay the tax
chargeable upon the interest;
( b ) rent paid by any tenant of land or buildings occupied
by him for the purpose of acquiring the income;
(c) any sum expended for repair of buildings, plant and
machinery employed in acquiring the income, or for
renewal, or repair of any implement, utensil or article
so employed;
[The IIICI~ISIOI~ of this page IS aiithonzed by L N 8W20031
40.04 INCOME TAX

(4 bad debts incurred in any trade, profession or

business, proved to the satisfaction of the
2911 969
Commissioner to have become bad during the year of
S. 6. assessment or, as the case may be, the permitted
accounting period as defined in subsection (7)- of
section 6 and doubtfid debts to the extent that they are
respectively estimated to the satisfaction of the
Commissioner to have become bad d u h g the said
year or the said period notwithstanding that such bad
or doubthl debts were due and payable prior to the
commencement of the said year or the said period:
Provided that all sums recovered during the said
year or the said period on account of amounts
previously written off or allowed in respect of bad or
doubthl debts shall for the purposes of this Act be
treated as receipts of the trade, profession or business
for that year or for that period;
First
(e) any allowances made in accordance with the
Schedule. provisions of the First Schedule;
v) any rates and taxes paid on real estate (but not
including income tax) fiom which the income is
derived;
(g) premiums paid on any insurance policy on property
used in acquiring the income upon which the tax is
payable;
311987 (h) the amount of any loss sustained in a trade, profession
S.5 (a).
or business carried on in the Island or in the
ownership or occupation of any land situated in the
Island-
(i) which, if it had been profit, would have been
assessable under this Act;
(ii) during the year of assessment and previous
years of assessment:
Provided that-
(A) the total amount of such loss shall be
reduced by any amount which has been
[The iiiclusion of this page IS authorized by L N 88/2003]
 INCOME T A X 41

allowed against the income of any previous

year or in the year of assessment; and
(B) in respect of any period prior to the 1st of
January, 1987, the provisions of this Act in
force immediately prior to that date shall
apply in lieu of the preceding provisions of
this paragraph;
(19 ordinary annual contributions to an approved 7,1956
superannuation fund : s.5 ( l ) ( b ) .
Provided that not more than 15 % or, where the 711956
fund was approved under the Income Tax Law ~ ~ ~ ~
(now repealed) and has not been approved under !$:,,R,fyisd
this Act, not more than 5 % of the employee’s
remuneration shall be allowed to a contributor
(whether employer or employee) as a deduction :
Provided further that from and after the 29th 4 2 / 1 m
day of May, 1958, the foregoing proviso shall be s.‘.
construed as if the figures and symbol “10%” were
substituted for the figures and symbol “15%”, but
nothing in this proviso shall operate either to
invalidate the approval of a fund approved prior to
the date aforesaid or to prevent the approval of a
fund where application for approval was made to
the Commissioner prior to the date aforesaid and
was pending at that date;
(fi any sums paid to an approved fund by an approved
association or by any member of an approved
association;
( k ) any sums deducted or paid from the stipends of
minifitem of religious denominations in respect of
contributions to the Widows’ and Orphans’ Funds
of such denomination, in cases where no benefits
from such funds enure until the death of the
contributors;
inclwion of this pa$e is aulharized by L.N.19119961
42 INCOME T A X

(0 any sums deducted or paid in respect of con-

tributions under the Pensions Act, the Pensions
(Civil Service Family Benefits) Act or the Provident
Fund ‘Act;
(m)any sums deducted from the pay of any member
of the Jamaica ConstabulaIy Force pursuant to
the provisions of any enactment for the time being
in force requiring deductions to be made from
such pay by way of contribution to any pension
fund or scheme;
( P I ) a reasonable amount for exhaustion, wear and tear
of any building or structure used by the owner
thereof for the purpose of acquiring the income
from a trade, business, profession or vocation
carried on by him :
Provided that if at any time the building or
structure is sold, or the building or structure is
demolished or destroyed, or without being
demolished or destroyed, ceases to be used, an
allowance or charge shall be made to the owner,
and the provisions contained in paragraph 3 of
Fint Part I of the First Schedule shall muratis murandis
Schedule.
Part I . apply :
Provided that if any allowance is made to an
owner under this paragraph, no allowance under
any other section of this Act in respect of
exhaustion, wear and tear, shall be available to him;
(0)annuities or other annual payments secured by
deed of covenant for a period of at least five
consecutive years in favour of the University of
91 1963
the West Indies or of the College of Arts, Science
S. 5 (a) (b). and Technology;
38f1965
( p ) the amount of any contribution paid pursuant to
S. 51. the National lnsurance Act :
m e inclusion of &is page is authorized by LJN. 79119Wl
 INCOME TAX 43

Provided that-
(i) nothing in this paragraph shall be con-
strued as allowing any amount to be
deducted from the income of any person
in respect of any contribution paid by
him on behalf of any other person or paid
by him in respect of a domestic worker
as defined in that Act;
(ii) nothing in this paragraph shall apply to
any employer’s contribution which, apart
from this paragraph, would be allowable
as a deduction in computing the amount
of any profit or gains;
(iii) a person who by virtue of any provision
of the National Insurance Act suffers a
deduction from his emoluments in respect
of any contribution payable under that
Act shall be deemed for the purposes of
this paragraph to have paid a contribution
equal to the amount of the deduction;
(q) the amount of any donations (not exceeding one- 35/1Y76
twentieth of the statutory income) to any institu- Ist
tion or organization established and operated
exclusively for charitable or educational purpases
and approved by the Minister responsible for
finance, by order;
(r) subject to subsection (7), the amount of any 4/191~
S 5 (a).
expenses incurred in the provision of business
entertainment, being entertainment which the
Commissioner is satisfied is of a kind and on a
scale which is reasonable having regard to all the
circumstances;
(s) the amount of any contribution paid pursuant to
the Human Employment and Resource Training
Act :
me inclusion of this page is autho- by L.N. 79119961
44 INCOME TAX

Provided that where such person employs a per-

son as a trainee pnrsuant to that Act (hereinafter
referred to as “the trainee”), the aggregate of the
contributions paid pursuant to such Act as afore-
said and the amount of the emoluments, subject
to such limit as may be prescribed under that Act,
paid by such person to the trainee shall be
deducted;
4/1986 (r) any amount taxable as an emolument of an ern-
S 5 (b).
ployee pursuant to sub-paragraph (vii) of the
proviso to paragraph (c) of section 5 (1).
(U) ordinary annual contributions to an approved re-
tirement scheme :
Provided that not more than 10 per cent of the
chargeable income of the contributor or six thou-
sand dollars per annum, whichever is less, shall be
allowed as a deduction;
711994
6th Sch.
(v) the amount of any payment which qualifies for
deduction under this Act by virtue of the pro-
visions of the Employees Share Ownership Plan
Act.
34/1970 (2) In the case of interest paid by a body corporate
S. 6.
311987 subject to income tax in respect of securities issued by it,
S. 5(c). subsection (1) (a) shall apply only where the interest does
not fall to be treated as a distribution by the body cor-
1811971
porate. This subsection appljes for the year 1970 and sub-
s. 5. sequent years, but applies only to securities issued on or
after 16th June, 1970.
34/1970 (3) (a) Subsection (1) (a) shall apply to the payment
S. 6.
of preference dividends by a body corporate subject to
3/1987 income tax as it applies to the payment of interest:
S. 3 (d) 19.
Provided that-
16/1980 (i) in the case of a company whose shares are
s 1.
not quoted or dealt in on a recognized stock
exchange subsection (1) (a) shall apply to
lrae inclusion of this page is awborized by L.N. 7911996l
 INCOME T A X 45

the payment of preference dividends only up to

the extent that the paid up preference capital of
the company does not exceed one-half of the re-
maining paid-up share capital of the company;
(ii) subsection (1) (a) shall not apply to so much of a
preference dividend as is paid at a rate higher than
that which appears to the Commissioner to be a
reasonable commercial rate at the time of issue of
the capital on which it is paid, or where that capital
was issued otherwke than for new consideration
commensurate with the value of the shares;

(iii) subsection (2) shall not apply for the purposes of

this subsection.
(b) This subsection applies for the year 1970 and :“;97’
subsequent years, but in paragraph (ii) the words from
“or where” to “the shares;” apply only to capital issued on
or after 16th June, 1970, other than capital issued before
30th Septcmber, 1970, in accordance with a press notice
published before lGth June, 1970.
(4) In so far as payments falling within subsection 34/1970
S. 6.
(1) consist of expenses of management (other than audit fees)
referable to the acquiring of investment income they shall
be deductible under that subsection only up to a limit of
one-tenth of that investment income, and any surplus of
the expenses over that limit shall be disregarded. This sub-
section applies for the year 1970 and subsequent years.
(5) In the case of a body corporate subject to Fir70
income tax subsection (1) shall apply subject to the following 311987
s. XC).
provisions and to the provisions of subsection (6)-
(a) if-
(i) within any period of three years there
appears to the Commissioner to be both
~ ____
[The innusion of t h i s page is authorized by L.N. 37/198.9]
46 INCOME T A X

a change in the control of the body cor-

porate and (either earlier or later in that
period or at the same time) a major change
in the nature or conduct of a trade or
business carried on by it, or
(ii) at any time after the trade or business
carried on by it has become small or
negligible and before any considerable
revival of the trade or business, there
appears to the Commissioner to be a change
in the control of the body corporate.
the Commissioner may, if he thinks fit, direct that
no relief shall be given under paragraph (h) of sub-
section (1) by setting a loss incurred by the body
corporate in an accounting period beginning
before the change of control against any income
or other profits of an accounting period ending
after the change of control;
(b) in applying paragraph (a) to the accounting period
in which the change of control occurs, the part
ending with the change of control. and the part
after, shall be treated as two separate accounting
periods, and the profits or loss= of the accounting
period shall be apportioned to the two parts at an
even rate.
1811971
s. 5.
(6)Subsection ( 5 ) applies for the year 1970 and
subsequent years, but paragraph (a) does not apply if the
change of control took place before 16th June, 1970; and
sub-paragraph (i) of paragraph (0)does not apply if the
major change in the nature or conduct of the trade or
business was completed before that date
4119% (7) Where by virtue of paragraph (r) of subsection
s. 5 (C).
(I), a person claims to deduct any expenses in relation to
business extertainment, he shall, if the Commissioner so re-
[The inclusion of this page is authorized by L N 37/!9851
. .
 lNCOME TAX 47

quires, furnish particulars of the entertainment in question

and of the person for whom it was provided.

(8) For the purposes of paragraph (r) of subsection 4;1986

(1) and subsection (7)- s. 5 IC).

(NI "husiness entertainment" means entertainment (in-

cluding hospitality of any kind) provided by a per-
son, or by a member of his staff. in connection with
a trade, business, profession, employment or voca-
tion carried on by that person. but does not include-
anything provided by him for members of his staff
unless its provision for them is incidental to its pro-
vision also for others;
( b ) any reference to expenses incurred in providing
business entertainment includes a reference to ex-
penses incurred in providing anything incidental
thereto, and any reference to the members of a per-
son's staff includes references to persons employed
by that person, and, in the case of a company, di-
rectors of the company or persons engaged in the
management thereof whether or not employees of
the company.

1 4 . 4 1 ) Where, in computing the profits or gains of any Debts

person from a trade, profession or business, a deduction has p:st
been allowed for any debt incurred for the purposes of the PIO~I~E
and sub-
trade, profession or business, then, if the whole or any part sequcn~g
of that debt is thereafter released, the amount released shall
be treated as a receipt from the trade, profession or business S. 4
arising in the period in which the release is effected.

(2) If in any such case as aforesaid, any person

permanently ceases to carry on or exercise a trade,
profession or business at or after the end of the period for
which the deduction was allowed and before the releass
__-
[The inclusion 01 this page IS authori7ad brr LN 172119861
48 lNCOME T A X

was effected, section 7 shall apply as if the amount released

were a sum received after the cessation.
(3) If and when a claim for an unsatisfied debt or
any part thereof ceases to be actionable by virtue of the law
relating to the limitation of actions, the debt or part thereof
shall, for the purposes of this section, be treated as if it had
been released.

Deduction
in respect
14n.41) In ascertaining the chargeable income in respea
ofad& Of income tax for the year 1975. or any subsequent year
tiooal of assessment, of any person who proves to the satisfaction
workers.
4*/1975
s. 3.
of the Commissioner in the prescribed manner that-
(a) during the period in respect of which the claim
is being made he operated a factory (as defined
in section 2 of the Factories Act); and
(6) on or after the 1st day of September, 1975, he
employed at that factory, additional workers,
thereby increasing the number of individuals
employed in that factory beyond the number of
individuals so employed on the 31st day of July,
1975; and
(c) the remuneration of those additional workers is
deductible as an expense under subsection (1) of
section 13; and
( d ) the additional workers aforesaid were employed
in capacities other than managerial (including
accounting), supervisory or any similar capacity;
and
(e) each additional worker was employed for not less
than one full working week of at least forty hours
and was paid at least the national minimum wage
prescribed under the Minimum Wage Act; and
__-__ - ~.
[The inclunron of this page is authorized by L.N. 172119861
 INCOME T A X 49

Cf) 011 or before the 31st day of January: 1976, he

submitted to the Commissioner particulars of the
workers employed at the factory concerned on
the 31st day of July, 1975, certified by a registered
public accountant and that the claim for deduction
in respect of additional workers employed has also
been certified by a registered public accountant,
there shall be deducted as a disbursement or expense wholly
and exclusively incurred by such person in acquiring the
said income an amount of $10.00 per week in respect of
each full working week of at least 40 working hours during
which any such additional worker was employed, so, how-
ever, that the aforesaid amount shall not be deducted in
respect of any worker, for a period of employment exceeding
fifty-two weeks from the date of employment of such
worker.

(2) Every claim for a deduction in respect of any

additional worker employed as aforesaid being made in
respect of any year of assessment, shall be delivered to the
Commissioner on or before the 15th day of March in the
year next following such year of assessment, so, however,
that the Commissioner may, on the application of any
person, extend the time for delivery of that person’s return
to such later date as he may specify in writing.

(3) A worker who was employed in a factory on

the 31st day of July, 1975, who on or after the 1st day
of September, 1975, is transferred to a factory operated by
a person who is a connected person in so far as the operator
of the first-mentioned factory is concerned, or between
factories operated by the person to whom he was employed
up to the 31st day of July, 1975, shall not be considered
an additional worker employed on or after the 1st day of
September, 1975, for the purposes of this section.
____
inclusion of thi5 page is authorized by L.N. 172/1986]
50 INCOME T A X

~cdt~ction 1 4 ~ .In ascertaining the chargeable income in respect of

in respect
ofspecifid income tax of any person who proves to the satisfaction of
n'0rker.i. the Coinmissioner in the prescribed manner that-
1311982
S. 26 (b).
(a) he eniployed a person selected as a trainee under
the Human Employment and Resource Training
Act; and
(6) the remuneration of the trainee is deductible as an
expense under section 13(1); and
(c) the Minister or any person authorized by the Mini-
ster has certified that such person has satisfactorily
provided the trainee with the required training and
employment,
there shall be deducted as a disbursement or expense wholly
and exclusively incurred by such person in acquiring the
said income during the second and third years, respectively,
of the period of employment an amount equivalent to 75%
of the trainee's remuneration in each such year, so, however,
that, in respect of a female trainee, there shall be deducted
as aforesaid an amount equivalent to 80 : 7 of the remunera-
tion of such female trainee.

Deductions 15-41) Subject to the provisions of this Act, and for the
not
ellow8h~e. purpose of ascertaining the chargeable income or statutory
2211977 income, as the case may require, of any person, no deduc-
S. 4 (a).
2011982
s. 5.
tion shall be allowed in respect of-
( a ) domestic or private expenses;
(b) any disbursements or expenses not being money
wholly and exclusively laid out or expended for
the purpose of acquiring the income;
(c) any capital withdrawn or any sum employed or
intended to be employed as capital;
(d) any capital employed in improvements;
me inclusion of this page is authorized by L.N. 172/1986]
 INCOME T A X 51

(e) any loss not connected with or arising out of the

trade, profession or vocation;
( f ) any sum recoverable under an insurance or
contract of indemnity;
(g) rent of or cost of repairs to any premises or part
of premises not paid or incurred for the purpose
of producing the income;
( I d any amounts paid or payable in respect of the 7/1956
United Kingdom income tax or surtax or Com- S. 6.
monwealth income tax as defined by this Act;
(17 any sum paid or expense incurred by a body cor- 3411910
porate in providing any benefit or facility of what- S. 6.
soever nature, whether convertible into money or
not, for the benefit of a principal member of the
body Corporate or his relative in return for services
rendered to the body corporate, unless the body
corporate shows to the satisfaction of the Commis-
sioner that the amount of the said sum or expense
is commensurate with the value of the service
rendered. regard being had to any other perquisites
or remuneration for those services.

(2) In the year 1984 or subsequent years of assess- 2,,1w2

ment any loss incurred by any person in connection with S.5-
agriculture shall not be allowed as a deduction in deter-
mining that person’s liability to tax in respect of income
ariisng from any other trade, business. profession, employ-
ment or vocation carried on by him.

(3) In subsection (2) agriculture includes horticul-

ture, fruit growing, seed growing, dairy farming, livestock
breeding, livestock keeping, fish farming or the growing
of trees for producing timber.

15A. [Deleted by Act I6 of 1991, S. 64.1

_..
[The iocluiion of bhir page is autlrorired by L.N. 90/1993]

KIL - 29
52 INCOME TAX

Artificial 14.-(1) Where the Commissioner is of opinion that any

IralMaC-
lions, transaction which reduces or would reduce the amount of
eansfers
to children tax payable by any person is artificial or fictitious, or that
and transfen
in t w t . full effect has not in fact been given to any disposition, the
Commissioner may disregard any such transaction or
disposition, and the persons concerned shall be assessable
accordingly.
(2) Where a person transfers property to his child,
either directly or indirectly, or through the intervention of
a trust or by any other means whatsoever, such person shall,
nevertheless, during the period of the minority of the child,
be liable to be taxed on the income derived from such
property, or from property substituted therefor, as if such
transfer had not been made, and subsequent to such period
of minority, the transferor shall continue to be taxed in
respect of the income derived from such property, or from
property substituted therefor, as if such transfer had not
been made, unless the Commissioner is satisfied that such
transfer was not made for the purpose of evading the taxes
imposed under this Act.
(3) (a) Where by virtue of subsection (2), any
income tax becomes chargeable on and is paid by the
person by whom a transfer of any properly was made, and
the Commissioner is satisfied that such transfer was not
made for the purpose of evading the tax imposed under
this Act, that person shall be entitled-
(i? to recover from any trustee or other person to
whom the income is payable by virtue or in con-
sequence of the transfer the amount of the tax so
paid; and
(ii) for that purpose to require the Commissioner to
furnish to him a certificate specifying the amount
of income in respect of which he has so paid tax
and the amount of tax so paid,
me inclusion of this pn6e is authorized by L.N. 90/1!3931
 INCOME TAX J3

and any certificate so furnished shall be conclusive evidence

of the facts appearing thereby.
(b) Where any person obtains in respect of any
allowance or relief a repayment of income tax in excess of
the amount of the repayment to which he would but for
the provisions of this subsection have been entitled, an
amount equal to the excess shall be paid by him to the
trustee or other person to whom the income is payable by
virtue or in consequence of any such transfer of property
as aforesaid, or, where there are two or more such persons
shall be apportioned among those persons. as the case may
require.
(4) Where a person transfers property in trust and
provides that the corpus of the trust shall revert either to
the donor or to such persons as he may determine at a
future date, or where a trust provides that during the life-
time of the donor no disposition or other dealing with thz
trust property shall be made without the consent, written
or otherwise, of the donor. such person shall nevertheless
be liable to be taxed on the income derived from the
property transferred in trust, or from property substituted
therefor, as if such transfer had not been made.
(5) Any income which is deemed by virtue of this
iection to be the income of any person shall be deemed to
be the highest part of his income.
(6) Nothing contained in this section shall be
deemed to prevent a decision of the Commissioner, made
in the exercise of any discretion given to him by this section,
from being questioned in any appeal against an assessment
under the provisions of this Act.
(7)For the purposes of this section the expression
“disposition” includes any settlement, trust, covenant,
agreement, arrangement or transfer of assets, and “child”
indudes a stepchild, an adopted child or an illegitimate child.
[The inclusion of this page is authorized by LN. 172/1986]
54 INCOME T A X

Anti-avoid- 17.41) Where the Commissioner is of the opinion that--

mm : hlgh
or IOW
considsra- (a) any transaction carried out between connected per-
lion.
3011970 sons was carried out for a consideration substan-
s.
18/1971
10.
tially different from that obtainable at arm’s length
s. 5. or for no consideration; and
( b ) the effect of this would be to reduce the amount
of tax payable by any person,
the Commissioner may, for the purposes of that person’s
tax liability, treat the transaction as having been carried out
for such consideration as would in his opinion have been
obtainable at arm’s length :
Provided that this subsection shall not apply if that
person shows to the satisfaction of the Commissioner that-
(i) the transaction did not have as its object, or one
of its objects, the avoidance of tax; and
(ii) the consideration for which the transaction was
carried out was of a value not less than the cost
incurred by the person receiving the consideration
in providing the subject-matter of the transaction
(including a reasonable sum for overheads).

(2) Without prejudice to subsection (U, where the

Commissioner has reason to believe that any transaction
carried out for a consideration substantially different from
that obtainable at arm’s length, or for no consideration, was
so carried out with the object of reducing the amount of tax
payable by any person. or for purposes including that object,
he may treat the transaction as having been carried out for
w c h consideration as could in his opinion have been obtain-
able at arm’s length.

(3) Where a return of income is submitted to the

Commissioner under this Act the person in respect of whose
__.
17he inclusicln of this page is nufi-zed by L.N. 172/1986l
 INCOME TRY 54.0 1

income it is submitted shall certify whether to his knowledge the

accmnts or information upon which the return is based include
particulars of any transactions carried out between connected
persons and if so what those particulars are.
(4) If any person fails to certify as required by sub-
section (3) or wilfully gives a false certificate, he shall be
liable on summary conviction to a fine not exceeding
twenty thousand dollars or to imprisonment for a term not 1212004
exceeding twelve months. SC~.

18.-(1) Where- Anti-avoid-

ance:
(a) in any such circumstances as are mentioned in :::',"$=.
subsection (2); and 3011970
(b) in consequence of a transaction in securities or of '.I1.
the combined effect of two or more such trans-
actions,
a person is in a position to obtain, or has obtained, a tax
advantage, then unless he shows that the transaction or
transactions were carried out either for bona Jide commercial
reasons or in the ordinary course of making or managing
investments, and that none of them had as their object, or one of
their objects, to enable tax advantages to be obtained, this
section shall apply to him in respect of that transaction or those
transactions.

(2) The circumstances mentioned in subsection (1)

are that-
(a) in connection with the distribution of profits of a
company, or in connection with the sale or
purchase of securities, being a sale or purchase
followed by the purchase or sale of the same or
other securities, the person in question, being
entitled (by reason of any exemption from tax or
by the setting off of losses against profits or income)
to recover tax in respect of dividends received by

[The inclusion of this page is authorized by L.N. 11 1120051

 INCOME TAX

him, receives an abnormal amount by way of

dividend; or

(h) in connection with the distribution of profits of a

company or any such sale or purchase as aforesaid
the person in question becomes entitled, in respect
of securities held or sold by him, or in respect of
securities formerly held by him (whether sold by
him or not), to a deduction in computing profits
or gains by reason of a fall in the value of
the securities resulting from the payment of a
dividend thereon or from any other dealing with
any assets of a company; or

(c) the person in question receives, in consequence of

a transaction whereby any other person-

(i) subsequently receives, or has received, an

abnormal amount by way of dividend; or
(ii) subsequently becomes entitled, or has
become entitled, to a deduction as men-
tioned in paragraph (b),

a consideration which either is, or represents the value

of, assets which are (or apart from anything done by
the company in question would have been) available
for distribution by way of dividend, or is received in
respect of hture receipts of the company or is, or
represents the value of, trading stock of the company,
and the said person so receives the consideration that
he does not pay or bear tax on it as income.

In this subsection-
(i) references to profits include references to
income, reserves or other assets;
[The inclusion of this page is authorized by L.N. 1 1 1/2005]
 INCOME T A X 54.03

(ii) references to distribution include references

to transfer or realization (including applica-
tion in discharge of liabilities); and
(iii) references to the receipt of consideration
include references to the receipt of any
money or money’s worth,

but the assets mentioned in paragraph (c) do not

include assets which (while of a description which
under the law of the country in which the company
is incorporated is available for distribution by way
of dividend) are shown to represent a return of
sums paid by subscribers on the issue of securities.

(3) Where this section applies to a person in respect

of any transaction or transactions, the tax advantage
obtained or obtainable by him in consequence thereof shall
be counteracted by such of the following adjustments, thit
is to say, an assessment or additional assessment, the
nullifying of a right to repayment or the requiring of the
return of a repayment already made (the amount to be
returned being chargeable and recoverable accordingly), 3~
the computation or recomputation of profits or gains, 01
liability to tax, on such basis as the Commissioner may
specify by notice in writing served on him as being requisite
for counteracting the tax advantage so obtained or obtain-
able.

(4) The following provisions shall have effect where

a person furnishes to the Commissioner particulars of a
transaction or transactions effected or to be effected by him
and states that he does so under this subsection, that is to
say-
me inclusinn of this page is authorized by L.N. 172/1986l
54.04 INCOME T A X

(U) if the Commissioner is of the opinion that the

particulars, or any further information furnished
in pursuance of this paragraph, are not sufficient
for the purposes of this subsection, he shall within
sixty days of the receipt thereof notify to the said
person what further information he requires for
those purposes, and unless that further information
is furnished to the Commissioner within thirty
days from the notification or such further time
as the Commissioner may allow the Commissioner
shall not be required to proceed further under this
subsection:

(b) subject to the foregoing paragraph, the Com-

missioner shall within thirty days of the receipt of
the particulars, or where that paragraph has el€ect
of all further information required, notify the said
person whether or not he is satisfied that the
transaction or transactions as described in the
particulars were or will be such that no notice
under subsection (3) ought to be given in respect
of it or them,

and if the Commissioner notifies him that he is so satisfied

this section shall not apply to him in respect of that trans-
action or those transactions :

Provided that-

(i) if the particulars, and any further information given

under this subsection with respect to any trans-
~ __ ~ ~~

K h e inclusion of this page is authorized by L.N. 172/1986]

 INCOME T A X 55

action or transactions, are not such as to make full

m d accurate disclosure of all facts and con-
siderations relating thereto which are material to
be known to the Commissioner: any notification
given by the Commissioner under this subsection
shall be void;
(ii) in no event shall the giving of a notification under
this subsection with respect to any transaction or
transactions prevent this section applying to a
person in respect of transactions which include that
transaction or all or some of those transactions and
also include another transaction or other trans-
actions.
(5) Where the Commissioner notifies a person that
he is not satisfied as mentioned in paragraph (6) of sub-
section (4) he shall include in the notification a statement
of his reasons.
(6) For the purposes of subsection (2) an amount
received by way of dividend shall be treated as abnormal if
the Commissioner is satisfied-
(U) in the case of a dividend at a fixed rate, that
it substantially exceeds the amount which the
recipient would have received if the dividend had
accrued from day to day and he had been entitled
only to so much of the dividend as accrued while
he held the securities, so, however, that an amount
shall not be treated as abnormal by virtue only
of this paragraph if during the six months
beginning with the purchase of the securities the
recipient does not sell or otherwise dispose of, or
acquire an option to sell. any of those securities
or any securities similar to those securities: or
(6) in any case, that it substantially exceeds a normal
return on the price paid for the securities.
[The inclusion of this page is author& by L.N. 172/1986]
56 INCOME TAX

(7)Where it appears to the Commissioner that by

reason of any transaction or transactions any person-
(a) may by virtue of any of the provisions of this
section have incurred any liability to income tax;
or
( b ) may be a person to whom this section applies,
the Commissioner may by notice in writing served on him
require him, within such time not less than twenty-eight
days as may be specified in the notice, to furnish information
in his possession with respect to the transaction or any of
the transactions, being information as to matters, specified
in the notice, which are relevant to the question whether
he has incurred such a liability as aforesaid or whether
notice under subsection (3) should be given in respect of
him.
(8) In the case of a man and his wife living with him
this section shall be treated as applying to him in respect
of any transaction or transactions as it would apply if any
property, rights or liabilities of the wife were his propertv.
rights or liabilities in relation to which she had acted only
a s nominee for him. and shall be treated as applying to the
wife in respect of any transaction or transactions as it would
apply if any property, rights or liabilities of the man were
her property, rights or liabilities in relation to which he had
acted only as nominee for her:
Provided that no adjustment made under subsection (3)
by reference to any transaction or transactions to counteract
any tax advantage shall by virtue of this subsection be so
made that a person bears more tax than if the transaction or
transactions had not had as a consequence that any relief
or increased relief from, or repayment or increased repay-
ment of, income tax, or any deduction in computing profits
or gains, was obtained or obtainable, or that the way in
which receipts accrued was such that the recipient did not
pay or bear tax on them.
___ ~~~

[The inclusbn of &is p a s is anthorizbd by L.N.172/1986]

 I!VCOME T A X 57

(9) For the purposes of this section a tax advantage

obtained or obtainable by a person shall be deemed to be
obtained or obtainable by him in consequence of a trans-
action in securities or of the combined effect of two or mor?
such transactions if it is obtained or obtainable in con-
sequence of the combined effect of the transaction or trans-
actions and of the liquidation of a company.
(10) In this section-
“dividend” includes interest;
“securities” includes shares and stock;
“tax advantage” means a relief or increased relief from, or
repayment or increased repayment of, income tax or the
avoidance or reduction of an assessment to income tax
or the avoidance of a possible assessment thereto,
whether the avoidance or reduction is effected by
receipts accruing in such a way that the recipient does
not pay or bear tax on them, or by a deduction in
computing profits or gains;
“transaction in securities” includes transactions, of whatever
description, relating to securities, and in particular-
(i) the purchase, sale or exchange of securities;
(ii) the issuing or securing the issue of, or
applying or subscribing for, new securities;
(iii) the altering, or securing the alteration of,
the rights attached to securities.
(11) This section applies where the transaction or W 1 9 7 1
s. s.
transactions in securities was or were carried out, and any
changes necessary to obtain the tax advantage were effected
on or after 11th June, 1970.
19.-(1) The provisions of subsections (2) to (10) shall have ~ms~cn
to
PerSDnr
effect for the purpose of preventing the avoiding by a body abroad.
corporate resident or an individual resident or ordinarily io‘,’;;,
me inclusbn of this pa%e is au&alizsd by L.N. 172/1986l
-_ and-oi).‘
58 INCOME T A X

resident in the Island (in this section referred to as a

“Jamaica resident”) of liability to income tax by means of
transfers of assets by virtue or in consequence whereof,
either alone or in conjunction with associated operations,
income becomes payable to persons resident or domiciled
out of the Island.
3U/1970 (2) Where a Jamaica resident by virtue or in
.’ I2 (‘). consequence of any such transfer, either alone or in
conjunction with associated operations, has, within the
meaning of this section, power to enjoy, whether forthwith
or in the future, and whether alone or together with
another person who may or may not be resident in the
Island, any income of a person resident or domiciled out of
the Island which, if it were income of the Jamaica resident
received by him in the Island, would be chargeable to income
tax by deduction or otherwise, that income shall whether
it would or would not have been chargeable to income tax
apart from the provisions of this section, be deemed to be
income of the Jamaica resident for all the purposes of this
Act.
13) Where, whether before or after any such
transfer, a Jamaica resident receives or is entitled to receive
any capital sum the payment whereof is in any way
connected with the transfer or any associated operation,
any income which, by virtue or in consequence of the
transfer, either alone or in conjunction with associated
operations, has become the income of a person resident or
domiciled out of the Island shall, whether it would or would
not have been chargeable to income tax apart from the
provisions of this section, be deemed to be the income of
the Jamaica resident for all the purposes of this Act.
In this subsection,“ capital sum” means-
(i) any sum paid or payable by way of loan or repay-
ment of a loan; and
me inclusion of this page is authorized by L.N. 172/1986]
 INCOME T A X

(ii) any other sum paid or payable otherwise than ds

income, being a sum which is not paid or payable
for full consideration in money or money’s worth.
(4) Subsections (2) and (3) shall not apply if the 30/1970
Jamaica resident satisfies the Commissioner whether before ’. (d)
or after the transfer or associated operations are carried out,
either-
(a) that the purpose of avoiding liability to taxatiou
is not the purpose or one of the purposes for
which the transfer or associated operations or any
of them was or will be effected; or
( b ) that the transfer and any associated operations
were or will be bonn fide commercial transactions
not designed for the purpose of avoiding liability
to taxation.
( 5 ) For the purposes of this section, “an associated
operation” means, in relation to any transfer, an operation
of any kind effected by any person in relation to any of the
assets transferred or any assets representing, whether
directly or indirectly, any of the assets transferred, or to the
income arising from any such assets, or to any assets
representing, whether directly or indirectly, the accumula-
tions of income arising from any such assets.
(6) A Jamaica resident shall, for the purposes of this
section, be deemed to have power to enjoy income of a
person resident or domiciled out of the Island if-
(a) the income is in fact so dealt with by any person
as to be calculated, at some point of time, and
whether in the form of income or not, to enure
for the benefit of the Jamaica resident; or
( b ) the receipt or accrual of the income operates to
increase the value to the Jamaica resident of any
assets heId by him or for his benefit; or
me inclusion of this page is authorized by L.N. 177./1986]
60 INCOME TAX

(c) the Jamaica resident receives or is entitled to

receive, at any time, any benefit provided or to he
provided out of that income or out of moneys
which are or will be available for the purpose by
reason of the effect or successive effects of the
associated operations on that income and on any
assets which directly or indirectly represent that
income; or
(d) the Jamaica resident has power, by means of the
exercise of any power of appointment or power of
revocation or otherwise, to obtain for himself.
whether with or without the consent of any other
person, the beneficial enjoyment of the income,
or may, in the event of the exercise of any power
vested in my other person, become entitled to the
beneficial enjoyment of the income; or
(e) the Jamaica resident is able in any manner what-
soever, and whether directly or indirectly, to
control the application of the income.
(7)In determining whether a Jamaica resident has
power to enjoy income within the meaning of this section,
regard shall be had to the substantial result and effect of
the transfer and any associated operations, and all benefits
which may at any time accrue to the Jamaica resident
30/lgO
s. 12 (E).
(whether or not he has rights at law or in equity in o r
to those benefits) as a result of the transfer and any associated
operations shall be taken into account irrespective of the
nature or form of the benefits.
(8) For the purposes of this section, any body
corporate incorporated outside the Island shall be treated
as if it were resident out of the Island whether it is so
resident or not.
(9) For the purposes of this section-
(a) a reference to a Jamaica resident shall be deemed
indusbu af tbis page is authokzed by L.N. 172/19861
 INCOME T A X 61

to include the wife or husband of the Jamaica

resident;
(b) “assets” includes property or rights of any kind,
and “transfer”, in relation to rights, includes the
creation of those rights;
(c) “benefit” includes a payment of any kind;
( d ) rsferences to assets representing any assets,
income or accumulations of income include
references to shares in or obligations of any
company to which, or obligations of any other
person to whom, those assets, that income or
those accumulations are o r have been transferred.
(10) In so far as this section incorporates amendments ,8/197,
made by the Income Tax (Amendment) Act, 1970, those :,&,
amendments apply to transfers and associated operations s. 12
carried out on or after 11th June, 1970.
20.41) It shall be unlawful without the consent in &age of
~zsidencc,
writing of the Minister- etc. by
(a) for a body corporate resident in the Island to cease E:zat,
to be so resident; or 301 I970
S 13.
(b) for the trade or business or any part thereof of n
body corporate so resident to be transferred from
that body corporate to a person not so resident
(disregarding a mere transfer of assets not resulting
in a substantial change in the character or extent
of that trade or business); o r
(c) for a body corporate so resident to cause or permit
a body corporate not so resident over which it
has control to create or issue any shares, stock or
securities (other than securities which are issued
to a person carrying on a bum fide banking
business in return for consideration not provided
out of the assets or a t the cost of the body
corporate and which are commensurate in value
me inclusion af this page is authorized by LN. 421 19951
 INCOME TAX

with that consideration), unless the body corporate

not so resident is required so to act by the Govern-
ment of the country in which it is resident or any
agency thereof; or
( d ) for a principal member of a body corporate whose
shares are not quoted on the Jamaica Stock
Exchange and which is controlled by persons
resident in the Island to do any act (other than
changing his own country of residence) whereby the
body corporate ceases to be controlled by persons
resident in the Island; or
(e) except for the purpose of enablmg a person to be
qualified to act as a director, for a body corporate
resident in the Island to transfer to any person,
or cause or permit to be transferred to any person,
any shares, stock or securities of a body corporate
not resident in the Island over which it has control,
being shares, stock or securities which it owns or
in which it has an interest.
(2) [Deleted vide Act I I of 1992.1

(3) Any person who does or is a party to the doing

of any act which to his knowledge amounts to or results
in, or forms part of a series of acts which together amount
to or result in, or will amount to or result in, something
which is unlawful under subsection (1) shall be guilty of an
offence and in any proceedings in respect of such an offence
against a director of the body corporate in question (that
is to say, the body corporate that is or was resident in the
Island) or against any person who was purporting to act in
that capacity-
( a ) i t shall be presumed that he was a party to every
act of that body corporate unless he shows that
it was done without his consent or connivance; and
-_ -
me inclusion of this page I$ authorized hy LN. 42!199I1
 INCOME TAX 63

it shall, unless the contrary is proved, be presumed

that any act which in fact amounted to or resulted in,
or formed part of a series of acts which together
amounted to or resulted in or would amount to or
result in, something which is unlawful under sub-
section (1) was to his knowledge such an act.

(4) Where any act has been done in contravention

of this section the income tax of any person affected by that
act shall be calculated, so far as practicable, on the basis
which would have applied had that act not taken place.
(5) Any person who is guilty of an offence under
this section shall be liable on conviction on indictment to
a fine not exceeding forty thousand dollars or to a term 1212004
Sch.
of imprisonment not exceeding two years or to both.

Personal Reliefs

[Repealed by Act 4 of 1986.1

[The inclusion of this page is authonzed by L.N. 111/2005]

64 INCOME TAX

TaxcredltI n 25E. In ascertaining the income tax payable in respect of the

respecl of
payment or year 1985 or any subsequent year of assessment by an individual
levy.
who satisfies the Commissioner that the levy imposed by the
211198s Contractors Levy Act has been deducted from a payment to him
S. (4 and paid in accordance with that Act to a Collector of Taxes in
that year, there shall be allowed a tax credit equivalent to the
amount of the levy so paid.

26. [Repealed by Act 4 of 1986.1

I'crsons no1 27.-(1) Any person who satisfies the Commissioner that he
domiciled or
cornlnon- is not domiciled in this Island, or that being a Commonwealth
wcalth cilizcr\s citizen he is not ordinarily resident in this Island, shall in respect
not ordinarily
residents in of income derived from sources out of this Island be chargeable
his Island; with income tax only on such income as is received in this
basis of
computation. Island:
71 1956
S. 33.
911 963
S. 9(1) (c).
3011970 Provided that where such a person was present in the
S. I4 (I).
Island for a period or periods aggregating in the whole to
not less than three months in the year of assessment this
subsection shall not apply to his income so far as it relates
to work done in the Island or work done elsewhere in
relation to the Island, and in determining how far it so
relates any agreement. or arrangement for its apportion-
ment may be disregarded by the Commissioner if it appears
to him not fairly to reflect the value of that work.
3011970 (2) Where a person who satisfies the Commissioner as
S. 14 (2).
aforesaid directly or indirectly receives, as part of his
emoluments from an employer, a sum representing the
excess of the tax with which he is chargeable under this Act
3711971 in respect of the emoluments (excluding that sum) over the
S. 3.

[The inclusion of this page is authorized by L.N. 1 1 1120051

 INCOME TAX 65

tax with which he would be chargeable in respect thereof under

the law of the country of his domicile if the following conditions
applied, namely-
(a) if this Act did not apply; and
(h) if he were treated as ordinarily resident in that country;
and
(c) if such emoluments were treated as arising or accruing
in that country,
he shall not be chargeable with income tax on that sum.

(3) Any claim which a person is entitled to make by 711956

virtue of this section shall be made to the Commissioner in such S. 33.
form as he may approve and the Commissioner shall on proof of
the facts to his satisfaction allow the claim accordingly.
(4) Any person who is aggrieved by the decision of the
Commissioner on a claim made by him as aforesaid, may, by
notice in writing to that effect given to the Commissioner within
thirty days from the date on which notice of the decision is given
to him, appeal to the Commissioner of Taxpayer Appeals and, as
the case may require, to the Revenue Court in like manner as an 29'1971
s. 12.
appeal made against an assessment under this Act. L.N.
8W2002.

28. Any person ordinarily resident in the Island who leaves Temporary
absentees.
the Island for the purpose only of occasional residence abroad
shall be assessed and charged to income tax as a person actually
residing in the Island.
29. A person shall not be charged to income tax in respect of TernPOW
income arising outside the Island, who is in the Island for some residents.
temporary purpose only, and not with any view or intent of
establishing his residence therein, and who has not actually
resided in the Island in any year of assessment for a period or
periods aggregating in the whole to six months; but if any such
person resides in the Island for the aforesaid space of time he
shall be so chargeable.
66 INCOME TRY

Rates of 30.-(1) Subject to the provisions of this Act, there shall be

income tax.
23 1972 levied and paid-
(a) upon the statutory income of every individual, for each
year of assessment commencing after the respective
date specified hereunder, tax at the following rates-
(i) after the 31st day of December, 1993-
For the first $22,464.00 ... Ni 1
For every dollar of the income exceeding
$22,464.90 ... ... 25 cents;
(ii) after the 31st day of December, 1994-
For the first $35,568.00 ... Nil
For every dollar of the income exceeding
$35,568.00 ... ... 25 cents;
(iii) after the 31st day of December, 1995-
For the first $50,544.00 ... Nil
For every dollar of the income exceeding
$50,544.00 ... ... 25 cents;
(iv) after the 31st day of December, 1996-
For the first $80,496.00 ... Nil
For every dollar of the income exceeding
$80,496.00 ... ... 25 cents;
(v) after the 31st day of December, 1998-
For the first $100,464.00 ... Nil
For every dollar of the income exceeding
$100,464.00 ... ... 25 cents;
(vi) after the 31st day of December, 2000-
For the first $120,432.00 ... Nil
For every dollar of the income exceeding
$120,432.00 ... ... 25 cents;
(b) after the 31st day of December, 1986, upon the
chargeable income of all other persons, tax at the rate
of 33% cents in the dollar.
[The inclusion of this page is aiitliorizedby L.N. 88/2003]
 INCOME TAX 67

(2) Notwithstanding the provisions of subsection (I), for

every year of assessment there shall be levied and paid upon the
chargeable income of every building society, in lieu of the tax
prescribed under subsection (l), tax at the rate of 30 cents in the
dollar.
(3) Notwithstanding the provisions of subsections (1)
41/2002
and 2-() S . 6 (h).
(a) from the 1st June, 2000 until the 3 1st March, 2001, in
lieu of the rate of tax prescribed under subsections (1)
and (2) income tax payable on dividend income
derived fiom companies listed on the Jamaica Stock
Exchange, shall be levied and paid at the rate of 20
cents in the dollar;
( b ) from the 1st April, 2001 until the 31st March, 2002,
in lieu of the rate of tax prescribed under subsections
(1) and (2), income tax payable on such dividend
income shall be levied and paid at the rate of 10 cents
in the dollar;
(c) from the 1st April, 2002 in lieu of the rate of tax
prescribed under subsections (1) and (2), the rate of
income tax payable on such dividend income shall be
nil.
Rates of
31. Subject to the provisions of this Act, in lieu of tax at the income tax
rates specified in section 30, there shall be levied and paid in payable
non-
by

each year of assessment upon such part of the income of a non- residents.
4211958
resident individual as is chargeable with income tax under this s. 7.
Act, tax at the rate of 25 cents in the dollar. 411986
s.9.
311987
S.7 (a) (b).
911994
s. 5.
41J2002
31A.-(1) Subject to the provisions of this Act, where any s. I (a).
prescribed person pays or credits interest to any person (in this
section referred to as an investor) that prescribed person shall
deduct from that payment or credit, a sum equivalent to 25 cents
in the dollar:
[The iiiclrisioii of this page IS authorized by L N 88/2003]
68 INCOME TAX

Provided that the Commissioner may authorize a deduction of

tax fiom the payment or credit at such rate as he is satisfied is
applicable to the investor under this Act.

(2) Where, in respect of a deposit or an investment of 41 2002

money with, or the grant of any loan to a prescribed person, 7(a).

another prescribed person pays or credits interest to the investor

concerned, that other prescribed person shall deduct tax from
that payment or credit at the rate specified in subsection (1).

(3) On making a payment or credit of interest, whether

tax is deducted or not, the prescribed person shall hrnish the
investor with a certificate stating the nature and amount of the
payment or credit, whether tax has been deducted and if so, the 41’2002
amount deducted and such other particulars as may be S. 7(b).

prescribed.

(4) Where a prescribed person deducts tax on the

payment or credit by him of any amount of interest he shall be
deemed to be collecting tax on behalf of the Commissioner of
Inland Revenue and subject to subsection (4A) shall, within 41/2002
fourteen days after the end of the calendar month in which the 7(c)
payment or credit was made, account for and pay to that
Commissioner or to such person as he may direct, the amount of
tax so deducted.
(4A) A prescribed person may, whether acting as 4im~2
7(d)
principal or agent, set off tax deducted pursuant to subsection
(1) against any tax deducted fiom interest earned fiom
investments made by the prescribed person.
(5) The provisions of section 41 which relate to
penalties shall apply mutatis mutandis in respect of any failure
to comply with subsection (4) of this section and accordingly
any reference to payment in that section shall be construed as
including a reference to credit.
(6) In this section- 9/1994
S. 6 (c)
[The inclusion of this page is authorized by L N 88D0033
 INCOME TAX 69

“commercial paper” means securities comprising or evidencing 41mo2

a debt obligation, including promissory notes, whether or S. 7 ( e )(i).

not secured or guaranteed, but does not include payment

obligations arising out of the sale of goods or services;
“financial derivative” includes a contract whose value is based
on the performance of an underlying financial asset, index
:;::;&
or other investment;
“interest” includes any profit or gain accruing to an investor- 4112002
S 7 ( e ) (i).

( a ) by way of any premium, income from participating

instruments or other sum paid or credited to that
investor in respect of a deposit or loan or use of the
investor’s hnds for a period of time whether or not
arising from a discount allowed to the investor;
( h ) on the sale or redemption in whole or in part of any
bonds, certificates of deposit, debentures, notes or re-
purchase agreements or reverse re-purchase
agreements;
(c) who, having a right to receive the amount or part
thereof stated in a bond, certificate of deposit,
debenture, note or other instrument issued to him or
to any other person-
(i) disposes of that right or part thereoc or

(ii) except where it is a right to receive interest,

exercises that right,
prior to the maturity of the instrument;

(d) in respect of an investment in financial derivatives;

( e ) in respect of an investment in a money market f h d ,
managed hnd or commercial paper;
“interest-bearing instrument” includes- 4 112002
S. 7 (e) (i).
(The Inclusion of thls page IS authonzed by L N 88/2003]
70 INCOME TAX

(a) a security or other instrument of any description

under which interest accrues;
(b) a security or other instrument (other than shares in
respect of which distribution may be payable) issued
at a discount or redeemable at a premium;
(c) an instrument, certificate or other document
evidencing proprietary rights in all or any part of
sums on which interest is payable;
41 2002
s 7(e) (I)
“managed fund” means a pool of financial assets managed by
way of different portfolios;
41!2002 “money market fund” means a pool of financial assets
s 7 (e)(1)
administered or managed collectively in respect of which-
(a) at least 31 per cent of the value as regards interest
arising before the 1st January, 2000;
(b) at least 51 per cent of the value as regards interest
arising after the 3 1st December, 1999,
is comprised of interest-bearing instrument;
I. N
I ~ ~ H ~ I “prescribed
YW person” means, subject to subsection (7) any of the
persons, whether acting as principal or agent, specified
hereunder-
(a) the Accountant-General;
(h) any bank operating under the Banking Act or the
Bank of Jamaica Act;
(c) any institution operating under the Financial
lnstitutions Act;
(4 any building society;
(e) any society registered under the Co-operative
Societies Act;
v) a person licensed as a dealer under the Securities
Act;
(g) a society registered under the Industrial and
Provident Societies Act, other than a society which
 INCOME TAX 70.01

satisfies the conditions specified in section 46 (5) of

this Act,
the Ministry of Finance, L\
1468 1999
any life insurance company, L I
146B 1999
a company registered under the Companies Act, being L'l
a company in which the Government or an agency of 146B1~9
Government holds not less than fifty-oneper ceiztum of
the ordinary shares and which issues interest bearing 41 2002
securities other than the Financial Sector Adjustment ( e ) (11)
Company Limited, Lli
any issuer of commercial paper, 1468 1999

any unit trust management company, or I, h

146s 1999

(m)any person not falling within paragraphs ( b ) to (0 and L.h.

who, in relation to any person referred to in those 146B/1999.
paragraphs, is a connected person.
(7) The Minister may, by order, subject to negative
resolution of the House of Representatives-

(a) amend the definition of prescribed person to include or

exclude any person; and
( b ) modify the application of this section in relation to any
prescribed person.
Income Tax on Bodies Corporate
32. The amount of tax payable by a body corporate in any for contrac-
year of assessment shall be reduced by such amount as the tor+sievy.
Commissioner is satisfied is paid to a Collector of Taxes in that irlgq87
year in accordance with the Contractors Levy Act, being an
amount representing the levy imposed under that Act and
deducted from any payment to that body corporate as a
contractor or sub-contractor.
33. [Repealed by Act 3 of 1987.1
33A. [Repealed by Act 16 of 1990.1
[The inclusion of this page ISauthorized by L N. 88/2003]
70.02 INCOME TRY

Compalq
distributions:
34.-( 1 ) Any act by a body corporate subject to income tax
relevant acts. which falls within any paragraph of the following Table but not
3J 1970
s. 4.
within any exception to that paragraph shall be treated for the
21 1982 purposes of this Act as a distribution by the body corporate, but,
S. 6
3 19x7
except as provided in subsection (3) of section 36c, no other act
S . 11 (a). shall be so treated.
Table qf Conipanv Distribiitions
23 1972 Note: In this Table ‘*capitalassets”. in relation to a body corporate.
S. 6.
means assets not derived from income from which its
chargeable income for any year is computed or would have been
computed if it were subject to tax.
Distributions to shareholders
1. Any dividend.
Exceptions: (a) so much of any preference dividend as is deductible
under subsection (3) of section 13:
(6) so much of any dividend as is provcd by the body
corporate to have been paid out of capital assets.
2. Any payment. other than a dividend. made (whether in cash. goods or
otherwise) in respect of shares in the body corporate out of assets of the body
corporate or so that the cost of it falls on the body corporate. excluding such
payments made in the winding-up of a body corporate.
fkceptions: (a) so much of any payment as represents a repayment of
capital on the shares (including repayment of any
premium at which the shares were issued):
( 6 ) so much of any payment as is proved by the body
corporate to have been made out of capital assets.
3. As respects any payment nxide (whether in cash goods or otherwise) in
respect of shares in a company, being a payment made in the winding-up of
the company where the sole or main object of the winding-up was to obtain a
tax advantage (as defined by subsection (9) of section 18) for any members of
the company, so much of the payment as it is necessary to treat as a
distribution in order to prevent the tax advantage from being obtained.
4. Any redeemable share capital issued or paid up in respect of shares in
the body corporate.
Iheptions: (a) such part of any redeemable share capital as is issued or
paid up in return for new consideration and is
commensurate in value with that consideration:
(6) such part of any redeemable share capital as is proved by
the body corporate to have been issued or paid up by way
of capitalizing capital assets.
[The iticliisioii of this page is autliorized by L.N. 88/2003]
 INCOME TAX

5. Any securities issued in respect of shares in the body corporate.

Exceptions: (a) such part of any security as is issued in retum
for new wonsideration and is comrmensulate m
value with that consideration:
(b) such part of any security as is proved by the tody
corporate to have been issued so as to give
members of the body corporate rights over capital
assets.

Disniburions to Holders of securities

6. Any payment of interest or other payment made (whether in
cash, goods or otherwise) out of assets of the body corporate. or
so that the cost of it falls on the body corporate, in respect of thc
following securities-
(a) securities convertible into shares in the body corporatc, other 3811976
than securities which arc quoted on a recognized stock 1st Sch.
exchange or are similar in their terns to securities so quoted:
( b ) securities where the ntum vanes with the results of the body
corporate’s business:
(c) securities issued otherwise than for new consideration com-
mensurate with their value.
Excepfion: any payment made by way of redemption of securities.
I . In the case of a security where the return exceeds a reasonable
commercial return. the amount of the CXCCSP.

Disfriburions to principal members, etc.

8. The provision of any quarters or residence for use by a principal
member OT his relative. u d m the wst t h a d is deductible under
section 13.
9. The grant of a loan falling within section 35.

RepaIriated profifs 311987

s ll(b1
10. The tmnsfer of any profits of a body corporate to any person
outside the Island.
(2) This section applies for the year 1970 and sub- 18/19fl
sequent years, except that paragraph 4 of subsection (1) shall ’ ’.
not apply to capital issued before 30th September, 1970, in
accordance with a press notice published before 16th June,
1970.
[The inclusion of *his page i s authorized by L N. 3’2001:
12 INCOME T A X

35-41) A body corporate subject to income tax shall be

tionr: treated as making a distribution where it grants a loan,
'OmS
prindpal
otherwise than in the course of a bona fide business of lend-
membsrr, ing money-
CtC
3411970
s 4. (a) to a principal member of the body corporate or of
311967
s It any other body corporate connected with it; or
(b) to a relative of any such principal member; or
(c) to any other person on terms such that any such
principal member or relative indirectly receives
the equivalent of the loan or part of it:

Provided that this subsection shall not apply-

(i) if the principal member is a body corporate
resident in the Island; OT
(ii) if the principal member is a body corporate
resident out of the Island and the Minister
has approved the loan as being beneficial to
the economy of Jamaica; or
(iii) if the loan is granted by a m p a n y to a
person employed by it where loans on the
like terms are made available by the c o m p
any to all its staff in similar employment.

(2) A loan shall not be treated as a distribution if,

and to the extent that, it is repaid within the same accounting
period of the lender as that in which it was granted.

(3) Where the whole or a part of a loan treated as

a distribution is repaid in a subsequent accounting period
of the lender beginning not later than five years after the
date of the loan, such repayments of tax (if any) shall be
made as are necessary to restore the persons concerned to
@he inclusion of t'his page is authorized by L.N. 3/20011
 INCOME TAX 13

the position they would hsve been in if the loan, or that part
of it, had not been treatej as a distribution.
(4) If, following repayment uf money lent, a further
loan is granted within six months of the repayment to or in
respect of the same person the repayment (and the
corresponding amount of the further loan) shall be dis-
regarded for the purposes of this section :
Provided that if the further loan is less than the repayment,
only the portion of the repayment equal to the further loan
shall be disregarded.

(5) For the purposes of this section the allowing of

credit shall be treated as the grant of a loan.

36.---(1) A distribution by a body corporate which is not %;A~Y

in money shall be taken for the purposes of this Act to be of ticnr:
an amount equal to its market value at the time of the dcrcrmi-
nationof
distribution, no regard being had to any effect of the ;?@$:
distribution on the market value of existing shares or s- 4
securities of the body corporate.
( 2 ) References in this Act to the net amount of a
distribution refer to its amount in money or as determined
under subsection (l), and references to its gross amount
refer to the net amount increased to a sum such that a
deduction therefrom of 335 per centurn in the case of a 311987
F. 1 3 ~
person other than an individual, or 25 per centurn in the s,,994
case of an individual, leaves the net amount : s 7.

Provided that where a distribution in money is made

without deduction of tax the amount distributed shall be
treated as the gross amount, and the net amount shall be
the gross amount less 33+ per centurn in the case of a person 3/1987
other than an individual, or 25 per centurn in the case of ;/,&’
an individual. s. 7.
.-
me inclusion Of-fiis p a s is a u h o n ’ d by L.N. 70/ 19961
74 INCOME TAX

Approved Venture Capital Company

venture 36~.-(1) The Minister may, on the application of a
capital
company; company that he is satisfied is-
tetigna-
lion, etc. (a) incorporated under the Companies Act or under
21 119YZ
s. 7. any other enactmmt in force in the Island;
(6) resident in the Island; and
(c) engaged, or proposes to engage, in venture capital
transactions in Jamaica,
grant, subject to such terms and conditions as he thinks
fit, a certificate to the company designating it an approved
venture capital company for the purposes of this Act in
relation to such venture capital transactions as may be
specified in the certificate.
(2) A certificate granted by the Minister pursuant
to subsection (I) shall be valid for such period, not exceed-
ing ten years, as may be specified therein, and may on its
expiration, be renewed at the discretion of the Minister
and subject to such terms and conditions as the Minister
may determine, for a further pericd not exceeding ten years.
(3) On the application of an approved venture
capital company the Minister may, subject to such terms
and conditions as he thinks fit, amend a certificate issued
or renewed under this section in respect of any category
of venture capital transactions specified therein and there-
after, subject to such tsrrns and conditions, the provisions
of this Act shall have eEect as if for the venture capital
transactions described in the certificate as granted there were
substituted the venture capital transactions amended as
aforesaid.
(4)If the Minister is satisfied that an approved
venture capital company has failed to comply with any term
or condition specified in a certificate issued or amended
pursuant to this section, he may, subject to subsection (54
by instrument in writing addressed to the company, cancel
the certificate with eEect from such date as he may deter-
mine.
I?he inclusion of this page is autmorized by L.N. 79/19961
 INCOME TAX

(5) Before cancelling a certificate the Minister shall

give the approved venture capital company an opportunity
to explain the circumstances of the failure to comply with
the term or condition.
(6) The cancellation of a certificate pursuant to
subsection (4) shall not affect any entitlement to relief from
income tax which may haie accrued in relation to the
approved venture cdpital coiv nany prior to the cancella-
tion.
(7)In this section “venture capital transaction”
means such investmsnt activity (including loan financing)
as would in the Minister’s opinion, by its influence on
new or developing enterprises, be beneficial to the economic
development of the Island

36B.-(1) The entitlement of an approved venture capital Ql~alicIca

tions for
company to the enjoyment in any year of assessment of the reliefin
special tax relief granted to it under this Act is subject to ~~~~~.
the following condkions- mcnt.
a111982
.
(a) at least 80 per c e m m of the property owned by
’ s.7.
the approved venture capital company in the year
of assessment shall consist of-
. . Ci) money; or
. I .

($ shares, bonds. notes, debentures or deben-

ture stock issued by a company resident in
the Island; or
(iiil such other security as may be prescribed by
.. - the Minister by order published in the
. . . Gpzztte;
(b) no sharehoider of an approved jexture capital
. . cornpa.ny shall. at any time daring the yenr of
assessment: hold more than 25 per centurn of its
issued shares; and
V h e inclusion of this page is aulhorized by L.N. 37119881
16 INCOME TAX

(c) at least 95 per centurn of the gross income of the

approved venture capital company for the year of
assessment shall be derived from sources within the
Island and comprised wholly of-
(i) interest in respect of loans made to camp
anies resident in the Island;
(ii) dividends paid by companies resident in the
Island;
(iii) gains arising or accruing from the sale or
other disposition either of real property
owned by the approved venture capital
company and situated in the Island, or of
other property, being property, registrable in
the Island, so owned and registered in the
Island;
(iv) gains arising or accruing from the provision
to any person resident in the Island of indus-
trial or commercial information or advice
or management or technical services or
similar services or facilities or plant or
equipment on hire (otherwise than under a
bona fide hire-purchase agreement as de-
fined in subsection (1) of section 2 of the
Hire-Purchase Act); and
(v) such other sources of income as the Minister
may, by order, prescribe.
(2) Where, in any year of assessment, an approved
venture capital company fails to satisfy any of the conditions
specified in subsection (11, it shall, without prcjudict to its
status as an approved venture capital company in any other
year, be subject to income tax as if it were not an approved
venture capital company.
(3) An approved venture capital company shall
place in a separate account all profits and gains which have
been relieved of income tax in accordance with section 36C
m e inclusion of this m e is authorized by L.N. 37/1988]
 INCOME T A X 77

and, if it intends to pay a dividend to its shareholders out

of such profits and gains, such dividend shall be paid out
of such account.
36c-(l) In determining the chargeable income in a y Taxrolia
year of assessment of an approved venture capital company
which satisfies the requirements of section 3 6 ~(I), there v a f -
shall be allowed as a deduction the amount of any distribu- company.
21 / 1982
tion made by the company in that year of assessment and s,,,
in respect of which an account is submitted to the Commis-
sioner as to the nature and amount of the distribution and
the name of the person to whom it was made.
(2) Notwithstanding anything to the contrary in
this Act, an approved venture capital company which satis-
fies the requirements of section 3 6 ~
(1) in any year of assess-
ment shall be relieved from income tax for that year of
assessnient if in that year of assessment the total amount of
its distributions, whether in money or otherwise, is equiva-
lent to 90 per centum or more of the chargeable income of
the company before the deduction of the distributions.
(3) Without prejudice to the provisions of section
34 or 35, where an approved venture capital company uses
its income to engage in a venture capital transaction as
defined in subsection (7)of section 3 6 ~it, shall be regarded,
for the purposes of subsection (21, as having made a distribu-
tion.
(4) Save as otherwise expressly provided, the pro-
visions of this Act applicable to bodies corporate subject to
income tax shall apply to approved venture capital com- 3119.37
panies. s 14.

Agricultural Income
36D.-(13 On the application of any person who is en- ~cliain
gaged, or proposes to engage, in a prescribed agricultural prqcribd
wpxl of
activity, the Minister may, subject to such terms and con-
ditions as he thinks fit, by order published in the Gazette, 211f982
s 7.
ITh iaolusion of thia paw is authorized by L.N.37/1988]
78 INCOME T A X

designate thal person an approved farmer for the purposes

of this Act for such period as the Minister may specify in
the order.
(2) If any term or condition imposed pursuant to
subsection (1) is breached then, subject to subsection (3), the
Minister may, by order published in the Gazerre, revoke
an order made under subsection (1) with effect from such
date as he may determine.
(3) Before revoking an order pursuant to subsec-
tion (2), the Minister shall give the approved farmer an
opportunity to explain the circumstances of his failure to
comply with the term or condition.
(4) The revocation of an order pursuant to sub-
section (2) shall not affect any entitlement to relief from
income tax which may have accrued in relation to the
approved farmer prior to the revocation.
( 5 ) Where in addition to engaging in a prescribed
agricultural activity. an approved farmer engages in some
other trade, business, profession, employment or vocation,
he shall keep separate books of account relating to the pre-
scribed agricultural activity
(6) An approved farmer shall place in a separate
account all profits and gains which have been relieved of
income tax in accordance with the provisions of section 5
(6) and, where the approved farmer is a company, then if
it intends to pay a dividend to its shareholders out of such
profits or gains it shall pay such dividend out of the separate
account.
(7) Notwithstanding the provisions of section 15
(2), an approved farmer may set off any loss incurred in
connection with a prescribed agricultural activity against
profits or gains arising from any other trade, business, pro-
fession, employment or vocation carried on by him.
(8) A shareholder of a company that is 811
approved farmer shall, if he is resident in Jamaica, be rc-
[The inclusion of this m e is authorized by L N. 37119881
 INCOME 7 A X 79

lieved from income tax on any dividend paid by such comp-

any in accordance with subsection (6).
(9) Where such sh'treholder as aforesaid is not
resident in Jamaica but-
( U ) is resident in a country in relation to which an ordeI
under section 83 is in force; and
( 6 ) is liable to income tax in respect of such dividends
in the country in which he is resident,
then, he shall be relieved from so much of the income tax
in respect of the dividends aforesaid as the Commissioner
is satisfied exceeds his liability in respect thereof in the
country in which he is resident.
(10) Any relief from income tax under this section
is not allowable in respect of a n y such shareholder as afore-
said who is resident in a country in relation to which an
order under section 83 is not in force.
(11) The relief from income tax granted under this
section shall not, as regards the rate of tax from which a
shareholder is relieved, exceed the rate of tax which, but
for the relief granted under section 5 (6) to approved farmers,
would have been payable by the company on the profits or
gains out of which the dividend is paid.
(12) Except as is otherwise provided in this section,
the provisions of this Act regarding the deduction of income
tax from dividends and the refund of income tax to share-
holders shall apply to dividends paid by a company that is
an approved farmer.
(13) Nothing in this section or in section 5 (6) shall
be construed as exempting an approved farmer from mak-
ing any return to the Commissioner or from complying with
the provisions of this Act in any other respect so as to
establish the liability, if any, of the approved farmer to in-
come tax.
II%p inolusion of this page is authorized by L.N. 37/1988]
m INCOME TAX

( 1 4) In this section “prescribed agricultural acti-

bity” means such activity as the Minister may by order
prescribe.

Deduction of tax

16/1980 (7) Where the Commissioner is satisfied that a com-

s12‘b).
pany (hereinafter referred to as the first-named company) is
in receipt from another company (hereinafter referred to
as the tax exempt company) of any amount of dividends
which, pursuant to any enactment, are exempt from income
tax, he may, subject to subsection (81, authorize the fist-
named company to pay that amount as dividend to its
shareholders free of income tax or with such relief from
income tax as he considers appropriate having regard to the
provisions of subsection (8).
16/198C (8) For the purposes of subsection (71, the tlrst-
‘. ’*@). named company mutatis mutandis-
(a) shall deal with any dividends to which that sub-
section applies in like manner 85 such dividends
are dealt with in the books and accounts of the
tax exempt company;
(6) shall be subject to such conditions, qualiicationa
and, if the circumstances so warrant, penalties for
any breach, as would have been applicable 8 the
dividend, instead of being paid by the ftrst-named
company, had been paid direct to the recipient
by the tax exempt company.
m e incluaioa of this p g $ is authorizsd by LN. 37fl9881
 INCOME T A X 81

38.-(1) Where a body corporate subject to income tax Company

disuibu-
makes a distribution the gross amount of it shall be treated tions:
as income of the person beneficially entitkd to receive it, $$:?
and the body corporate sha!l sii5jecl to ihe prc\:isions of this &!iY;”
section, deduct from the gross amount income tax at 335 zi:i98z
per cenium in the case of a distribution to a person other s.3;19S7 h (a).

than an individual, or 25 per centum in the case of a Fi,’:$i-

distribution to an individual, and pay it over to the Corn- :$&
missioner of Inland Revenue or such person as he may S. 8.
direct :
Provided that the Coixcissioner of Income Tax may
authorize payment of n nioncq; distribution without deduc-
tion of tax whrre he is satisfied that the recipients are not
liable to tax.
( I A )A body corporate referred to in subsection (1) $!,;/!;
shall not deduct incone tax from the gross amount of any
distributim it L *s tn 3.n a p p r w d x n t u r e capital comp-
any.
(2) If a distribution by such a body corporate is not
in money it shall be treated as a net distribution made after
deduction of inccme tax under subsection ( l ) , and the
body corporate making it shall pay over the tax accordingly.
( 3 ) On making a distribution, whether tax is
deducted or cot, the body corporate shall furnish the
recipient with a certifiy2.te stating the gross and net amount
of the distribution.
(4)Where, on a distribution of income by a body 3:1937
S. 16(b).
corporate to another body c.orporate subject to itxome tax
which is resident in the Idand. tax is deducted at source from
that ixorn: (hereinafter referred to as “franked income”).
the dednclinn sha.11b- treatsd, its ryards the frmked income.
as discharging the liability to tax of-
(U) the body ccirporate which recei\:es the franked
income:
m e inclusion of this p q e is auhorized bl, L.N 77/ 19961
82 INCOME TAX

(b) any other body corporate to which the body cor-

porate referred to in paragraph (a) may distribute
the franked income;
(c) any other body corporate to which the body cor-
porate referred to in paragraph (b) may distribute
the franked income and so on from body corpor-
ate to body corporate; and
(d) any individual to whom the franked income may
be distributed by any of such bodies corporate,
and any distribution by a body corporate referred
to in paragraph (a), (b) or (c) shall be deemed to
have been paid first out of franked income.
Exemption
of %bare- 3 8 A . 4 1 ) A shareholder of an approved venture capital
holder in
company shall be relieved from igcome tax in respect of
venture
CB pi kL1 any dividend paid to him by that company pursuant to sec-
company.
21 I1982
tion 3 6 (3)-
~
s. 9. (a) if he is resident in a country in relation to which
an order under section 83 is in force; and
(h) if he is exempt in that country from the payment
of income tax in respect of such dividend.
(2) Where a shareholder resident in a country in
relation to which an order under section 83 is in force is
not exempt in that country from income tax on any dividend
paid as aforesaid by an approved venture capital company,
he shall be liable to incoine tax either at such rate as may
be prescribed in the order in relation to such dividend or at
such rate as may be applicable thereto in that country,
whichever is less.
(3) Except as is otherwise provided in this section,
the provisions of this Act regarding the deduction of income
tax from dividends and the refund of income tax to share-
holders shdl apply to dividends paid by an approved ven-
ture capital company.
Ime inclusion of this page is aubhorizcd by L.N. 79/1996)
 INCOME T A X 83

(4) If any such shareholder is resident in a country

in relation to which an order under section 83 is not in
force the relief under this section shall not apply.

$;=; :
38B.41) Subject to subsections (2) and (3), in determin-
ing, in any year of assessment, the tax liability of a body of h n u i
.¶barn.
corporate subject to income tax which makes a distribution 1 2 / 1 9 ~
of its profits or gains for that year by way of the issue of S. 2.
bonus shares, there shall be allowed in accordance with the
provisions of this section, a tax credit equivalent to twenty-
five per centum of such nominal value of the shares issued.

(2) The tax credit allowed to a body corporate

under subsection (1) is subject to the following conditions-

(a) the tax credit shall apply to bonus shares issued

during the year of assessment the nomina1 value
of which represents an amount not exceeding fifty
per centum of the profits or gains of the body
corporate for that vear remaining after deduction
of income tax on the chargeable income for that
year before allowance of relief under this section:

(b) where the tax credit in any year exceeds the income
tax liability of the body corporate then such excess
credit shall not-
(i) be allowabIe in respect of any succeeding
year;
(iD be refundable; or
(iiD be allowable as a credit against any unpaid
income tax.
me inclusion of this pam is authorized by LSI. 79/19%1
 lNCOME TAX

(3) The tax credit allowed under this section shall

not apply t o -
(a) any company which is approved, recognized or
licensed under any enactment for the purpose of
any tax relief;

( b ) any company which for the purposes of the Bauxite

and Alumina Industries (Encouragement) Act is a
recognized bauxite producer or recognized alumina
producer;

(c) any bank licensed under the Banking Act;

(d) any compnny licensed under the Financial Institu-

tions Act, to carry on the business of accepting
deposits or to advertise for deposits;

(e) any insurance company;

(fl any society registered under the Building Societies

Act.

unit tmSt 39.41) Where a body corporate, as trustee under a

income
pymentr qualified unit trust scheme, makes an income payment to
of tax.
a unit holder or a joint unit holder it shall deduct income
18/1971 tax at 333 per centurn if the unit holder is not an individual
s 2
12/1985 or at 25 per centurn if the unit holder is an individual and
Jch.
‘,987 pay it over to the Commissioner of Inland Revenue or such
S. I ’ c s K b N ~ person as he may direct :
911994
s. 9.

Provided that the Commissioner of Income Tax may au-

thorize the payment to be made without deduction of tax
where he is satisfied that the unit holder or the joint unit
holder is not liable to tax.
me lnclusron of Cihis p g e is auchorized b LN. 79119961
 INCOME TAX 84.01

(2) On making any such payment, whether tax is

deducted or not, the body corporate shall fbrnish the recipient
with a certificate stating the nature and amount of the payment,
whether tax has been deducted and if so how much.

(3) Where the manager of a specified unit trust scheme 41 2002

makes a payment or credit to unit holders, of an amount '.S.
representing the accretion in value realized on encashment, that
payment or credit shall be deemed to be a payment of interest
from which the manager shall deduct a sum equivalent to
twenty-five cents in the dollar.

(4) For the purposes of subsection ( 3 ) , an accretion in 41,2002

value of units arising- s. 8.

(a) prior to the 1st June, 1999, refers to the difference

between the proceeds of the encashed units and the
price as at that date;

(b) on or after the 1st June, 1999, refers to the difference

between the proceeds of the encashed units and the
purchase price of the units.

(5) Where tax is deducted pursuant to subsection (3), the 4,

r
l
manager shall firnish each unit holder with a certificate stating
the amount of the payment or credit and the amount deducted.

(6) Where the manager deducts tax in accordance with 41'2002

subsection (3), he shall be deemed to be collecting tax on behalf '.*'
of the Commissioner of Inland Revenue and shall, within
fourteen days after the end of the calendar month in which the
payment or credit is made-
~~~~ ~~ ~

[The inclusion of this page is authorized by L.N. 880003l

84.02 INCOME TRY

(a) hrnish to that Commissioner a return in the prescribed

form; and

(h) pay the tax so deducted to that Commissioner or to

such person as he may direct.

4 112002 (7) In this section “specified unit trust scheme” means a

s. 8. qualified unit trust scheme which comprises or includes a money
market h n d within the meaning of section 3 1A.

(8) The provisions of section 41 which relate to

penalties shall apply mutatis mutatidis in respect of any failure
to comply with subsection (1) or (3) of this section, and
accordingly any reference to payment in that section shall be
construed as including a reference to credit.

Deduction 4 0 . 4 1 ) Subject to the provisions of this section, where

from payment
to non-
payment is made to a person who is not resident in the Island by
resident. a person resident in the Island in respect of any interest of
421I958
S. 10 (a).
money, royalty, annuity, or other annual payment, or in respect
301 I970 of rent accruing from property situated in the Island, or in
S. 15 (a).
respect of the provision of industrial or commercial information
or advice, or management or technical services, or similar
services or facilities, or hire of plant or equipment (otherwise
than under a bonafide hire-purchase agreement as defined in
 INCOME TAX 84.03

subsection (1) of section 2 of the Hire-purchase Act), the person

making such payment shall deduct thereout a sum on account of
income tax thereon at the rate of 33% cents in the dollar if the &’:l!i
payment is made to a person other than an individual, or 25 9/1994
cents in the dollar if the payment is made to an individcal, and s.lo.
shall forthwith deliver to the Commissioner an account of the
payment and of such tax deducted out of the payment and the
Commissioner shall assess and charge the payment for which an
account is so delivered on that person.

(1A) The provisions of subsection (1) shall apply in 4~2002

relation to payments of dividend income derived fiom s.9.
companies specified in section 30 (3), as if instead of the
numerals “33 %’ and “25” respectively-

the numerals “20” were substituted therefor during the

period specified in section 30 (3) (a);

the numerals “10” were substituted therefor during the

period specified in section 30 (3) (b);

the word “nil” was substituted therefor with effect from

the 1st April, 2002.

(2) Where any person has made default in delivering the

account required by subsection (l), or where the Commissioner
is not satisfied with the account so delivered, the Commissioner
may make a.n assessment according to the best of his judgment,
and if any person neglects or refbses to deliver the account so
required, he shall forfeit the sum of $200 over and above the tax
chargeable.
(The inclusion of this page IS authonzed by L N 88/2003]
84.04 INCOME TAX

(3) All the provisions of this Act relating-

(a) to persons who are to be chargeable with income tax

and to tax assessment;

(b) to appeals against such assessment; and

(c) to the collection and recovery of income tax,

shall, so far as they are applicable, apply to the charge,

assessment, collection and recovery of income tax under this
section.

4211958 (4) For the purpose of this section a payment made by a

S.10 (b).
company as defined in section 2 shall be deemed to be a
payment made by a person resident in the Island.

42t1958 ( 5 ) The provisions of this section shall not apply to

S. 10 (b).
payments of interests on investments or deposits in the Island
comprising the whole or part of the income of a superannuation
or pension fund or plan administered in the United Kingdom or
Canada which is exempt by virtue of paragraph (0) of section
12.
[The inclusion of tliis page IS authonzed by L N 88/2003]
 INCOME TAX LS

(G) The provisions of this scclioii shall not apply to 33/1%4

S 6.
payments of interest on investments or d-posits comprising
the whole or pmt of the income of a person not resideit
ill the island which k evempt from tax by virtue of para-
graph Ld of gection 12.

) prokisions of this section shall not apply 4611975

( 6 ~The s. 4.
to any p~ynient of ititsrest to an approved overseas
organization. in the manner specified in sub-paragrzph (i)
of paragraph ( x ) of section 12, where the requirements of
sub-paragraph (ii) of that paragraph are fulfilled as respects
the interest so payable.

(7) [Deleted by Act 3 o i 1987.1

(8) [Deleted by Act 3 of 1987.1

(9) Where the Commissioner is sdtisfied in re!ation 311987

to any year of assessment that a non-resident person to s 18(C).
whom any such payment as is referred to in subsection (1)
is to be made is not, or is not likely to be, liable to lax in
Jamaica in that year of assessment, he may authorize any
person making any such payment as aforesaid to do so
without deducting from the payment a;ly sum on account
of income tax.

(10) [Delerpd b!) Act 3 of 1987.1

.~. ~ .~~.
~ - .-
!The inclusion of this page is authorized by L.N. 3?!1Y~S1
86 INCOME TAX

Deduction
from
MA. Where lhe emoluments of any person (hereinafter
emolu- werred to as the employee) includes the provision by his
employer of living or other accommodation and the em-
certain
rentals.
ployer is put in a position to provide the accommodation
4/1986 consequent on an agreement in the nature of a tenancy be-
s. 11. tween himself or any connected person and the employee
or any connected person then-

(a) notwithstanding sub-paragraph fiii) of the proviso

to paragraph 1c) of subsection (1) of section 5, any
amount payable pursiiant to that agreement to the
employee or any connected person by the employer
or any connected person shall be subject to deduc-
tion of tax as if the limit of 15 per cent prescribed
in that sub-paragraph did not apply: but

(6) t.he tax so deducted shall be treated as follows-

(i) swh portion therrof as is Irnnropll'ate to the

value of the accommodation u p tn the limit
of 15 per cent prescribed in that sub-para-
graph shall be regarded as tax on emolu-
ments: and

(ii) the remainder. if any, shall be regarded as

prepayment of tax on rental income accni-
ing to the employee and tax may be collected
or refunded accordingly, so, however, that
any deduction from that income of expenses
or loss relating to the rental of the accom-
modation shall be allowed only against such
rental income.

~~~~

rThe inclusion nf this p g e is authorized by L.N. 37!1PXRI

 INCOME TRY 87

41.-(I) Any person required by this Act to deduct tax on the Payment
over of tax
payment by him of any sum and pay or account for the same to deducted H,
the Commissioner of Inland Revenue or any other person shall source.
30i1970
make the said payment of tax, or render the said account, or do S. , 6 ,
both, as his duty may require, within fourteen days after the end m985
Sch.
of the calendar month in which the first mentioned payment was
made, whether or not tax was in fact deducted from that
payment.

(2) Where a person fails to pay or account for any tax by

the date required by subsection (l), then-

(a) if the tax was in fact deducted by him as reqdred by

this Act he shall be treated as if the tax were increased
at the rate of fifty per ceiztum per annum in respect of
each day after that date on which his failure continues;
or

( b ) if the tax was not so deducted he shall be treated as if

the tax were increased at such rate (not exceeding that
mentioned in paragraph (a))as the Commissioner may
direct.

(3) Without prejudice to subsection (2), any person 9,1986

who fails to comply with subsection (1) shall be guilty of an s. 2 (a).
offence and shall be liable on summary conviction in a
Resident Magistrate’s Court to a fine not exceeding one million 4112002
dollars or treble the amount of the tax which is unpaid, s. 10.
whichever is the greater, and in default of payment to

[The inclusioii of this page IS authorized by L N 88f200.?]

88 INCOME TRY

imprisonment with or without hard labour for a term not

exceeding twelve months.

(4) Where a person who fails to pay or account for any

tax by the date required by subsection (1) is a body corporate,
the persons who on that date were the directors of the body
corporate shall be jointly and severally liable, together with the
9 1986 body corporate, to pay or account for the tax, increased as
S. 2 (b) (ii).
provided by subsection (2) and shall also be liable to be
proceeded against and punished under subsection (3).

911986 (5) It shall be a defence for a person accused of an

s. 2 (c). offence under this section to show that-

(U) there were bonufide reasons for the failure and that, in
the circumstances, the payment could not have been
made or the account could not have been rendered; or

(b) on the date required by subsection (1) the state of

accounts between the Commissioner of Inland Revenue
and him was such that no amount was payable by him
to the Commissioner of Inland Revenue;

(c) if the person is a director of a body corporate he had

satisfied himself that the body corporate had
established an adequate system providing for all tax
deducted by the body corporate to be paid or accounted
for by the required date, and that the failure to operate
that system occurred without his consent or connivance
and without any negligence on his part.
_ _ _ _ _ _ _

[The inclusion of this page IS aiithonzed by L N 88n003]

 INCOME TRX 89

42.--(1) Subject to subsection (2), where the income of a dlowance

for tax
person for any year of assessment includes income which has
suffered tax by deduction or otherwise an allowance in respect 41/2002
S. I 1 (a).
of the tax suffered shall be made as follows-
(a) where the income is received fiom dividends, 18/1971
distributions, income payments mentioned in section '. 4.
39, royalties, rents, interest or other annual payment
from which tax has been deducted on payment, an
allowance shall be made of the actual tax suffered, not
exceeding 33% cents in the dollar if the person is not an 911994
individual, or 25 cents in the dollar if the person is an S. l l .
individual;
(b) where the income is received from the share in an 3/1987
estate of a deceased person or trust, an allowance shall '. 19.
be made of the tax suffered by the estate or trust
relating to the share of'that particular person.
(2) Where pursuant to section 31A (4), a deduction 41/2002
S. 11 (b).
made by a prescribed person has been set off against tax
deducted on income earned by that person, then subsection ( I )
shall only apply to the portion of tax not so set off
43. Where, under the provisions of this Act, an individual is Adjustments
of reliefs
entitled to claim relief fiom income tax by repayment or where
otherwise, in respect of- reliefs not
all given at
(a) any amount which is paid or borne by him out of his thesame
income or which is allowable or may be deducted time.
therefrom; or
( b ) any reduction of an assessment relating to his income
or any part thereoc or
(c) any adjustment or set-off with regard to a loss,
and claims that relief for any year of assessment, any relief
granted shall not extend so as to make the total income tax paid
or payable by him for that year less than it would have been if
the amount in respect of which relief is claimed had been
[The iiicliisioii of this page IS authonzed by L N 88/2003]
90 lNCOME TAX

deducted in computing his total income for that year and the
amount of any other deductions or reliefs to which he is
entitled for that year had been determined accordingly.
Sirperannuation Funds
Approved
44.-(1) Subject to the provisions of this Act and to any
supar- regulations and rules made thereunder, any sum paid by an
annuation employer or employed person by way of contribution towards an
hnds.
7;1956 approved superannuation fbnd shall, in computing profits or
s. 1 1 . gains for the purpose of an assessment to income tax, be allowed
to be deducted as an expense incurred in the year in which the
sum is paid:
Provided that no allowance shall be made under the preceding
provision in respect of any contribution by an employed person
which is not an ordinary annual contribution, and where a
7!1956
contribution by an employer is not an ordinary annual
s. 33. contribution, it shall, for the purpose of the preceding provision,
be treated, as the Commissioner may direct, either as an expense
incurred in the year in which the sum is paid, or as an expense to
be spread over a period not exceeding ten years.

7i1956 (2) The Commissioner may approve any superannuation

s. 1 1 . fund for the purposes of this Act, but he shall not, except as
hereinafter provided, approve any fund unless it is shown to his
satisfaction that-

(a) the f h d is a fund bona fide established under

irrevocable trusts in connection with some trade or
undertaking carried on in the Island by a person
residing therein; and
4811975 (6) the fund has for its sole purpose the provision in
S.7(1). any case, of lump sums not exceeding $120,000 or
4 1/2002
s. 1 2 ( a ) . pensions and annuities not exceeding two-thirds of
711956 the salary of the employee at the date of his
s. 1 1 .
retirement, for all or any of the following persons in
the events respectively specified, that is to say
I I'bu I I I C ~ I I S I O ~ofI 1111spage ISnutl;onzed hy L N 88/2003]
 INCOME TAX 91

for persons employed in the trade or undertakmg,

either on retirement at a specified age or on becoming
incapacitated at some earlier age, or for the widows,
children or dependents of persons who are or have
been so employed, on the death of those persons; and

(c) the employer in the trade or undertaking. is a

contributor to the h n d ; and

(d) the trusts under which the fimd is established do no 30j1970

provide more favourable benefits, or more favourable s. 17.
distributions of any surplus arising on a winding-up of
the fund, for a person who is connected with the
employer or is a relative of such a person than for
persons in similar circumstances who are neither
connected with the employer nor are relatives of such
persons:

Provided that the Commissioner may, if he thinks fit, and

subject to such conditions, if any, as he thinks proper to attach to
the approval, approve a fund, or any part of a fund, as a
superannuation fund for the purposes of this Act-

(i) notwithstanding that the rules of the fund provide for m 9 5 6

the return in certain contingencies of contributions paid '. ''.
to the fund; or

(ii) if the main purpose of the fund is the provision of such

annuities or lump sums as aforesaid, notwithstanding
that such provision is not its sole purpose; or

(iii) notwithstanding that the trade or undertaking in

connection with which the fimd is established is carried
on only partly in the Island and by a person not
residing therein; or
[The inclusion of this page is authonzed by L N SSn003)
92 INCOME TAX

30'1970
s. 22. (iv) notwithstanding that the fund provides for the payment
of lump sums exceeding the amount specified in
paragraph (b) if they are paid in commutation or in lieu
of annuities not exceeding that amount.

4 112002 (2A) The amount specified in subsection (2) (b) shall

S. 12 (b).
have effect for the year 1994 and any subsequent year of
assessment.

711956 (3) Income tax shall be chargeable in respect of any

s. 11. sum-

(a) paid or repaid out of an approved superannuation fund

to an employer who was a contributor to such k n d ; or

(b) paid by way of annuity out of an approved

superannuation fund to an employed person or his
dependents; or

30/1970 (c) paid by way of distribution of any surplus arising on a

S. 17. winding-up of an approved superannuation k n d ,
as if such sum were income of the year in which it was so paid
or repaid.

711956 (4) The Commissioner may by notice in writing-

s. 11.

(a) require the trustees or other persons having the

management of an approved superannuation fund, or an
employer whose employees contribute to an approved
superannuation fund, to deliver to the Commissioner
within such time as he may specify in such notice, such
information and particulars as the Commissioner may
require for the purposes of this section;
[The iiicltisioii of this page is atitlionzed by L N. 88/2003]
 INCOME T A X 93

Ib) addressed to the trustees or other persons having 30/1970

S. 11 (CJ.
the management of an approved superannuation
fund, withdraw his approval of the fund if it
appears to hin-

(i) that any of the conditions specitied in para-

graphs (a) to (d) of subsection (2) are not
satisfied; or

(ii) that any conditions imposed by him under

the proviso to subsection (2) have been
contravened,

or qualify his approval of the fund if it appears to

him that, having regard to the value of w e t s in
the fund and its probable future resources. the
income of the fund does not need to be exempted
from income tax in order for the fund to be of a
size to enable it to be reasonably sure of meeting its
presenl and future obligations.

(5) Where approval of a fund is withdrawn by a 1811971

notice under subsection (4),the withdrawal shall operate &;j9,,
from the date of the notice or from such earlier date as may S. 17(d).
be specified in the notice, not being earlier than the first
date on which the condition in question was not satisfied
or was contravened.

-
[The inclusion of this page is authorized by L.N. 37/19RX]
94 INCOME T A X

2,'15;o (6) Where approval of a fund has been qudified by

S I T (d).
18/1971 a notice under subsection (4), the qualification shall take
s. 5.
effect from the date of the notice, and the Commissioner
may, if at any time it appears to him that the circumstances
which led to the qualification being imposed no longer
apply, by a further notice in writing addressed to the
trustees or other persons having the management of the
fund, remove the qualification; but while the qualification
remains in force it shall have the effect of disapplying the
exemption from tax conferred by paragraph (i)of section
12 in relation to the income of the fund.

301 1970 (7) An appeal may be made to the Revenue Court

S17(0). in any case where the Commissioner refuses, withdraws or
29/1971
8. 12 qualifies approval of a superannuation fund under this
section and the decision of that Court shall be final.

3011970 (8)Where at any time during the year of assessment

S. 17 (0.
the beneficiaries of an approved superamuation fund are
fewer than ten in number (disregarding beneficiaries who
are persons connected with the employer or are relatives of
such persons), the exemption from tax conferred by para-
graph ( ~ 3of section 12 shall apply to the income of the fund
for the year only if the trustees or other persons having the
management of the fund have claimed the exemption by
notice in writing served on the Commissioner within four-
teen days after the end of the year.

30/1970
(9) If, following service on him of a notice under
S. 1 7 ( 0 subsection (8), it appears to the Commissioner that all the
income of the fund for the year does not need to be
exempted from tax in order to maintain the fund at the size
necessary, having regard to probable future income, to
T h e inclusion of this page i c aethorizml by L.N. 37/1988]
 INCOME T A X 95

enable it to be reasonably sure of meeting its present and

future obligations, he may restrict the exemption accordingly
to a part only of the income; and where he does so may in
ddition direct thst income not exempted shall be chargcd
to tax at a rate corresponding to the rate or rates which
would apply if it were treated 8 s apportioned between thP
persons who, on a winding-up of the fund, would b t
beneficially entitled to any surplus thereof (being appor-
tioiicd in the like shares m would be applicable in such a
winding-up), and v x i e treated in each case as the highest
part of their income.

(10) In this section- 18/1971

s.5.

(U) paragraph ( d ) of subsection (2) applies to approvals

granted on or after 1st December, 1970;

( b ) subsections (8)and (9) apply for the year 1970 and

subsequent years except that they do not apply to
income of a fund accruing before 1st December,
1970.

44A.-(1) Subject to the provisions of this Act and to Approved

any regulations and rules made thereunder, any sum paid mentretire-
by any person by way of contribution to an approved retire- e9;F
ment scheme shall, in computing profits or gains for the s 20.
purpose of an assessment to income tax, be allowed to be
deducted as an expense incurred in the year in which the
sum is paid :

IThe inclusion of thip page is authorized by LN. 37!19S8]

96 I!VCOME T A X

Provided that where a contribution is not an ordinary

annual contribution, (hereinafter referred to as a special
contribution) it shall, for the purpose of this subsection, be
treated, as the Commissioner may direct-

(a) either as a n expense incurred in the year in which

the sum is paid; or

( h ) as an expense to be spread over a period not ex-

ceeding ten years,

and as a condition of any such direction the Commissioner

may, if he thinks fit having regard to the funding and other
circumstances of the scheme, stipulate that the special con-
tribution in any year shall not, for the purpose of any deduc-
tion under this subsection, exceed an amount equivalent to
the ordinary annual contribution for that year.

Fourth (2) The provisions of the Fourth Schedule shall have

Schedule. effect with regard to the approval of retirement schemes and
the terms and conditions applicable thereto.

(3) Subject to subsection (4),income tax shall be

chargeable in respect of any amount paid pursuant to an
approved retirement scheme to a person who was a contri-
butor to that scheme or to his dependents as if such amount
were income of the year in which it was so paid.
[ T h e incliirion of ?hi- page IS authorized bv LN ?7'1998]
 INCOME TAX 97

(4) Lump sums not exceeding one hundred and fifty 41 2002
S. 13 (a)
thousand dollars, payable as retiring benefits to, or in respect of,
any contributor pursuant to an approved retirement scheme shall
be exempt from income tax.

(4A) The amount specified in subsection (4) shall have 1:f!y);,

effect for the year 1994 and any subsequent year of assessment.

(5) The Minister may by order subject to affirmative

resolution of the House of Representatives amend the Fourth Fourth
Schedule.
Schedule.

Itidustrial Societies, etc.

4 5 . 4 1 ) Any profits or gains of a society registered under the Industrial
Industrial and Provident Societies Act or the Building Societies Etvidm,
Act shall include any profits or surplus arising from transactions Societies
between the society and its members which would be included if E&ing
the transactions had been transactions with non-members. Societies.

(2) There shall be allowed in the computations of

societies registered under the Industrial and Provident Societies
Act, any sums which-

(a) represent a discount, rebate, dividend or bonus granted

by the society to members or other persons in respect
of amounts paid or payable by or to them on account of
their transactions with the society, being transactions
which are taken into account in the said computation;
and
[The inclusion of this page is authonzed by L.N. 88D003]
0x INCOME TRY

( h ) are calculated by reference to the said amounts or to

the magnitude of the said transactions and not by
reference to the amount of any share of interest in the
capital of the society.

4 6 . 4 1) Where a society registered under the Industrial and

10he paid
Hilhout Provident Societies Act or a building society, as the case may
dcductlonof be, pays or credits share interest, it shall deduct from that
tax
41’2002 payment or credit, a sum equivalent to 25 cents in the dollar.
S 14(a)

41 12002 (1A) The provisions of the proviso to subsection (1) of

S 14(a)
section 31A and subsections (3) and (4) of that section shall
apply mutatis mutaiidis in relation to the deduction of tax under
subsection (1) of this section.

(2) Where such share interest as is referred to in

subsection (1) is paid to a person not resident in the Island by-

(a) a society registered under the Industrial and Provident

3 i 13x7 Societies Act, tax shall be deducted at the rate of 33%
S.21 (a)(i).
9:1994 cents in the dollar if the person is not an individual, or
s. 12. 25 cents in the dollar if the person is an individual;

( b ) a building society, tax shall, unless the income of that

person is exempt from income tax pursuant to
paragraph (s) of section 12, be deducted at the rate of
33% cents in the dollar if the person is not an
individual, or 25 cents in the dollar if the person is an
Bi1987
S. 21 (a) (ii) individual,
311994
s. 12.
and an account of the payment and of any tax so deducted shall
be delivered to the Commissioner who shall assess and charge
the payment for which an account is so delivered on the society
or building society, as the case may be.
(The inclusion of this page i s anthorized by L N 88/2003]
 INCOME TAX 99

(3) For the purpose of determining the chargeable 331964

S 7
income of a society, there shall be deducted (in addition to any
other deductions) the amount of any share interest which has
been paid by the society during the period in respect of which
that income is being computed and an account of the payment of
which has been delivered to the Commissioner indicating the
person to whom the payment has been made and the amount of
tax (if any) deducted fiom the payment.

(4) For the purposes of this section-

(a) “share interest” means any interest, dividend, bonus or

other sum payable to a shareholder of a society
registered under the Industrial and Provident Societies
Act or of a building society by reference to the amount
of his holding in the share capital of the society;

( b ) references to the payment of share interest shall

include references to the crediting of such interest.

(5) The provisions of section 45 (2) and of this section 31987

S. 2 (b).
shall not apply to any society registered under the Industrial and
Provident Societies Act unless the society-

(a) satisfies all the following conditions-

(i) it has at least fifty members;

(ii) its share capital is all of one class;

(iii) the members and shareholders are required

by the rules to be, and are in fact
substantially identical; or
100 INCOME TAX

(b) is a society of which each member is, or at some time

was, employed by the same employer and which, apart
from transactions between the society and its members,
does not carry on any trade, business or profession.

41 2002 (6) The provisions of section 41 which relate to

S 14(b).
penalties shall apply mutatis mutandis in respect of any failure
to comply with subsection (1) of this section, and accordingly
any reference to payment in that section shall be construed as
including a reference to credit.

Exemption 4 7 . 4 1 ) Subject to the provisions of this section, there shall

from tax of
profits be exempt from tax so much of the profits or gains of a building
allocated to society as is transferred by the society to its general reserves so
resmes of
building as to bring such reserves up to an amount-
socizh.
33 1964
S . 8.
3:1987
(a) in respect of any period prior to 1st January, 1987, not
s. 22. exceeding 7%per centum of the assets of the society;
and

(b) in respect of any period commencing on or after the 1st

January, 1987, not exceeding 5 per centum of the assets
of the society.

(2) A building society shall establish and maintain a

separate account in respect of any profits or gains exempted
from tax pursuant to subsection (1) and if it intends to pay any
amount by way of a dividend to its shareholders or otherwise out
of such profits or gains such amount shall be paid out of such
account.

(3) Tax shall be payable by a building society in respect

of any amount which is paid out of any account maintained
pursuant to subsection (2)-
(a) by way of dividend to shareholders; or
[The inclusion of this page IS authonzed by L N 88/2003]
 I;VCOJ.IE T A X

( h ) for any other purpose not approved by the

Minister.

(4) In this section-

“assets” means the aggregate of the amounts which the

Commissioner is satisfied-

(n) have been expended by the society in

acquiring-

(i) land owned by the society;

(ii) equipment, furniture, machinery,

plant and other moveable property
in use which are owned by the
society; and

(iii) investments owned by the society;

and

( b ) represent the amounts of-

(i) outstanding balances of loans (in-

cluding insurance and other ad-
vances but excluding advances on
the security of shares) made by the
society;

(ii) cash in hand or with the society’s

banken less the amount of any bank
overdraft;
1 - 1 -

[The inchion of thiP page is authorized by LN. 371198RJ

102

(iii) accrued interest on invrstnisnts

acquired by the society which is not
taken into account in sub-paragraph
(iii)of paragraph (a);

“general reserves” mems the aggregate of the amounts

which the Commiszicner is satisfied represen-

(a) balances standing at credit in the Revenue

and Appropriation Account of the society:
and

f b ) sums set aside for the stability of the

society after adequate provision to the
satisfaction of the Commissioner has been
mad.! to met: acciued 1iabili:ics.

lirsirruirce. Sliipping and Aircraft CornpanieJ

inSuraDm 48-(1) Notwithstanding anything to the contrary con-

shipping
and tained in this Act, subsections (2) to (12) shall have effect.
aircraft
cornDanics.

(2) In the case of an insurance company (other than

3’19R7
s. 23(=). a life assurance company) the gains or profits on which tax
is payable shall be ascertained in accordance with the
following t a b l e
____-~ ~ ~

F c inclusion of fhis page is SUthorized by L.N. 37119881

 /:KO!\ff: fAX 103

Operating balance ... ... $ ......

Deduct permitted insilrance reserves as at the

end of the year ... ... $ ......

Add permitted ixurance reserves as at the

beginning of the year ... ... $ ......

Deduct-

(i) actual losses (less the amount re-

covered in respect thereof under
re-insurance) ...
I . . $ ......

(ii) agcncy and head office expenes ... S

Net Profits.!Gains ... ... ... $

CA)For the purposes of subsection (2)-

hi ”operating hnlance” means gross premiums, interest

2nd clher Inc;me ixceived or receii:able. (less a n y
premiums returned to the insured and premiums
paid on re-insurances);

(b) “agency and head office expenses” means the

agency expenses in the Island and such proportion
of the expenses of the head oRce cif thc company
ils the Commissioner is satisfied was incurred in
ccncection with the agency;
.. -. ~- .. ~~ i ~ ~ ~ ~ ~ - . -
!The inclrvsioo of t’lis page is author&& @ ‘ t X 3 7 i ~ L k 3 1
 INCOME T A X

(c) "permitted insurance resexes'' a! an?; datel ~ ? ? e ~ j i

the insurance reserves established by the company,
and accepted by the Commissioner as reasonable
for the purposes of computing gains or profits on
which tax is payable, in relation to the policies in
force up to that date.

15/1985 (3) In the case of a life assurance company, whether

s. 4. mutual or proprietary, the gains or profits on which tax is
payable shall, for the year 1984 and any subsequent year of
S. ':
3:1987
"')'
assessment, be the investment income. including income
arising from health insurance business or any other business.
less the management expenses.

lS/1985 (3n) For the purposes of subsection (3)-

s. 4.
(U) investment income in any year shall be ascertained
by deducting from the aggregate amount of the
income of the company arising from all sources
for the year-

(i) amounts received as premiums by the com-

pany in that year in respect of policies of
life assurance;

(ii) amounts received by the company in that

year as consideration in respect of annuities
granted by the company;

(iii) amounts received by the company in that

year as premium in relation to contribution
to approved superannuation funds or
approved retirement schemes; and
- ~ _ _ _ _ _
me iacluai& of this 'pageis authorized
. . by L.N. 37119883
 INCOME T A X 105

(iv) such other amounts as the Minister may,

by order, prescribe;

( b ) management expenses in any year shall be the

m o u n t of all disbursements and expenses, being
disbursements and expenses allowable under seo-
tion 13, wholly and exclusively incurred by the
company in that year in acquiring the investment
income :

Probided that such expenses. without prejudice to the

generality of this paragraph, shall not include-

(i) commissions or other similar payments

payable to agents or employees of the
company;

(ii) expenses incurred in gaining premiums for

policies of life assurance or for considera-
tions received for annuities;

(iii! expenses in relation to medical exam-

inations of policy holders or proposed
policy holders;

(iv) stamp duties payable on policies of life

assurance; and

(v) such other expenses as the Minister may,

by order, prescribe.

iThs incplsios of this pase is authorized by L.N. 37/1988]

 lu6 IA:CCME I'AX

311987 (3B) Losses for the years of assessment 1984, 1985 and
S. ?3(d).
1986 whic.h a life assurance company was entitled. prior to
the 1st day of January, 1987, to deduct under section 13 (1)
(h) may he carried forward and, until fully utilized, allowed
as a deduction in subsequent years of assessKent:

Provided that the amount of any such losses allowed in

any year of assessment shall not exceed fifty per cent vf the
amount of the chargeable income of the company before
deduction of the losses aforesaid.

15/1985 (313 An order under paragraph (n)(iv) or sub-para-

s. 4. graph (v) of the proviso to paragraph U?)of subsection (3A)-

(n) n a y . without prejudice to the generality thereof

mzke orovision for the treatment, for the purposes
of subsections (3) and ( 3 ~ ) .of income received
outside the Island or received by a life assurance
company having its head office outside the Island;

( b ) 1nF.y be given retroactive effect to a date not earlier

than the 1st January, 1984; and

(0 shail be subject to affirmative rssolution of the

House of Representatives.

IS/l9SS (30) The provisions in section 12 shall apply, where

s. 4. appropriatr, to life assurance companies.
.
...
I S / 198s '(41 11;' the case of a life wurance company, tax shall
s 4. be charged at the rate of 7.5 cents in the dollar.
T ~ __ _

I rThe inclwi6n of this p i e is a u t h z d by LN.3 7 f l Y Y Y l

 INCOME TAX 107

(5) In addition to the income tax payable under 3 ~ 1 9 7 0

subsections (3) and (4), income tax shall further be charged on a S 6
life assurance company in respect of the following amount
(hereinafter referred to as “premium income”), namely, the gross
premiums (other than premiums paid in respect of health 3 1987
insurance) and all other payments received by the company in s 23 ( 5 ) ( I )
respect of any assured (other than re-insurance premiums,
premiums received as contributions to approved superannuation
h n d s or approved retirement schemes and any other payments 3(1987
specified by the Minister by order subject to affirmative s 23 (2) (11)
resolution by the House of Representatives, and less any
returned premiums), being payments received in the Island or
received out of the Island in respect of an assured who was
resident in the Island both at the time of payment and at the time
the relevant policy was entered into.

(6) Where the life assurance company, being chargeable 34/1970

with the tax under subsection (5) for the year 1976 or any &fj;77

subsequent year of assessment, satisfies either of the following S. (a).

conditions, namely-

that the Minister has stated by a notice published in the

Gazette and not subsequently cancelled by a fbrther
notice so published that the company is taking, or has 7/1977
taken, reasonable steps to become regionalized; or S.2 (b).

that the company, having previously carried on a

business of issuing life assurance policies on the lives
of persons resident within the region, has ceased to
carry on that business and has passed the goodwill 7/1977
thereof to a company which satisfies the condition set s . 2 ~
out in paragraph (a),
[The inclssioa of this page IS authorized by L,N. 88/2003]
108 INCOME TRY

the company shall be charged under subsection (5) at the rate of

41 2002 one and one-halfyer ceritirni of its premium income for the year.
S . 16.

34 1970
S 6
(7) Where subsection (6) does not apply the life
assurance company shall be charged under subsection (5) at the
rate of two per ceritirm of its premium income for the year.

I :'
7 1977 (8) For the purposes of subsection (6), a company shall
S . 2(d).
be taken to be regionalized if-

(a) it was incorporated in any country of the region; and

( b ) it is resident within the region; and

(c) persons each of whom is an individual domiciled, or

body corporate resident, within the region are the
beneficial holders of the required percentage of the
company's paid-up capital, other than preference
capital, the required percentage being-

(i) such percentage as may be determined from

time to time by order of the Minister; or

(ii) in the event of no percentage having been

determined under sub-paragraph (i), fifty-one
per centzrm.
(The iiiclustoti of this page IS authonzed by L N 88/2003]
 INCOME TAX 109

( 8 ~ Every
) reference in subsection (6) or (8) to the 7/1977
region is to- s. 2(d).
(a) Jamaica; and
(b) subject to subsection (8B), the other countries
belonging to the Caribbean Community.
( 8 ~ )The Minister, if satisfied that in the circum- 711977
S.2(d).
stances it is reasonably justifiable so to do, may make an
order declaring the 'region not to include, for the purposes
of subsections (6) and (8), such country (other than Jamaica)
belonging to the Caribbean Community as may be specified
in the order and, for any such purposes, a country so
specified in any order under this subsection shall be deemed
not to be part of the region during the continuance in force of
the order.

( 8 ~ )Any order under subsection (8) (c) (i) or ( 8 ~ shall

) 7/1977
be subject to affirmative resolution of the House of Representa- S.2(d).
tives.

( 8 ~ In
) the foregoing provisions of this section- 7/1977
S.2(d).
"Caribbean Community" means the Community referred to
in the Caribbean Community Act;
"country" includes "territory".

(9) Notwithstanding anything in this section the Minister 3411970

S. 6 .
may grant such remission of tax to a life assurance company as
appears to him expedient for encouraging the formation of
companies within subsection (6) by the merging of branches of
other companies or by any other means, and for securing their
continued operation.

(10) (a) In the case of a shipowner or aircraft owner

gains or profits in the business of shipping or the business
of air transport shall, if he produces or causes to be produced Fg6
[The lncluslon of thls page Is authorized by L.N. 180A120061
110 INCOME TAX

to the Commissioner the certificate mentioned in paragraph (b),

be taken to be a sum bearing the same ratio to the sums payable
in respect of fares or freight for passengers, goods, or mails
shipped in the Island as his total profits for the relevant
accounting period shown by that certificate bear to the gross
earnings for that period.
(b) The certificate shall be a certificate by the
taxing authority of the place in which the principal place of
business of the shipowner or aircraft owner is situated and
shall state-
(i) that the shipowner or aircraft owner has
finished to the satisfaction of that authority
account of the whole of his business; and
(ii) the ratio of the gains or profits for the relevant
accounting period as computed according to the
income tax law of that place (after deducting
interest on any money borrowed and employed in
acquiring the gains and profits) to the gross earn-
ings of the business of shipping or the business of
air transport (as the case may be) for that period.
(c) -If the gains or profits of a shipowner or air-
craft owner have, for the purpose of assessment in the Island
under this Act, been computed on any basis other than the
ratio of the gains or profits shown by a certificate as afore-
said, and an assessment has been made accordingly, the
shipowner or aircraft owner shall, upon production of such
certificate at any time within two years from the end of the
year of assessment, be entitled to such adjustment as may
be necessary to give effect to the said certificate and to have
any tax paid in excess refunded.
(d) In this subsection the expression "shipowner"
means an owner or charter@ of ships and "aircraft owner"
means the owner or charterer of aircraft, whose principal
place of business is situated outside the Island.
 INCOME TAX 111

(1 1) (a) Gains or profits arising from the business of

shipping or air transport carried on by a person not resident in
FcibJ
the Island shall be exempted from the tax provided that the
Minister is satisfied that an equivalent exemption from income
tax is granted by the country in which such person is resident to
persons resident in the Island and, if that country is a country
other than the United Kingdom, to persons resident in the United
Kingdom.

( b ) In this subsection the expression “business of

shipping” means the business carried on by an owner of ships,
and “business of air transport” means the business carried on by
an owner of aircraft, and for the purposes of this definition the
expression “owner” includes any charterer.

(c) For the purposes of this subsection a company

shall be deemed to be resident in that country only in which the
central management and control of its business is situated.

( I 2) For the purposes of subsections (2), (3) and (4)

the word “company” means any society or association or other
body of persons, whether incorporated or not.
4 8 A . 4 1 ) Subject to the provisions of this Act, where- of tax from
interest
(a) any person (hereinafter referred to as “the investor”) on
makes an investment with any insurance company c-in
deposits or
other than in relation to a specified policy; and investments
with
insurance
( b ) interest arising from such investment is paid or compnjes.
credited by the insurance company to the investor,

the insurance company shall, subject to the provisions of this

Act, deduct from that payment or credit, tax at the rate of 25
cents in the dollar if the investor is an individual, or 33% cents
in the dollar if the investor is any other person.
[The ~nclusioiiof tliis page I S aothonzed by L N 88/2003]
112 INCOME TAX

(2) Interest arising at any time between 16th December,

1993 and 31st May, 1999 in relation to a specified policy shall
be exempt fiom income tax in the hands of the relevant investor.

(3) In subsections (1) and (2) “specified policy” means a

policy evidencing a contract of insurance entered into by an
insurance company between 16th December, 1993 and 31st
May, 1999 (hereinafter called “the investment period”)-

(a) under terms whereby interest is paid by the company

on deposits or other investments made by the investor
in connection with that policy; and

(b) in relation to which-

(i) the interest accruing fiom the principal sum

so deposited or invested would be exempt
fiom income tax, unless such sum is
withdrawn by the investor within three
years of the date on which the contract was
made;

(ii) a deposit or investment has been made by

the investor during the investment period;
and

(iii) no withdrawal fiom such sum has been

made within such three years.

(4) Where an insurance company makes a deduction of

tax pursuant to subsection (l), that company shall be deemed to
be collecting tax on behalf of the Commissioner of

[Tlic inclusion ol’fliis page I S niitlionzed by L N. 88/2003]

 INCOME TAX 112.01

Inland Revenue and shall, within fourteen days after the end of
the calendar month in which the deduction was made, account
for and pay to that Commissioner or to such person as he may
direct, the amount of tax so deducted.

( 5 ) In subsection (1)-

“interest” has the same meaning as in section

3 1A;

“investment” includes any application of

money whether by way of deposit, loan
or otherwise.

Persons Chargeable
49.-(I) The income of a married woman living with her Separate
husband shall, unless an election is made under section 50, be ~~/~~‘‘
assessed and charged to tax as if she were unmarried. of wife’s
income.

( 2 ) [Deleted by Act 4 of 1986.1

( 3 ) [Deleted by Act 4 of 1986.1

(4) Where any income of a wife living with her husband

arises or accrues to her fiom or in respect of any trade, business,
profession, office employment or vocation carried on or
exercised-

(a) by her husband; or

(b) by a body corporate of which her husband is a principal

member; or
[The Iticlnsion of this page IS authorized by L N 88/Z003]
112.02 INCOME T M

(c) jointly by her husband and any partner of his (including

herself),

then such income shall be treated for the purposes of subsection

(1) as the income of the wife only if, when, and to the extent in
respect of which-

(aa) she or her husband satisfies the Commissioner that it

is commensurate with work done by the wife
wholly and exclusively with the object of enabling
her husband, the body corporate or the partners (as
the case may be) to make a profit; and

(bb) the Commissioner notifies both the husband and the

wife in writing that he is so satisfied.

(5) Where any income arises or accrues in any of the

circumstances mentioned in subsection (4 j

(a) the wife; and

(b) her husband or the body corporate or the partners (as

the case may be),

shall deliver or cause to be delivered to the Commissioner not

later than the 15th day of March in the year next following that
in which the income arose or accrued, a written notice stating
that the income arose or accrued in such circumstances, and any
person who fails to comply with this subsection shall be guilty
of an offence against this Act.
[The II~CIUSIOII of this page I S aothonzed by L N 88/2003]
 INCOME TAX 1 I3

50.-(1) Subject to subsection (2), the income of a married

woman living with her husband shall, if she and her husband assessment.
so jointly elect, be deemed to be the income of the husband
and shall be assessed and charged to tax in the name of
the husband.

(2) Notwithstanding that no assessment has been

1211985
made on the wife, the Commissioner of Inland Revenue %b.
may, if so advised by the Commissioner, recover from her
that part of the total tax charged on the husband which
bears the same proportion to such total tax as the amount
of the income of the wife bears to the total joint income
of the husband and wife.
(3) An election under this section shall be made by
giving notice in writing to the Commissioner at any time
during the year of assessment to which the election relates
or not later than the 15th day of March in the year next
following mat year but the Commissioner may, on reason-
able cause being shown to him whereby the election was
prevented from taking place by that date, extend the time
for making the election to such later date as he may specify
in writing.
(4)Any election under this section that could have
been made within any period jointly with a spouse who
has died may, within that period be made jointly with the
deceased's personal representatives.

51. [Repealed by Act 16 of 1980.1

52.-(1) Every body of persons shall be chargeable to

tax in like manner as any person is chargeable under the
provisions of this Act.
(2) The manager or other principal oficer of every
body of persons shall be answerable for doing all such
["he inclusion of this p g c is a v t h o r i d by L.N. 172119861
114 INCOME T A X

acts, matters and things as shall be required to be done by

virtue of this Act for the assessment of such body and
the payment of the tax.

President or
principal
53. The president or other principal officer of every
officcrof society registered under the Industrial and Pro\:ident
rocicly
registCrod Societies Act or of every building society shall be
answerable. answerable for doing all such acts, matters and things as
7/19% shall be required to be done by virtue of this Act for the
s 33.
assessment of such societies and the payment of the tax.

Reprwmta- 54.-(1) A person not resident in this Island, whether a

Lives of
non-resident Cominonwealth citizen or not, shall be assessable and
personi
chargeable in the name of his trustee, guardian or coin-
9/1%3
s. 9 ( I ) (C). mittee, or of any attorney, agent, receiver, branch or
manager, whether such attorney, agent, receiver, branch or
manager has the receipt of t.he profits or gains or not: in
like manner and to the like m o u n t as such non-resident
person would be assessed and charged if he werc resi3ent
in this Island and in the actual receipt of such profits or
gains.
(2) A non-resident person shall be assessable and
chargeable in respect of any profits or gains arising. whether
directly or indirectly, through or from any attorneyship,
agency, receivership, branch or management, and shall be
so assessable and chargeable in the name of the attorney,
agent, receiver, branch or manager.
(3) Where a non-resident person carries on business
with a resident person, and it appears to the Commissioner
that owing to the close connection between the resident
person and the non-resident person the course of business
between those persons can be so arraneed and is so
arranged, that the business done by the resident p r s n n in
pursuance of his connection with the non-resident person
produces to the resident person either no profits or less
me inclusion of this page is authorized by L.N. 172/19861
 INCOME 1AX 115

than the ordinary profits which might be expected to arise

from that business, the non-resident person shall be
assessable and chargeable to tax in the name of the resident
person as if the resident person were an agent of the
non-resident person.
(4) Where it appears to the Commissioner that the
true amount of the profits or gains of any non-resident
person chargeable with tax in the name of a resident person
cannot be readily ascertained, the Commissioner may assess
and charge the non-resident person on a percentage of the
turnover of the business done by the non-resident person
through or with the resident person in whose name he i s
chargeable as aforesaid, and in such case the provisions
of this Act relating to the delivery of returns by persons
acting on behalf of others shall extend so as to require
returns to be given by the resident person of the business
so done by the non-resident person through or with the
resident person, in the same manner as returns are to be
delivered by persons acting for incapacitated or non-resident
persons of profits or gains to be charged.
(5) Where a non-resident person is chargeable to
income tax in the name of any branch, manager, agent,
attorney or receiver in respect of any profits or gains
arising from the sale of goods or produce manufactured or
produced out of the Island by the non-resident person,
the person in whose name the non-resident person is so
chargeable may, if he thinks fit: apply to the Commissioner
to have the assessment to income tax in respect of those
profits or gains made or amended on the basis of the pro6 ts
which might reasonably be expected to have been earned
by a merchant or, where the goods are retailed by or on
behalf of the manufacturer or producer, by a retailer of
the goods sold, who had bought from the manufccturer or
producer direct, and on proof to the satisfaction of the
Commissioner of the amount of the profits on the basis
____[The inclusion of this m e is-aurhorized by L.N. 172:1986]
116 INCOME T A X

aforesaid, the assessment shall be made or amended

accordingly.

TFlSfcc5 5 5 4 1 ) Every trustee, guardian, committee, receiver,

ck.. and
pcrnonal attorney, agent, or other representative shall be chargeable
reprcscnta- to income tax in like manner and to the like amount and
lives
~nawerable. shall be answerable for the doing of all such acts, matters
or things as are required to be done by virtue of this Act
for the assessment of any person for whom he acts and for
the payment of income tax chargeable on him in respect of
the income of any incapacitated or non-resident person.
(2) Where a person chargeablk with income tax
shall die, the personal representative of such person shall be
liable to and charged with the payment of the income tax
which such person was chargeable with and shall be
answerable for doing all such acts, matters and things as
such person, if he were alive, would be required to do
under this Act :
Provided that notwithstanding anything to the contrary
contained in this Act, no assessment or additional assess-
ment shall be made on, and no claim for relief shall be
made by, the personal representative of a deceased person
in respect of the profits or gains or income which arose or
accrued to him before his death beyond the end of the third
year next following the year of assessment in which the
deceased person died.

RCDMU- 56. Every person answerable under this Act in a

tiv& may
retain representative capacity for the payment of income tax m a y
a m w t pap
able for retain out of any money coming to his hands in such
capacity so much thereof as shall be sufficient to pay such
income tax; and every such person shall be and is hereby
indemnified against every person whatsoever for all pay-
ments made by him in pursuance and by virtue of this
Act.
F e inclusbn of this page is suthonrod by L.N. 172l19861
 INCOME TAX 117

57. With respect to every person resident in the Island having Lldbllit! of
the receipt, control and disposal of money belonging to a non- ~~~~~~

resident person who derives income from a source in the Island, pakinSt1tof
or to a non-resident person who is a shareholder, debenture lnc*l"rtd'C

holder, or depositor in a company deriving income from a

source in the Island, the following provisions shall apply-

( a ) he shall, when required by the Commissioner, pay to

the Commissioner of Inland Revenue the tax due and 12j1985
Sch.
payable by the non-resident;

( b ) he is hereby made personally liable for the tax payable

by him on behalf of the non-resident to the extent of
any amount that he has retained, or should have
retained under section 56, but he shall not be otherwise
personally liable for the tax.
For the purposes of this section, every person who is liable
under any contract to pay money to a non-resident shall be
deemed to be a person having the control of money and to be
acting in a representative capacity for the payment of income tax
belonging to the non-resident, and all money due by him under
the contract shall be deemed to be money which comes to him
on behalf of the non-resident.

58.+ 1) Every person who in whatever capacity, is in receipt Delivery OP

list by
of any money or value, or of profits or gains arising from any of persons in
the sources mentioned in this Act of or belonging to any other receiptof
taxable
person who is chargeable in respect thereof and not being a non- income
resident or an incapacitated person, shall whenever required to belonging to
do so by any notice from the Commissioner prepare and deliver Others.

within the period mentioned in such notice a list in the

prescribed form signed by him containing-

(a) a true and correct statement of all such money, value,

profits or gains;
[The inclusion of tliis page IS aiitlionzed by L N 88/2003]
118 INCOME TAX

(b) the name and address of every person to whom the

same shall belong.
(2) Every person who refbses, fails or neglects to
comply with the provisions of this section shall be guilty of an
4 1/2002
offence against this Act, and shall be liable on summary
S. 17. conviction before a Resident Magistrate to a fine not exceeding
one million dollars or to imprisonment for a term not exceeding
twelve months or to both such fine and imprisonment.
Pension Rights of Directors and Employees
Charge to tax 59.-(1) Subject to the exemptions and provisions contained
in respect of
provision for
in section 60 where, pursuant to a scheme for the provision of
retirement or future retirement or other benefits for persons consisting of or
other benetits
to directors
including directors or employees of a body corporate (hereafter
and employees in this Act referred to as “a retirement benefits scheme”), the
of bodies
corporate.
body corporate in any year of assessment pays a sum with a
view to the provision of any such benefits for any director or
employee thereof, then (whether or not the accrual of the
benefits is dependent on any contingency) the sum paid shall be
deemed for all the purposes of this Act to be income of that
director or employee for that year of assessment and assessable
to tax.
(2) Subject to the exemptions and provisions contained
in section 60, where-
(a) an agreement is in force between a body corporate and
a director or employee thereof for the provision for him
of any fbture retirement or other benefits afforded by a
retirement benefits scheme, or a person is serving as a
director or employee of a body corporate in connection
wherewith there is a retirement benefits scheme
relating to persons of the class within which he falls
under which any such benefits will be provided for
him; and
(b) the body corporate does not, or does not fblly, secure
the provision of the benefits by the payment of such
sums as are mentioned in subsection (1); and
[The ~nclusionof this page is authorized by L.N SSl20031
 INCOME T A X

I d the circumstances in which the benefits are to

accrue are not such as will render the benefits
assessable to income tax under this Act as
emoluments of his office as a director or of his
employment,
then (whether or not the accrual of the benefits is dependent
on any contingency), in each year of assessment in which
the agreement is in force or the director or employee is
serving as aforesaid, up to and including the year of
assessment in which the benefits accrue or there ceases to
be any possibility of the accrual thereof, a sum equal to the
annual sum which the body corporate would have had to
pay in that year under a contract with a third person which
secured the provision by that third person of those benefits
or, as the case may be, of those benefits so far as not already
secured by the payment of such sums as are mentioned in
subsection (I), shall be deemed for all the purposes of this
Act to be income of the director or employee for that year
and assessable to income tax.
(3) Where the body corporate pays any sum as
mentioned in subsection (1) in relation to several directors
or employees, the sum so paid shall, for the purpose of
that subsection, be apportioned among them by reference
to the separate sums which would have had to be paid to
secure the separate benefits to be provided for them respect-
ively, and the part of the sum apportioned to each of them
shall be deemed for that purpose to have been paid
separately in relation to that one of them.

60.-(1) The following payments shall be exempted from ikuptionn

from c ' l a w
the operation of subsection (1) of section 59, that is to say- tu
section 59.
(a) payments made to an approved superannuation ~(l&?pl,,
fund or an approved retirement scheme; 3119u
s 24.
F e inclusion of this page is authorized by L.N.37119881
120 IUCOiIlE T A X

(b) payments made pursuant to an excepted provident

fund or staff assurance scheme or other similar
scheme (as defined in section 63); and
(c) payments made by way of premium pursuant to
a scheme the benefits whereunder are secured by
premiums payable by the body corporate, with
or without contributions by the directors or
employees affected, under life or endowment
assurance or life annuity contracts, being a scheme
which was in operation before the 1st day of
January, 1954, and which is not confined, or
substantially confined, to directors and persons
who, not being directors, are remunerated at a
rate exceeding four thousand dollars a year, or
to directors or to such persons.
(2) Neither subsection (1) nor subsection (2) of
section 59 shall apply so as to cause any sum to be deemed
to be income as therein mentioned where the retirement
benefits scheme in question is one under which the main
benefit afforded to each of the persons to whom the scheme
relates is the provision for him of a pension or annuity
for his life, and either--
(U) that scheme was in operation before the 1st day
of January, 1954; or
( b ) that scheme is for the time being approved by the
Commissioner under section 61.
(3) Where, in respect of the provision for a director
or employee of any future retirement or other benefits, a
sum has been deemed to be income of his by virtue either
of subsection (1) or of subsection (2) of section 59, and
subsequently the director or employee proves to the satisfac-
tion of the Commissioner that no payment in respect of,
or in substitution for, the benefits has becn made and that
some event has occurred by reason whereof no such pay-
[The inclwion uf :hi?-& is authorized by, L . N . 31!1988]
 lNCOME T A X 121

ment will be made, and claims relief under this subsection

within three years from the time when that event occurred,
he shall give relief in respect of tax on that sum by repay-
ment or otherwise as may be appropriate; and if the direclor
or employee satisfies the Commissioner as aforesaid in
relation to some particular part of the benefits but not the
whole thereof, he may give such relief as may seem to him
just and reasonable.
(4) Where, apart from this subsection, any sum
would be deemed, by virtue either of subsection (1) or of
subsection (2) of section 59, to be income of an employee
for any year of assessment, but, by reason of his exercising
his employment outside the Island, he is not assessable to --
income tax under paragraph (c) of section 5 in respect
of the emoluments of his employment for that year, that
subsection shall not apply so as to cause that sum to be
deemed to be income of his for that year.
6 1 . 4 1 ) Subject to the provisions of section 62, the Approval of
rcliremenl
Commissioner shall approve a retirement benefits scheme benefits
scheme.
for the purpose of subsection (2) of section 60 unless it
appears to him that the scheme does not fall within the
said subsection (2) by reason of the fact that the main
benefit afforded thereby is not such as is therein mentioned,
or that, although the main benefit is such as aforesaid, the 1/1956
scheme fails to satisfy some one or more of the following .' 33.
conditions, that is to say-
(a) that that benefit will accrue only on retirement at
a specified age or on earlier retirement through
incapacity or on death;
(b) that the nature of the beneEts afforded by the
scheme is the same in relation to all the persons
to whom the scheme relates;
(c) that the proportion between the value of the
pensions or annuities provided for by the scheme,
inclusion 01 this page is au&m'zed by L.N. 172/1986]
 INCOME T A X

in so far as they are not commutable, and the

value of all other benefits afforded thereby,
including the value of so much, if any, of the
said pensions or annuities as is comniutable, is
reasonably comparable to the proportion between
the values of such benefits respectively as are
usually afforded by superannuation schemes;
(4 that the aggregate value of the benefits, of what-
ever nature, afforded by the scheme is reasonably
comparable to the aggregate value of the benefits
usually afforded by superannuation schemes in like
circumstances;
(e) that the pensions or annuities provided for by
the scheme are not assignable, either in whole or
in part; and
If) that no service of a person, in whatever capacity.
rendered by him while he is a controlling director
of the body corporate is taken into account for
any of the purposes of the scheme:
Provided that the Commissioner may, if he thinks fit,
having regard to the facts of the particular case, approve
a scheme the main benefit afforded whereby is such as is
mentioned in subsection (2) of section 60 notwithstanding
that it may not, in one or more respects, satisfy the whole
of the aforesaid conditions.
(2) Where the Commissioner has given his approval
to a scheme, he may at any time, by notice in writing to
the body corporate in question, withdraw his approval on
such grounds, and as from such date, as may be specified
in the notice.

Assresation 6 2 . 4 1 ) References in this Act to a retirement benefits

and
sevcrana 0: scheme shall be construed in accordance with the following
rchcrner.
provisions, that is to say-
[The inclusbn of thin page is authurized by L.Y. 172/1986]
 INCOME T A X 123

(a) references to such a scheme shall, in relation tc

a deed, agreement, series of agreements, or other
arrangements providing for retirement or other
benefits for persons of two or more classes, be
construed as references to so much thereof as
relates to persons of a single class, and accordingly
a deed, agreement, series of agreements, or other
arrangements so providing shall be treated for the
purposes of this Act as constituting two or more
retirement benefits schemes relating respectively to
the different classes;
( b ) references to such a scheme include references to
a deed, agreement, series of agreements, or other
arrangements providing for retirement or other
benefits for persons consisting of or inciuding :i
director or employee, or directors or employecs, of
a body corporate (or, in a case falling W i i h i n
paragraph (a), to so much thereof as relaks to
a person or persons of any one class), notwith-
standing that it or they relates or relate oiily !o
a small number of directors or employees, or to a
single director or eniployee.
(2) For the purpose-
(a) of determining, in the case of a retirement benefits
scheme which was in operation before the 1st day
of January, 1954, whether the scheme falls within
subsection (2) of section 60 as respects the nature
of the main benefit afforded thereby: and
(6) of determining, in the case of a retirement benefits
scheme submitted for the approval of the Commis-
sioner, whether the scheme so falls, and whether
the conditions specified in subsection (1) of section
61 are satisfied,
the scheme shall be considered in conjunction with any
other retirement benefits scheme or schemes subsisting in
w h e inclusion *Ithis page is authorized by L.N. 172119863
124 INCOME T A X

connection with the body corporate and relating to persons

of the class to which the scheme in question relates, and-
(i) if the main benefit afforded by all those schemes
taken together is such as is mentioned in sub-
section (2) of section 60, each of them shall be
taken to fall within that subsection as respects
the nature of the main benefit afforded thereby,
and, if it i s not, none of them shall he taken so
to fall; and
(ii) if the said conditions are satisfied in the case of
all of them taken together, those conditions shall
be taken to be satisfied in the case of each of them,
and, if not, those conditions shall be taken to be
satisfied in the case of none of them.
(3) The Commissioner may, if he thinks fit-
(a) approve a part of a retirement benefits scheme; nr
( b ) approve such a scheme notwithstanding that,
having regard to another such scheme subsisting
in connection with the body corporate, the scheme
in question is to be treated by virtue of subsection
(2) as not falling within subsection (2) of the said
section 60 or as not satisfying the conditions
aforesaid,
and where, under this subsection, the Commissioner
approves a part of a scheme, neither subsection (1) nor sub-
section (2) of section 59 shall apply so as to cause my sum
to be deemed to be income of a director or employee by
reference to the provision for him of benefits afforded by
that part of the scheme or of any part of such benefits.

supple-
mnFry
6 3 . 4 1 ) In sections 59 to 62 except where the context
~IOV~WIIS otherwise requires-
“controlling director” means a director of a company, the
[The includm of this page is authorized by L.N. 172{1986]
 INCOME T A X 125

directors whereof have a controlliiig intcrcsi therein,

who i s the beneficial owner of, or able, either directly
or through thc medium of other companies or by any
other indirect means, to control, more than five per
centurn of the ordinary share capital of the company,
and for the purposes of this definition-
(U) “company” means a company within the
meaning of the Compinies Act; m d
(h) “ordinary share capital” means all the issued
share capital (by whatever name called) of thc
company, other than ,capital the holders
whereof have a right to a dividend at a fixed
rate or a rate fluctuating in accordance with
the rate of income tax, but have no other
right to share in the profits of the company;
“director” means-
( U ) in relation to a body corporate the affairs whereof
are managed by a board of directors or similar
body? a member of that board or similar body:
( b ) in relation to a body corporate the affairs whereof
are managed by a single director or similar person,
that director or person:
(c) in relation to a body corporate the atf;!jrs wherecf
are managed by the members themselves, a
member of the body corporate;
and includes any person who i s to be or has been n
director;
“employee”, in relation to a body corporate, includes any
person taking part in the management of the affairs
of the body corporate who is not a director, and
includes a person who i s to he or has bcen an employee;
“excepted provident fund or staff assurance scheme or
other similar scheme” means so much as relates to
.~
[The inclusinn of this page is authorized by L.N. 172119861
 126 lNCUME T A X

persons remunerated pLt a ].ate of four thousand dollars

a year, or at a less rate, of any retirement benefits
scheme as to which the following conditions are satis-
fied, that is to say-.-
(U) that the sums paid by the body corporate pursuant
to the scheme in question in respect of any person
for any period do not exceed 15 per centurn of
his remuneration for that period, and do not
exceed two hundred dollars in the case of a period
of a year or a correspondingly less or greater
amount in the case of a shorter or longer period:
and
( b ) that no other retirement benefits scheme which
relates to employees of the body corporate who
are of the class to which the scheme in queslion
71 19% relates and who are remunerated as aforesaid, is
s. :3. subsisting for the time being, or, if there is any
such other scheme subsisting, that it (so far as
it relates to persons remunerated as aforesaid)
and the scheme in question taken together satisfy
the requirenient specified in paragraph kd of this
definition;
“retirement or other benefit” means any pension, annuity,
lump sum, gratuity or other like benefit to be given on
retirement, or in anticipation of retirement. or in
connection with past service, after retirement, or to
be given on or in anticipation of or in connection with
any change in the nature of the service of the person
in question, except that it does not include any
pension, annuity, lump sum, gratuity or othzr like
benefit which is to be afforded solely by reason of thc
death or disability of a person occurring during his
service, and for no other reason:
“service” means service as an employee or director of the
__-~
[The i o c l u r h of this page i3 authorized by L.N. 172/1986]
 INCOME T A X 127

body corporate in question, and “retirement” shall be

construed accordingly.
(2) Any reference to the provision for a person of
retirement or other benefits includes a reference to the
provision of benefits payable to that person‘s spouse,
children, dependants or personal representatives, and any
reference to the provision for a person of a pension or
annuity for his life includes a reference 10 the provision
(either in addition or as an alternative to the pension or
annuity payable for his life) of a pension or annuity payuhle
to that person’s spouse or to any child or dependant of that
person, for the life of the spouse, child or dep-ndant.
(3) Any reference to the provision of retirement or
other benefits, or of a pension or annuily, by a body
corporate includes a reference to the provision thereof by
means of a contract with a third person.
(4) It shall be the duty of a body corporatc-
(a) to deliver to the Commissioner, within the three
months beginning with the date on which the
scheme comes into being, particulars of any
retirement benefits scheme coming into being on
or after ihe 1st January, 1955, other than a scheme
referred to in subsection (1) of section 60; and
(/I)when required to do so by notice given by the
Commissioner, to furnish within the time limited
by the notice such further particulars as he may
require with regard to any retirement benefits
scheme subsisting in connection with the body
corporate or to the persons to whom it rela~es,
and the provisions of this Act shall apply in relation to
the particulars required to be delivered by or under this
subsection as they apply in relation to any list, declaration
or statement required to be delivered by any such notice
ss is referred to in this Act.
-~
[The inclus?ononof
this page is authorized by L.N. 1721 19861
 128 INCOME TAX’

Application 64. Sections 59 to 63 shall apply in relation to

to unincur-
porated unincorporated societies or other bodies as those sections
societies, etc.
7,,956 apply in relation to bodies corporate:
s. 33. Provided that the reference in this section to
unincorporated societies or other bodies shall be deemed
not to include a reference to individuals in partnership.

29/1%9 Puymeiat of Estitnarrd Tax Dirririg C z ~ r ~ e n r

s.5. Year of A sse.wnent
Paymcnt 6 5 . 4 1 ) Every taxpayer shall, before the 15th day of
of esti-
mated in- March in every year of assessment compute the amount of
comi lax,
his estimated income tax for such year, and pay such tax
to the Collector of Taxes in four equal instalments on or
before the following instalment dates in such year, namely
the 15th of March, the 15th of June. the 15th of Septembcr
and the 15th of December:
Provided that in the year of assessment in which a person
commences to carry on or exercise a trade, profession or
business or in which income from any other source first
accnies, the preceding provisions of this subsection shall
apply as if they required that person before the 3Ist day
of December of that year of assessment to compute the
ammint of his estimated income tax attributable to such
trade, profession or business or source, and to pay that
tax to the Collector of Taxes before the 31st day of
December aforesaid.
(2) For the purposes of complying with the pro-
visions of subsection ( It
38/1976 (a) a taxpayer other than an individual shall compute
1st Sch.
the amount of his estimated income tax for any
year of assessment by applying the rates of tax
specified in this Act to his estimated chargeable
income and, if applicabie, his estimated statutory
income, for that year;
and
__-- ~. .-
[The inclusion of this page is auxorized by LN. 172119861
 INCOME 1 A X 129

(nu) a taxpayer who is an individual shall compule the 38/1976

151 Sch.
m o u n t of his estimated income tax for any year
of assessment by applying the rates of tax specified
in this Act to his estimated statutory income for
that year;
(b) a person’s estimated chargeable income or esti-
mated statutory income, as the case may be, for
any year of assessment shall, subject to the
provisions of subsection (31, be-
li) the chargeable income OT statutory income,
as the case inay be, disclosed in his return
of income for the immediately preceding
year of assessment; or,
iiif if no such return was made or no tax WAS
payable by that person for the immediately
preceding year of assessment. such charge-
able income or statutory income, as the
case may be, as may be estimated by that
person and accepted by the Commissioner,
or, in default of such estimate or accept-
ance, as may be notified by the Commis-
sioner to that person:
Provided that where sub-paragraph (i} ;Oi;70
applies and-
(A) the income for the current year of
assessment is expected to includc
the profits or gains or losses of a
trade, profession or business
carried on by that person for a
period ending in the year. but
(B) the return of income referrcd to iii
sub-paragraph (i) included profits
or gains or losses of that tradc.
profession or business over a
- .- .__________
--_.
F e inclusmo of this page is authorized by L-N. 172:1986]
130

shorter period or (because the

trade, profession or business had
newIy started) did not include any
such profits or gains or losses,
there shall be added to the income arrived
at under sub-paragraph (i) (or in the cas:
of losses there shall be deducted from that
income) such amount as may be estimated
by that person and accepted by the Commis-
sioner or, in default of such estimate or
acceptance, as may be notified by the
Commissioner to that person, as being
nccessary to make up the discrepancy.
(3) Where, on the application of a laxpayer: ihe
Commissioner is satisfied that the amount of chargeable
income or stntutory income of that taxpay-r is likely to i-r.
less in the current year of sssessment than in the immediately
preceding year of assessment he may accept the lesser
amount as the taxpayer’s estimated chargeable income o:
estimated statutory incoiue, as thc case m a y he. for the
current year of assessment.
(4) If default is made in :he payment of any instal-
ment of estimated income tax for any year of assessrnent
that i s due under subsection (1)-
(a) the Collector of Taxes may proceed to enforce
payment under the provisions of the Tax Collectiun
Act in like manner as if an assessment under the
provisions of that Act for the enforcement of taxes
had been made; and
. .
(b) interest at the rate for the time being chargeable
under section 79 shall be charged thereon from
the day next after the instalment date specified
in relation to t.hat instalment until the date of
payment or the day next after the thirtieth day
[The inclurwn of this page in authorized by L.N. 172/1956]
 INCOME TAX 131

next after the date on which the notice of assess-

ment relating to that year of assessmcnt is signed,
whichever is the earlizr, and such interest n a y be
collected and recovered as if it were income tax
and may be remitted jn whole or in part by th:
Commissioner for reasons which appear to him
sufficient.
( 5 ) The provisions of subsection (3) of section 79
shall (with the necessary modifications) apply in relation
to any unpaid instalment of esti,mated income tax and any
interest payable thereon as they apply in relation to unpaid
income tax and any interest payable thereon.
(6) The application of the provisions of this section
in relation to a taxpayer as respects any year of assessment
shall not affect the applicalion in relation 10 that ta:;payer
as respects that year of assessment of the provisions of this
Act relating to the making of an assessment upon that
taxpayer of the amount at which he ought to be charged
but, where a taxpayer has under this section paid instal-
ments of estimated income tax for any year of assessment,
references (howsoever expressed) to income tax that is due
or payable in those provisions of this Act relating tci
payment and collection of income tax shall, as respects the
application of those provisions in relation to that taxpayer
and that year of assessment. be read and construed as
references to an amount ascertained by deducting from the
chargeable tax payable by that taxpayer for that year the
total amount of the instalments of estimated income tax
so paid.
(7) Nothing in this section applies to emoluments s ~ ~ ~ ~
or affects the provisions of Part T of the Second Schedule, ~ ~ ~ ~ ' '
so. howex-er, that, notwithstanding anything to the contrary
contained in the proviso to subsection (l), where a person's
income in any year of assessment derives partly from
emoluments and partly from other sources-
.___~_ ~

[The i n c l u s b of (his page

i s authorized by LN. 172!19861
132 Ih7COME TAX’

(0) the emoluments shall be taken into account in

determining the total estimated income tax payable
by that person for that year of assessmcnt;
( b ) account shall be taken of any tax paid or payable
by deduction from the emoluments in determining
how much estimated income tax is payable by the
instalments prescribed in subsection (1); and
(c) that person may elect to pay his estimated income
tax by deduction from such emolumenrs instead
of by the instalments prescribed in subsection (1):
or, if such estimaled income tax is greater t h a n
such emoluments, so much OF such estimatcd
income tax as is equivalent to such ernol~mcnts.
(8) In this section-
‘ emoluments” means emoluments to which paragraph (c)
of section 5 applies;
“taxpayer” in relation to any year of assessment means any
person liable to pay income tax, other than a pcrson
whose income for that year derives solely from
emoluments.

Duty to 6 6 4 1 ) Every person shall be under a duty to submit

declare
estimated a declaration of his estimated income tax for the year of
tax.
30,,9,0 assessment, computed in accordance with section 65, except
S. IS. a person who reasonably expects that-
( 0 ) no income tax will be payable hy him for the
year; or
( b ) income tax will be payable by him for the y a i -
only in respect of emoluments from which tau
is required to be deducted at source under this Act.
(2) A declaration required by this section shall be
made in the prescribed form, and accompanied by the
prescribed particulars, and shall be,delivered to the Commis-
sioner or a Collector of Taxes on or before the 15th day
r h e inclusion of this page i s authorized by L.N. l??. 19361
 INCOME TAX 133

of March in the year to which it relates or, in a case to which the

proviso to subsection (1) of section 65 (commencement of a
trade, profession or business) applies, on or before the 31st day
of December in that year.

(3) If a person who is under a duty to deliver a

declaration of his estimated income tax fails to comply with
this section by the date specified in subsection (2) then-
the Commissioner may serve on him a notice
stating that for the purposes of this Act his
estimated statutory income, chargeable income and
income tax, as the case may be, for the year of 3811976
assessment shall be the amounts respectively
specified in the notice; and
whether or not a notice is served on him under
paragraph (a) he shall remain under a duty to
comply with this section, and on his doing so the
Commissioner may cancel a notice served on him
under paragraph (a); and
he shall be liable to a penalty of an amount not
exceeding ten thousand dollars determined by the
Commissioner if he fails to comply with this Sch.
section within thirty days after service on him of
a notice from the Commissioner requiring him to
do so, and shall be liable to a further penalty of
one thousand dollars for each day on which his default 1212004
continues, including days before the service of that Sch.
notice.
(4) Penalties incurred by a person under subsection
(3) (c) shall be treated as income tax payable by that person
for the year of assessment (in addition to any other tax
payable by him), and may be collected on a separate notice
or notices of assessment relating only to such penalties and
specifying a collection date not less than thirty days after
the service of the notice of assessment in question.
-- -- -

[The inclusion of this page is authorized by L.N. 1 1 112005)

 INCOME TAX

(5) It shall be a ground for the bringing of an appeal

under this Act against an assessment made under subsection
(4) that it is excessive having regard to the reasons for the
appellant's failure to comply with this section, and the
provisions of this Act relating to appeals shall apply
accordingly.
(6) If after a declaration has been delivered by a
person under this section it appears to him that his income
tax for the year will be substantially different from that
specified in the declaration he may deliver to the Commis-
sioner or a Collector of Taxes a revised declaration in the
prescribed form and accompanied by the prescribed
particulars, which shall be treated as replacing those
delivered previously.
(7) If it appears to the Commissioner that the
estimated tax shown in a declaration delivered by a person
under this section is incorrect the Commissioner may at any
time serve on him a notice stating that for the purposes
of this Act his estimated statutory income, chargeable
3811976 income and income tax, as the case may be, for the year of
1st Sch.
assessment shall be the amounts respectively specified in
the notice; and the declaration shall thereupon cease to
have effect.
(8) The estimated income tax specified in a declara-
tion under this section or, as the case may be, in a notice
under subsection (3) (a) or (7) shall be treated as computed
for the purposes of section 65, and that section shall have
effect accordingly.
(9) The tax estimated in a declaration or notice
delivered under this section after the 15th of March in the
year of assessment but on or before the 15th of September
shall be apportioned (after allowance for any sums already
paid) into equal instalments each becoming due under
section 65 on one of the remaining instalment dates in

[The inclusion of this page is authorized by L.N. 1 1 1/2005]

 INCOME TAX 135

the year; and the tax estimated in a declaration or notice

delivered under this section after the 15th of September in the
year of assessment shall be payable in one amount (after
allowance for any sums already paid) on the 15th day of
December in that year or, if that date is past, immediately on
delivery of the declaration or notice.
Returns
6 7 . 4 1 ) Subject to the provisions of Part I of the Second ~rturnsof
income.
Schedule, every person liable to pay income tax in respect of 29,1969
any year of assessment shall deliver, or cause to be delivered by s.6.
his agent, to the Commissioner of Inland Revenue, or to the Second
Collector or Assistant Collector of Taxes for the parish in which part I.
N.
he resides, a true and correct return of the whole of his income L.165/1999,
fiom every source whatsoever for that year of assessment and
shall, if absent from the Island, give the name and address of an
agent residing in the Island.
(2) Every return of income for any year of assessment
shall be delivered on or before the 15th day of March in the year
next following such year of assessment, so, however, that the
Commissioner of Inland Revenue may, on the application of any )iEls99.
person, extend the time for delivery of that person's return to
such later date as he may specify in writing.
(3) The Commissioner of Inland Revenue may, if he L.N.
thinks fit, make any extension of time for delivery of a person's 16511999.
return conditional upon the payment by such person of such
amount of tax as the Commissioner of Inland Revenue may 30'1970
specify in a notice served on that person, and such a notice shall s.
22.
L.N,
be treated as if it were a notice of assessment and the collection 1691999.
date were the date on which, apart from the extension of time,
the return was due.
(4) The provisions of the Tax Collection Act shall apply
to every return delivered t o the Commissioner of Inland L.N.
1691999.
Revenue in like manner as they would apply to a return required
to be delivered or rendered to a Collector or Assistant Collector
of Taxes.
1-36 INCOME TAX

30 1970 (5) Every person delivering a return of income shall

s 22.
include with the return a statement in the prescribed form or
l>.s. such form as may be agreed by the Commissioner of Inland
165 1999.
Revenue of the tax chargeable on that income under this Act,
indicating how much (if any) of that tax remains unpaid; and tax
so indicated as unpaid shall be treated as if it had been the
subject of a notice of assessment served on that person and
specifying as the collection date the 15th of March next
following the end of the year of assessment.
(6) Every return shall be in the prescribed form.
Second (7) (a) Subject to the provisions contained in Part I of
Schedulz. the Second Schedule, every employer shall prepare and deliver
Part 1.
on or before the 31st of January in every year to the
L.S. Commissioner of Inland Revenue a return of the names and
165 '1 999
residences of all persons employed by him and of the salaries
paid by him to such persons whose remuneration in the
711956
S. 15 (a). employment for the year ending the 31st day of December
53i1974 preceding exceeds the sum of $22,464, in respect of the year of
s. 5.
411986 assessment 1994, $35,568 in respect of the year of assessment
S. 16. 1995, $50,544 in respect of the year of assessment 1996,
1611990
s. 5. $80,496 in respect of the years of assessment 1997 and 1998,
4 112002 $100,464 in respect of the years of assessment 1999 and 2000
S. 18.
L.N. and $120,432 in respect of the year of assessment 2001, and to
16511999. such other persons as the Commissioner of Inland Revenue
requires.
( b ) Where the employer is a body of persons, the
secretary or the attorney, manager, agent or chief officer resident
in the Island of the body shall be deemed to be the employer for
the purpose of this provision.
(c) Such return shall be in the prescribed form.
711956 (8) Any person who wilhlly fails to comply with the
S. I 5 (b).
1611980
provisions of this section shall be guilty of an offence against
S. 16. this Act and if the failure continues he shall, at the expiration of
each period of thirty days, be guilty of a hrther offence against
this Act.
[The iiicliisioii of this page IS authorized by L N 88/2003]
 INCOME TRY 137

68.-(1) It shall be the duty of every individual residing in Noticeof

income in
the Island whose total income from every source whatsoever for of
any year of assessment exceeds $22,464 in respect of the year of ;E:and
assessment 1994, $35,568 in respect of the year of assessment fivehundred
1995, $50,544 in respect of the year of assessment 1996, dollars. andeighty
$80,496 in respect of the years of assessment 1997 and 1998, 4211958
$100,464 in respect of the years of assessment 1999 and 2000 ig,!:g69
and $120,432 in respect of the year of assessment 2001 to give s. 6.
notice of that fact to the Commissioner of Inland Revenue or to iT,974
a Collector of Taxes before the 15th day of February in the year 3811976
next following such year: I st S C ~ .
411 986
Provided that such notice need not be given by any individual S. 17.
1611990
as respects any year for which he has delivered a return in s. 6.
accordance with subsection (I) of section 67 or, where an 511992
S. 5.
individual is or has been in employment, as respects any year in 4,12002
relation to which his name should be included in a return by his S.18.
L.N.
employer pursuant to subsection (7) of section 67 aforesaid. 16511999.
(2) If any individual, without reasonable excuse, fails to
give such a notice as aforesaid, he shall forfeit the sum of treble
the tax which he ought to be charged under this Act and a
penalty of five thousand dollars. 1212004
(3) Any penalty forfeited and any increased tax payable Sch.
under this section may be added to the assessment.
69.-(1) Where a trade, profession or business is carried on trades, etc.,
by two or more persons jointly the income of any partner from don
the partnership shall be deemed to be the share to which he is bytW00r more
entitled for the year of assessment in the income of the persons
partnership and shall be included in the return of income to be jointly.
made by such partner under the provisions of this Act.
(2) ( a ) The precedent partner, that is to say, the partner
who, of the partners resident in the Island-

(i) is first named in the agreement of partnership; or

(ii) if there is no agreement is named singly or with
precedence to the other partners in the usual name of
the firm; or
[The inclusion of this page is authorized by L.N. 11 112005]
 INCOME TAX

(iii) is the precedent acting partner if the partner named

with precedence is not an acting partner,
shall make and deliver a return of the income of the partnership
for any year of assessment, such income being ascertained in
accordance with the provisions of this Act, and shall declare
therein the names and addresses of the other partners in the firm 0
together with the amount of the share of the said income to
which each partner is entitled for that year of assessment.

(b) Where no partner is resident in the Island the

return shall be made and delivered by the attorney, agent,
manager or factor of the firm resident in the Island.
(3) Any person who refuses, fails or neglects to deliver
any return under the provisions of this section shall be guilty of
an offence against this Act.

D U ~ of
Y 70.-(1) Every person, whether he is or is not liable to pay
persons sewed
with notice to income tax, upon whom the Commissioner of Inland Revenue
makereturns, may cause a notice to be served requiring him to make and
and powers of
Commis- deliver a return of his income or the income of any person, shall,
sioner. within fifteen days after the date of the service of such notice,
L. N .
16511999. make and deliver to the Commissioner of Inland Revenue a
return as aforesaid.

(2) The Commissioner of Inland Revenue may, by not

less than fourteen days' notice in writing, require any person to
attend before him and give evidence with respect to his income.

(3) The Commissioner of Inland Revenue may require (3

any person to deliver a statement of the profits or gains arising
to him from any trade, profession or vocation, and where such
711 956 person fails to deliver such statement or where the
S. 17. Commissioner of Inland Revenue is not satisfied with the
L.N.
16511999. statement delivered by any such person, he may serve on that
person a notice in writing requiring him to do any of the
following things, that is to say-
[The inclusion of this page is authorized by L.N. 11 112005]
 INCOME T A X 139

( a ) to deliver to the Commissioner of Inland Revenue L.U.

16511 9 9 .
copies of such accounts (including balance sheets)
relating to the trade, profession or vocation as may
be specified or described in the notice within such
period as may be therein specified, including, where
the accounts have been audited, a copy of the
auditor's certificate;
(b) to make available within such time as may be
specified in the notice, for inspection by the
Commissioner of Inland Revenue, all such books, L.N.
165/1999.
accounts and documents in his possession or power
as may be specified or described in the notice, being
books, accounts and documents which contain
information as to transactions of the trade, pro-
fession or vocation.
(4) If any person on whom any such notice is
served fails without reasonable excuse to comply with the
requiremen,ts of the notice, he shall be guilty of an offence
against this Act.
( 5 ) It shall be the duty of every public officer to
furnish information required by the Commissioner of Inland k;y;,qgg.
Revenue for the purposes of this Act, and which may be in
his possession or which he may be able to procure : Provided
that this subsection shall not apply to officers who are
employed in the Post Office J k p r t m e n t .
(6) Nothing in this section shall be construed as s.
1311991
2
requiring the Cammissioner of Inland Revenue 10 cause a L,N,
notice to be served upon any person before an assessment 165/"399.
is made upon that person.
71.41) On or before the 31st of January in each year,
every society registered under the Industrid and Provident socievto
make
Societies Act and every building society shall deliver to the
nnd bash
Commissioner of Inland Revenue a return in such form as ofmelr
may be prescribed, showing such particulars as t e mcot
L!N.
165/ 1999.
[The inclusion of this page is aulhnrired hy L.N. 3/2w1]
140 lNCUME T A X

( a ) thz name and place of residence of every person

to whom share interest has been paid by the
society in the year which ended next before the
1st of January in the year in which the return is
made; and
(hl the amount of such share interest paid in that year
to each of those persons,
L.N. or as the Commissioner of Jnland Re\:enue may direot, and
165 j IWJ.
if such return is not duly made as respwts any year the
society shall not be entitled to any relief under section 46
in respect of any payments of share interest which it was
required to include in the return. and the amount of any
relief or allowance which has been given in respect of any
such payments may, if not otherwise made good, be assessed
and recovered from the society accordingly.
(2) The assessment to income tax on all registered
societies shall be based on the actual net revenue of the
society including any profit or surplus arising from trans-
actions either between the society and persons other than
members of the society or between the society and its
members.
Assessments
Powu d 72.-(1) The Commissioner shall proceed to assess every
Commis-
SiUneI 10 person liable to the payment of tax as soon as may be after
m a k e BSSLW
mtntsand the expiration of the time allowed to such person for the
~ ~ $ ~ & ' of~his return:
delivery
conversion
ofpropcny Provided that where the whole amount of tax remaining
or making
fmudulm
statemenis,
unpaid is the subject of a deemed assessment under sub-
CIF. section ( 5 ) of section 67 it shall not be necessary to make
s. U an actual assessment.
( 2 ) Where a person has delivered a return the Com-
missioner may-
(a) accept the return and make an assessment
accordingly; or
-
[The inclusion of this page is authorized by L.N. 3/20011
 INCOME TAX 141

(b) refuse to accept the return and, to the best of his ~ l ~ ~ ~ a ) ,

judgment, make an assessment upon that person of the
amount at which he ought to be charged.

(3) Where a person has not delivered a return and the 711956
S. 18 (b).
Commissioner is of the opinion that such person is liable to pay
tax, he may, according to the best of his judgment, make an
assessment upon such person of the amount at which he ought to
be charged, but such assessment shall not affect any liability
otherwise incurred by such person by reason of his failure or
neglect to deliver a return.
(4) Where it appears to the Commissioner that any
person liable to tax in respect of any year of assessment has not ,21,958
been assessed or has been assessed to a less amount than that s. 13.
which ought to have been charged the Commissioner may,
within the year of assessment or within six years after the
expiration thereof, assess such person at such amount or
additional amount or surcharge, as according to his judgment
ought to have been charged:

Provided that where any form of fraud or wilful default has

been committed by or on behalf of any person in connection
with or in relation to income tax, assessments, additional
assessments and surcharges on that person to income tax for that
year may, for the purpose of making good to the Crown any loss
of tax attributable to the fraud or wilful default, be made as
aforesaid at any time:
Provided further that any person who disputes such
assessment, additional assessment or surcharge, may appeal to
the Commissioner of Taxpayer Appeals and, as the case may
2911971
require, to the Revenue Court in the same manner as an appeal s, 12,
may be made against an assessment. L.N.
8B12002.

(5) (a) Where a person who ought to be charged with

tax, as directed by this Act, is not duly assessed and charged by
reason that he has-
[The inclusion of this page is authorized by L.N. 11 1/2005]
 INCOME TAX

(i) fraudulently changed his place of residence or

fraudulently converted, or fraudulently released,
assigned or conveyed any of his property, or

(ii) made and delivered any statement,or schedule which

is false or fraudulent, or

(iii) fraudulently converted any of his property which was

chargeable by altering any security relating thereto or
by fraudulently rendering it temporarily unproductive,
in order not to be charged for the same or any part
thereof, or

(iv) been guilty of any falsehood, wilful neglect, fraud,

covin, art or contrivance whatsoever,
such person shall, on proof thereof to the Commissioner, be
assessed and charged treble the amount of the charge which
ought to have been made upon him:

Provided that, if any charge has been made, but that charge is
less than the charge which ought to have been made, such
person shall be assessed and charged, over and above the former
charge, treble the amount of the difference between the charge
which was made and the charge which ought to have been made,
such amount to be added to the assessment.

(b) A person who knowingly and wilfully aids, abets,

assists, incites or induces another person to make or deliver a
false or fraudulent account, statement or declaration, of or 0
concerning any profits or gains chargeable, or the yearly rent or
711956 value of any lands, tenements or hereditaments, or any matters
s. 18 (4. affecting any such rent or value, shall be liable on conviction on
indictment .in a Resident Magistrate's Court to a fine not
1212004 exceeding one hundred thousand dollars or to imprisonment
Sch.
with or without hard labour for a term not exceeding two years.
[The inclusion of this page is authorized by L.N. 11112005]
 INCOME TRY 113

( 6 ) (a) If the Commissioner-

(i) has made a charge to tax in respect of a
sum in excess of the amount contained in
a return of a person to be charged; or
(ii) discovers that a charge to tax in respect of 7/1956
a sum in excess of such amount ought to S 33
be made, and an assessment is made, at
any time within the year of assessment or
within three years after the expiration
thereof,
he may, unless the person to be charged proves to his
satisfaction that the omission by him did not proceed from any
fraud, covin, art or contrivance or any gross or wilfbl neglect,
charge that person, in respect of such excess, in a sum not
exceeding treble the amount of the tax on the amount of the
excess.
(b) If the person to be charged has neglected or
rehsed to deliver a return, the Commissioner may charge him in
a sum not exceeding treble the amount of the tax with which, in
his judgment, he ought to be charged, and such sum shall be
added to the assessment.
7 3 . 4 1 ) No assessment need be made on a person in respect Formal
asessment
of emoluments, to which paragraph (c) of subsection (1) of tobe""-
section 5 applies, received by him during any year of assessment necessary in
Ceatalfl
if the total net tax deducted from his emoluments is the same as cases
it would have been if all the relevant circumstances had been
known to all parties throughout the year, and deductions and
repayments had, throughout the year, been made accordingly
and had been so made by reference to tax tables prepared by the
Commissioner.
(2) Nothing in this section shall be construed as
preventing an assessment being made on a person in respect of
his emoluments, and without prejudice to the generality of the
preceding provisions of this subsection an assessment
[The riicliisioii of this page IS aothonzed by L N 88nO03l
 INCOME TAX

shall be made in respect of the emoluments of a person for any

year of assessment if-

(a) the person assessable requires an assessment to be

made by notice in writing given to the Commissioner
within three years from the end of the year of
assessment; or
(b) the emoluments paid in the year are not the same in
amount as the emoluments which would fall to be
treated as the emoluments for the year.
(3) In this section references to the total net tax deducted
shall be construed as references to the total tax deducted during
Second the year by virtue of the Regulations contained in Part I of the
Schedule Second Schedule.
Part I.
(4) Every person who disputes whether any emoluments
2911971 are or are not emoluments to which this Act applies, may appeal
s. 12. to the Commissioner of Taxpayer Appeals and, as the case may
L.N.
8Bi2002. require, to the Revenue Court in the same manner as an appeal
may be made against an assessment.
Assessment
lists.
74.- 1) After completing the assessment, the Commissioner
shall prepare lists of persons liable to pay income tax.
(2) Such lists (hereinafter called the assessment lists)
shall contained the names and residences of the persons liable to
pay income tax, the amount payable by each person and such
other particulars as may be prescribed.
Notice of 75.-(1) The Commissioner shall cause to be served
assessment
and objection personally on, or sent by registered post to each person whose
to assessment. name appears on one of the assessment lists, a notice addressed
to him at his usual place of abode or business, stating the
amount at which he is assessed and the amount of tax payable by
him, and informing him of his right under subsection (4).
(2) No assessment charge or other proceedings
purporting to be made in accordance with the provisions of
this Act shall be quashed, or deemed to be void or
[The inclusion of this page IS authonzed by L N 88L?003]
 INCOME TAX 145

voidable, for want of form, or be affected by reason of a

mistake, defect or omission therein, if the same is in substance
and effect in conformity with or according to the intent and
meaning of this Act, and if the person charged or intended to be
charged or affected thereby is designated therein according to
common intent and understanding.
(3) An assessment or the duty charged thereon shall not
be impeached or affected-
(a) by reason of a mistake therein as to-
(i) the name or surname of a person liable; or
(ii) the description of any income; or
(iii) the amount of the tax charged; or
( b ) by reason of any variance between the notice and the
assessment:
Provided that in cases of assessment the notice thereof shall
be duly served on the person intended to be charged and such
13 '1 99 1
notice shall state the basis on which the assessment is made. s.3.
(4) If any person disputes the assessment (including any 34,1970
determination or other decision made by the Commissioner S. 6.
before the making of the assessment, and upon which it is
based) he may apply to the Commissioner, by notice of
objection in writing, to review and to revise the assessment
made upon him. Such application shall state precisely the
grounds of objection to the assessment and shall be made within
thirty days from the date of the service of the notice of
assessment:

Provided that the Commissioner upon being satisfied that

owing to absence from the Island, sickness or other reasonable
cause, the person disputing the assessment was prevented fiom
making the application within such period, shall extend the
period as may be reasonable in the circumstances.
(4A) The onus of proving that the assessment complained of L.N.
8W2002
is erroneous shall be on the person making the objection.
(The ~ n c l i i s ~ oofn thls page IS authorized by L N 88/2003]
146 INCOME TAX

X/I')X-3
s 2(a)
(5) (a) On the receipt of the notice of objection referred
to in subsection (4), the Commissioner may require the person
giving the notice of objection-
(i) to deliver (if he has not already done so) within
thirty days or such longer period as the
Commissioner may permit, a return of income for
the years of assessment which in the opinion of the
Commissioner are affected by the notice of
objection;
(ii) to hrnish within such period as the Commissioner
may specify, such particulars as the Commissioner
may deem necessary with respect to the income of
the person assessed and to produce all books and
other documents in his custody or under his control
relating to such income,
and may by notice summon any person who he thinks is able to
give evidence respecting the assessment to attend before him
and may examine such person on oath or otherwise.
711956 ( h ) Any person who without lawfbl excuse
sI ~ W refuses or neglects to attend or to give evidence in pursuance of
a notice served on him under paragraph (a), or to produce any
books or documents which he is required to produce under the
said paragraph, or who refuses to answer any l a h l question
touching the matters under consideration, or who knowingly or
wilfully gives any false evidence before the Commissioner, shall
be guilty of an offence against this Act.
811 9x3
S 2(h)
(c) Where the person giving the notice of
objection refuses or neglects to deliver any return or hmish any
particulars or to produce any books or documents, as the case
may be, required by the Commissioner under paragraph (a),
within the period prescribed by or pursuant to that paragraph,
the notice of objection served by such person shall cease to have
effect and the assessment as made shall, subject to section 81, be
final and conclusive for all purposes of this Act as regards such
person.
[The iiiclusioii of this page IS authonzed by L N 88/2003]
 INCOME TXX 147

(6) In the event of any person assessed, who has

objected to an assessment made upon him, agreeing with the
Commissioner as to the amount at which he is liable to be
assessed, the assessment shall be amended accordingly. In any
other event the Commissioner shall give notice in writing to the
person of his decision in respect of the objection.
(6A) A person who is dissatisfied with a decision of the L.S.
165 1999.
Commissioner under subsection (6) may appeal against that L.s.
decision to the Commissioner of Taxpayer Appeals within thirty 8 8 2002.
days of the receipt of the decision:

Provided that the Commissioner upon being satisfied that LS.

owing to absence from the Island, sickness or other reasonable 8E2002.

cause, the person disputing the assessment was prevented fiom

making the application within such period, shall extend the
period as may be reasonable in the circumstances.
(6B) On an appeal under subsection (6A) the L.S.
8E2002.
Commissioner may confirm, reduce the amount under or vacate
the decision concerned.
(7) Where no valid objection or appeal has been lodged
within the time limited by this Act against an assessment as
regards the amount of the chargeable income assessed thereby,
or where the amount of the chargeable income has been agreed
to under subsection (6), or where the amount of such chargeable
income has been determined on objection or appeal, the
assessment as made or agreed to or determined on appeal, as the
case may be, shall be final and conclusive for all purposes of
this Act as regards the amount of such chargeable income:

Provided that nothing herein contained shall pevent the 12 1985

Commissioner of Inland Revenue fiom making any rehnd under
the provisions of section 8 1, or the Commissioner fiom making
any assessment or additional assessment for any year of
assessment which does not involve reopening any matter which
has been determined on appeal for the year.
1-18 INCOME T M

Appeals
Appeals. 76.-(I) Any person (hereafter in this Act referred to as the
29 1971
s. 12. “objector”) who has disputed his assessment by notice of
37 1971
s. 3 .
objection under section 75, and who is dissatisfied with the
L.S. decision of the Commissioner of Taxpayer Appeals therein, may
163 1999.
L.S.
appeal to the Revenue‘ Court within thirty days of the date of
8B 2002. receiving the Commissioner’s decision made pursuant to
subsection ( 6 ~ of) section 75 or within such longer period as
may be permitted by or pursuant to rules of court.
(2) The onus of proving that the assessment complained
L.S. of is erroneous shall be on the objector.
8B 2002.
8 1983 ( 2 4 An appeal shall be limited to the grounds stated in
s. 3 . the notice of objection but the Revenue Court may in its
discretion permit the grounds of appeal to be amended.
(3) Notwithstanding any other provision of this Act,
income tax shall be paid in accordance with the decision of the
Revenue Court, until, in the event of an appeal being made to
the Court of Appeal, the Court of Appeal, having heard the
appeal, shall otherwise order.
Collection of Income Tmc
Extracts ffom 77.-(1) The Commissioner shall from time to time forward
assessment
lists to be sent to the Commissioner of Inland Revenue for collection of income
to Commis- tax, extracts fiom the assessment lists containing the names and
sioner of
Inland addresses of every person assessed in respect of income together
Revenue for with the amount of income tax payable by each person.
collection and
collection of
tax pending
appeal.
1811971
s. 3.
1211985
Sch.
L.N.
16511999.
3711961 (2) Collection of income tax shall, in cases where an
s. 2.
2911971 objection to the assessment has been made or an appeal is
s. 12. pending to the Commissioner of Taxpayer Appeals or the
L.N.
16511999. Revenue Court, remain in abeyance until such objection or
L.N. appeal is determined:
8Bl2002.
[The inclusion of this page I S authonzed by LN 88i20033
 ZNCOME TAX 149

Provided that if any portion of the tax is not in dispute and

remains unpaid on the collection date or such other time as may
c2969
be specified in this Act or in rules or regulations made
thereunder, it shall be lawful for the Commissioner of Inland 12(1985
Revenue to enforce payment of such portion in accordance with Sch
the provisions of this Act.

7 8 . 4 1 ) Subject to the provisions of this section, income tax me11

appearing in the notice of assessment for any year shall be

payable without fbrther demand to the Collector of Taxes on or 37'1961
S. 3 (a).
before the collection date.

(2) Income tax in respect of emoluments specified in Collection

paragraph (c) of section 5 shall, subject to and in accordance
with the provisions of this Act and of the Regulations set forth in
Part I of the Second Schedule to be deducted or repaid by the
person making the payment notwithstanding that when the
iz:r:
certain

Second
Schedule.
payment is made no assessment has been made in respect of the part I,
emoluments:

Provided that where during any year of assessment any

payment of any emoluments is made, income tax for that year
shall be deducted or repaid on the making of that payment
notwithstanding that the emoluments are in whole or in part
emoluments for some other year.
(3) Where, pursuant to the Income Tax (Employments) ~ 1 9 6 1
Regulations set forth in Part I of the Second Schedule any s.3(b).
amount of tax is payable by an employer as defined in those
Regulations to a Collector of Taxes, the amount so payable shall
be paid to the Collector of Taxes without fkther demand on or
before the last day of the period within which pursuant to the
Regulations aforesaid that amount is so payable and for the
purposes of section 79 the last day aforesaid shall, in respect of
that amount, be deemed to be the collection date.
[The inclusion of this page is autlionzed by L.N. 88/2003]
150 INCOME TAX

29l1969 (4) In this section “collection date” means, in relation

S. 6.
to any assessment, the thirtieth day next after the date on which
the notice of assessment is signed except that where, pending
determination of an objection or appeal, the collection of any
portion of tax remains in abeyance pursuant to subsection (2) of
section 77, the collection date in relation to the amount of such
2911971 tax determined by the Commissioner or by the Commissioner of
s. 12.
L.N. Taxpayer Appeals or the Revenue Court, as the case may be, to
8B12002. be due shall be the thirtieth day next after the date on which the
objection is settled by the Commissioner or the appeal is
determined by the Commissioner of Taxpayer Appeals or the
Revenue Court, as the case may be. ,
hsi@ationof 78A.-(1) Where an employer as defined in the Regulations
responsible
officer by referred to in section 78 is a body corporate, such employer shall
bodycor- designate an officer of that body corporate (hereinafter in this
porate .
911986 section referred to as the “responsible officer”) who shall be-
s. 4.
(U) answerable for doing all such acts, matters and things
as are required to be done by virtue of this Act or the
Regulations for the payment of tax;

(b) responsible for making, in accordance with the

provisions of that section, payment to the Collector of
Taxes of any tax deducted pursuant to those
Regulations as aforesaid.
(2) The employer shall give written notice to the
Collector of Taxes of any designation made pursuant to
subsection (1) and shall also notify the Collector of any change
in that designation.

(3) In the absence of any designation pursuant to

subsection (l), the person who is the managing director of
the body corporate or, as the case may be, the person who
(by whatever name called) performs the duties normally
carried out by a managing director, or, if there is no such
person, the person in Jamaica appearing to the Collector
[The inclusion of this page is authorized by L N. 88120031
 INCOME T A X 151

of Taxes to be primarily in charge of the body corporate’s

affairs, shall for the purposes of this section be deemed to
be the responsible officer.
(4) A responsible officer shall within fifteen days
after the end of each month, notify the Collector of Taxes
of any outstanding balances of income tax payable pursuant
to the Regulations aforesaid by the body corporate as at the
end of that month and any responsible officer who fails to
do so shall be guilty of an offence under this Act.
(5) A responsible officer who fails or neglects to
carry out his duties in accordance with this section shall-
(a) in the event of failure or neglect to pay over to the
Collector of Taxes any tax deducted or which
ought to have been deducted, be jointly and
severally liable together with the body corporate
for such tax as aforesaid and any penalties in rela-
tion thereto;
(b) in any other case, be liable (together with the body
corporate) for any penalties under this Act,
unless he satisfies the Collector-
(i) that there were bona fide reasons for the
failure or neglect and that the payment
could not have been made in the circum-
stances; or
lii) that he was overruled by the board of
directors (hereinafter referred to as the
board) or was otherwise prevented by the
board or by any director thereof from
carrying out his duties under this section.
(6) If the Collector is not satisfied as to the matters
referred to in subsection (5) (b) (i) or (ii), as the case may
be, he shall advise the responsible officer concerned of his
decision in writing.
-
me inclusion of this page IS authariaed b y L.N 1?2/19861
 152 INCOME T A X

(7) Where the responsible officer satisfies the Collec-

tor pursuant to subsection (5) (b) (ii) that he was overruled
or prevented as mentioned in that subsection, each director
shall be jointly and severally liable (together with the body
corporate) for the tax and any penalties in relation thereto
unless he proves thal-
(a, there were bona fide reasonsfor overruling the res-
ponsible officer or preventing payment and that
the payment could not have been made in the
circumstances; or
ihl he was neither a party to the decision of the board
to overrule the responsible officer nor a party to
any action by the board or any other director to
prevent payment.
(8) A person who is designated a responsible officer
shall not be liable in respect of any tax deductec-
In) prior to the date of his designation; or
(b) during any period when, consequent on notifica-
tion to the Collector. he is not the responsible
officer.
(9) In this section “body corporate” means-
(a) a statutory body or authority; and
(6) a company.

Enfomw 79.-( 1) Where any income tax, being due and payable,
payment of
LBXeS. remains unpaid-
37/1961
s 4 (a) the Collector of Taxes may proceed to enforce
payment under the provisions of the Tax Collection
Act in like manner as if an assessment under the
provisions of that Act for the enforcement of taxes
had been made; and
[The incl&n @fthis page is autimrized by L.N. 172/1986]
 INCOME TAX 153

( b ) interest shall be charged thereon from the day next

after the collection date, as defined in section 78
until the date of payment at the rate of eight per
centurn per annum or at such other rate as the
Minister may, subject to subsection (4), from time
to time, by order prescribe and shall be in addition
to any interest payable under subsection (4) of 29/1%9
S. h
section 65, which remains unpaid.
(2) Interest payable on any income tax pursuant to 3711961
this section- s 4.
(a) may be added to the amount payable as income
tax and may be collected and recovered as if it
were income tax; and
( b ) may be remitted in whole or in part by the Corn-
missioner for reasons which appear to him
sufficient.
(3) A certificate of a Collector of Taxes that any 37/1961
amount of tax or interest due thereon is payable under this .' 4.
Act and that payment has not been made to him, or, to the
best of his knowledge and belief, to any other Collector of
Taxes or to any other person acting on his behalf or on
behalf of another Collector of Taxes, shall be sufficient
evidence that the sum mentioned in the certificate is unpaid
and is due to the Government, and any document purporting
to be such a certificate as is mentioned in this subsection
shall be deemed to be such a certificate unless the contrary
js proved.
(4) Any order made by the Minister pursuant to 3711961
s. 4.
paragraph ( b ) of subsection (1) shall be subject to negative
resolution of the House of Representatives.
income tax
88. Income tax and any interest payable pursuant to maybe
recovered by
section 79, may be sued for and recovered in the Revenue
Court, or in a Resident Magistrate's Court by a Collector F/i,961
29/1971
Wfw i n c l u h of this page is authon'zcd by L.N. 172/19861. s. 12.
154 INCOME T A X

of Taxes, with full costs of suit, from the person charged

therewith as a debt due to the Government, as well as by
the means provided for in section 79.

Repaymenr of Tax
Repayment
of tax,
8 1 4 1 ) If it be proved to the satisfaction of the
claimrand Commissioner that any person for any year of assessment
has paid tax, by deduction or otherwise, in excess of the
amount with which he is properly chargeable, such person
shall be entitled to have the amount so paid in excess
refunded and the Commissioner of Inland Revenue shall, on
'2'1985
Qh.
being notified by the Commissioner that he is satisfied as
aforesaid, make the refund accordingly. Every claim for
repayment under this section shall be made within six years
from the end of the year of assessment to which the claim
relates.

29/1%9 (2) Where the amount in excess was paid by way of

S. 6. estimated income tax in accordance with the provisions of
section 65, interest on the amount in excess, at such rate
as may be prescribed by the Minister by order, shall be pay-
30/ 1970
able to the taxpayer as respects the period beginning on the
s. 22. date on which a claim for repayment is lodged with the
Commissioner setting out-
(a) the grounds on which the claim is based; and
(b) the amount of the repayment claimed,
and ending on the date on which it is refunded :
Provided that where the Commissioner has notified the
tax-payer of the over-payment and the amount thereof this
subsection shall apply with the omission of paragraph (a).
(3) Except as regards sums repayable on an
objection or appeal, no repayment shall be made to any
person in respect of any year of assessment as regards
F e inclusion of this page is authorized by L.N. 172/19861
 INCOME TAX 155

which such person has failed or neglected to deliver a return,

unless it is proved to the satisfaction of the Commissioner that
such failure or neglect to deliver a return did not proceed from
any fraud or wilful act or omission on the part of such person.

(4) Any person who objects to the amount of any

1211985
repayment made by the Commissioner of Inland Revenue may Sch.
appeal to the Commissioner of Taxpayer Appeals and, as the z9/1971
case may require, to the Revenue Court in the same manner as s. 12.
L.N.
an appeal may be made against an assessment. 8B/2002

81A.-(l) Where pursuant to section 81, an amount of tax over-

has been repaid to any person which ought not to have been
repaid to him, that amount of tax may be assessed and recovered
as if it were unpaid tax.
z986
paymnentof

S. 18.

(2) In any case where-

(a) pursuant to subsection (2) of section 81, a repayment
of tax has been increased by a payment of interest;

( b ) the whole or any part of that repayment has been paid

to any person but ought not to have been paid to him;
and
(c) that repayment ought not to have been made either at
all or to any extent,
then the amount of repayment assessed under subsection (1) of
this section may include an amount equal to the amount by
which the repayment ought not to have been increased.

(3) In this section any reference to amount repaid

includes a reference to an amount allowed by way of set-off
Relief against Double Income Tmc
82.-(1) Any person who has paid by deduction or Relief
otherwise, or is liable to pay, income tax under this Act for

[The inclusioii of this page is authonzed by L N 88/2003]

156 INCOME TAX

any year of assessment on any part of his income and who

proves to the satisfaction of the Commissioner that he has paid
income tax in the United Kingdom for that year in respect of the
same part of his income shall be entitled to relief from income
tax under this Act paid or payable by him on that part of his
income at a rate equal to the amount by which the rate of tax
appropriate to his case under this Act exceeds half the
appropriate rate of the United Kingdom tax. If, however, the rate
of tax appropriate to his case under this Act exceeds the
appropriate rate of the United Kingdom tax he shall be entitled
to relief at a rate equal to half the appropriate rate of United
Kingdom tax:

Provided that where in the case of an individual, but for this

proviso, the amount of tax payable under this Act after
allowance of any relief as aforesaid, when added to the amount
of tax payable in the United Kingdom in respect of the same part
of his income after the allowance of such relief as is granted by
911963 Part I1 of the 18th Schedule of the United Kingdom Income Tax
S. 9 (l)(d).
Act, 1952 (which amount is hereinafter referred to as “the net
United Kingdom tax”) would exceed the greater of the amounts
of tax which, but for the reliefs aforesaid, would be payable
under this Act or in the United Kingdom respectively (which
amounts are hereinafter referred to respectively as “the gross
Jamaican tax” and the “gross United Kingdom tax”), the
Commissioner may, if he is satisfied that special hardship would
otherwise be caused, grant such additional relief fiom the tax
payable under this Act as he may think fit up to an amount
sufficient to reduce the net tax so payable to an amount which
when added to the net United Kingdom tax, will be equivalent to
the gross Jamaican tax or the gross United Kingdom tax,
whichever is the greater.
711956 (2) For the purposes of this section a certificate
S. 24 (a), (b).
issued by or on behalf of the Commissioners of Inland
[The iiiclusioii of this page is authorized by L.N. 88/2003]
 INCOME T A X 151

Revenue in the United Kingdom or by the appropriate

authorities h the Commonwealth shall be receivable in
evidence to show what is the appropriate rate of United
Kingdom tax or the net United Kingdom tax or Common-
wealth Income tax (as the case may be), in any particular
case.
For the purposes of this section the expression ”rate of
tax” when applied to income tax paid or payable under this
Act means the rate determined by dividing the amount of
the income tax paid or payable for any year (before the
dcduction of the relief granted under this section) by the
amount of the income in respcct of which the tax paid or
payable under this Act has been charged for that year,
except that where the income which is the subject of a claim
to relief under this section i s computed by tcference to the
provisions of section 54 on an amount other than the
ascertained amount of the actual profits, the rate of tax shall
be determined by the Commissioner.
(3) If any person resident in the Island who has paid,
by deduction or otherwise, or is liable to pay tax under this
Act for any year of assessment on any part of his income,
proves to the satisfaction of the Commissioner that he has
paid, by deduction or otherwise, or is liable to pay,
Commonwealth Income tax for that year in respect of the 711956
same part of his income, he shall be entitled to relief from S. 21 (b).
tax in the Island paid or payable by him on that part of his
income at a rate thereon to be determined as follows-
(a) if the rate of Commonwealth Income tax does not 711956
exceed one-half of the rate of tax appropriate to S.24 (c).
his case under this Act, the rate at which relief is
to be given shall be the rate of Commonwealth
Income tax;
(b) in any other case, the rate at which relief is to be
given shall be half the rate of tax appropriate to
his case under this Act.
__ __
me inclusion of this page is a u t h o r i d by L.N. 172/1986]
:55 INCOME T A X

(4)If any person not resident in the Island who has

paid, by deduction or otherwise. or is liable to pay, tax under
this Act for any pear of assessment on any part of his
income, proves to the satisfaction of the Commissioner that
he has paid, by deduction or otlienvise, or is liable to pay,
7:'1956
s. 21fi). Commonwealth Income tax for that year of assessment in
respect of the same part of his income, he shall be entitled
to relief from tax paid or payable by him under this Act
on that part of his income at a rate thereon to be determined
as follows-
:/I956 (a) if the rate of Commonwealth Income tax
s. 21 (c).
appropriate to his case does not exceed the rate
of tax appropriate to his case under this Act, the
rate at which relief is to be given shall be one-half
of the rate of Commonwealth Income tax;
(b) if the rate ol Commonwealth Income tax
appropriate to his case exceeds the rate of tax
appropriate to his case under this Act, the rate at
which relief is to be given shall be equal to the
amount by which the rate of tax appropriate to
his case under this Act exceeds one-half of the rate
of Commonwealth Income tax.
7Ii956
S. 24 (b), (d). (5) For the purposes of this section, Commonwealth
Income tax means any income tax charged under any
enactment in force in any part of the Commonwealth (other
than the United Kingdom or this Island):
Provided that the Legislature of that part or place has
provided for relief in respect of tax charged on income both
in that part or place and this Island in a manner similar to
that provided in this section.
7:'1956 (6) Where a person is for any year of assessment
S. 24 (b).
resident both in the Island and in a part or place in which
Commonwealth Income tax is charged, he shall for the
purposes of this section be deemed to be resident where
dclring that year he resides for the longer period.
__._
mhe inclusion of this page iq authorized by L.N. 172!11946]
 INCOME T A X 159

83.-(1) If the Minister by order declares that arrange- Powerof

Minister
ments specified in the order have been made with the tomalic
Government of any territory outside the Island with a view :$;jing
to affording relief from double taxation in relation to income arrange-
menls ID
tax and any tax of a similar character imposed by the laws beiqforce
of that territory, and that it is expedient that those arrange- wt-5 other
territories.
ments should have effect, the arrangements shall have effect l(lJ:&
in relation to income tax notwithstanding anything
contained in any enactment.
(2) On the making of an order under this section
with respect to arrangements relating to the United
Kingdom, section 82 shall cease to have effect and shall be
deemed to have ceased to have had effect as from the
beginning of the first year of assessment for which the
arrangements are expressed to apply except in so far as the
arrnng-ments otherwise provide.
(3) On the making of an order under this section
with respect to arrangements relating to any territory
forming part of the Commonwealth (other than the United 7/19s6
Kingdom or this Jsland), section 82 shall cease to have effect S. 25.
in relation to that territory and shall be deemed to have
ceased to have had effect as from the beginning of the first
year of assessment for which the arrangements are expressed
to apply except in so far as the arrangements otherwise
provide.
(4) Where any arrangements have effect by virtue
of this section, the obligation as to secrecy imposed by
section 4 shall not prevent the disclosure to any authorized
officer of the Government with which the arrangements are
made of such information as is required to be disclosed
under the arrangements.
( 5 ) The Minister may make rules for the following 23/1972
purposes or any of them, that is to say, for carrying out the ’. ’.
provisions of any arrangements having effect under this
[The inclusion ofthis page is authoriied by L.N. 172/1986]
160 INCOME TAX

section and for the application of this Act in such respects,

and with such adaptations and modifications, as appear to
him necessary or expedient in consequence of any such
arrangements; and any such rules-
(a) may be made with retrospective effect to a date
not earlier than that ordered under paragraph (a1
of subsection ( 6 ) in relation to the relevant arrange-
ments;
(61 shall be subject to negative resolution of the House
of Representatives.
(6) Any order under this section may-
(a) be made with retrospective effect to 3 date not
earlier than the 1 st of January, 1948; and
(b) be revoked at any time by a subsequent order.
Credits of 84.-(1) The provisions of this section shall have effect
tax payablo
in other where, under arrangements having effect under section 83,
territories tax payable in respect of any income in the territory with
in resoect
or w G c h ~
arrange-
the Government of which the arrangements are made is to
ments am be allowed as a credit against tax payable in respect of that
in force.
income in this Island; and in this section the expression
“foreign tax” means any tax payable in that territory which
under the arrangements is to be so allowed and
the expression “income tax” means tax chargeable under
this Act.
(2) The amount of the income tax chargeable in
respect of the income shall be reduced by the amount of the
credit :
Provided that credit shall not be allowed against income
tax for any year of assessment unless the person entitled
to the income is resident in the Island for that year.
(3) The credit shall not exceed the amount which
would be produced by computing the amount of the
income in accordance with the provisions of this Act and
- --
mhhe iodudon of this page is authorized by L N 172j 19361
 INCOME T A X 161

then charging it to income tax at a rate ascertained by

dividing the income tax chargeable (before allowance of
credit under any arrangements having effect under section
83) on the total income of the person entitled to the income
by the amount of his total income

(4) Without prejudice to the provisions of sub-

section (3) the total credit to be allowed to a person for any
year of assessment for foreign tax under all arrangements
having effect under section 83 shall not exceed the total in-
come tax payable by him for that year of assessment less
any tax payable by him under the provisions of section 40.

(5) In computing the amount of the income-

(a) no deduction shall be allowed in respect of foreign
tax (whether in respect of the same or any other
income);
(b) where the income tax chargeable depends on the
amount received in the Island, the said amount
shall be increased by the appropriate amount of
the foreign tax in respect of the income;
(c) where the income includes a dividend and under
the arrangements foreign tax not chargeable
directly or by deduction in respect of the dividend
is to be taken into account in considering whether
any, and if so what, credit is to be given against
income tax in respect of the dividend the amount
of the income shall be increased by the amount
of the foreign tax not so chargeable which falls
to be taken into account in computing the amount
of the credit,
but notwithstanding anything in the preceding provisions
of this subsection a deduction shall be allowed of any
amount by which the foreign tax in respect of thc income
exceeds the credit therefor.
m-
e inclusion of rhls p?ge c _ -

13 .juthorizcd b) L N 112 I 19SGl

162 INCOME T A X

(6) Paragraphs (a) and (b) of subsection ( 5 ) (but not

the remainder thereof) shall apply to the computation of
total income for the purposes of determining the rate men-
tioned in subsection (3), and shall apply thereto in relation
to all income in the case of which credit falls to be given
for foreign tax under arrangements for the time being in
force under section 83.

(7) Where-
(0) the arrangements provide, in relation to dividends
of some classes, but not in relation to dividends of
other classes, that foreign tax not chargeable
directly or by deduction in respect of dividends
is to be taken into account in considering whether
any, and if so, what credit is to be given against
income tax in respect of the dividends; and
(b) a dividend is paid which is not of a class in relation
to which the arrangements so provide,
then, if the dividend is paid to a company which controls,
directly or indirectly, not less than one-half of the voting
power in the company paying the dividend, credit shall be
allowed as if the dividend were a dividend of a class in
relation to which the arrangements so provide.

(8) Credit shall not be allowed under the arrangz-

ments against income tax chargeable in respect of the
income of any person for any year of assessment if he elects
that credit shall not be allowed in the case of his income for
that year.

(9) Any claim for an allowance by way of credit

shall be made not later than two years after the end of the
year of assessmect, and in the event of any dispute as to
thc amount allowable the claim shall be subject to objection
and appeal in like manner as an assessment.
[ l h e inclusion o f this page i s authorized by L.N. 172/1986]
 lNCOME T A X

(10) Where the amount of any credit given under

the arrangements is rendered excessive or insufficient by
reason of any adjustment of the amount of any tits payable
either in the Island or elsewhere, nothing in this Act
limiting the time for making of assessments or claims for
relief shall apply to any assessment or claim to which the
adjustment gives rise, being an assessment or claim made
not later than two years from the time when all such
assessments, adjustments and other determinations have
been made, whether in the Island or elsewhere, as are
material in determining whether any and, if so. what credit
falls to be given.

85.-(1) Where the tax paid or payable by a company I S Deduci8nn

of fnx from
affected by double taxation relief the amount to be set off dividend,
under section 37, or to be repaid under section 81, in respect
of the tax deductible from any dividend paid by the
company shall be reduced as follows--
(a) if no tax is chargeable on the recipient in respect
of the dividend, the deduction shall be an amount
equal to tax on the gross dividend at the rate of
double taxation relief applicable thereto;
(b) if the rate of tax chargeable on the recipient in
respect of the dividend is less than the ratc rlf
double taxation relief applicable to the dividend,
the reduction shall be an amount equal to tax on
the gross dividend a t the difference between those
two rates.

(2) For the purposes of this section-

(a) if the income of the person chargeable includes
one dividend such as is mentioned in siibsecLion
(11, that dividend shall be deemed to bc the higheit
part of his income;
~ ~.
[The inclusion o l this page is authorized by L.N. li2!19861
161 INCOME T A X

( b ) if his income includes more than one such

dividend, a dividend shall be deemed to be a
higher part of his income than another dividend
if the net Jamaican rate applicable to the former
dividend is lower than that applicable to the latter
dividend ;
(c) where tax is chargeable at different rates in respect
of different parts of any such dividend, or where
tax is chargeable in respect of some part of a n y
such dividend and is not chargeable in respect of
some other part thereof each part shall be deemed
to be a separate dividend;
(d) the expression "double taxation relief" has the
same 1n:aliiig its in section 37, and the expression
"the rate of double taxation relief" means the rate
which represents the excess of the rate of tax
deductible from the dividend over the net Jamaican
rate applicable thereto.
General
Power of 86. The Minister may remit the whole or any part of the
Minislcr
toremittar. income tax payable by any person if he is satisfied that it
:!b$;(bl, would be just and equitable to do so.
Notice of such remission shall be published in the Gazetre.
Notices. 87.-(1) Every notice to be given by the Commissioner
under this Act shall be signed by the Commissioner or by
some person or persons from time to time appointed by him
for that purpose, and every such notice shall be valid if the
signature of the Commissioner or of wch person or persons
is duly printed or written thereon :
Provided that any notice in writing under this Act to any
person requiring him to furnish particulars to the Com-
missioner, or any notice under this Act requiring the attencl-
ance of any person or witness before the Commissioner shall
me inclusion of this page i s nuthor'z:d by L.N. 172119861
~~~~~~
 INCOME T A X 165

be personaIly signed by the Commissioner or by any person

duly authorized by him.
(2) A signrtture attached to any notice and
purporting to be the signature of any person so appointed
shall be taken to b-, the signature of that person until the
contrary be shown.
(3) In the case of a person assessed who is absent
from the Tsland any notice required may be served on the
agent of such person and such service shall be deemed to bs
service on such person.
(4) Notice may be served on a person either
personally or by being sent by post to his last known
business or private address :
Provided that service by post in the case of a notice
requiring the attendance of any person or witness beiore
the Commissioner shall be by rcgistered post.
(5) Any notice sent by registered post shall be
deemed to have been served, in the case of persons resident
in the Island not later than the fifteenth day succeeding the
day when posted, and in the case of persons not so resident,
not later than the thirtieth day succeeding the day on which
the notice would have been received in the ordinary course
by post, and in proving such service it shall be sufficient to
prove that the letter containing the notice was properly
addressed and posted.
88.41) If in any particular case the Commissioner or Powerof
the Commissioner of Inland Revenue has reason to believe 2;::
that a person who has been assessed to income tax may demand
payment of
leave the Island bzfore such tax becomes payable without laxbefocea
hnving paid such tax, he may, by notice in writing to such penon

person, demand peyment of such tax within the time to be $;A,.~~

limited in such notice. Such tax shall thereupon be payable ~OK=IVC.

at the expiration of the time so limited. and shall in default

of payment. unless security for payment thereof be given to sck.
___ .
me inclusion OF
~~ ~ ~

Ihis page is auihorreid hy L.N. IZ!l986]

 166 INCOME T A X

lhe satisfaction of the Commissioner or. as the case may be.

12: 1985
Sch the Commissioner of Inland Revenue, be recoverable forth-
with in the manner set forth in sections 79 and 80.
(2) If in any particular case the Commissioner has
reason to believe that tax upon any income may not be
recovered he may at any time-
(a, forthwith, by notice in writing, require any
person to make a return and to furnish particulars
of any such income within the time to be specified
in such notice; and
( 6 ) make an assessmeiit upon such person in the
amount of the income returned, or, if default is
made in making such return or if the Commis-
sioner is dissatisfied with such return, in such
amount as the Commissioner may think reasonable;
and
(c) by notice in writing to the person assessed require
1?,11955 that such security as may be determined by the
Sch. Commissioner be forthwith given to the Commis-
sioner of Inland Revenue for the payment of the tax
assessed.
(3) The right of appeal shall apply to any assess-
ment under this section if the tax assessed has been paid,
or if security has been given in accordance with the pro-
visions of this section.

Traders. etc.. 8 9 . 4 1 ) Every person engaged in any trade, profession

10 keep
accountsin or business shall keep in the English language proper
English.
books of account sufficient to record all transactions
necessary in order to ascertain the gains and profits made
or the loss incurred in each such trade, profession o r
business, and any such person who fails to comply with
this provision shall be guilty of an offence against this
Act, and in addition to any penalty incurred he shall be
liable to pay any tax to which he may be assessed by the
Cornmissioner according to the best of his judgment.
.____
me inclusion nf lhic page i s aulhorim-d by L N 172119861
 INCOME T A X

(2) For the purposes of this section, a person shall

be deemed not to have kept proper books of account if he
has not kept such books or accounts as are necessary to
exhibit or explain his transactions and financial position
in his trade or business, including a book or books con-
taining entries from day to day in sufficient detail of all cash
received and cash paid, and, where the trade or business
has involved dealings in goods, statements of annual stock-
takings, and accounts of all goods sold and purchased.

9 0 . 4 1) Statements made or documents produced by or Provisions

as to
on behalf of a person shall not be inadmissible in any such ecidcncein
casts of
proceedings as arc mentioned in subsection (2) by reason f raud or
wilful
only that it has been drawn to his attention that- default.
(a) in relation to income tax, the Commissioner or the i?iiw5
Sch.
Commissioner of Inland Revenue may accept pec-
uniary setlle!rents instead of instituting proceed-
ings; and
( b ) though no undertaking can be given as to whether
or not the Commissioner or the Commis4oner of kh,
' I l9S5

Inland Revenue will accept such a settlement in

the case of any particular person, the Commis-
sioner or the Commissioner of Inland Revenue, as &-""
the case may be: will be influenced by the fact that
a person has made a full confession of any fratid
or default to which he has been a party and has
given full facilities for investigation:
and that he was or may have been induced thereby to make
the statements or produce the documents.
(2) The proceedings mentioned in subsection (1)
are-
(a) any criminal proceedings against the person in
question for any form of fraud or wilful default
in connection with or in relation to income tax;
and
me inclusion of this page i s authorized bp L.N. 172!14961
IbK INCOME TAX

(b) any proceedings against him for the recovery of

any sum due from him, whether by way of tax
or penalty, in connection with or in relation to
income tax.
Power to
obtainand 91.-(1) For the purpose of verifying the correctness of
vtrify
infoma-
any return, statement, declaration or particulars delivered
tion. under this Act, or obtaining information required for the
30/1970
S. 19.
issue of a notice under subsection (3) of section 66 (notice on
failure to declare estimated income tax) or for the making of
an assessment under subsection (3) of section 72 (assessment
in default of return), the Commissioner shall have the like
powers as are given by subsection (5) of section 75 in a case
where a person objects to an assessment, and paragraphs (U)
and ( b ) of that subsection shall apply accordingly, with the
necessary modifications to paragraph (a).
(2) Any pcrson authorized in that behalf by the
Commissioner in writing may for the purpose of verifying
the correctness of any return: statement, declaration or parti-
culars delivered under this Act, and on production, if so
required, of evidence of his identity and of his authorization
under this section, enter upon any premises between the
hours of nine in the morning and nine at night and inspect
any books, documents, or other material appearing to relate,
or be likely to relate, to the return, statement, declaration
or particulars and make copies thereof.
(3) Any person in whose name any shares, stock
or securities of a company are registered shall, if required
by notice in writing by the Commissioner, state whether
or not he is their beneficial owner, and shall furnish the name
and address of the person OT persons on whose behalf any
of them are registered in his name.
Reguln-
lions- 92.--(1) The Minister may make regulations with respect
to the assessment, charge, collection and recovery of income
9/1163
S.9(1)(b). tax in respect of emoluments to which paragraph (c) of
18/*97I
s. 4.
svbsection (1) of section 5 applies, being income tax for the
me inclusion of this page is nurhor'z-d by L.N. 172/19Xh]
 INCOME TAX 169

year of assessment, and those regulations may, in particular,

include provision for-
(U) requiring any person making any payment of, or
on account of, any such emoluments, when he
makes the payment, to make a deduction or
repayment of tax calculated by reference to tax
tables prepared by the Commissioner in accordance
with the rates chargeable under this Act and for
rendering persons who are required to make any
such deduction or rcpayrnent accountable to, or,
as the case may be. entitled to repayment from. the
Cornmissioner :

Provided that the said tax tables shall be

constructed with a view to securing that. so far as
possible-
(i) the total tax payable in respect of any
emoluments to which this Act applies for
any year of assessment is deducted from
the emoluments paid during that year; and
(ii) the tax deductible or repayable on the
occasion of any payment of, or on account
of, emoluments is such that the total net
tax deducted since the beginning of the year
of assessment bears to the total tax payable
for the year, the same proportion that the
part of the year which ends with the date
of the payment bears to the whole year.
In this proviso the references to the total tax
payable for the year shall be construed as
references to the total income tax estimated to be 23,,973
payable for the year in respect of the emoluments, s. 3 (*I@).
subject to a provisional deduction for allowances
and reliefs and subject also, if necessary, to an
-
me inclusion of this page is authorized by L.N. ln!l986]
1 70 INCOME TAX

adjustment for amounts overpaid or remaining

unpaid on account of income tax in respect of
emoluments to which this Act applies for any
previous year; and for the purpose of estimating
the total tax payable as aforesaid, it may he
assumed, in relation to any payment of, or on
account of, emoluments to which this Act applies,
that the emoluments paid in the part of the year
of assessment which ends with the making of the
payment will bear to the emoluments for the whole
of that year the same proportion that that part
of the year bears to the whole year;
( b ) the production to and inspection by persons
authorized by the Commissioner of wages sheets
and other documents m d records for the purpose
of satisfying themselves that tax has been and i s
being deducted, repaid and accounted for in
accordance with the regulations;
(c) furnishing to persons so authorized such infoma-
tion and such returns, certificates and other docu-
ments as may be prescribed;
( d ) the collection and recovery, whether by deduction
from emoluments paid in any later year or other-
wise, of income tax in respect of emoluments to
which this Act applies which has not been deducted
or otherwise recovered during the year in which
such emoluments were paid;
(e) appeals with respect to matters arising under the
regulations which would not otherwise be the
subject of an appeal:

Provided that the said regulations shall not affect

any right of appeal which a person would have
apart from the regulations;
__
v h e inclusion of this page is authorized by L.N. 172:1986]
 INCOME TAX 171

V) determining the factors which may be taken into

account by the Commissioner-
12yr8
2211977
s. 6 (4, @I.
(i) in ascertaining whether or not any value
should be attributed to any quarters or
residence occupied, or any perquisite or
benefit provided, by reason of the holding
of any office or employment of profit;
and
(ii) in estimating where necessary, the annual
value which should be attributed to
quarters or residence occupied or, as the
case may be, any perquisite or benefit
provided as aforesaid.
(2) If any person fails to comply with any provision
of the said regulations requiring him to furnish a return or
other information or to give any certificate or to produce
wages sheets or other documents or records he shall be liable
on summary conviction before a Resident Magistrate to a
penalty not exceeding ten thousand dollars and in the case 1212004
of a continuing offence to a further penalty of one thousand y;yioo4
dollars for every day during which the failure continues after sch.
conviction.
(3) A11 regulations made under this section shall be py:.69
subject to negative resolution of the House of Representatives. 2211977
S. 8 (b).
93.-41) The Minister may make rules providing for- Power to
make rules
(a) the deduction and payment of income tax at the ::
source; First
Schedule.
(b) the payment of income tax by instalments; 911963
S. 9.
(c) the approval of, and other matters in connection
with, approved superannuation funds; 711956
S. 26.
(6) any other matter or thing, whether similar or not
to those above mentioned in respect of which it

[The inclusion of this page is authorized by L.N. 11 1120051

 INCOME TAX

may be expedient to make rules for the purpose of

carrying this Act into execution.
2311972
S. 8.
(2) As from 1st January, 1973, the Minister may by
First order vary, revoke or replace the provisions of the First
Schedule. Schedule or any part of that Schedule.
4211969
S. 15. (3) All rules and orders made under this section shall
be subject to negative resolution of the House of Representa-
tives.
Regulations 94. Until yaried or revoked by regulations or rules made by
and rules in
Second the Minister under the provisions of section 92 or 93 the
Schedule. regulations and rules contained in Part I and Part I1 of the
911 963
S. 9 (I)(b). Second Schedule shall be in force.
Second
Schedule.
Parts I & 11.
Power to name 95. The Minister may by order name, for the purposes of this
territories in
the Common- Act, those territories and their dependencies which are deemed
wealth. to be included in the Commonwealth.
711956
S. 27.
911 963
S. 9 (1) (b).
Commence- 96. For the avoidance of doubt it is hereby declared that,
ment of
regulations, except as may otherwise be specifically provided or in so
etc. far as they create any offence or impose or increase any
1811971
S. 4. penalty, any regulations, rules, orders, notices or other
2311972 instruments made under any provision of this Act may be
S. 9.
made operative from any previous date not earlier than the
commencement of the provision under which they are made.
Appointment 97. For the purpose of facilitating the assessment of the
of agent.
911 963 income of persons residing in the United Kingdom the
S. 9 (1) (b). Minister may appoint an agent in the United Kingdom who
shall make enquiries on behalf of the Commissioner in
respect of any such person as may apply to be dealt with
through such agent, and shall ascertain and report to the
Commissioner the amount of the chargeable income of such
person in accordance with this Act and shall forward to the

[The inclusion of this page is authorized by L.N. 1 1 1/2005]

 INCOME TAX

Commissioner the accounts and computations upon which his

report is based. The Commissioner on receipt of the report shall
enter the amount reported in the assessment lists:

Provided that-
( a ) if it appears to the Commissioner that any error
has occurred in the accounts or computation he
may refer the report back for further consideration;
(b) nothing in this section shall affect the right of
objection and appeal conferred by this Act.

98. The provisions of the Third Schedule shall have effect in Z;:rt
relation to the treatment for tax purposes, of animals kept for the animals for
purposes of farming or other trades. income tax
purposes.
111972
S. 3.
Third
Schedule.

Penalties

99.-(1) Any person who for the purpose of obtaining

any allowance, reduction, rebate or repayment in respect of s. 28 (a),
z;;?.
income tax either for himself or for any other person, or (b).
who in any return, statement, declaration, or particulars 3011970
delivered under this Act, knowingly makes any false state- S. 20 (a).
ment or false representation, shall, notwithstanding any
other provision in this or any other Act, be liable on con-
viction on indictment to a fine not exceeding one hundred 1212004
dollars and treble the amount of tax with which he ought SCh.
to be charged under this Act, or to imprisonment, with or
without hard labour, for a term not exceeding five years.

(2) Any person who aids, abets, assists, counsels,

incites or induces another person to-
( a ) make or deliver any false return, statement, .):p'
declaration or particulars under this Act: or
[The inclusion of this page is authorized by L.N. 11 1120051
 INCOME TAX

(b) keep or prepare any false accounts concerning any

profits or gains chargeable under this Act,

shall be liable on summary conviction before a Resident

1212004 Magistrate to a fine not exceeding one hundred thousand dollars
SC~. or to imprisonment with or without hard labour for a term not
1212004 exceeding two years.
Sch.

(3) If any person, by himself or by any person in his

employ, obstructs, molests or hinders-
(a) an officer or any person employed in relation to any
duty or income tax in the execution of his duty, or of
any of the powers or authorities by law given to the
officer or person; or

( b ) any person acting in the aid of an officer or any

person so employed,
he shall be guilty of an offence against this Act.
911986 (4) Any person, being a responsible officer referred to
S. 5.
in section 78A, who fails to comply with the provisions of
subsection (4) of that section shall be guilty of an offence and
shall be liable on summary conviction before a Resident
l2I2Oo4 Magistrate to a fine not exceeding ten thousand dollars or to
Sch.
imprisonment with or without hard labour for a term not
exceeding six months and where such offence is continued after
conviction such person shall be guilty of a continuing offence
1212004
and in respect of each day during which such offence continues
SC~. shall be liable to a fine not exceeding two thousand dollars.

Penalty for 100. Any person guilty of an offence against this Act for
other offences.
1611980 which no specific penalty is provided shall be liable on summary
S. 17. conviction before a Resident Magistrate to a fine not exceeding
911986
s. 6. ten thousand dollars and in default of payment to imprisonment
1212004 with or without hard labour for a term not exceeding twelve
Sch.
months.
[The inclusion of this page is authorized by L.N. 11 1/200S]
 INCOME TAX 173

101.-(1) A person who refuses to allow a deduction of tax refusing to

authorized by this Act to be made out of any payment shall allow
forfeit the sum of five thousand dollars. deduction of
tax and
avoidance
(2) Every agreement for payment of interest, rent or ofagree-
ments for
other annual payment in full without allowing any such pa,ent
deduction shall be void. without
deduction.
1212004
Sch.

102.--41) Any proceedings for offences under this Act may pro-
ceedings.
be taken in ehe name of the Commissioner or such person as he
may authorize in writing.

(2) Proceedings for offences under this Act may be

commenced at any time within six years next after the cause of
complaint arose.

103. The Commissioner may .in his direction stay or Commis-

compound any proceedings for the recovery of any fine or sionerto
penalty incurred under this Act or accept a pecuniary settlement "ayOr
compound
instead of instituting any such proceedings. proceedings.
711956
S. 29.

104. The Minister may, from time to time, by order subject to Minister
may amend
affirmation resolution of the House of Representatives, amend penaltie,
or vary any penalty or fine under this Act. etc., by
order.
1212004
Sch.

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174 INCOME TAX

(Section 13 FIRST SCHEDULE

(1))
ALLOWANCES FOR CERTAIN CAPITAL EXPENDITURE
PART I. Industrial Buildings and Structures, etc.
Initial 1.-41) Where an owner incurs capital expenditure on the construction,
allowances. alteration or purchase of a building or structure which is to be an industrial
building or structure occupied for the purposes of a trade carried on by him,
3311964
there shall be made to such owner who incurred such expenditure for the year
of assessment in his basis period for which such expenditure was incurred, an
0
S. 9
allowance (in this Part referred to as "an initial allowance") equal to 20 per
centum thereof.
(2) Notwithstanding anything in this paragraph, no initial allowance
shall be made in respect of any expenditure if, when the building or structure
comes to be used, it is not an industrial building or structure.
Interpretation. 1A. References in this Schedule to the Commissioner shall be construed as
L.N. references to the Commissioner of Taxpayer Audit and Assessment.
16511999.
Annual 2 . - ( 1 ) Where any owner incurs capital expenditure on a building or
allowances. structure for which he has obtained the initial allowance mentioned in
paragraph 1, there shall be allowed an allowance (in this Part referred to as
"an annual allowance") in respect of wear and tear calculated on the written
down value at the approved rate.
(2) Notwithstanding anything in the preceding provisions of this
paragraph, in no case shall the amount of an annual allowance made to a
person for any year of assessment in respect of any expenditure exceed what,
apart from the writing off falling to be made by reason of the making of that
allowance, would be the residue of that expenditure at the end of his basis
period for that year of assessment.
Balancing 3.-(1) Where any capital expenditure has been incurred on the
allowances
and balancing
construction, alteration or purchase of a building or structure and any of the
charges. following events occurs while the building or structure is an industrial
4211958 building or structure, that is to say-
S. 17 (1). (a) the building or structure is sold, or
( b ) the building or structure is demolished or destroyed, or without
being demolished or destroyed ceases altogether to be used,
an allowance or charge (in this Part referred to as "a balancing allowance" or "a
3311964 balancing charge") shall, in the circumstances mentioned in this paragraph be
S. 9.
made to or, as the case may be, on the owner immediately befoie that event
occurs, for the year of assessment in his basis period for which that event
occurs.
(2) Where there are no sale, insurance, Salvage or compensation
moneys, or where the residue of the expenditure immediately before the
event exceeds those moneys, a balancing allowance shall be made and the
amount thereof shall be the amount of the said residue or, as the case may be,
of the excess thereof over the said moneys.
[The inclusion of this page is authorized by L.N. 11 112005]
 INCOME TAX 175

(3) If the sale, insurance, salvage or compensation moneys

exceed the residue, if any, of the expenditure immediately before the
event, a balancing charge shall be made and the amount on which it
is made shall be an amount equal to the excess, or where the rcsldu:
is nil, to the said moneys.
(4) Notwithstanding anything in the preceding provisions of this 42:155::
paragraph in no case shall the amount on which a balancing charge S . 17 (1)
is made on an owner in respect of any expenditure on the construction.
alteration or purchase of a building or structure exceed the amount
of the initial allowance, if any, made to him in respect of that
expenditure together with the amount of any annual allowances and
any other allowances in respect of that expenditure made to him.

4 . 4 1 ) Any expenditure incurred on the construction, alteration or Writing off

purchase of any building or structure shall be written off to the extent OfeXPendl-
and as at the times hereafter specified in this paragraph and references
in this Part to the residue of any such expenditure shall he construed ..residueof
accordingJy. expendi-
ture".
(2) Where an initial allowance is made in respect o f , the 42/19rs
expenditure the amount of that allowance shall be treated as wrltten S. 17 (1).
off as at the time when the building or structure is first used after the
event which gave rise to the initial allowance.
(3) Where, by reason of the building or structure being at any
time an industrial building or structure, an annual allowance is made,
for any year of assessment in respect of the expenditure, the amount
of that allowance shall be written off as at the said time:
Provided that where at the said time an event occurs which gives
rise or may give rise to a balancing allowance or balancing charge.
the amount direc.ted to be written off by this sub-paragraph as at the
said time shall he taken into account in computing the residue of the
expenditure immediately before that event for the purpose of
determining whether any and if so what balancing allowance nr
balancing charge is to be made.
(4) Where on the occasion of a sale, a balancing allowancc is
made in respect of the expenditure, there shall be written off as at the
time of the sale the amount by which the residue of the expenditure
before the sale exceeds the net proceeds of the sale.
( 5 ) Where on the occasion of a sale, a balancing charge is made
in respect of the expenditure, the residue of the expenditure shall he
deemed for the purposes of this Part to be increased as at the time of
the sale by the amount on which the charge is made.

5 . 4 1 ) In this Part "industrial building or structure" means a ~ ~ f i ~ j

building or structure in use for the purposes of- of
'? ndustrial
(a) a trade carried on in a mill, factory, or other similar premixs; buildingor
01 stIwlure".

me inclusion of this page is authorized by L.N. 60{1976]

I76 INCOME TAX

( b ) a transport. dock. water, telephone, telepaph (including radio-

telephone) or electricity undertaking; or
(c) a trade which consists in the manufacture of goods or materials
or the subjection of goods or malerials to any process; or
(d) a trade which consists in the storage of goods or materials
which are to be used in the manufacture of other goods or to
be subjected in the course of a trade to any process; or
( e ) a trade which consists of the storage of goods or materials
on their arrival in the Island: or
(f) husbandry; or
(g) an oil undertaking in so far as it consists of the storage of, 3il
(including petrol and aviation fuel) immediately on its arrival
in the Island, in tanks of an individual capacity exceeding
30,000 imperial gallons and specially designed and constructed
for the purpose, directly by means of pumping plant and
pipelines,
and in particular the said expression includes any building or structure
provided by the person carrying on such a trade or undertaking for
the welfare of workers employed in that trade or undertaking and in
use for that purpose.
(2) For the purposes of sub-paragraph (1) a building or structure
shall not be deemed, by reason only of its falling or having fallen into
temporary disuse, to have thereby ceased altogether to be used for one
of the purposes specified in that sub-paragraph if, immediately prior to
falling into such temporary disuse, it was in use for such a purpose and
if. during the period of such temporary disuse, it is constantly
maintained in readiness to he brought back into use for such a purpose;
but if, in such circumstances, the building or structure at any time during
disuse ceases to be ready for use for any of the said purposes, or if at
any time, for any reason, the disuse of the building or structure can
no longer be reasonably regarded as temporaly, then the building or
structure shall be deemed to have ceased, on the commencement of
the period of disuse, to be used for any of the said purposes.
(3) The provisions of sub-paragraph (1) shall apply in relation
to a part of a trade or undertaking as they apply to a trade or under.
taking:
Provided that where part only of a trade or undertaking complies
with the conditions set out in the said provisions, a building or
structure shall not, by virtue of this sub-paragraph, be an industrial
building or structure unless it is in use for the purposes of that part
of that trade or undertaking.
(4) The expression “industrial building or structure” does not
include any building or structure. in use as, or as part of, a dwelling-
house, retail shop, show-room. hotel or office or for any purpose
ancillary to the purposes of a dwellinghouse, retail shop, show-room,
hotel or office.
m\e inclusion ot this page is authorized by L.N. 60/19761
 INCOME T A X 177

(5) Where part of the whole of a building or structure is. and

part thereof is not, an industrial building or structure. and the capital
expenditure which has been incurred on the construction of the second-
mentioned part is not more than one-tenth of the total capltal
expenditure which has been incurred on the construction of the whole
building nr structure, the whole building or structure and every part
thereof shall be treared as an industrial building or structure.
(6) Except as otherwise provided in this Schedulc, reference! in
Parts I and IIt to expenditure incurred on the construction, alteration,
purchase or improvement of any industrial buildings and structures or
machinery and plant do not include any expenditure incurred on the
purchase of or of rights in or over any land.

(7) (a) In this Schedule- Inicrprcta-

“approvcd rate” means any rate of wear and tear approved by the lion.
Commissioner for the purposes of the Act;
“basis period” for any year of assessment, means the period on the
profits or gains of which income tax for that year falls to be finally
computcd in respect of the trade in question:
Provided that in the case of any trade-
(a) where two basis periods overlap, the period common to
both shall be deemed (for the purpose of this subsection)
to fall in the first basis period only:
( h ) where there is an interval between the end of the basis
period for one year of assessment and the basis period
€OK the next year of assessment, then, unless the second-
mentioned year of assessment is the year of the permanent
discontinuance of the trade, the interval shall be deemed
to be part of the second basis period; and
(c) where there is 2n interval between the end of b e basis
gcriod for the year of asycssment preccding that in which
the trade is permanently discontinued and the basis
period for the year in which it is permanently
discontinued, the interval shall be deemed to form part
of the first basis period:
“wst” means the net figure after deducting from the cost price any
grants, subsidies or other payments received from third parties
on account thereof;
“dock” includes any harbour, wharf, pier or jetty or other works in
or at which vessels can ship or unship merchandise or passengers,
not being a pier or jetty primarily wed for recreation, and “dock
undertaking” shall be construed accordingly:
“electricity undertaking” means an undertaking for the generatiou,
transforniation, conversion, trensmission o r distribution of
electrical energy;
“mineral deposits” includes any natural deposits capable of being lifted
or extracted from the earth;
[The inclusion of this page is authorized by L.N. 60:197h]
178 INCOME TAX

“owner” means the person who owns the property concerned or

occupies it on terms whereby the full burden of the wear and tear
falls upon him;
“retail shop” includes any premises of a similar character where retail
trade or business including “repair work” is carried on;
“undertaking” does not include an undertaking not carried on by way
of trade;
“water undertaking” means an undertaking for the supply of water
for public consumption;

43/195R “written down value” means the cost less any initial, annual or other
S . 17(1) allowance granted prior to the year of assessment.
Interprcta- ( b ) References in this Schedule to capital expenditure and
tion of capital sums-
certain
rcferencen to (i) in relation to the person incurring the expenditure or paying
cxpcnditurr, the sums, do not include any expenditure or sum which is
etc.
allowed to he deducted in computing, for the purposes of
income tax, the profits or gains of a trade carried on by him;
and
(ii) in relation to the person receiving the amonnts expended or
the sums in question, do not include referenoes to any
amounts or sums which fall to be taken into account as
receipts in computing the profits or gains of any trade carried
on by him, and do not include, in relation to any such p e m n
as aforesaid any expenditure or sum in the case of which
deduction of tax falls or may fall to be made.

Subsidies, (8) For the purposes of this Schedule, expenditure shall not be
etc. regarded as having been incurred by any person in so far as it has been
or is to be met directly or indirectly by the Cmwn or the Government
of this Island or by any public or local authority whether in the Island
or elsewhere, or by any person other than the first mentioned person:
Provided that there shall be left out of account any insurance moneys
or other compensation moneys payable in respect of any assets which
have been demolished, destroyed or put out of use.

Exclusion 6. Any expenditure in respect of which an allowance is made under

of relief this Part shall not be available for relief under any other Parts or under
under other any other provisions of the Act.
parts Of
Schedule.

[Thc inclusion of this pagc is authorized by L.N. 6011976)

 INCOME T A X 179

7. No allowance shall be made under the provisions of this Schedule ~ ~ ~

in respect of capital expcnditure in relation tn which a n y relief from ofrelief
income tax is given by virtue of any of the following Acts, that is to under this
Scbedule
say- where relief
The Cement Industry (Encouragement and Control) Act; granted
under other
The Motion Picture Industry (Encouragement) Act. enactmenis.

PART11. Non-residentid Buildings 33!1964

s. 9.
l.-(l) Subject to the provisions of this Part, where- Depreciation
AUon,ance
(a! a person is, at the end of his basis period for any year of assess- on buildings.
ment entitled to an interest in a building or structure: and
(6) at the end of that basis period that building or structure is a
non-residential building to which this Part applies; and
(c) that interest is the relevant interest in relation to the capital
expenditure incurred prior to or during the basis period for
that year of assessment on the construction or alteration of
that building or structure; and
(a) that person during the basis period for that year of assessment
acquired income by way of rent from that building or structure,
an allowance (in this Part referred to as a “depreciation allowance”)
equal to one-fortieth of that expenditure shall bc made to him for that
year of assessment.

(2) Where the interest in a building or structure which is the

relevant interest in relation to any capital expenditure is sold while
the building or strncture is a non-residential building or structure, the
depreciation allowance in respect of that expenditure shall, in the case
of years of assessment the basis periods for which end after the time
of that sale-
(U) he computed by reference to the residue (as defined in para-
graph 4) of that expenditure immediately after the sale; and
(6) be the fraction of the said residue the numerator of which
is one and the denominator of which is the number of years
of assessment comprised in the period which-
(i) begins with the first year of assessment for which the
buyer is entitled to a depreciation allowance in respect
of the expenditure; and
(ii) ends with the thirty-ninth year of assessment after that
in which such an allowance was first granted in relation
to that expenditure,
and so on for any subsequent sales
iThc inclusion of this page in authorized by L.N. 60/1976]
1 so LVCOME TAX

(3) Notwilhstanding anything in the preceding provisions of this

paragraph, in n o case shall the amount of a deprcciation allowance
made to a person for any ycar of assessment in respcct of any
expcnditure cxcced what, apart from the writing off falling to be made
by reason of the making of that allowance, would be the residue of
that expenditure at the end of his basis period for that year of assess-
ment.
Ccsstion of 2. No depreciation allowancc under this Part in relation to any
drprtciation portion of a sum representiny capital expcnditure on a building or
allowance. structure shall be granted in respect of any year of assessment
subsequent to the thirty-ninth year of assessment after that in r c s p t
of which such an allowance was first granted in relation to that portion.

Balancing 3.-(1) Where any capital expenditure has been incurred on the
allowances construction or alteration of a building or structure and while the
and
balancing
building or structure is a non-residential building to which this Part
charges. appJ:es.-
(U) the relevant interest in the building or structure is sold; or
(b) that interest, being a leasehold interest. comes to an end other-
wise than on the person entitled thereto acquiring the interest
which is reversionary thereon; or
(c) the building or StrucLure is demolished o r destroyed, or, with-
out being deniolishcd or destroyed ceases to be a non.
residential building,
an allowance or charge (in this Part referred to as “a balancing
allowance” or “a balancing charge”) shall, in the circumstances men.
liuned in this pangraph, be made to or, as the case may be, on, the
person entitled to the relevant interest immediately before the event
occurs for the year of assessmcnt in his basis period for which that event
occurs:
Provided that no balancing allowance or balancing charge shall be
made to o r on any person for any year of assessment by reason of any
event occurring after the end of his basis period for the fortieth year of
assessment after that in respect of which a depreciation allowance under
this Part was first granted in relation to the non-residential building.
( 2 ) Where there are no sale, insurance, salvage or compensation
moneys, o r where the residue of the capital expenditure immediately
before the event exceeds those moneys, a balancing allowance shall
be made and the amount thereof shall be the amount of the said
residue or, as the case may be, of the excess thereof over the said
moneys.
(3) If the sale, insurance, salvage or cornpcnsation moneys
exceed the residue, if any, of the capital expenditure immediately
before the event, a balancing charge shall be made and the amount
on which it is made shall be an amount equal to the excess, or where
thc residue is nil, to the said moneys.
-
m~einclusion of this page is authorized by L.N. 60/1976]
-
 INCOME TAX 181

(4) For the purposes of this paragraph, the sale moneys of a non-
residential building shall be ascertained by deducting the amount which
the Commissioner considers the land on which the building is
constructed together with any other buildings on such land would fetch
i f sold on the open market from-
(U) the amount for which the land and all the buildings are sold;
or
(b) where the Commissioner considers that the land and all the
buildings are sold at a price other than that which they would
fetch if sold on the open market, the amount which 112
considers they would fetch if sold on the open market.
( 5 ) Notwithstanding anything in the preceding provisions of this
paragraph, in no case shall the amount on which a balancing charge is
made on a person in respect of any capital expenditure on the
construction or alteration of a building or structure exceed the amount
of any depreciation allowances in respect of that expenditure made to
him for years of assessment his basis periods for which end on or
before the date of the event which gives rise to the charge.

4 4 1 ) Any capital expenditure incurred on the construction s r writinsoff

alteration of any building or structure shall be written off to the exteut of c a m t ~ l
and as at the times hereafter specified in this paragraph and references apCn&-
in this Part to the residue of any such expenditure shall be construed Eagi of
accordingly. “residue of
expen&-
(2) Where, by reason of the building or structure being at any lure”.
time a non-residential building to which this Part applies. a depreciation
allowance is made for any year of assessment in respect of the
expenditure, the amount of that allowance shall be written off as at the
said time:
Provided that where at the said time an event occurs which gives
rise or may give rise to a balancing abwancc or balancing charge. the
amount directed to be written off by this sub-paragraph as at the said
time shall be taken into account in computing the residue of the
expenditure immediately before that event for the purpose of
determining whether any and if so what balancing allowance or
balancing charge is to be made.

(3) Where on the occasion of a sale, a balancing allowance is

made in respect of the expenditure, there shall be written off as at h e
time of the sale the amount by which the residue of the expenditure
b e h e the saIe e x d s the net proceeds of the sale.

(4) Where on the occasion of a sale, a balancing charge is made

in respect of the expenditure, the residue of the expenditure shall be
deemed for the purposes of this Part to be increased as at the time af
the sale by the amount on which the charge is made.
me inclusion of this page is authorized by L.N. 60/1976]

w3
182 INCOME T A X

E;CIL~S~O,, 5. Where an allowance is made to a person under this Part in

drcI:d rcspect of c~pital expenditure on any building or structure that
uxdcraiher expenditure shall not be available for relief under any other Part of
provivionn
of ,his this Schedule or any other provisions of this Act.
itcrpreta- &-(I) In this Part-
li0b ut “basis period” for any year of assessment, means the period on the
this Part profits or gains of which income tax for that year falls to he finally
computed in respect of the rent arising from the building or struc-
ture-in question-
Provided that-
(a) where two basis periods overlap, the period common to
both shall be deemed (for the purpose of this definition)
to fall in the first basis period only;
(b) where there is an interval between the end of the basis
period for one year of assessment and the basis period
for the next year of assessment, then, unless the sewnd
mentioned year of assessment is the year of the pe-ent
cessation of the source of income, the interval shall be
deemed to bc part of the second basis period; and
(c) where there is an interval between the end of the basis
period for the year of assessment preceding that in which
the source of income permanently ceases F d the basis
period for the year in which it ceases, the interval shall
be deemed to form part of the first basis period;
“dwelling-house” includes boarding-house, lodging-house and any
building or structure used for any similar purpose;
“non-residential building” means a ,building or structure which the
Commissioner is satisfied is not in use as, or as paa of, a dwelling-
house or for any purpose ancillary to the purpose of a dwelling-
house:
Provided that a building or structure may be treated as non-
residential building notwithstanding that a part thereof is used as
a dwelling-house for persons employed in connection with the
maintenance or repair of the building or structure or of any
machinery or plant installed for the purposes of providing amenities
for the occupants thereof;
“non-residential building to which this Part applies” means a non-
residential building which has never been in use otherwise than
as a non-residential building and the construction of which the
Minister is satisfied was not completed before the 1st day of
January, 1961.
(2) Subject to sub-paragraphs (3) and (4). in this Part “the
relevant interest” means, in relation to any capital expenditure incurred
on the construction or alteration of a building or structure, the interest
in that building to which the person who incurred the expenditure was
entitled when he incurred it.
me inclusion of this page is authorized by L.N. 60119161
 INCOME T A X 183

(3) Where, when he incurs expenditure on the construction or

alteration of a building or structure, a person is entitled to two or more
interests in the building or structure, and one of those interests is an
interest which is reversionary on all the others that interest shall be
the relevant interest for the purposes of this Part.
(4) An interest shall not cease to be the relevant interest for the
purposes of this Part by reason of,the creation of any lease or other
interest to which that interest is sublcct, and where the relevant interest
is a leaschold interest and is extinguished by reason of the surrender
thereof, or on the person entitled thereto acquiring the interest which
is reversionary thereon, the interest into which that leasehold interest
merges shall thereupon become the relevant interest
(5) None of the provisions of Part I shall apply for the purpose
of interpreting this Part.

7,-(1) References in this Part to capital expenditure incurred on Eyclusion

the construction or alteration of a building or structure do not include- &; ; &F'$;
(U) any expenditure incurred wholly or primarily to effect repairs; tapiiai
(b) any expenditure incurred on the acquisition of, or the rights in expcndi''lre.
or over, any land; or
(c) any expenditure incurred on preparing, cutting, tunnelling or
levelling any land :

Provided that sub-paragraph (c) shall not apply to expenditure on

work done on the land to be covered by a building or structure for the
purposes of preparing the land to receive the foundations of the building
or structure being work which may be expected to be valueless when
the building or structure is demolished and not W i g work which
consists of cutting or tunnelling.

(2) A person who has incurred capital expenditure on the

construction or alteration of a building or structure shall be deemed,
for the purposes of any provision of this Part referring to his interest
therein at the time when the expenditure was incurred, to have had
the same interest therein as he would have had if the construction or
alteration thereof had been completed at that time.

(3) Without prejudice to any of the other provisions OF this Part

relating to the apportionment of sale, insurance, salvage or compensation
moneys, the sum paid on the sale of the relevant interest in a building
or structure. or any other sale, insurance, salvage or compensation
moneys payable in respect of any building or structure, shall, for the
purpo%s of this Part, be deemed to be reduced by an amount equal to
so much thereof as, on a just apportionment, is attributable to assets
representing capital expenditure other than expenditure in respect of
which an allowance can be made under this Part.
me inclusion of this page i s authorizcdby L.N. 60119761
184 INCOME T A X

PART111. Machinery and Plant

Initial 1. Where a person carrying on a trade incurs capital expenditure
allowances. on the purchase, alteration or improvement of machinery or plant for
L.N. the purposes of the trade, then, subject to sub-paragraph (2) of para-
graph 6, there shall be made to him, for the year of assessment in the
s. 9. basis period for which such expenditure is incurred an allowance (in
this Part referred to as “an initial allowance”) equal to 20 per cenlunl
of such expenditure.

Aunual 2 . 4 1 ) Where the person carrying on the trade in any year of

allowances. assessment has incurred capital expenditure on the purchase, alteration
or improvement of machinery or plant for the purposes of the trade,
an allowance (in this Part referred to as “an annual allowance”) shall
(except in the case in which an election under paragraph 3 of this Part
has effect) be made to him for that year of assessment in respect of
the wear and tear of any of the machinery or plant of which he is the
owner and is in use for the purposes of the trade at the end of the basis
p i o d for that year of assessment.
L.N. (2) The annual allowance shall, subject to sub-paragraph (3) of
5811973. paragaph 6, be calculated at the approved rate on the written down
value of the machinery and plant at the beginning of the basis period
for which the allowance is due.

Alternative 3 . 4 1 ) Subject to subparagraph (4) of paragraph 6, the annual

methodof allowance in respect of any machinery or plant for any year of
calculating assesmat-
annual
allowances. (a) may, if the person to whom the allowance is to be made so
L.N. elects when he makes his claim for the allowance, be calculated
58/1973. by reference to the amount of his capital expenditure in
providing the machinery or plant; and
(6) shall in that event be five-fourths of the percentage of that
amount specified in sub-paragraph (2).
(2) The said percentage is such percentage as may be
determined by the Commissioner in relation to machinery or plan: of
the class in question for the year of assessment in question, Wig a
percentage h i c h is in his opinion equal to nme-tenths of the fraction
of which the numerator is one and the denominator is the number of
years in the anticipated normal working life of machinery or plant of
that class:
Provided that it shall not be necessary for the Commissioner to
redetermine every such percentage yearly, and every such determina-
tion of a percentage under this sub-paragraph for any year of assess-
ment shall apply also to subsequent years except so far as it is
superseded by any subsequent determination.
(3) Machinery or plant may be treated for the purposes of this
paragraph as being of a different class from other machinery or plant
where the one is new when it is acquired, and the other is not new when
[The inclusion of this page is authorized by L.N. 60119761
 INCOME T A X 185

it is acquired. or, in the case of machinery or plant which is not new

when it is acquired, where different periods have elapsed between the
date when the machinery or plant was made or first put into use and the
date of the acquisition thereof.
(4) An election under this paragraph shalI not be effective for
any year of assessment in relation to any machinefry or plant unless
the Commissioner is satisfied that the person making the election is
keeping, and will keep and make available for inspection, all such
records as are necessary to secure that the Commissioner can ensure
that the total annual allowances made to him for all years of assess-
ment in respect of that machinery or plant do not exceed the limit
imposed by paragraph 4, due regard being had to any initial allowance 4211958
made to him. S 17(1).

(5) In this paragraph “the anticipated normal working life”

means, in relation to machinery or plant of any class, the period which
might be expected. when machinery or plant of that class is first put
into use, to be going to elapse hefore it is kally put out of use as being
unfit for further use, it being assumed that it is going to be used in the
normal manner and to the normal extent and is going to be so used
throughout that period.
4. No annual allowance shall be made in respect of any machinery ~ i m i t o ~
or plant for any year of assessment, if the allowance. when added to annual
any initial allowance and to any annual allowance given in respect of &wan=s.
the machinery or plant to the person by whom the trade is camcd on, S. 42/1958
,7 (,),
will excad the actual cost to the person of the machinery or plant,
including in that actual cost any expenditure in the natllre of capital
expenditure on the machinery or plant by way of renewal, improvement
or reinstatement.
5 . 4 1 ) Where any of the following events occurs in the case of any Balancing
machinery or plant in respect of which an initial allowance or an allowances
annual or other allowance has been made to a person carrying on a
trade. that is to say, either-
gtncim
Charptr.
(U) the machinery or plant is sold, whether still in use or not; or
( h ) the machinery or plant is destroyed; or
(c) the machinery or plant is put out of use as being worn out
or obsolete or otherwise useless or no longer required,
and the event in question occurs before the trade is permanently
discontinued, an allowance or charge (in this Part referred to as “a
balancing allowance’’ or “a balancing charge”) shall, in the circum-
stances mentioned in this paragraph, be made to or, as the case may he, 30/ 1970
on that person for the year of assessment in his basis period for which S. 22.
that event occurs.
(2) Where there are no sale, insurance, salvage or compensation
moneys, or where the amount of the capital expenditure of the person
in question on the provision, alteration or improvement of the machineqf
or plant still unallowed as at the time of the event exceeds those moneys,
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186 INCOME TAX

a balancing allowance shall be made, and the amount thereof shall he

the amount of the expenditure still unallowed as aforesaid, or of the
excess thereof over the said moneys.
(3) If the sale, insurance, salvage or compensation moneys
exceed the amount, if any, of the said expenditure still unallowed as
at the time of the event, a balancing charge shall be made, and the
amount on which it is made shall be an amount equal to the excess
or where the said amount still unallowed is nil, to the said moneys.
4211958 (4) In no case shall the amount on which a balancing charge is
s.17 (1). made on a person exceed the aggregate of the following amounts, that
is to say-
(a) the amount of the initial allowance, if any. made to him in
respect of the expenditure in question; and
(b) the amount of any annual allowances made to him in respect
of the machinery and plant in question; and
(c) the amount of any balancing allowance previously made to
him in respect of the expenditure.

Application 6 . 4 1 ) Where the machinery mentioned in this Part comprises or

of this includes a motor vehicle, this Part shall apply subject to the following
Part to provisions of this paragraph.
motor
vehicles.
LN. (2) Paragraph 1 shall not apply to expenditure incurred in respect
581 1973. of a motor vehicle unless it is a vehicle (in this paragraph r e f e d
to as a “trade vehicle”) which falls within any of the following heads-
(a) a vehicle of a type not commouly used as a private vehicle and
which is unsuitable to be so used;
(b) a vehicle which is used wholly or mainly for the carriage of
members of the public at large in the ordinary course of trade
and which is not one used by the person claiming the allowance
wholly or mainly for the carriage of persons connected with
him or officers or employees of such connected persons;
(c) a vehicle of a construction primarily suited for the conveyance
of goods or burdens of any description;
(4a vehicle fitted with dual controls and used by the person claim-
ing the allowance for instruction purposes in the course of his
business as a driving instructor,
and paragraph 1 shall apply to trade vehicles with the substitution of
‘T+“ for “20”.
(3) The annual allowance in respect of a motor vehicle shall be
12f per centum of the capital expenditure incurred on the purchase,
alteration or improvement thereof, so, however, that the allowance for a
vehicle which is not a trade vehicle (in this paragraph referred to as a
“private vehicle’’) shall in no case exceed $400.
(4) Paragraph 3 shall not apply in respect of motor vehicles.
inclusion of this page is authorized by L.N. 60/19761
 INCOME T A X 187

(5) Withnut preiodice to paragraph 4. the aggregate of annual

allowances made in respect of a private vehicle shall i n no case exaeed
$3,200.
(6) Where a motor vehicle is used partly for purposes other than
those of the tr-de, th: annunl allowance to be made in rsspct thereof
shall he so much only of the allowance that otherwise would be made
as the person claiming it may satisfy the Commissioner as being just and
reasonable having r e s r d to all the relevant circumstances of the caqe
and, in particular. to the extent of the nse for those other purposes.
(7) If an annual allowance falls to be made in respect of a motor
vehicle which is in use for thc purposes of the trade for part only of the
basis period for the year of assessment, the amount of the allowance that
would otherwise be made shall be proportionately reduced.
(8) (U) If the amount of any annual allowance has been reduced
pursuant to sub-paragraph (61, then, For the purposes only of sub-para-
graphs (2) and 13) o€ paragraph 5 , that reduction shall be deemed not to
have been made.
(h) In computing the amount of a balancing allowance or the
amount on which a balancing charge is to he made in respect of
a private vehicle thz total capital expenditure on the provision, alteration
or improvement of which exceeded $3200, the amount of that capital
expenditure shall he deemed for the purposes only of p a r a p p h 5 to
be exactly $3,200, and the amount of the sale, insurance, salvage or
compensation moneys shall be deemed, for those purposes only, to be
an aniount equal to the fraction of that sum of which the numerator is
the actual amount of the sale, insurance, salvage or cornpasation
nioncys and the denominator is the actual amount of the total capital
expenditure incurred.
rc) If a motor vehicle has at any time been used partly for
purposes other than those of the trade, then the amount of any balancing
allowance or the amount on which any balancing charge is to be made
shall be such as the Commissioner considers just and reasonable having
regard to heads ( U ) and (6) of this sub-paragraph. to the extent of [he
use for those other purposes and to all other relevant circumstances.
(9) If a person sclls or otherwise transfers a trade vehicle as a
result whereof it becomes a private vehicle, then no initial allowance
shall be made to the purchaser or transferee and the awegate of the
annual allowances made to him shall in no case exceed $3,200 less any
initial or annual allowances made to the vendor or transferor in respect
of that vehicle.
(10) This paragraph shall apply only in respect of motor vehicles
the expenditure on which i? incurred on or :ifter 1st January, 1973.
(11) In computing the amount of m y allowance to be made ~ 1 1 9 8 7
to a person referred to in section 15A, no account shall be taken S3.
of the expenditure incurred by that person in connection with the
payment of the approved charges on the purchase of any motor car
defined in the section.
[7hc inclusion of t h i s p3ge is a u t h o r i r d b y 1 . N . 37:1YP8]
188

Appkation 7. The foregoing provisions of this Part shall. with any necessan:
of this Part adaptations, apply in relation to professions. employments. vocations
to prorep- and offices as they apply in relation to trade :
siona. etc.
&?/I958 Provided that no allowance shall be made pursuant to this paragraph
s. 17 (1). in respect of expenditure on the purchase. alteration or improvement
of a road vehicle by a person in employment who is paid by his
em loycr a travelljng. U keep or other allowance granted in connection
wit{ the use of such roafvehicle.
InVeamltIlt 8. Where a person carrying on trade incurs capital expenditure on
dowancc the purchase. alteration or improvement of a ship for the purposes
on ships.
4211958 of the trade, instead of an initial allowance under paragraph 1 of this
S.17(1). Part, there shall be made to him, for the year of assessment in the
3311964 basis period for which such expenditure is incurred, an allowance
s.9 (I). (in this Part referred to as “an investment allowance”) equal to forty
per centum of such expenditure, and any provisions of the Act
applicable to initial allowances made under paragraph I of this Part
shall apply to the investment allowance under this paragraph except
that the amount of an investment allowance shall ,not be written, off
in ascertaining the Wn’tten down value of the s h p nor taken mto
account for the purposes of either paragraph 3 or paragraph 4 or
paragraph 5 of this Part.
PrrliiIW 9. A n y expenditure. incurred for the purposes of a trade by a person
expenditure. about to carry it on shall be treated for the urposes of this Part as if
4211958
S. 17(1). it had been incurred by that person on the f? rst day on which he does
carry it on.
4111959 P m IV. Investment Allowances on certain buildings, structures.
s. 3. etc., and on certain machinery and plant
InkI”e1a- 1. In this Part unless the wntext otherwise require+
tio..
(U) “aset” means, in relation to capital expenditure to which
this Part applies, a building, structure, machinery or plant,
as the case may be,
Appendix. (b) “basic industry” means an industry for the time being specified
__
in the Appendix to this Part;
(c) an act shall be deemed to be done by an associate of a person
incurring expenditure-
(i) if it is done by a body of rsons which is at the time
t”
of the act under the wntro of the person incurring the
expenditure; or
(ii) if the expenditure was incurred by a body of persons
which either is at the time of the act or was when the
expenditure was incurred under the control of the
person doing the act; or
(3)if the expenditure was incurred by one body of persons
and the act is done by another, and the one doing the
act is at the time under the control of the same person
as the other either is at that time or was when the
expenditure was incurred; or
[The inclliston of this page is authorized hy L.N. 37/1988]
 INCOME T A X 189

(iv) if it is done by a person to whom the asset, was trans-

ferred by the person incurring the expenditure or an
associate of his and it appears that the transfer was
made in contemplation of the act being done.
2. The House of Representatives may from time to time, by resolu- Powerto
tion, amend the Appendix to this Part. amend
Appendix.
Investment
allowances.
3.+1) Subject to the provisions of this Part, where a person carrying
on a business in a basic industry incurs capital expenditure to which
this Part applies. an allowance (in this Part referred to as “an invest-
ment allowance”) equal to twenty per centum of such capital expendi-
ture shall, in lieu of an initial allowance under paragraph 1 of Part I
or of an initial allowance under paragraph 1 of Part 111, as the case
may be, be made to him. for the year of assessment in the basis period
for which such expenditure is incurred.

(2) Subject to the provisions of this Part, where an investment

allowance is made under this Part in respect of buildings or structures
the provisions of this Schedule or any other provisions of the Act
applicable to initial allowances granted pursuant to paragraph 1 of
Part I shall apply, with the necessary adaptations. to the investment
allowance made under this Part as they apply to initial allowances afore-
said except that-
(U) the amount of an investment allowance shall not be treated
as written off by virtue of sub-paragraph (2) of paragraph
4 of Part I;
(b) the amount of an investment allowance shall not be written
o f f in ascertaining the written down value of the building or
structure or taken into account for the purposes of sub-para-
graph (4) of paragraph 3 of Part I.

(3) Subject to the provisions of this Part, where an investment

allowance is made under this Part in respect of machinery or plant the
provisions of this Schedule or any other provisions of the Act applicable
to initial allowances granted pursuant to paragraph 1 of Part I11 shall
apply, with the necessaly adaptations. to the investment allowance made
under this Part as they apply to initial allowances aforesaid except that
the amount of an investment allowance shall not be written off in
ascertaining the written down value of the machinery or plant or taken
into account for the purposes of paragraph 3. paragraph 4 or paragraph
5 of Part III.
(4) Notwithstanding the provisions of paragraph 6 of Part I.
the making of an investment allowance pursuant to this Part in respect
of any expenditure shall not preclude the grant of annual allowances
or balancing allowances in respect of that expenditure in accordance
with the provisions of Part I.
[The inclusion of this page is authorized by L.N.60119761
190 INCOME TAX

Definition 4 . 4 1 ) Capital expenditure to which this Part applies is capital

of capital expenditure-
cxpenditure
for t h c (U) incurred by an owner on the construction or alteration of a
purposes of building or structure which is to be used for the purposes of
thin Part. a basic industry and occupied for the purposes,of a business in
that industry carried on by such owner, including where
necessary, capital expenditure 50 incurred on any building or
structure provided by the person carving on such business as
aforesaid for the welfare of workers employed in that business
and used for that purpose: or
(6) incurred by a person carryng on a business in a basic industry
on the purchase, alteration or improvement of machinery or
plant for the purposes of the business.
(2) Subject to the provisions of this Part, the provisions of para-
graphs 3 and 4 and sub-paragraphs (2) to (6) of paragraph 5 of Part
I shall apply, with the necessary adaptations, to a building or Structure
referred to in sub-paragraph (1) as they apply to an industrial building
or structure as defined in Part I aforesaid.

Conditions 5.-(1) No investment allowance shall be made in respect of any

appllcable expenditure on an asset if when Lhe asset comes to be used it is nor
to invst- used for the purposes of a business in a basic industry.
ment
allowances. (2) No investment allowance shall be made in respect of
expenditure on the purchase of secondhand machinery or plant:
Provided that this sub-paragraph shall not apply where the
expenditure is on such machinery or plant being imported into the
Island.

Buildings 6 . 4 1 ) Where expenditure is incurred on the construction of a

and building or structure and, before that building or structure is used, the
SwxtUreS iuterest therein of the person who incurred such expenditure is sold-
bought
unurd. (U) the expenditure actually incurred in the construction thereof
shall be left out of account for the purposes of this Part: but
(6) the person who buys such interest shall be deemed for those
purposes to have incurred, on the date when the purchase
price becomes payable, expenditure on the construction
thereof equal to the said expenditure or to the net price paid
by him for the said interest, whichever is the less:
Provided that, where such interest in the building or structure is sold
more than once before the building or structure is used. the provisions
of clause (h) shall have effect only in relation to the last of those sales,
and reference to “expenditure incurred on the construction of a building
or structure” shall include reference to expenditure. on the alteration
of such building or structure incurred prior to the last of those sales
(2) Where the expenditure incurred on the construction of a
building or structure was incurred by a person carrying on a trade which
~ ~ _ _ _
[The inciusion 01 lhis page is authorized by L.N. 60/19761
 INCOME TAX 191

consists, as to the whole or any part thereof, in the construction Of

buildings or structures with a view to their sale. and, before the building
or structure is used. he sells his interest therein in the course of that
trade, or. as the case may be, of that part of that trade, clause (6) of
subparagraph (1) shall haw effect subject to the follow@
modification+
(U) if &at & is the only sale of the interest More the buildmg
or structure is U&, the said clause (6) shall have elf& as
if the words “the said expenditure or to” and the WO&
“whichever is the less” were omittcd: and
(b) in any other case, the said clause (6) shall have &ect as d
the reference to the expenditure actually incurred on the con-
struction of the building or structure were a reference to the
price paid on the sale by the person carrying on such trade
as aforesaid.
7.-(1) If, in the c a s t of any expenditure, any such event as is men- WIUI-
tioned in subparagraph (2) occurs within the period of three yaus
following the year of assessment in which the expenditure was innurad,
no investment allowance shall be made in respect of the expenditure
~~~~’
or. if such an allowance has been made before the ~ c ~ u c r e n cofe the
event. it shall be withdrawn.
(2) The events referred to in sub-paragraph (1) arc-
(U) any appropriation of the asset representing the expenditure
made by the person incurring the expenditure or an associate
of his to a purpose other than the purposes of a business in a
hasic industry;
(b) any sale or transfer of the asset representing the expenditure
made by the person incurring the expenditure or an associate
of his otherwise than to a person aquiring the asset for the
purposes of a business in a basic industry:
(c) any sale, transfer or other dealing with the asset representing
the e x p d i t u re by the person incurring the expmditure or an
associate of his heiig a case where it appears either-
[i) that the expenditure was incurred in contemplation
of the asset being so dealt with: or
[ii) that the sole or main benefit which accrued from that
person’s incurring the expenditure and the asset being
so dealt with was or derived from the investment and
other allowanus in respect of the e w t ,
and not being a case where it is shown either that the purpose
of obtaining tax allowances was not the sole or main purpose
of that ptrson’s incurring expenditure or of the amzt heiig
w dealt with, or that his incurring the expenditure and the
asset being m dcalt with were bow Me business transactions
or were not designed for the purpose of obtaining tax allow-
-.
trae inclualon of this p g c is anthorIzed by L.N.37/1966]

n !* #
.
192 INCOME T A X

(3) Where an investment allowmce in respect to any expenditure

is wi:hhdd iir withdrawn under this paragraph, such ini tin1 allowance
(if anyi nr niight have been ninde in iespcct of that expenditure hut
for paragraph 3 of this Part shall be made.

Information S.--(l) The person who h:is incurred any expendTture in ,respect of
to be which an investment allowance has been niade and has not been with-
furnished drawn shall give notice to the Commissioner. if to his knowledge any
to Commis.
sinner. of the following events occurs at any time hefore the expiration, of the
period of three ycars following the year of assessment in whlch the
expenditure was incurred. that is to say-
(a) the asset in respect of which it was incurred is sold by bim
or an associate of his to a person who is not carrying on 8
business in a basic industry: or
(b) the asset is appropriated by him or an associate of his to a
purpose other than the purposes of a business in a b s l c
industry.
(2) Any notice of a sale or transfer given undei sub-paragraph (1)
shall state the name and address of the person to whom the sale or
transfer is made.
(3) Any person who, without reasonable cause, fails to comply
with this pamgaph shall be liable to a penalty equal to forty dollars
plus thrce times the amount of the investment allowance made in respect
of the expenditure in question.

Adjustment 9. All such additional assessments and adjustments of assessmenh

oi shall be made as may be necessary for or in consequence of the with-
assessments. drawal of an investment allowance under this Part and may be so made
a t any time.

Exclusion 10. No allowance shall be made under the provisions of this Part
oi relief in respect of capital expenditure in relation to which any relief from
under lhir income lax is given by virtue of any of the following enactmcnts that
Pan is to say-
where relief
granted The Industrial Incentives Act;
under other
enactmenfa. The Export Industry Encouragement Act;
13i1979 The Shipping (Incentives) Act.
s. 17.

APPENLYIX Paragraph 1)
List of Basic Industries
A. M~NUFAIXUI~ING
I . Canning and preserving of fruits and vegetables, that is to say-
(U) canning (packing in air-tight containers) of fruits and
vegetables including fruit and vegetable juices;
T h e ioclrision of this page is authorizcd by L.N. 37/1988]
 INCOME TAX 193

(b) manufacture of preserves, jams and jellies, pickles and

sauces, canned soups, dehydrating and quick freezing of
fruits and vegetables.
2. Canning and preserving of fish and other sea foods including such
operations as salting, drying, dehydrating, smoking, curing,
pickling, packing in air-tight containers and quick freezing.
3. Canning and preserving of meat including such operations as
curing, smoking, d t i n g , pickling, packing in air-tight containers
and quick freezing.
4. Manufacture (not mixing) of grain mill products (except conuneal
and wholemeal) and stock and poultry feeds.
5. Manufacture of textiles, that is to say-
(a) spinning, weaving and 6nishing textiles including the
preparation of fibres for spinning;
(6) manufacture of knitted fabrics including the bleaching,
dyeing and finishing of knitted products;
(c) manufacture of cordage, rope, twine and other related
goods from hemp, jute, cotton, paper, straw, coir, flax
and other fibres.
6. Manufacture of footwear.
7. Manufacture of leather and leather products.
. 8. Manufacture of wooden prefabricated walls, doors, windows and
other parts of a building.
9. Manufacture of plywood and wooden veneers.
10. Manufacture of articles of pulp, paper or paperboard.
11. Manufacture of boxes, crates, drums, barrels and other wooden
containers.
12. Manufacture of hasic industrial chemicals including fertilizers.
13. Manufacture of paints, varnishes and lacquers.
14. Manufacture of glass and glass producls.
15. Manufacture of china, pottery and earthenware.
16. Manufacture of heavy machinery and metal products.
17. Manufacture of watches and clocks.
5.CONSTRUCTION
Construction of buildings, ships, highways, streets, sewers and
mains, railway roadbeds, piers, tunnels, bridges, dams,
drainage projects, irrigation and flood control projects.
hydro-electric plants, water power projects, pipelines and
other heavy construction.
[The inclusion of this page is authorized by L.N.60/1976]
194 INCOME T A X

C. ELECTRICITY AND STEAM

1. Operating an electricity undertaking.
2. Production and distribution of steam for power purposes.
D. WAREHOUSF,S AND COLDSTORAGE
The provision of warehouses or cold storage operated as an in-
dependent service.
E. mCKS
Operation of a dock undertaking including any dock for repairing
ships.

PARTIVA. Special annual allowance on certain machinery

and plant
Special ],-(I) Where in any year of assessment commencing after the
annual 31st day of December, 1975, a person carrymg on a trade or business
on certain in a qualifying industry who would have been entitled to an annual
machinery allowance pursuant to paragraph 2 of Part tI1. satisfies the Com-
andplant. missioner that throughout the working year of a factory (as defined
’. *
4811975
(b’.
in section 2 of the Factories Act) relating to that trade or business, the
machinery and plant in use in that factory was used in the production
process for two or more shifts,per working day. an allowance (in
this PARTreferred to as a “speaal annual allowance’? shall be made
to him for that year of assessment in respect of the wear and tear
of any of the machinery and plant used as aforesaid, in addition
to the annual allowance to which he would otherwise have been
entitled in respect of that machinery and plant.
(2) The special annual allowance which may he allowed to any
person mentioned in sub-paragraph (1) shall not e x d the amount
of annual allowance to which he would have been entitled pursuant
to paragraph 2 of Part 111 in respect of that machinery and plant.
(3) Any claim made to the effect that any machinery or plant
has been used, throughout the working year of any factory for two
or more shifts per working day pursuant to sub-paragraph (I), shall
be supported by a certificate to this effect from a registered public
accountant.
(4) In this Part-
“qualifying industry” means any industry specified for the time
being in the Appendix to this Part, so, however, that the
Minister may from time to time .by order, delete, add to,
amend, or vary the list of industnes so specified;
“shift” means, in relation to a factory, a period of not less than
eight hours during which the factory is in operation or such
other period as the Commissioner may, having regard to the
circumstances of any case, approve;
[ n i e inclusion of this page is authorized by LN. 60/1976]
 INCOME T A X 195

“working year” means. in relation to any factory to which this

Part applies, the period of operatim of such factory in any
year which the Commissioner is satislied is the usual period
of operation of that type of factory m such year.
2. The aggregate of the initial allowance, the annual allowance and Limitof
the special annual allowance ghen to any person in any y ~ a rof allowan-.
assessment in respect of any machinery or plant. shall not exceed the
actual cost to that person of the said machinery or plant. mcluding
any expenditure in the nsture of apital expenditure on that machinery
or plant by way of renewal. improvement or reinstatemcnt.
3. The provisions of paragraph 5 of Part Ill shall apply to this Balancin,q
Part in like manner as it applies to that Part.so, however, that spocial aIlowancc
annual allowances shall be included in any aggregations being made E!aancing
for the purposes of applying balancing allowances or balancing charges. charses,
4. The s@al annual allowance permitted pursuant to the provisions Application
of this Part, shall not apply- of special
aIUlUal
(a) to motor vehicles. office equipment or similar equipment wed dhvana.
in connection with any factory operating for a qualifying
industry; or
(b) to any machmery and plant used in any trade or business, the
profits of which are either wholly or partly exempt from
income tax by virtue of any enactment for the time being
in force.
APPENDIX (paragraph 1)
LIST OF QUALWYING INDUSTRIES
1. Canning and preaexving of fruits and vegetabled.
2. Canning and preserving of fish and otber sea foods.
3. Canning and preserving of meat
4. The processing of agricultural products.
5. Manufacture of sugar.
6. Manufacture of textiles.
7. Manufacture of footwear.
8. Manufacture of leather and leather products
9. Manufacture of woodeu prefabricated walls, doors, windows and
other parts of a building.
10. Mancfacture of plywood and wooden veneers.
11. Manufacture of articles of pulp, paper or paperboard.
12. Manufacture of boxes, crates, drums, barrels and other wooden
containers.
13. Manufacture of basic industrial cbcmicals including fcrtiljzcrr.
14. Manufacture of paints, varnishes and lacquers.
15. Manufacture of glass and glass products.
16. Manufacture of china, pottery and carthcowam.
17. Manufacture of watches and clocks.
18. Manufacture of heavy machinery and mctal products.
19. Manufacture of tyres and inner t u b a LN.
.. . ~~ - 145A/1986
F e inclusion of this pase U &uthorized by LN. 9S/ lssTl
1% INCOME TAX

PARTIVB. Special capital allowance on certain machinery

Intermetn- 1. In this Part “qualifying business” means-

tion.
1211594 (a) any manufacturing operation or industrial activity the opera-
B 3. tion of which has been certified for the purposes of this Part
by the Minister responsible for industry other than-
(i) the operation of an electricity undertaking:
(ii) the winning of bauxite or production of alumha;
(iii) the manufacture of goods fmm the assembly of oom-
ponent parts; or
(iv) petroleum refinery;
( b ) m enterprise certified by the Minister responsible for industry
as being engaged in data processing or systems development
of which at least twenty per cent of the gross income ia
derived from exports.

spoeial 2 . 4 1 ) Subject to the provisions of this Part, where during or after

CaPltal the year of assessment 1994, capital expenditure to which this Part
allowance.
applies is incurred on the purchase of machinery by a person carrying
on a qualifying business, a special capital allowance equal to fifty
per centurn of such expenditure shall he made to him, during each of
the two years of assessment comprising the year of assessment in the
nod for which such expenditwe is incurred and the next
i u m mg year of assessment

(2) Subject to the provisions of this Part. a special capital

allowance under this Part shaU be in lieu of any allowance under
Part 111. IV,IVAor V as the case may be.

Definition 3.41) Capital expenditure to which this Part applies is capital

of capital expenditure which, subject to rub-paragraph (2). is incurred on the
tor tlie purchase of new machinery including computers for the purposes of
cxpditurc
purpose8 of the relevant qualifying business which machinery has. where applicable.
t h i a Part. been calibrated in the metric system.

(2) This Part shall not apply to motor vehicles. furniture or

JiXxtuES.

4. No special capital allowance shall be made in respect of my

expenditure on an asset if it is not used for the purposes of a qualifyiw
business.
allowanou.
Balaming 5 . Paragraph 5 of Part ILI shall apply in relation to machinery the
allowancm subject of a special capital allowance under this Part as it applies in
and bslanc- relation to machinery or plant specified in that paragraph. so, however.
ing charge#.
@ & ~ l ~ o n of this p g e is authorized by LN. 95:’19pI]
 lNCOME TAX

that, the special capital allowance shall be included in any aggregation of

amounts made for the purposes of applying balancing allowances or
balancing charges.

6.-(1) The person who has incurred any expenditure in respect of which a Information
special capital allowance has been made and has not been withdrawn shall be
turnlshed to
give notice to the Commissioner, if to his knowledge any of the following Commis-
events occurs at any time before the expiration of the period of three years sioner.
following the year of assessment in which the expenditure was incurred, that
is to say-

(a) the machinery in respect of which it was incurred is sold by him

or an associate of his to a person who is not carrying on a
qualifying business; or

(6) the machinery is appropriated by him or an associate of his to a

purpose other than the purposes of a qualifying business.

(2) Any notice of sale or transfer given under sub-paragraph (1) shall
state the name and address of the person to whom the sale or transfer is made.

(3) Any person who, without reasonable cause, fails to comply with
this paragraph shall be liable to a penalty equal to ten thousand dollars plus 1212004
three times the amount of the special capital allowance made in respect of the Sch.
expenditure in question.

7. All such additional assessments and adjustments of assessments shall be Adjustment

made as may be necessary for or in consequence of the withdrawal of a ",'ea,~~-
special capital allowance under this Part and may be so made at any time.

8. NO allowance shall be made under the provisions of this Part in respect Exclusion of
of capital expenditure in relation to which any relief from income tax is given re'ief under
this Part
by virtue of any of the following enactments, that is to say- where relief
granted
The Industrial Incentives Act under other
enactments.
The Export Industry Encouragement Act
The Jamaica Export Free Zones Act
The Bauxite and Alumina Industries (Encouragement) Act
The Petroleum Refining Industry (Encouragement) Act.
[The inclusion of this page is authorized by L.N. 11 1120051
 INCOME TAX

211972 PARTV. Special Investment Allowances for the Sugar Industry

S. 2.
Interpretation. 1.-(I) In this Part-
"asset" means, in relation to capital expenditure to which this Part applies,
a farm building, structure, factory, machinery or plant, as the case
may be;
"cane farmer" means a person who cultivates sugar canes for sale or
delivery whether under contract or otherwise to a sugar manu-
facturer at a factory;
"connected person" has the meaning assigned to it by section 2 of the Act;
"factory" means a factory as defined in section 2 of the Sugar Industry
Control Act;
"farm building" does not include a building or structure which, in the
opinion of the Commissioner, is used primarily as a dwelling-house;
"machinery" includes motor vehicles except motor vehicles of such class
or classes as may be prescribed;
"prescribed" means prescribed by regulations made by the Minister
responsible for finance;
"sugar" means sugar as defined in section 2 of the Sugar Industry Control
Act;
"sugar industry" means the business of producing sugar canes and
manufacturing sugar from such canes;
"sugar manufacturer" means an owner or operator of a factory;
"written down value" means the cost less any initial, annual or other
allowance (other than a special investment allowance) granted prior
to the year of assessment.
(2) In determining for the purposes of this Part the capital expenditure
which has been incurred for the purposes of the sugar industry-
capital expenditure on the construction, alteration or improve-
ment of an asset shall be regarded as having been incurred to
the extent to which such construction, alteration or improve-
ment has progressed; ('-7
capital expenditure on the purchase of machinery or plant \,d
shall be regarded as having been incurred when such machinery
or plant is installed or otherwise first made available for use
for the purposes of the sugar industry;
capital expenditure on the purchase of a farm building or
structure or factory shall be regarded as having been incurred
when such farm building or structure or factory is first used
for the purposes of the sugar industry after the date of
purchase.
[The inclusion of this page is authorized by L.N.111/2005]
 INCOME T A X 197

2.-(1)
expenditure-
Capital expenditure to which this Part applies is capital Definiti
of cw:ta .+
crpendi1bre.d-
( U ) incurred by a sugar manufacturer or cane farmer on the
purchase, construction, or alteration of a farm building or
structure or factory which is to be used for, the purposes of
the sugar industry including capital expenhture so incurred
on any farm building or structure or factory provided by a
sugar manufacturer or a cane fanner for the welfare of
workers employed in connection with the sugar industry and
used for that purpose;
(b) incurred by a sugar manufacturer or cane farmer on the
purchase, alteration or improvement of new machinery or
plant which is to be used for the purposes of the sugar industry.
(2) Subject to the provisions of this Part paragraphs 3 and 4 and
sub-paragraphs (2). (3), (4) and (6) of paragraph 5 of Part I shall apply,
with the necessary adaptations, to a building or structure referred to in
sub-paragraph ( I ) of this paragraph as they apply to an industrial
building or structure as defined in Part I aforesaid.

3 . 4 1 ) Subject to the provisions of the Act, where on or after the Spefial

1st day of January. 1970, and before the prescribed date. a sugar maou- investment
facturer or cane farmer incurs capital expenditure to which this Part allowance.
applies, an allowance (in this Part referred to as a “special investment
allowance”) equal to forty per centurn of such expenditure shaU be
made to such sugar manufacturer or cane farmer for the year of assas-
ment in the basis period for which such expenditure is incurred, so,
however, that if the person incurring the expenditure so elects by
memorandum in writing addressed to the Commissioner. the special
investment allowance, instead of being made for the year of assessment
aforesaid (hereinafter referred to as the first year of assessment), may
be made during the six years of assessment comprising the first year
of assessment and the next five succeeding _years
. of assement. either-
( U ) in full for such one of those years as may be specified in the
memorandum aforesaid; or
(b) in such parts as may be so specified for such of those years
of assessment as may be so specified.
(2) A special investment allowance granted to a sugar manu-
facturer or cane farmer pursuant to this Part in respect of any
expenditure shall be in lieu of any initial allowance under paragraph 1
of Part I or any initial allowance under paragraph 1 of Part 111 or any
investment allowance under paragraph 3 of Part IV, or any allowance
under Part VI, as the case may be, provided in respect of that
expenditure.
(3) Subject to the provisions of this Part, where a special invest-
ment allowance is made under this Part in respect of farm buildings or
structures or factories the provisions of this Schedule or any other
provisions of the Act applicable to initial allowances granted pursuant
mhe inclusion of this page in authorized by L.N. 60/1976]
198 INCOME T A X

to paragraph 1 of Part I shall apply, with the necessary adaptations, to

the special investment allowance so made under this Part as they apply
to initial allowances aforesaid except that-
( 0 ) the amount of a special investment allowance shall not be
treated as written off by virtue of sub-paragraph (2) of para-
graph 4 of Part 1aforesaid;
(6) the amount of a special investment allowance shall not be
written 08 in ascertaming the written down value of the build-
ing or structure or taken into account for the purposes of sub-
paragraph (4) of paragraph 3 of Part I aforesaid.
(4) Subject to the provisions of this Part, where a special invest-
ment allowance is made under lhis Part in respect of rnachiner) 31
plant, the provisions of the Act applicable to iniual allowances granted
pursuant to paragraph 1 of Part 111 shall apply, with the necessary
adaptations, to the special investment allowances so made under this
Part as they apply to initial allowances aforesaid except that the amount
of a special investment allowance shall not be written off in ascertaining
the written down value of the machinery or plant or taken into account
for the purposes of paragraph 3. paragraph 4 or paragraph 5 of Part
IIL
(5) Notwithstanding the provisions of paragraph 6 of Part I the
making of a special investment allowance pursuant to this Part in
respect of any expenditure shall not preclude the grant of annual allow-
ances or balancing allowances in respect of that expenditure in accord-
ance with the provisions of Part 1.

Apportion- 4 . 4 1 ) Where capital expenditure is incurred by a sugar manufacturer

merit [If or cane farmer partly for the purposes of the sugar industry and partly
capita'
cnpenditurc. for other purposes, the Minister responsible for fiance shall determine,
after such expenditure is incurred, what portion thereof shall be deemed
to have been incurred by the sugar manufacturer or cane farmer for
purposes of the sugar industry and in such determination the Minister
may specify how much of that ponion shall be regarded as having been
incurrcd in the basis period for any particular year of assessment.
(2) A decision of the Minister under this paragraph shall be fmal
and shall not be subject to any right of appeal.

,-onditions 5 . No special investment allowance shall be made in respect of any

applicable expenditure on an asset if when the asset comes to be used it is not
to special used for the purposes of the sugar industry.
inveslmeiit
allowance.

Buildings 6. Where expenditure to which this Part applies is incurred on the

and construction or purchase of a farm building or structure or factory
SIrucIUres and, before that farm building or structure or factory is used after the
'Old date of construction or purchase, the interest therein of the person who
incurred such expenditure is sold-
~..__
U'he inclusion of this page ii nuthorizzd by L.N. 60119761
 INCOME T A X 199

(a) the expenditure actually incurred in the construction or

purchase thereof shall be left out of account for the purposes
of this Part; but
(6) the person who buys such interest shall, subject to paragraph
11, bc deemed for those purposes to have incurred. on the
date when the purchase price becomes payable, such expendi-
ture on the construction or purchase thereof equal to the said
expenditure or to the net price paid by him for the said
interest, whichever is the less:
Provided that, where such interest in the farm building or structure
or factory is sold more than once before the building or structure ar
factory is used, the provisions of sub-paragraph (6) of this paragraph
shall have effect only in relation to the last of those sales, and reference
to the expenditure aforesaid shall include reference to expenditure on
the alteration of such building or structure or factory incurred prior
to the last of those sales.

7.-(1) If, in the case of any expenditure to which this Part applies, Withholding
any of the transactions mentioned in sub-paragraph ( 2 ) of this para- andwirh-
graph is carried out within the period of three years following the corn- drawalof
pletion of the work or the purchase of the farm building. factory.
machinery or plant in respect of which the expenditure was incurred,
no special investment allowance shall be made in respect of the
expenditure or, if such an allowance has been made before the carrying
out of the transaction, it shall be withdrawn unless the person incurring
the expenditure satisfies the Commissioner that the transaction did not
have as its object, or one of its objects, the avoidance of tax.
(2) The transactions referred to in sub-paragraph (1) of this
paragraph are-
( U ) any appropriation of the asset representing the expenditure
made by the person incurring the expenditure or by a
connected person to a purpose other than the purposes of the
sugar industry;
(6) any sale or transfer of the asset representing the expenditure
made by the person incurring the expenditure or by a
connected person otherwise than to a person acquiring the
a m t for the purposes of the sugar industry;
(c) any sale. transfer or other dealing with the asset representing
the expenditure by the person incurring the expenditure or
by a connected person being a case where it appears either-
(i) that the expenditure was incurred in contemplation of
the asset being 50 dealt with; or
(ii) that the sole or main benest which accrued from that
person’s incurring the expenditure and the asset being
so dealt with was or derived from the special investment
and other allowances in respect of the asset.
rrhe inclusion of this page is a u t h o r k d by L.N. 60119761
200 INCOME TAX

(3) Where a special investment allowance in respect of any

expenditure is withheld or withdrawn under this paragraph, such initial
allowance and investment allowance (if any) as might have been made
in respect of that expenditure but for paragraph 3 of t h ~ sPart shall
be made.

Information S.-(l) The person who has incurred any expenditure in respect of
to be which a special investment allowance has been made and has not been
furnished withdrawn shall give notice to the Commissioner if, to his knowledge
to Cornmis-
sioner. any of the following events occurs at any time before the expiration
of the period of three years following the completion of the work or the
purchase of the building, machinery or plant in respect of which the
expenditure was incurred, that is to say-
(a) the asset in respect of which it was incurred is sold by him
or a connected person to a person who is not engaged in the
sugar industry; or
(h) the asset is appropriated by him or a connected person to a
purpose other than the purposes of the sugar industry.
(2) Any notice of a sale or transfer given under sub-paragraph
(1) shall state the name and address of the person to whom the sale
or transfer is made.
(3) Any person who, without reasonable cause, fails to comply
with this paragraph shall be liable, in an additional assessment, to a
penalty of two hundred dollars and a furtherapenalty not exceeding
three times the tax on the special investment allowance made in respect
of the expenditure in question.

Adjustment 9. All such additional assessments and adjustments of assessments

of shall be made as may be necessary for or in consequence of the with-
assessments. drawal of a special investment allowance under this Part.

~ ~ ~ l No~ allowance
10. ~ i shall
~ be ~made~ underf the provisions of this Part
relicfunder in respect of capital expenditure in relation to which any relief from
this Part income tax is given by virtue of any provision of any enactment other
where rclicf than this part,
granted
under other
enactment$.

Carry 11. Notwithstanding anything contained in the Act, to the extent

forward of that a special investment allowance to which a sugar manufacturer or
allowance cane farmer is entitled under this Part is not utilized in the year
~ ~ of~ assessment
i in
~ whichy the sugar manufacturer or cane farmer becomes
entitled thereto pursuant to this Part or within the period prescribed
by paragraph 3 that allowance or the remainder thereof, as the case
may be, shall be made-
(U) to that sugar manufacturer or cane fanner; or (as the case may
be),
r h e inclusion of this page IS authorized by L.N. 60/1976]
-
 INCOME T A X 20 1

(6) to any other sugar manufacturer or cane farmer acquiring

from that sugar manufacturer or cane farmer the asset to
which such special investment allowance relates if such other
sugar manufacturer or cane farmer satisfies the other require-
ments of this Part,
in the following eleven years of assessment. so. however, that no part of
such allowance shall be taken into account in computing any part of the
chargeable income of a sugar manufacturer or cane farmer which arises
from sources other than the sugar industry.

PARTVI. Investment Allowacces for Expenditidre on AgricuIture I 1 1972

s. 2.
1. In this Part- Inferprela-
“connected person” has the meaning assigned to it by section 2 of the tion.
Act:
“farmer” means a person who owns or occupies land for the purpose
of carrying on husbandry as a business:
”farm building” does not include a building or structure which, in the
opinion of the Commissioner, is used primarily as a dwelling-house.

2 . 4 1 ) Subject to the provisions of this Part, capital expenditure 10 ~~finiti.,”

which this Part applies is capital expenditure which the Commissioner of capital
is satisfied is incurred by a farmer for purposes of husbandry on all ;;E$$&
or any of the followhg- Part applies.
the construction, reconstruction or alteration of buildinxs
- for
the housing of labourers or overseers or book-keepers;
the construction, reconstruction, alteration or purchase of a
f a n building:
the installation, construction, reconstruction or alteration of
works, machinery, plant or equipment for irrigation or
drainage, or for the supply of water;
the installation, construction, reconstruction or alteration of
works designed for the conservation of soil;
the erection of new fences;
the purchase of agricultural implements;
the installation, construction, reconstruction ur alteration of
sewerage works, electricity supply installations, walls, shelter
belts of trees, the reclamation of former agricultural lands,
and other works which the Commissioner is satisfied are of
substantial benefit to the business of husbandry.
(2) Subject to the provisions of this Part, the provisions of para-
graphs 3 and 4 and sub-paragraphs (2) to (6) of paragraph 5 of Part
I shall apply. with the necessary adaptations. to a building or structure
referred to in sub-paragraph (1) of this paragraph as they apply to an
industrial building or structure as defined in Part I aforesaid.
Fhe inclusion of this page is authorized by L.N.60119761
202 INCOME TAX

Investment 3 . 4 1 ) Subject to the provisions of this Part, where on or after 3rd

allowncm February. 1972. a fanner incurs capital expenditure to which this Part
applies, an allowance (in this Part referred to as an “investment allow-
ance”) equal to forty per centum of such expenditure, shall, in lieu of
an initial allowance under paragraph 1 of Part I. or of an initial allow-
ance under paragraph I of Part 111, as the case may be, be made to him
after all other perniissible allowances and deductions have been made,
for the year oi assessment in which the expenditure is incurred.
(2) Subject to the provisions of this Part, where an investment
allowance is made under this Part in respect of buildings or structures
the provisions of this Schedule or any other provisions of the Act
applicable to initial allowances granted pursuant to paragraph 1 of
Part I shall apply with the necessary adaptations, to the investment
allowance made under this Part as they apply to initial allowances afore-
said except that-
(U) the amount of an investment allowance shall not be treated as
written off by virtue of sub-paragraph (2) of paragraph 4 of
Part I aforesaid;
( b ) the amount of an investment allowance shall not be written
off in ascertaining the written down value of the building or
structure or taken into account for the purposes of sub-para-
graph (4) of paragraph 3 of Part I aforesaid.
(3) Subject to the provisions of this Part, where an investment
allowance is made under this Part in respect of machinery or plant
the provisions of t h i s Schedule or any other provisions of the Act
applicable to initial allowances grantad pursuant to paragraph 1 of Part
I11 shall apply, with the necessary adaptations, to the investment allow-
ance made under this Part as they apply to initial allowances aforesaid
except that the amount of an investment allowance shall not be written
off in ascertaining the written down value of the machinery or plant
or taken into account for the purposes of paragraph 3, paragraph 4 or
paragraph 5 of Part 111.
(4) Notwithstanding the provisions of paragraph 6 of Part I, the
making of an investment allowance pursuant to this Part in respect of
any expenditure shall not preclude the grant of annual allowancm or
balancing allowances in respect of that expenditure in accordance with
the provisions of Part I.

conditions 4 . 4 1 ) No investment allowance shall be made in respect of-

applicable
10 inwst- (a) expenditure incurred on an asset if when the asset comes to
”lent be used it is not used for purposes of husbandry;
dlowanccs. (b) expenditure incurred on the purchase of second-hand
machinery or plant other than such machinery or plant being
imported into Jamaica:
(c) expenditure incurred by a farmer on land other than land
owned or occupied by him for purposes of husbandry.
lrhe inclusion of this page is authorized by L.N. 63/1976]
 INCOME T A X 203

(2) No person shall be entitled to any allowmce under this Part

unless in respect of any expenditure incurred prior to the year of assess-
ment 1972, he supplies to the Commissioner information in wrlung
setting out-
(a) the name and situation of the property upon which the work
has been carried out;
(6) the nature and specifications of the work:
(c) the cost of the work; and
(d) the date on which the work commenced and the date on which
it was completed or is estimated to be completed, as the case
may be.
(3) At any time after the information required by sub-paragraph
(2) has been supplied to the Commissioner, the Commissioner or any
person appointed by him, on giving not less than seven days’ notice
in writing addressed to the person serving the statement aforesaid
at his last known address or at the place on which the work is being
carried out, may enter on the property for the purpose of inspecting
any such work.

5. Where expenditure to which this Part applies is incurred on the Buildings

construction of a building or structure and. before that building or and
slructure is used, the interest therein of the person who incurred such 51NcLures
bought
expenditure is sold- unused.
(a) the expenditure actually incurred in the construction thereof
shall be left out of account for the purposes of this Part; but
(b) the person who buys such interest shall be deemed for those
purposes to have incurred, on the date when the purchase
price hecomes payable, such expenditure on the construction
thereof equal to the said expenditure or to the net price paid
by him for the said interest, whichever is the less:
Provided that, where such interest in the building or structure is
sold more than once before the building or structure is used, the pro-
visions of sub-paragraph (6) shall have effect only in relation to the
last of those snles, and reference to the expenditure aforesaid shall
include reference to expenditure on the alteration of such building
or structure incurred prior to the last of those sales.

6,-(1) If, in the case of any expenditure to which this Part applies, withholding
any of the transactions mentioned in sub-paragraph (2) of this para- and with-
graph is carried out within the period of three years following the dran’alof
completion of the work in respect of which the expenditure was incurred, a”owances.
no investment allowance shall be made in respect of the expenditure or,
if such an allowance has been made before the carrying out of the
transaction. it shall be withdrawn unless the person incurring the
expenditure satisfies the Commissioner that the transaction did not
have as its object, or one of its objects, the avoidance of tax.
-
[The inclusion of this page is authorizzd by L.N. 60i19761
204 INCOME TAX

(2) The transactions referred to in sub-paragraph (1) are-

(a) any appropriation of the asset representing the expenditure
made by a person incurring the expenditure or by a connected
person to a purpose other than purposes of husbandry;
( b ) any sale or transfer of the asset representing the expenditure
made by the person incurring the expenditure or by a
connected person otherwise than to a person acquiring the
asset for purposes of husbandry;
(c) any sale, transfer or other dealing with the asset representing
the expenditure by the person incurring the expenditure or by
a connected person being a case where it appears either-
(i) that the expenditure was incurred in contemplation of
the asset being so dealt with; or
(ii) that the sole or main benefit which accrued from that
person's incurring the expenditure and the asset being
so dealt with was or derived from the investment and
other allowances in respect of the asset.
(3) Where an investment allowance in respect of any expenditure
is withheld or withdrawn under this paragraph. such initial allowance
(if any) as might have been made in respect of that expenditure but
for paragraph 3 of this Part shall be made.

informarion 7 . 4 1 ) The person who has incurred any expenditure in respect

10 be of which an investment allowance has been made and has not been
furnLshed withdrawn shall give notice to the Commissioner, if, to his knowledge,
to Commis-
sioner. any of the following events occurs at any time before the expiration
of the period of three years following the completion of the work in
respat of which the expenditure was incurred, that is to say-
(U) the asset in respect of which it was incurred is sold by him
or a connected person to a person who is not carrying on
husbandry as a business; or
(b) the asset is appropriated by him or a connected person to a
purpose other than the purposes of husbandly.
(2) Any notice of a sale or transfer given under the foregoing
sub-paragraph shall state the name and address of the person to whom
the sale or transfer is made.
(3) Any person who, without reasonable cause, fails to comply
with this paragraph shall be liable, in an additional assessment, to a
penalty of two hundred dollars and a further penalty not exceeding
three times the tax on the investment allowance made in respect of the
expenditure in question.

*djustment 8. All such additional assessments and adjustments of asseSsmcnts

of assess- shall be made as may be necessary for or in consequence of the with-
mentr. drawal of an investment allowance under this Part.
-
[The inclusion of this page is authorized by L.N. 60/19761
 INCCME T A X 205

9. Any cxpm-ndiwrc in respec! of which an investment allowance is Exclusion

made under this Part shall not be available for relief from income tax
under any enactnicnt other than this Part. enactmenb.

10. Notwithstanding anything contained in the Act, to the extent that Carry
an investment allowance to which a fanner is entitled under this Part ~ l ~ $ ~ ~ ~
is not utilized in the year of assessment in which the farmer becomes notfully
entitled thereto pursuant to this Part that allowance or the remainder uii~,z&.
thereof, as the case may be, shall be made to that farmer in the follow-
ing eleven years of assessment until the allowance has been fully utilized.
and in relation to any such year the provision in sub-paragraph (1) of
paragraph 3 of this Part which requires all other permissible allowances
and deductions to be made before an investment allowance is made
shall have effect in the same manner as it applies to the year of assess-
ment in which the expenditure is incurred:
Provided that no part of such investment allowance shall he taken
into acwunt in computing any part of the farmer’s chargeable income
which arises from sources other than husbandry.

11. A person who incurred expenditure for purposes of husbandry Right

on or after the 1st day of April. 1968, but prior to the 3rd day 1”d-t
of February, 1972, may elect to have his liability to tax determined
as if the provisions of that Act were in force at the time when
the expenditure was incurred.

PARTVII. Mines, Oil W d s , etc.

1. In this Part “expenditure to which this Part applies” means capital Expenditure
expenditure incurred by any person in connection with the working of 10 which
a mine. oil well or other source of mineral deposits of a wasting nature-
(U) on searching for or on discovering and testing deposits, or
winning access thereto; or
(b) on the construction of any works which are likely to be of
little or no value when the source is no longer worked; or
(c) on the acquisition of the site of the source, or of the site of
any such works as aforesaid, or of rights in or over any such
site; or
(d) on the acquisition of, or of rights in or over, the deposits:
Provided that the said expression does not i n c l u d e
(i) any expenditure on the acquisition of knd which is not worked
for mineral deposits, or any expcnditure incurred for the
purposes of husbandry on such land during the year of assess-
ment: or
(ii) any expenditure on machinery or plant, or on any asset which
has been treated for any year of assessment as machinery or
plant; or
[The inclusiun at tiis page is authorizsd by L.N. M1/1976]
206 INCOME T A X

(ili) any expenditure on buildings or structures provided for

occupation by or for the welfare of workers; or
(iv) any expenditure on a building where the whole of the building
was constructed for use as an office;or
(v) any expcnditure on so much of a building or structure as was
constructed for use as an office, unless the capital expendi-
ture on the construction of the part of the building or structure
constructed for use as an office was not more than one-tenth
of the capital expenditure incurred on the construction of the
whole of the building or structure.
Any reference in this Part to assets representing M y e x p d i t u r e
includes. in relation to expenditure on searching for, discovenng and
testing deposits, any results obtained from any such search. exploration
or inquiry upon which the expcnditure was incurred.

Initial 2. Where a person carrying on a trade which consists of or includes

a"uwances. the working of a mine. oil well or other source of mineral deposirs
of a wasting nature incurs for the purposes of the trade any expenditure
to which this Part applies, there shall be made to him for the year
of assessment in the basis period for which the expenditure is incurred
an allowance (in this Part referred to as "an initial allowance") equal
to 20 per centum of that expenditure.

Annual 3 . 4 1 ) Where a person carrying on a trade which consists of or

allowances. includes the working of any mine. oil well or other source of mineral
deposits of a wasting nature has, at any time on or after 1st of January,
1950. and before the end of his basis period for any year of assessment
incurred for the purposes of that trade expenditure to which this Part
applies, an allowance (in this Part referred to as '.an annual allowance")
shall (except in the case in which an election under paragraph 5 of
this Part has effect) be made to him in respect of the whole of
the expenditure to which this Part applies which he has incurred for
the purposes of the trade.
(2) The amount of the said allowance shall be the amount which
results from applying to the residue of the expenditure the fraction of
which-
@) the numerator represents the output from the source in question
in the basis period for the year in question: and
(b) the denominator represents the sum of that output and the
total potential future output of the source, estimated as at
the end of that period,
or the fraction one-twentieth, whichever is the greater.

Eleclion 4. Where the source ceases to be worked, the person carrying on

when source the trade may elect that the annual allowances, if any. for the year of
CeaSer10 assessment in which that event occurs and each of the five previous
be worked.
ytars of assessment shall be computed as if the reference in paragraph 3
[The inclusion of this page is authorized by L.N. 63119761
 IhTCOME T A X 207

to the total potential future output of the source estimated as at the

end of the basis period were a reference to the actual output of thc
source between the end of the basis period and the happening of the said
event. and the said allowances shall be computed accordingly, and.
notwithstanding anything in the Act limiting the time for the making of
assessments or the allowance of claims for repayment, all such repay-
ments and additional assessments shall be made as are necessaly to
enabIe effect to be given to this paragraph.
5 . 4 1 ) The annual allowance for any year of assessment in respect Allernative
of any machinery or plant used for the purposes of a trade which
consists of or includes the working of a mine, oil well or other source
~~~~&
annual
of mineral deposits of a wasting nature, being machinery or plant used allowancc~.
in connection with the working of the source, shall, if the person to
whom the allowancc is to be made 50 elects when he makes his claim
for the allowance-
@) be calculated by reference to the written down value, or by
reference to the amount of his capital expenditure in providing
the machinery or plant; but
(6) be the percentage of that amount specified in sub-paragraph
(2).
(2) The said percentage is such percentage as the Commissioner
may determine having regard to the date when the source is likely to
cease to be worked and the probable value of the machinery or plant
at that date to the person carrying on the trade.
6. References in this Part to the residue of any expenditure, in Interprets-
relation to the annual allowance to he made for any year of assessment, lion of
are references to the amount thereof which remains after deducting ~ ~ ~ ~ i ~ ~
theref mm-
(U) any annual allowances made in respect of that expenditure
or any part thereof for any previous year of assessment: and
( b ) subject to the provisions of paragraph 7 of this Part if, before
the end of the hasis period for the year of assessment foi
which the allowance is to he made, any asset representing the
expenditure is sold or demolished or destroyed, the sale.
insurance, sahage or compensation moneys.
7 . 4 1 ) The provisions of this paragraph shall have effect where- Balancing
( U ) a person who is, on or after the 1st of January, 1950, carrying ~~~~~~~~

on a trade which consists of or includes the workinn of a mine. .. -..nf .

oil well or other source of mineral deposits of a waxtins n m m a s w s
sells assets representing expenditure to which this Part applies;
and
( b ) the buyer of those assets buys them for the purposes of a trade
cnrried on or to he carrid on by him. being a trade nhich
consists of or includes the working of thc whole or any pirt
of the source in connection with which the assets were
provided.
mhhe inclusion of this page is authonred by L.N. 60/19761
208 INCOME T A X

(2) It the net proceeds of the sale are less than the residue of
the expenditure on the assets immediately before the sale, an allowance
(in this Part referred to as “a balancing allowance”) shall be made to
the seller. for the year of assessment in the basis period for which the
sale took place, equal to the difference.
(3) If the net proceeds of the sale exceed the residue of the
expenditure on the assets immediately before the sale, a charge (in this
Part referred to as “a balancing charge”) shall be made on the seller.
for the year of assessment in the basis period for which the sale took
place, on the amount of the excess.
(4) If the source in connection with which the expenditure was
incurred has been worked before the 1st of January, 1950, sub-para-
graphs (2) and (3) shall have effect subject to the modification that
the amount of the balancing allowance or the amount on which the
balancing charge is made shall be reduced by applying thereto the
fraction on which the numerator represents the total output from the
source in the period which begins with 1st of January. 1950. and ends
with the time of the sale, and the denominator represents the total out-
put from the source up to the time of the sale:
Provided that if the person to whom a balancing allowance is to he
made in respect of any expenditure considers that the amount by which
the allowance is to be reduced under this sub-paragraph is excessive
29/1971 having regard to the dates on which the expenditure was actually
s. 12. incurred he may appeal to the Revenue Court in like manner as an
appeal made against an assessment under the Act and the Court may
authorize such smaller reduction as may be appropriate.
(5) In no case shall the amount on which a balancing charge is
made upon a person in respect of any assets exceed the difference
between-
(a) the expenditure to which this Part applies which he incurred
upon the assets; and
(b) the residue of that expenditure immediately before the sale.
(6) Whether a balancing allowance or balancing charge is made
upon the seller or not, the deduction to be made in the case of the seller
in respect of the assets under item (b) of paragraph 6 shall, instead of
being the sale, insurance, salvage or compensation moneys, be the
residue of the expenditure attributable to the assets immediately before
the sale.
(7) The buyer shall, for the purposes of the provisions of this
Part relating to annual allowances, balancing allowances and balancing
charges, be deemed to have incurred on the assets at the time of the
sale expenditure to which this Part applies equal to whichever is the
less of the following amounts, that is to say-
(a) so much of the price as is attributable to the assets; and
( b ) the residue of the expenditure on the assets immediately after
the sale.
me inclusion of this paac ir outhoriz:d by L.N. W19761
 INCOME TAX 209

8. Any expenditure incurred for the purposes of a trade by a person Preliminary

about to carry it on shall be treated for the purposes of this Part as ex~nd’ture.
if it had been incurred by that person on the first day on which he does
carry it on.
9. Where a person incurs expenditure to which this Part applies on Sale of
searching for, discovering aud testing the mineral deposits of any mine, asset Prior
oil well or other source of a wasting nature and winning access to those ~~~~~&~
deposits, and, without having carried on any tr?.de which consists of
or includes the working of the source, he sells any assets representing
that expenditure, then, if the person who acquires the assets carries
on such a trade as aforesaid in connection with the source, that person
shall, for the purposes of this Part, be deemed to have incurred for the
purposes of the trade and in co~lectionwith the source expenditure
to which this Part applies equal to the amount of the expenditure to
which this Part applies which is represented by the assets or the price
paid by him for the assets, whichever is the smaller.
10. Any expenditure in respect of which an allowance is made under Exclusionof
this Part shall not be available for relief under any other Parts or under ~~~~~~

any other provisions relating to income tax.

PARTVIII. Allowunces for Expenditure on Scientific Research

l,-tl) In this Part the following expressions have the meanings ~ ~ , ~ ~ ~
hereby respectively assigned to them. that is to say- tion and
“asset” includes part of an asset; aupplcmen-
law. .
“scientific research” means any activities in the fields of natural or provls~ono.
applied science for the extension of knowledge:
‘kcientific research expenditure” means expenditure incurred on
scientific research:
“trade” includes any agricultural pursuit, including the use of land
for purposes of husbandry;
references to expenditure incurred on scientific research do not include
any expenditure incurred in the acquisition of rights in, or arising
out of scientific research, but save as aioresaid, include all
expenditure incurred for the prosecution of, or the provision of
facilities for the prosecution of, scientific research;
references to scientific research related to a trade or a class of trades
include-
(U) any scientific research which may lead to or facilitate an
extension of that trade or, as the case may he, of trades
of that class;
(b) any scientific wsearch of a medical nature which has a
special relation to the welfare of workers employed in th3t
trade or, as the case may be, trades of that class.
(2) The same expenditure shall not be taken into account for any
of the purposes of this Part in relation to more than one trade.
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210 INCOME TAX

Allowances 2. Notwithstanding anything in the Act, where a person carrying

for expendi- on a trade-
ture not of
capita1 (a) incurs expenditure not of a capital nature on scientific
nalure. research related to that trade and directly nndertaken by him
or on his behalf; or
(6) pays any sum to any scientific research association for the
time being approved for the purposes of this paragraph by the
911963 Minister being an association which has as its object the under-
S.9(l)(b). taking of scientific research related to the class of trade to
which the trade he is carrying on belongs; or
(c) pays any sum to be used for such scientific research as is
mention4 in paragaph ( i ) to any such university, college,
research institute or other similar institution as is for the time
being approved for the purposes of this paragraph by the
Minister,
the expenditure incurred or sum paid, as the case may be, may be
deducted as an expense in computing the profits or gains of the trade
for the purposes of income tax.

AUowances 3. Subject to the provisions of paragraph 4 where a person-

of expendi-
lure of a (a) while carrying on a trade, incurs expenditure of a capital
capital nature on scientific research related to that trade and directly
nature. undertaken by him or on his behalf; or
(b) incurs expenditure of a capital nature on scientific research
directly undertaken by him or on his behalf and thereafter
sets up and commences a trade connected with that research,
in ascertaining the chargeable income of such person there shall be
allowed to him a deduction equal to one-fifth of the expenditure for
33/1964 each of the five years of assessment commencing with the year of
s. 9. assessment in the basis period for which the expenditure was incurred.

Termination 4 . 4 1 ) Where an asset representing scientific research expenditure

of user, etc.. of a capital nature incurred by the person carrying on a trade ceases
of assets
provided for to be used by that person for scientific research related to that trade-
scientific (U) no allowance shall be made under paragraph 3 for any year
research of assessment after that in which the cessation takes place;
purpoorer.
and
(b) if the amounts. if any. allowed under the said paragraph 3 KI
respect of the expenditure added to the value of the asset
immediately before the cessation, are less than the said
expenditure there shall be allowed in charging the profits or
gains of the trade for the year of assessment in which the
cessation takes place an additional deduction equal to the
difference.
(2) Where an assct representing scientific research expenditure
of a capital nature in respect of which an allowance or allowances has
or have been made under this paragraph or paragraph 3 in charging
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 INCOME T A X 21I

the profits or gains of a trade ceases to be used by the person carrying

on the trade for scientific research related to that trade and is then or
thereafter sold by him without having been used in the meantime for
othcr purposes, then-
@) if an additional allowance, or a greater additional allowance
would have been made, under sub-paragraph (1) for the year
of assessment in which the cessation occurred if the proceeds
of sale of the asset had been taken to be the value of the asset.
an amount equal to the additional allowance which would have
been made or, as the case may be, to the difference between
the additional allowance which would have been made and
the additional allowance which was made for that year shall
be allowed in ascertaining the chargeable income in respect
of the trade for the year of assessment in which the sale occurs
or, if the sale occurs on or after the date on whlch the trade
is permanently discontinued, for the last year of assessment
in which the trade is carried on before the discontinuance;
(b) in any other case, if the proceeds of sale plus the total amount
of the allowances made under this paragraph and paragraph 3
in respect of the expenditure exceed the amonnt of the
expenditure, the excess or the amount of the allowances so
made, whichever is the less, shall be treated as a trading
receipt of the trade accruing at the time of the sale, or if the
sale occurs on or after the date on which the trade
is permanently discontinued, accruing immediately before the
discontinuance.
(3) Where an asset is destroyed, it shall for the purposes of sub-
paragraph (2) be treated as if it had bcen sold immediately before the
destruction thereof and any insurance moneys or other compensation
of any description received by the person carrying on the trade in respect
of the destruction and any moneys received by him for the remains
of the asset shall be treated as if they were proceeds of that sale.
(4) Any references in this paragraph to the time of any sale shall
be mnstrued as a reference to the time of completion or the time when
possession is given, whichever is the earlier.
( 5 ) Where a deduction is allowed for any year under this Part
in respect of expenditure represented wholly or partly by any assets,
no deduction shall be allowed under any provision of the Act other
than the allowanm in respect of depreciation of those assets for any
year of assessment during any part of which they are used by the person
carrying on the trade for scientific research related to the trade.

PART Ix. !%tents

I.--(]) Where, on or after the 1st of January, 1953, a person incurs A ~ ~ ~ ~
capital expenditure on the purchase of patent rights. in ascertaining allowances
the chargeable income of such person there shall, subject to and in forcapital
accordance with the subsequent provisions of this Part be allowed to ~ $ ~
him for each of the relevant years of assessment, as hereinafter defined, ptent
rights.
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212 INCOME TAX

a deduction (in this Part referred to as “an annual allowance”) equal

to the appropriate fraction, as hereinafter defined, of the amount of
that expenditure:
Provided that no annual allowance shall be made to a person in
respect of any expenditure unless-
(a) the allowance falls to be made to him in charging the profits
or gains o€ his trade: or
(b) any income receivable by him in respect of the rights would
be liable to income tax.
(2) The relevant years of assessment are, in the case of any
person. the fourteen years of assessment beginning with the year of
assessment in his basis period for which the expenditure was incurred :
Provided that-
(U) where the rights xre purchased for a specified period, the
preceding provisions of this sub-paragraph shall have effect
with the substitution for the reference to fourteen years pf a
reference to fourteem years or thc number of years comprised
within that period, whichever is the less: and
(6) where the rights purchased begin one complete year or more
after the commencement of the patent and paragraph (a) of
this proviso does not apply, the said provisions shall have
effect with the substitution for the reference to fourteen years
of a reterence to fourteen years less the number of complete
years which, when the rights begin, have elapsed since the
wmmcncement of the patent, or, if fourteen complete years
have elapsed as aforesaid, of a reference to one year; and
(c) any expenditure incurred on or after the 1st of January,
1953. for the purposes of a trade by a person about to carry
it on shall be treated for the purposes of this sub-paragraph
as if it had been incurred by that person on the first day on
which he does carry it on, unless, before the said 6rst day.
he has sold all the rights on the purchase of which the
expenditure was incurred.
(3) The appropriate fraction is the fraction the numerator of which
is one and the denominator of which is the number of the relevant years
of assessment.

Effect of 2 . 4 1 ) Where, on or after the 1st of January, 1953, a person incurs

lapse of capital expenditure on the purchase of patent rights and, before the
patent end of the relevant years of assessment, any of the following events
rights.
sakr. etc occurs, that is to say-
(U) the rights come to an end without being subsequently revived:
or
(6) he sells all those rights or so much thereof as he still owns; or
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 INCOME T A X 213

(c) he sells part of those rights and the net proceeds of the sale
(so far as they consist of capital sums) are not less than the
amount of the capital expenditure remaining unallowed,
no annual allowance shall be made to that person for the year of assess-
ment in his basis period for which the event takes place or any
subsequent year of assessment.
(2) Whcre, on or after the 1st of January, 1953, a person incurs
capital expenditure on the purchase of patent rights and, before the
end of the relevant years of assessment, either of the following events
occurs, that is to say-
the rights come to an end without being subsequently revived;
or
he sells all those rights, or so much thereof as he still owns,
and the net proceeds of the sale (so far as they consist of
capital sums) are less than the amount of the capital expendi-
ture remaining unallowed.
there shall, subject to and in accordance with the subsequent provisions
of this Part, be made to him for the year of assessment in his basis
period for which the event takes place an allowance (in this Part referred
to as **abalancing allowance”) equal, if the event is the rights coming
to an end, to the amount of the capital expenditure remaining unallowed.
and. if the event is a sale, to the amount of the capital expendi-
ture remaining unaUowed less the net proceeds of the sale.
(3) Where a person who, on or after the 1st of January, 1953,
has incurred capital expenditure on the purchase of patent rights sells
all or any part of those rights and the net proceeds of the sale (so far
as they consist of capital sums) exceed the amount of the capital
expenditure remaining unallowed, if any, there shall, subject to and
in accordance with the subsequent provisions of this Part, be made
on him for the year of assessment in his basis period for which the sale
takes place a charge (in this Part referred to as “a balancing charge”)
on an amount equal to the excess or. where the amount of the capital
expenditure remaining unallowed is nil, to the said net proceeds.
(4)Where a person who, on or after the 1st of January, 1953,
has incurred capital expenditure on the purchase of patent rights sells
a part of those rights and sub-paragraph (3) does not apply, the amount
of any annual allowance made in respect of that expenditure for the
year of assessment in his basis period for which the sale takes place or
any subsequent year of assesment shall be the amount arrived at by-
( U ) subtracting the net proceeds of the sale (so far as they con-
sist of capital sums) from the amount of the expenditure
remaining unallowed at the time of the sale; and
( 6 ) dividing the result by the number of the relevant years of
assessment which remained at the beginning of the year of
assessment in his basis period for which the sale takes place.
and so on for any subsequent sales.
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114 INCOME T A X

(5) References in the preceding provisions of this paragraph to

the amount of any capital expenditure remaining unallowed shall, in
re!alion to any event, be construed as references to the amount Of that
expenditure less any annual allowances made in respect thereof for
years of assessment before the year of assessment in the bass perlod
for which that evcnt occurs, and less also the net proceeds of any
previous sale by the person who incurred the expenditure of any part
of the rights acquired by the expenditure, so far as those proceeds
consist of capital sums.
(6) Notwithstanding anything in the preceding provisions of this
paragraph, n o balancing allowance shaU be made in respect of any
expenditure unless an annual allowance has been. or, but for the
happening of the event giving rise to the balancing allowance. could
have been, made in respect of that expenditure, and the total amount
on which a balancing charge is made in respect of any expenditure
shall not exceed the total annual allowances actually made in respect
of that expenditure, less, if a balancing charge has previously been
made in respect of that expenditure, the amount on which that charge
was made.
Chargeron 3 . 4 1 ) Where, on or after the 1st of Janualy, 1953, a person resident
capiralsumn in the Island sells any patent rights and the net proceeds of the sale
received for consist wholly or partly of a capital sum, he shall, subject to the provi-
d eOf
patent sions of this Part, be charged to tax under the Act for the year of assess-
nghts. ment in which the sum is received by him and each of the five succeeding
years of assessment, on an amount equal to one-sixth of that sum:
Provided that if that person, by notice in writing served on the Com-
missioner not later than twelve months after the end of the year
of assessment in which the said amount was received, elects that the
whole of the said sum shall be charged to tax for the said year of assess.
ment it shall be charged to tax accordingly.
(2) Where, on or after the 1st of January, 1953, a person not
resident in the Island sells any patent rights and the net proceeds of
the sale consist wholly or partly of a capital sum, and the patent is a
patent granted under the laws of this Island. then subject to the provi-
sions of this Part-
(U) he shall be chargeable to tax in respect of that sum under
the Act; and
(b) all the other provisions of the Act shall have effect accordingly:
Provided that if, not later than twelve months after the end of the
year of assessment in which the sum is paid, the person to whom it is
paid, by notice in writing to the Commissioner, elects that the said sum
shall be treated for the purpose of income tax for that year and each
of the five succeeding years as if one-sixth thereof, and no more, were
included in his income chargeable to tax for all those years respectively,
it shall be so treated, and all such repayments and assessments of tax
for each of those years shall be made as are necessary to give effect to
the election.
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 INCOME TAX 215

(3) Where the patent rights sold by a person or the rights out
of which the patent rights sold by a person were granted were acquired
by him by purchase and the price paid by him consisted wholly or partly
of a capital sum. sub-paragraphs (1) and (2) shall apply as if any capital
sum received by him when he sells the rights were reduced by the
amount of that sum :
Provided that where between the said purchase and the said sale
he has sold part of the patent rights acquired by him and the net
proceeds of that sale consist wholly or partly of a capital sum, the
amount of the reduction falling to he made under this sub-paragraph
in respect of the subsequent sale shall be itself reduced by the amount
of that sum.
4. Nothing in the preceding provisions of this Part shall apply in Patent
relation to any patent rights if those rights. or any rights out of which ~ $ ~ ; ~ ~ f o f
they were granted, have been the subject of a sale before the 1st of ,anuary,
January, 1953, and the proceeds of the sale consisted wholly or partly 1953.
of a capital sum.
5 . 4 ) In computing the profits or gains of any trade. there shall ReIieffor
be allowed to be deducted as expenses any fees paid or expenses expenses.
incurred on or after the 1st of January, 1953, in obtaining, for the
purposes of the trade, the grant of a patent or an extension of the term
of a patent.
(2) Where-
(U) on or after the 1st of January. 1953. a person. otherwise than
for the purposes of a trade carried on by him. pays any fees
or incurs any expenses in connection with the grant or
maintenance of a patent or the obtaining of an extension of
a term of a patent: and
(b) those fees or expenses would, if they had been paid or incurred
for the purposes of a trade, have been allowable as a deduction
in estimating the profits or gains thereof,
there shall be made to him, for the year of assessment in which these
expenses were paid or incurred, an allowance equal to the amount
thereof.
(3) Where a patent is granted in respect of any invention an
allowance equal to so much of the net amount of any expenses incurred,
on or after the 1st of January, 1953. by an individual who, whether
alone or in conjunction with any other person, actually devised the
invention as is properly ascribable to the devising thereof (not being
expenses in respect of which, or of assets representing which. an
allowance falls to be made under any other provision of the Act) shall
be made to that individual for the year of assessment in which
the expenses were incurred.
6 . 4 1 ) An allowance or charge under any of the provisions of this m c r t .
Part shall be made to or on a person in charging the profits or gains person is to
of his trade if- be trealed as
a trader.
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216 INCOME TAX

(U) he is carrying on a trade the profits or gains of which are,

or, if there were any, would be, chargeable to income tax under
the Act for the year of assessment for which the allowance or
charge is made; and
( b ) at any time in his basis period for that year of assessment,
the patent rights in question, or other rights out of which
they were granted, were or were to be used for the purposes
of that trade:
Provided that nothing in this sub-paragraph shall affect any of the
prcccding provisions of this Part allowing a deductjon as expenses in
computing the profits or gains of a trade or requinng a charge to be
made under the Act.
(2) Save as aforesaid, in ascertaining the chargeable income of
such person an allowance shall be made by way of discharge or
repayment of tax and shall be available against income from p e t s .
and a charge shall be deemed to be a gain or profit within the meaning
of the A c t

Effect 7 . 4 1 ) Where a person on whom, by reason of the receipt of a

ofdeathS. capital sum. a charge falls or would otherwise faU to be made under
windingsup
and partner- paragraph 3 of this Part dies or, being a body corporate, commences
ship to he wound up-
changes. (U) no sums shall be charged under the said paragraph 3 on that
person for any year subsequent to that in which the death
takes place or the winding up commences; and
(b) the amount falling to be charged for the year in which the
death occurs or the winding up commences shall be increased
by the total amounts which. but for the death or winding up.
would havc fallen to be charged for subsequent years:
Provided that, in the case of a death, the personal representatives
may, by notice in writing scrvcd on the Commissioner not later than
twenty-one days after notice has been served on them of the charge
falling to he made by virtue of this paragraph, require that the income
tax payable out of the estate of the deceased by reason of the increase
provided for by this paragraph shall be reduced so as not to exceed
the total amount of income tax which would have hem payable by him
or out of his estate by reason of the operation of the said paragraph 3
in relation to that sum. if, instead of the amount falling to be charged
for the year in which the death occurs k i n g increased by the whole
amount of the sums charged for subsequent years. the several amounts
falling to be charged for the years beginning with that in which the
capital sum was received and ending with that in which the death
occurred had each been increased by the said whole amount divided
by the number of those years.
(2) Where a charge under the said paragraph 3 falls to bc made
on two or more persons jointly as being the persons for the time being
carrying on a trade, and that trade is discontinued, the provisions of
[Thc inclusion of this page is au:horized by L.N. 60/1976]
 INCOME TAX 217

sub-paragraph (1) shall have effect in relation to the discontinuance as

they have effect where a body corporate commences to be wound up:
Provided that-
(a) the additional sum which, under, thc said sub-paragraph falls
to be charged for the year in which the discontinuance occurs
shall be apportioned among the members of the partnership
immediately before the discontinuance, according to their
respective interests in the partnership profits before the
dixontinnance, and each partner (or, if he is dead, his
personal reprcsentatives) charged separately for hls pro-
portion; and
(b) each of the partners, or, if he is dead, his personal represen-
tatives, shall have the same right to require a deduction of
the total income tax payable by him or out of his estate by
reason of the increase as would have been exercisable by the
personal representatives under the said sub-paragraph in
the case of a death, and the proviso to the said sub-paragraph
shall have effect accordingly, but as if references to the
amount of income tax which would have been payable by the
deceased or out of his estate in the event therein mentioned
were a reference to the amount of income tax which would in
that event have fallen to be paid or borne by the partner in
question or out of his estate.

8.-(1) In this Part, the following expressions have the meanings interpreta-
hereby respectively assigned to them, that is to say- tion.
“income from patents” mean+
(a) any royalty or other sum paid in respect of the user of a
patent;
(b) any amount on which tax is payable for any year of assess-
ment by virtue of any of the provisions of this Part:
“the commencement of the patent” means, in relation to a patent, the
date from which the patent rights become effective;
“patent rights” means the right to do or authorize the doing of anything
which would, but for that right, be an infringement of a patent.
(2) In this Part, any reference to the sale of part of patent rights
includes a reference to the grant of a licence in respect of the patent
in question, and any reference to the purchase of patent rights includes
a reference to the acquisition of a licence in respect of a patent:
Provided that if a licence granted by a person entitled to any patent
rights is a licence to exercise those rights to the exclusion of the
grantor and all other persons for the whole of the remainder of the
term for which the rights subsist, the grantor shall be treated for the
purposes of this Part as thereby selling the whole of the rights.
(3) Where an invention which is the subject of a patent is made,
used, or exercised or vended by or for the service of the Crown or the
[The i n c x i o n of this page is authorized by L.N. 6(1/1976]
218 INCOME TAX

government of a country outside the Island, the provisions of this Part

shall have effect as if the making, user, exercise or vending of the
invention had taken place in pursuance of a licence, and any sums paid
in respect thereof shall be treated accordingly.
(4) Any reference in this Part to the number of years comprised
in a period shall be construed as a reference to the number of
consecutive periods of twelve months, beginning with the day with which
the period begins. which are comprised in the period, any odd period
of less than twelve months remaining at the end of the period being
treated as a complete twelve months:
Provided that nothing in this sub-paragraph shall he construed as
affecting any reference in this Part to the number of compIete years
comprised in any period or which have elapsed since any date.

P ~ X. T Special Provisions as to Operation of the Foregoing

Parts in Relation fu Certain Sales
1. This Part has effect in relation to the sales of any property men-
tioned or referred to in this Schedule where either-
(a) the buyer is a body of persons over whom the seller has
control. or the seller is a body of persons over whom the
buyer has control. or both the seller and the buyer are bodies
of persons and some other person has control over both of
them; or
( b ) it appears with respect to the sale, or with respect to trans-
actions of which the sale is one, that the sole or main benefit
which might have been expected to accrue to the parties or
any of them was the obtaining of an allowance or deduction
under this Schedule.
References in this paragraph to a body of persons include references
to a partnership.
2. Where the property is sold at a price other than that which it would
have fetched if sold in the open market, then, the like consequences shall
ensue for the purposes of this Schedule in their application to the income
tax of all persons concerned, as would have ensued if the property had
been sold for the price which it would have fetched if sold in the open
market
3 . 4 1 ) Subject to the provisions of this paragraph, where the sale
is a sale of machinery or plant-
(U) no initial allowance shaU be made to the buyer; and
(b) subject to the provisions of paragraph 4 of this Part, if the
price which the property would have fetched if sold in the
open market is greater than the limit of recharge on the seller,
paragraph 2 of this Part shall have effect as if for the
reference to the price which the property would have fetched
if sold in the open market there were substituted a reference
to the said limit of recharge :
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 INCOME TAX 219

Provided that this sub-paragraph shall not apply in, relation !o a

vale of machinery or plant which has never been used If the busmess
or part of the business of the seller was the manufacture or supply
of machinery or plant of that class, and the sale was effected ~1 the
ordinary course of the seller’s business.
(2) Where, in the case of any sale of machinery or plant-
(a) the sale is one to which sub-paragraph ( U ) of paragraph 1 of
this Part applies and sub-paragraph (b) of the said paragraph
1 does not apply; and
(b) an initial allowance fell to be made to the seller of the
machinery or plant in respect of the capital expenditure which
he incurred on the provision thereof; and
(c) a balancing charge is made on the seller by reason of the sale;
and
(d) the price which the machinery or plant would have fetched
if sold in the open market at the time of the sale exceeds three-
fifths of the h i t of recharge on the seller,
paragraph (U) of sub-paragraph (I) shall not apply, but the initial allow-
ance to the buyer shall not exceed whichever of the three following
amounts is the least, that is to say-
(i) the excess of the said price over three-Bths of the said limit
of recharge;
(ii) the initial allowance which fell to be made to the seller as
aforesaid; and
(iii) the amount on which a balancing charge is made on the seller
as aforesaid.
(3) In this paragraph. “the limit of recharge” means, in relation
to a person who sells machinery or plant, the expenditure incurred by
him on the provision thereof.

4. Where the sale is one to which sub-paragraph ( U ) of paragraph I

of this Part applies and sub-paragraph ( b ) of that paragraph
does not apply, and the parties to the sale by notice in writing to the
Conmissioner so elect, the following provisions shall have effect-
(U) paragraph 2 of this Part shall have effect as if for the
reference to the price which the property would have fetched
if sold in the open market there were substituted a reference
to that price; and
(b) paragraph (b) of sub-paragraph (1) of paragraph 3 shall not
apply; and
(c) notwithstanding anything in the preceding provisions of this
Part such balancing charge. if any. shall be made on the buyer
on any event occurring after the date of the sale as would
have fallen to be made on the seller if the seller had continued
to own the property and had done all such things and been
[The inclusion of this page is authorized by L.N. 60119761
220 INCOME T A X

allowed such allowances or deductions in connection therewith

as were done by or allowed to the buyer.

5. In this Part "control". in relation to a body corporate, means

the puwer of a person to secure, by means of the holding of shares ~r
the possession of votins power in or in relation to that or any other
body corporate, or by virtue of any powers conferred by the articles of
association or other document regulating that or any other body
corporate, that the affairs of the first-mentioned body corporate are
conductcd in accordance with the wishes of that person, and, in relation
to a partncrship, means the right to a share of more than one-half of
the assets, or of more than one-half of the income, of the partnership.

PARTXI. Eflect, in Certain Cases. of Succession to Trades. etc.

1.-(1) Where a person succeeds to any trade, profession or vocation
which until that time was carried on by another person and the
trade, profession or vocation is to be treated as discontinued. any
property which, immediately before the succession takes place, was
in use for the purposes of the discontinued trade, profession or vocation
and, without being sold, is, immediately after the succession takes
place, in use for the purposes of the new trade, profession or vocation.
shall, for the purposes of this Schedule (except so much of Part I11
thereof as relates to annual allowances), be treated as if it had been
sold to the successor when the succession takes place, and as if the
net proceeds of the sale had been the price which that property would
have fetched if sold in the open market:
Provided that no initial allowance shall be made under any of the
provisions of this Schedule by virtue of the provisions of this paragraph.
( 2 ) Where, after the setting up and before the permanent
discontinuance of a trade, profession or vocation which at any time is
carried on in partnership. anything is done for the purposcs thereof.
any allowance or charge which, if the trade, profession or vocation had
at all times been carried on by one and the same person, would have
fallen 10 be made to or on him under any of the provisions of
this Schedule shall be made to or on the person or persons from time to
time carrying on that trade, profession or vocation. and the amount
of any such allowance or charge shall be computed as if that person
or those persons had at all times been carrying on the trade, profession
or vocation. and as if everything done to or by his or their predecessors
in the carrying on thereof had been done to or by him or them:
Provided that this sub-paragraph shall not apply to any annual
allowances under Part 111.
30/1970 PARTXII. Manner of Making Balancing Charges
s. 22. Subject to paragraph 6 of Part M a balancing charge imposed under
any of the provisions of this Schedule shall be levied by treating the
amount on which the charge is made as a gain or profit within
the meaning of the Act.
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 INCOME TAX 221

SECOND SCHEDULE (Ssdion 94)

PART1. The Income Tox (Employrnents) Regulations

GEXERAL

1. These Regulations may be cited as the Income Tax (Employmcnts)

Regulations.
2. In these Regulations unless the context otherwise requires-
“Collector” means Collector of Tax- for the parish in wbicb the pay-
ment of emoluments is made or in the w e of emoluments paid
to wployees of the Government, the Accountant-General:
“Commissioner” means the Commissioner of Taxpayer Audit and L,N.
Assessment; lhS;I%Y.

“cumulative emoluments” in relation to any date, means the s u m of all

payments of emoluments made by the employer to the employee
from the beginning of the year up to and including that date:
“cumulative tax” means the cumulative gross tax due in respect of any 3811976
cumulative taxable emoluments at the relevant date in accordance 2nd a.
with the appropriate tax tables:
“determined allowances” means such allowances as the Commissioner LN.
may determine in relation to an employee with more than one 128ElL986.
source of income for the purpose of securing the collection in any
year of assessment, by means of deductions from the emolumen!s
of the employee arising frmn one or more wurees of his income.
of the total tax payable by him in that year in respect of all the
sources of his income:
“moluments” means emoluments to which the Act applies, and 711956
reference to payments of emoluments includes reference to pay- s.33.
meats on account of emoluments:
“cmployte” means any person in receipt of emoluments;
“employer” means any m n paying emoluments, whether on his
own m u n t or on &If ofanother perm:
“ESOP contributions” means any part of an employee’s emoluments L.N.
deducted for the p q a w of acquiring ESOP shares in accord- 3W-1’995.
(UICC with the Employees Share Ownerdu’p Plan Act:
“ESOP shares” has the same meaning as in the Employee Share i..~.
Ownership Plan Act: 5ScI 1995.

“ h a m e tax month” means every calendar month throughout the year

of assessment:
“reliefs from income tax” includes allowances and deductions;
. - ~ _ _ __
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_-
772 INCOME T A X

“tax deduction card” means a tax deduction card in the form prescribed
by the Commissioner or such other document corresponding to
a tax deduction card as may be authorized by the Commissioner
in any particular case:
L.N. “taxable emoluments” means emoluments reduced by-
38c:1!WS5.
( U ) deductible expenses as agreed with the Commissioner: and
(b) an exemption or relief from tax pursuant to the Employcc
Share Ownership Plan Act and taken into account for the
pu’poses of these Regulations in a manner a p e d with tbe
Commissioner:
“tax tables” means the tax tables prepred by the Commissioner:
“total net tax deducted” rmeans, in relatim to the emoluments
to any employee during any period. the total tax deducted rom
those emoluments less any tax repaid to the employee:
Pd
“year” means year of assessment.
3 . 4 1 ) Where an rmployee works under the general control and
management of a person who is not his immediate employer that
person (referred to hereafter in this regulation as the “principd
employer”) shall be deemed to be the employer for the purposes of
these Regulations. and the immediate employer shall furnish the
principal employer with such particulars of the employee’s emoluments
as may be necessary to enable the principal employer to comply with
!he provisions of these Regulations.
(2) If the employee’s emoluments arc actually paid to him by
h e immediate employer-
(0) the , h e d h t e amployer shall be notifled by the princip3
employer of the amount of tax to be deducted or repaid when
the emoluments are paid to the employee, and shall deduct
or repay the amount so notified to him accordingly; and
(b) the principal employer shall make a corresponding deduction
or addition on making to the immediate employer the pay-
ment out of which the said emoluments will be paid.
4. Anything which is authorized or required by these Regulations
10 be done by the Commissioner or the Collector may be done by the
Commissioner or such Collector respectiveIy. or by Tncomc Tax
(Employments) Officers appointed in accordance with regulation 5.
5. The Commissioner may appoint Income Tax (EmpIoyments)
Officers from the members of the staff of his Department to carry out
such duties in connection with these Regulations as he may assign to
them.
6 , Any notice or tax deduction card which is authorized or required
to be given, served or issued under these. Regulations m y be sent by
post.
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 INCOME TAX 223

7. Every employer, on malung any payment of emoluments during any

year to any employee in respect of whom a tax deduction card has been
issued to him for that year by the Commissioner shall deduct or repay tax in
accordance with these Regulations.
8. The Commissioner may dlsregard part or all of any expenses in respect L.x
of which the employee is entitled to relief from income tax if it is 128Bi86.
impracticable to take account of all those expenses in determining the
appropriate allowance in relation to that employee and where he does so he
shall direct the employer to disregard an equivalent amount of the employee’s
emoluments in calculating the tax to be deducted or repaid when any
payment of emoluments is made to the employee.
9.-(1) The Commissioner may determine that an allowance of such L.N.
amount as he may spec@ be deducted from any emoluments of an employee 128*’86.
with more than one sou~ceof income, in order to ensure that the total tax
payable by such employee in respect of his emoluments arising from all
sources, is collected during the year of assessment.
(2) The Commissioner may determine that no tax shall be deducted
from any emoluments if-
( a ) the emoluments will be included in the profits of a trade,
profession or business; or
( 6 ) the Commissioner is not satisfied that the emoluments will be
chargeable to tax.
10. Subject to section 4 0 of ~ the Act, unless the Commissioner otherwise L.N.
duects, the value of any quarters or residence provided by an employer to an 128B/86.
employee shall be regarded as being 15 per cent of the other emolumentspaid
to that employee, and the employer shall deduct tax accordingly.
11. Where by reason of his employment a motor vehicle is provided L.N.
(without transfer of the properly in it) for the use of an employee in relation
to his office or employment and the motor vehicle is available in any year for
the private use of the employee or members of his family or household, the
value of the benefit accruing to the employee shall, for the purpose cf
ascertaining the tax payable in relation thereto, be determined by the
Commissionerin accordance with Appendix A. Appendix A,
l l ~ The. categories of employees entitled to the relief specified in 4 ~ 2 0 0 2 .
paragmph (i) (J3) of the proviso to section 5 (1) (c) of this Act in respect of S. 20.
allowances for the provision of uniform and the laundering thereof, shall be
those specified in Appendix B. Appendix BI

12.-(1) Subject to paragraph (2), on the occasion of payment of L.N.

emoluments, an employee’s ESOP contributions made from such 3*C/1995.
emoluments shall not be taken into account as taxable emoluments for the
purpose of these Regulations.
(2) Where in any year, on the occasion of payment of emolumentsto
an employee, the employee’s aggregate ESOP mntributions in that year up to
and including that occasion, exceeds 10 per cent of the employee’s aggregate
[The tnclusioti of this page is authorized by L.N. 88/2003]
221 INCOME TAX

emoluments in that year up to and including that occasion, the provisions of

paragraph (1) shall not apply to the excess.
(3) Adjustments may be made, where appropriate, in accordance with
regulation 11 in relation to the emoluments of an employee to whom this
regulation applies.
13. [Deleted b-y L.;V. 128B’1986.]
DEDUCTION AND REPAYMENT OF TAX
1 4 . 4 1 ) On the occasion of any payment of emoluments to the employee.
the employer, except where these Regulations otherwise provide, shall
38,1976 ascertain the cumulative emoluments of the employee at the date of the
2* Sch. payment, the cumulative gross tax thereon. the cumulative tax free
L.N. emoluments and the corresponding cumulative net tax.
128Bl86.
(2) If the said cumulative net tax exceeds the cumulative net tax
correspondmg to the employee’s cumulative emoluments at the date of the
last preceding payment of emoluments (hereafter in thls regulation referred to
as the “previous cumulative net tax”), the employer shall deduct the excess
from the emoluments on makmg the payment in question.
(3) If the said cumulative net tax is less than the previous cumulative
net tax the employer shall repay the difference to the employee on making the
payment in question.
(4) If the said cumulative net tax is equal to the previous cumulative
net tax, no tax shall be either deducted or repaid when the payment in
question is made.
( 5 ) Where the payment in question is the first payment in the year,
paragraphs (2), (3) and (4) shall not apply, but the employer shall deduct the
said cumulative net tax from the emoluments on making the payment in
question.
(6) The employer shall record either on the tax deduction card or in
such other form as may be authorized by the Commissioner, the following
particulars regarding every payment of emoluments wluch he makes to the
employee, namely-
(a) the date of the payment;
(6) the gross amount of the emoluments;
3811976 (c) the amount of his gross emoluments in respect of which the
2* Sch. Commissioner has agreed he qualifies for relief from income tax;
(d) the taxable emoluments to that date;
(e) the cumulative taxable emoluments in relation to the said date;
L.N. v) the cumulative gross tax in relation to that date;
128B186. (g) the cumulative tax-fiee emoluments appropriate to that date;
(h) the cumulative net tax to the said date;
(i) the amount of tax, if any, deducted or repaid on making the
payment;
L.N. (j) any benefits, perquisites or facilities provided for the employee
128Bl86. (whether in money or otherwise).
~~~

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 INCOME TAX 223

(7) Where the Commissioner determines that an allowance of LN.

such amount as he may specify shall be deducted from any emolu- '288/86~
ments or that no tax shall be deducted therefrom the foregolng prOVl-
sions of this regulation shall not apply but the employer shall deduct
the allowance so specified or shall deduct no tax, as the case may
require, without regard to the employee's cumulative emoluments or
the corresponding cumulative tax. and shall record the date of the
payment, the gross amount of the emoluments and the aiiiount Of t a x
deducted therefrom:
Provided that, where the Commissioner's determination that no tax
shall be deducted is an amended determination, the employer shall. if
the Commissioner so directs, make any repayment of tax which may
be due by reference to the employee's cumulative emoluments and the
correspooding cumulative tax. and shall record the particulars men-
tioned in paragaph (6).
15. Where emoluments are paid at regular intervals other than regular
intervals of a week or a month, any payment of such emoluments shall
be deemed for the purposes of these Regulations to be made on the
date on which it would have been made if a payment had been made
on the last day of the preceding year:
Provided that the employer shall record the actual date of every such
payment.
1 6 . 4 1 ) If the employer makes a payment in respect of overtime
or other extra earnings to an employee whose main emoluments are
paid monthly, and that payment is made at an earlier date in the income
tax month than the date on which the main emoluments are paid, the
employer shall repay no tax to the employee on the occasion of that
payment notwithstanding that tax may be repayable under the provisions
of regulation 14, but in such a case the said regulation 14 shall have
tffect as if that payment was made on the same date in that income
tax month as the date on which the main emoluments are paid.
(2) The foregoing provisions of this regulation shall apply with
the necessary modifications to payments in respect of overtime or other
extra earnings which arc made to an employee whose m a i nemolumcnts
are paid at intervals greater than a month.
1 7 . 4 1 ) T h i s regulation applies to-
( 0 ) payments of emoluments made on the thirtieth or thirty-first
day of December in a leap yesr or on the thirty-iirst day of
December in any other year. to an employee who i s paid
weekly:
tb) payments of emoluments made to an employee after he has
ceased to be employed by the person making the payment;
and
(c) any other ayments of emoluments made to any employee
to which tl% Commissioner d i m s that this regulation shaU
apply.
F e inclusfon of this pge is at&hhorized by L.N. 95119971
226 INCOME T A X

(2) Regulation 14 shall not apply to payments of emoluments

to which this regulation applies, and on making any such payment the
employer shall deduct therefrom tlie amount of tax which would have
been deductible therefrom if thc payment had been made on the pre-
ceding first day ol January.
(3) On making any such payment as aforesaid, the employer
shall record. either on the tax deduction card or in such other form
as may be authorized by the Commissioner, the date of the payment,
38/1976 the gross amount of the emoluments, the amount of the gross tax, the
2nd Sch. tax-free emoluments and the amount of tax, if any, deducted on mak-
L.N. ing the payment.
12RBl86.
1 8 . 4 1 ) If the employer ceases to employ an employee in respect of
whom a t a x deduction card has been issud to him,he @hallforthwith
send to the Commissioner a certificate on the prescribed form containing
the following particulars, namely-
( U ) the name of the employee:
(4 any number used to identify the employee;
(c) the date on which the employment ceased:
L.N. (4an benefits, perquisites or facilities provided for the employee
1288/86. IwKether in money or otherwise);
(e) the week or income tax month in which the last payment of
emoluments was made to the employee. or in a w falliing
within regulation 15 was deemed to be so made, and the
cumulative emoluments at the date of that payment; and
(fi the corresponding cumulative tax.
(2) The employer shall make on the prescribed form two copies
of the said certificate and shall deliver them to the employee on the
day on which the employment ceases.
(3) Immediately on commencing his next employment the
employee shall deliver the two copies of the certificate to his new
employer. who shall, subject to the provisions of paragraph (4)-
(a) insert on one copy of the certificate the address of the
employee, any number used to identify him and the date on
which the employment commenced, and forthwith send that
copy to the Commissioner:
( b ) prepare a tax deduction card in accordance with the particulars
381 1976 given in the copies of the certificate and record on the card
2nd Sch. the cumulative emoluments. the cumulative tax-free emolu-
LN. ments, any benefits. perquisites or facilities provided for the
128RIS6. employee (whether in money or otherwise) and the cor-
responding cumulative tax as at the week or month shown in
the copies of the certificate; and
(c) on making any payment of emoluments to the employee. deduct
or repay tax in accordance with regulation 14 and keep the
records required by that regulation as if the cumulahve emo-
me inclusion of this palage is adhorizcd by LN. 95119971
 INCOME rAX

luments and the cumlilative tax s h m n on the tax deduction

card prepared in accordance with sub-paragraph ( b ) repre-
sented emoluments paid to the employee by thc new employer
and tax deducted by him:
Provided that, if tax is repayable on the occasion of the firs[
such payment and the amount repayable exceeds ten ?ollars. 3811936
the new employer shall forthwith notify the Commissioner 2nd 'ch.
and shall not make a repayment until authond to do so
by the Commissioner.

(4) Where rbe two copies of the certificate show that the last
payment of emoluments was in the year preceding that in which the
new employment commences, the new employer hall-
(a) if the date of the commencement of the new employment is
within the first three weeks of the year, comply with the
provisions of paragraph (3) with the modification that he shall
deduct or repay tax without taking into account the cumulative
emoluments and the cumulative tax shown on the copies af
the certificate:
(b) in any other case, comply with the provisions of sub-paragraph
(a) of paragraph (3). but deduct tax from each payment >f
emoluments made by him to the employee, and keep records
on the prescribed card as if those payments had been payments
to which paragraph (2) of regulation 20 applies.
(5) If the new employer ceases to employ the employee he shall
mmply with the provisions of paragraphs ( I ) and (2) as if a tax deduc-
tion card in respect of the employee had been issued to him by rhe
Commjssioner.

(6) If the employee obiecrs to the disclosnre to his new

employer of his aforesaid cumulative emoluments he may deliver the
two copies of the certificate to the Commissioner before he commences
his new employment and the Commissioner may issue a tax deduction
card in respect of the employee to the new employer and direct that
regulation 17 shall apply to all payments of emoluments which the new
employer makes to the employee.

(7) Retirement on pension shall not be treated as a cesstion

of employment for the purposes of this regulation if the emoluments
are paid by the same person both before and after the retirement.

1 9 . 4 1 ) On the death of an em loyee in respect of whom a tax

g
deduction card has been either issue by the Commissioner or prepared
by the employer under paragraph (3) of regulation 18. or to whom the
provisions a€ paragraph (2) of regulation 20 apply. the employer shall
forthwith send to the Commissioner the certificate (relating to cessaticn
~~~ ~ ~ ~ ~~~ ~~~~~ ~~

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228 lNCOME TAX

of employment) mentioned in paragraph (1) of regulation 18 or the

certificate mentioned in paragraph (4) of regulation 20. as the case m y
require, together with the two copies of the said certificate mentioned
in paragraph (2) of the said regulation 18, and shall insert thcreon the
name and address of the penonal repreaentative of the deceaaed
employee if they are known to him.
(2) If any emoluments are paid by the employer after the date
of the employee's death in respect of his employment with him, the
employer shall, on making any such payment, deduct or repay tax as if
the deceased employee was still in his employment at the date OF the
payment and-
(a) if the amount of those emoluments and the date on which
they will be paid are hewn to him at the time he complekes
the certif!cate mentioned in paragraph (1). be shall include
thereon the amonnt of the emoluments. tbt date on which
'bey will be paid and the amount of tax w h i i will bc deducted
or repaid; and
(6) in any other case, be shall indicate on the certikate that a
further payment of emoluments will be made by h i .
20.-(1) If the employer makes any payment of emoluments to an
L.N. employee in respect of whom he has not received a tax deduction card
'28B'86. from the Commissioner and that payment is equivalent to emoluments
at a rate of one hundred and sixty-five dollars or more per week, or
in the CRSC of a new employee with other employment, the employer.
on the Dccasion of the 6rst such payment, shall forthwith render a re-
turn to the Commissioner giving the name and address of the employee,
the date on which his employment commenced, and such other parti-
culars as may be necessary to determine the amount of tax-free emo-
luments.
(2) if the said payment is the 6rst payment of emoluments made
by the employer to the employee during the year and is equivalent to
L.N. emoluments at the rate of one hundred and sixty-five dollars or more
128B,186.
per week, the employer on making it shall also deduct tax and keep
records on the prescribed card as if the payment was one to which
regulation 17 applied, with the exception that the amounts Of the tax-
free emoluments shall not be recorded on the prescribed card, and shall
do likewise on making any subsequent payment of emoluments to the
employee until a tax deduction card in respect of the employee is kSUed
to him by the Commissioner.
(3) On makiig any payment of emoluments to the cm loyee
after a tax deduction card has been issued in respect of him Y the t
Commissioner, the employer shall deduct or repay tax in accordance
with regulation 14 and shall keep the records required by that regula-
tion, and for those purposes-
(U) any cumulative emoluments entered on the tax deductjon
card by the Commissioner shall be treated as if they
represented emoluments paid by the employer; and
-
IThe inclusion of= page is auUhorized by L.N. 95'19911
 INCOME T A X 229

(a) the cumulativc t3x before the first payment as aforesaid shall
bc taken to b: tlic suin ui any cuniulalive t3x entered as afore-
snId and m;.. t n T + ~ : L ! I tiic c:np!zyer was liable to rlrduct
froin Llic empliyee‘s enioluments undcr pnragraph (3.
(4) Where pi:ragrap!i (2) applies and the employer ceases to
employ the einplpcc before a ta,%dsGuclion card in respcct of :Le
cmployee has $ten i > S ! I d 10 him by the Commissioner. regulation 18
shalI jpply as i i a tax deJ!l-lion card had bzco so issued. but subjct
to the modifications that-
e of the emp!oycr under that rcglation shall not
conrain particiilars oi tile cu:nulative emoluments and
cumu!ative h x ; and
(b) !be n e w ciiipl:ly:r, instead of deducting or repaying tax by
referems to tlis cumulative en~olunicntsand cuniulative wx,
shall dcduct tax and keep records in accordancc with paragraph
(2).
is) In the case of an etnpio~eewho is paid monthly or at Iongcr L.N.
intervals, the references in thi: l.czulalion to 3 rate o: one hundred and 1;SB/S6.
sixty-five dollars or more pcr w e k ahall he treated as a relci-ence to a
rate ul scven hundred and tif!cc:i dollars ui- mofe per month.
(6) This regulation shall ncmt apply where-
(0) the eniploycc on c o i n i i l c ~ ~ c i cmploynien:
i~g~ has deliver-d tn
his einployer copes of a certificate such as is mentioned in
regulation 18. except to the extent provided in paragrapl: (4):
ar
(b) rhe employee performs the duties of his employment wholly
outsidc the Island; or
(c) the cmployee is outside the Island and the emoluments arc.
paid outside thz said Island; or
(4the employec is resident outsidc the Island and the ernolumsnts
consist of a pcnsion:
Provided that if the employer pays a pension not being I.
pension arising wliolly from an employment carried on abroad
to a pzrson who is residcnt outside the Island in rcspect af
whom he had not received a tax deduction card from the
Crmimissioner and the payment is equivalent to emoluments
at the ia:e of 018 hundred and sixty-five dollars or more per L.N.
week, the emp1o)’:r shall, on the occasion of the first such I?BHiR6.
payment forthwith rcnder a return to the Commissioner giving
the name and address of the pcrson entitled to the pension.
the date on which the pension conimenccd and such other
particulars as may be necessary to s:cure the issue of ths
appropriate tax deduction card.
21. No tax sball be repaid to a new employee without the authority
of the Commissioner, if, and to the exient that. it would have been
repayable on thc occasion of thc first payment of enuhments to the
new employee if tax was being deducted in accordancc with regulatidn
14.
_____ -- __
l”h inclusion of this page i E aubhhorized
by L.N. 95i19971
230 INCOME T A X

22. Where under these Regulatious tax is deductible otherwise than

by reference to cumulative emoluments and cumulative tax. the
amount of tax to be deducted in any week or income tax month shail
be calculated by reference to the aggregate of the emoluments paid
to the employee in that week or month.
23. Where the employer makes a payment to or for the benefit of
the employee in respect of his income tax. the amount of the emoluments
which the employer pays to the employee shall be deemed. for the
purposes of deduction and repayment of tax under these Regulations
to be such a sum as will include the amount assessable on the employee
in respect of the payment madz by the employer in respect of the
employee’s income tax.
2 4 . 4 1 ) If owing to absence from work through sickness or other
similar cause the employee is entitled to receive no emoluments on
the usual pay day. the employer shall. on application being made in
person by the employe or his authorized representative. make such
repayment of tax to the employee as may he appropriate. having regard
to his cumulative emoluments at the date of the pay day in quwtiain
and the corresponding cumulative tax.
(2) If owing to absence from work otherwise than as aforesaid
such an employee is entitled to receive no emoluments on the usual
pay day, the employer either-
(U) shall make any such repayment of tax to the employee as
would be appropriate under paragraph (1); or
(b) not later than the first usual pay day on which no emoluments
will be payable to the employee shall give notice to the
Commissioner of the employee’s absence from work and of
his intention to make no repayment to the employee under
sub-paragraph (U). and shall render with the notice a return
containing the same particulars with respect to the employee
as the employer would be liable to certify under paragra h (1)
of regulation 18 if the employment had m s e d on the &y on
which emoluments were last paid to the employee; and where
the said notice is given and the said return rendered within
the time limited in this sub-paragraph, the employer-
(;) shall be relieved of the liability to make any rrpyment
under the provisions of sub-paragraph (U);
(ii) on the employee’s return to work shall forthwith notify
the Commissioner: and
(ii) for the purposes of deducting or repdying tax on the
occasion of any subsequent payment of rmoluments
to the employee during the year. shall take into account
the amount of any repayment made by the
Commissioner under paragraph (3) of which he is
notified by the Commissioner.
(3) In the case of a penon who has ceased to be cmplo@ or
with respect to whom a notice has been given and return rendered under
[The inclusion of fhig page is authorized by L.N. 95) 19w]
 INCOME T A X 23 I

the provisions of sub-paragraph (b) of paragraph (2). any repayment

which may be appropriate at any date, having regard to his cumulative
emoluments at that date, and the corresponding cumulative tax, shnU
be made to him by the Commissioner or on behalf of the Commissioner
in accordance with such arrangements as he may make for the purpose
with the Colleclor; and a person who has ceased to be employcd, shall,
on applying for repayment, produce to the Commissioner the copies
of the certificate mentioned in regulation 18 and such evidence of his
unemployment as the Commissioner may require.
25.-(1) After the end of the year the employer shall give the
employee a certificate showing the total amount of the emoluments
paid by the employer to the employee during the year, any benefits,
perquisites or facilities provided for the employee (whether in money or L.N.
otherwise) and the total net tax deducted from the emolumznts. 12SW86.

(2) In the case of an employee taken into employment after

the beginning of the year, the certificate shall include any emoluments
paid to the employee by any previous employer and any tax dcducted
from those emoluments, being emoluments and tax which the employer
giving the certificate was required to take into account for the purposes
of deducting or repaying tax jn the case of emolumenls paid by him.
( 3 ) A certificale shall be given under this regulation to every
employee who is in the employer’s employment on the last day of the
year and from whose emoluments any tax bas been dedccted during
the year.
2 6 . 4 1 ) Within fourteen days of the end of every income tax month
the employer shall pay to the Collector all amounts of tax which he
was liable under these Regulations to deduct from the emoluments
paid by him during that income tax month, reduced by any amount
which he was liable under these Regulations to repay during that income
tax month.
(2) The Collector shall give the employer a receipt on tffe
prescribed form of the total amount so paid.
(3) If the amount which the employer is liable to pay to the
Collector under paragraph (I) exceeds the amount actually deducted
by him from emoluments paid during the relevant income tax month,
the Commissioner, on being satisfied by the employer that he took
reasonable care to comply with the provisions of these Regulations and
that the under-deduction was due to an error made in good faith. may
direct that the amount of the excess shall be recovered from the
employee, and where he so directs, the employer shall not be liable to
pay the amount of the said excess to the Collector.
(4) If the total of the amounts which the employer was liable
to repay durhng any income tax month exceeds the total of the amounts
which he was liable to deduct during that income lax month, he shall
be entitled to deduct the excess from any subsequent payment which
he is liable to make to the Collector under paragraph ( I ) or to recover
it from the Commissioner.
iT%e inclusion of this page is aubhhorized by L.N. 95jl9971
232 INCOME TAX

27.--(1) If within fourteen days of the end of any income tax morth
the cmpl(1ycr has paid no aniount of tax to the Coiixlor uiid-r
rc~ulaticin26 for thljt income tax xonth and the Collector is unaware of
thc amount. if any, which the employer is liable so to pay the Collecti;
m y give Itorice to thc employer rquiricg him to rcnde; wi:!iin !h:
1ii:ie 1:t~t~Izd In ihe notice a r z u m showin:: thc nmie of cvcry entoloym
to \rhoiii hi, m:dc any p.ymznt of cmolu:i~en!s or repayment of tax In
the p i e d f r . m the preceding first day of January to the day (bein:
the last clay OF an income tax mon:h) limilerl by L!IC notice tozelher with
such particulars with regard to each such employee as the notice
rqiiires, k i n g partim:!ar.5 of-.
L N. ..
( n ) any knefi:s. pe:q::t\::tss or facilities Fmvidcd for the empiqe;:
!:8B/86. iwhcthcr in mmey o r othcnzzise):
(6) thc paymrmt~i:F enio1~:icnls ninde to him during that period:
and
(c) any other [natter affecting the cdculation of the tax which
thc sillployer was liable utidcr these Regu1a;ions to deduct
or to r e p y to the employee dtirinz that pe:iod.
( 2 ) The Collector 5y refercnce to the tax tablcs s1i:iIl ascertain
and certify the emount of lax which the eniployer is liable Lo pay to
him in rcspect of l h c income tax niunth in question.
(3) The production of the retlirn made by the employer under
paragraph ( 1 ) and of the certificate of the Collector under paragraph <?)
shall bc sufficient evidence t h a t the amount shown in :he said certificzrc
is the amount of tax which the employer is liab!e 10 pay to the Collector
in respect of the income lax month in question; and any docummt
purporting to be such a certificate as aforesaid shzll be deemed to be
such a certificate until the contrary is proved.
(4) Where a notice given by the Collector under paragap!: ( 1 )
extends to trvo or more consecutive income tax months, the provisioni
of these Rqylations shall have escct as if the said consecutive income
tax months were one income tax month.
( 5 ) A notice may be given by the C:iillcctor under paragraph (I)
notwithstanding that an aniount of tax has been paid to him by the
employer undcr regulation 26 for any income tax month, if the CuUcctor
is not satisll;d that thc amouiit so p i d i b :h: full aniouni which the
employer is liablc to pay to him for that month, and the provisions
of this regulation shall hlive ellect accordingly.
%--(I) The provisions relating to the recovery of income tax sh211
apply to the recovery of any amount of tax which an employer is liahlz
under regillation 7-6 Lo pay to the C'ollxtor for any incume tax mon:.h
as if the said amount had been charged on the employer.
(1)Notwithstanding an;t!!iag cont3ined in section 80 of :he
Act, proceedings may be broiidii for the r e w v e v of the total amouw
which the c:niployer is Iiah!e 10 p y as nforesaid for any income tax
month. wirhout di~tiril:uishliig the m o u n t s which hc is liable to pay
~ ~~~~~~~~~~ ~~ ~ ~~ . .
inclusion of !5ii page is a,uthorized by LN.95j19971
 lNCOME TAX 233

in respect of each employee and without specifying the employees in

question. but nothing in this paragraph shall prevent the bringing of
separate prooeedings for the recovery of each of the several amounts
which the employer is liable to pay as a f o d d for any income tax
month in respect of his several employees.
(3) A certificate of the Collector that any amount of tax such
as is mentioned in paragraph (1) has not been id to him or to the
f?
best of his knowledge and belief to M Y other CO ector or t o any other
person acting on his behalf or on behalf of another Collector, shall
te sufficient evidence that the s u m mentioned in the certificate is unpaid
and is due, and any document purporting to be such a certificate as
aforesaid shall be deemed to be. such a artificate until the contrary
is proved.
2 9 . 4 1 ) Not later than fourtcm days after the end of the year the
employer shall render to the Collector, either on the tax deduction
card or in such other form as the Commissioner may approve, a return
in respect of each employce showing the total amount of the emoluments
paid by him to the employee during the year, any benefits, pcrquisites 22/1977
or facilities provided for the employee (whether in money or otherwise) Scb.
and the total net tax deducted from the emoluments as well as the :;i,,,
details of all allowances, perquisites and benefits whatsoever in cash
or in kind arising or accruing by reason of the holding of an office
or employment of profit by such employee.
(IA) Notwithstanding the provisions of paraxrraph (I). the 221 1977
Commissioner may. whenever he deems it necessary. give notice to scb.
an employer requiring him to render within the time sprcified in the
notice, a return in respect of all or any of his cmployecs showing
the total amount of the emoluments, allowances, perquisites and benefits
whatsoever, in cash or kind arising or accruing by reason of the
holding of an ofice or employment of profit by that employee.
(2) The said returns shall be accompanied by a statement
containing a list of all tax deduction cards issued to the employer by
the Commissioner or prepared by him under the provisions of paragraph
(3) of regulation 18 during that year and of the cards preprcd by him
under the provisions of paragraph (2) of regulation 20 in respect of
an cmployee for whom a tax deduction card was not subsequently issued
by the Commissioner. together with a certificate showing the total net
tax deducted or the total net tax repaid in the case of each employee and
the total net tax deducted or repaid by him in m p t of all his
employees during that year.
(3) I0 the care of an employee taken into employment after
the beginning of the year the said return shall also show the total amount
of any emoluments paid to the employee by any previous employer and
of any tax deducted from those emoluments. beiig emoluments and tax
which the employer rendering the return was required to take into
account for the purposes of deducting or repaying tax in the case of
emoluments paid by him.
inclusion of this page is authorized by L.N. 95:19?771
234 INCOME TAX

(4) A retum shall be made under this regulation in respect of

every employee in respect of whom a tax deduction card has been
either issued to the employer by the Commissioner or prepared by the
employer unde: paragraph (3) of regulation 18 or to whom the
eniployrr has at any time during the year paid emoluments at a rate
3811976 equivalent to the extent of the aniounts specified in regulations ZO(1)
2nd Sch. anJ 20(5), or if the Commissioner so requires, regardless of the amount
so paid.
( 5 ) If within fourteen days of the end of any year an employer
has failed to pay to the Collector the total net amount of tax which
he is liable so to pay, the Collector may prepare a certificate showing
the net amount of tax remaining unpaid for that year. To the amount
shown in the said certificate the provisions of paragraphs (1) and (2)
of regulation 28 shall apply with the modification that proceedings for
the recovery of the net amount of tax or such part of it as remains
unpaid may be brought at any time before the expiry of twelve months
after the date limited for delivery of the statement required by puagraph
(21. or, if ilia; btatement is not delivered by that date, before .the expiry
of twelve months a f k r its delivery: and to the said cemficate the
provisions of paragraph (3) of regulation 28 shall with all navssary
modifications apply.
30.41) There shall be included among the debts which under
section 139 of the Bankruptcy Act are to he paid in priority to all Othtr
debts in the distribution of the property of a bankrupt so much as U
3811976 unpaid of the employer’s liability for the period of six years next
2nd before the date of the provisional order.
(2) For the purposes of this regulation the expression
“employer’s liability for the period of six years” means all sums
which an employer was liable under these Regulations to deduct from
emoluments paid by him during the period of six years mentioned
in this regulation. reduced by m y amounts which he was under these
Regulations liable to repay during the same period.
31. Every employer, when called upon to do so by the Commissioner
or any officer authorized by him, shall produce to that officer for
inspection at the employer’s premises, all wages sheets, tax deduction
cards and other documents and records whatsoever d a t i n g to the
calculation or payment of the emoluments of his employees or the
deduction of tax therefrom.
32. If an employer dies, anything wbich he would have been liable
to do under these Regulations shall be done by his personal represen-
ta!ive. or. in the case of an employer who paid emoluments on behalf
of another person. by the person succeeding him. or if no person
succeeds him, the person on whose behalf he paid emoluments.
3 3 . 4 1 ) This regulation applies where there has been a change m
the employer from whom a n emplo ee receives emoluments in respect
of his employment in any trade, profkion or business,.or in connection
with any property or from whom an employee nce~vwany annuity
or pension.
me inclusion of this Gaze is authwized by L.N. 95:’1997l
 INCOME TRX 235

(2) Where this regulation applies, the change shall not be treated as a
cessation of employment for the purposes of regulation 18. but in relation to
any matter arising after the change, the employer after the change shall be
liable to do anythmg which the employer before the change would have been
liable to do under these Regulations if the change had not taken place:
Provided that the employer after the change shall not be liable for the
payment of any tax which was deductible from emoluments paid to the
employee before the change took place.
ASSESSMENT AND DIRECT COLLECTION
34.--(1) Income tax in respect of emoluments may be assessed and
charged by the Commissioner. who for that purpose may exercise all the
powers under Act.
(2) All the emoluments of an employee may be included in one
assessment.
35. The Commissioner may give notice to the employer requiring
him to render a return of any emoluments paid by him to any employee
for any year being emoluments whch were not paid to the employee
until after the end of that year and any such return shall be rendered to the
Commissionerwittun the time limited by the notice.
36. The Commissioner shall serve a notice of assessment on every
employee assessed by whom tax is payable or from whose emoluments
any tax was deducted during the year of assessment, not being tau which
was repaid during that year.
3 7 . 4 3 If the employee is aggrieved by the assessment he may give
notice thereof to the Commissioner stating the grounds of his objection,
within thirty days of the date of the notice of assessment.
(2) On receipt of any such notice of objection, the Commis-
sioner, on proof to his satisfaction, may agree with the employee as to the
correct amount to be assessed and may thereupon amend the
assessment. Notice of the amended assessment shall then be served on the
employee by the Commissioner.
(3) In default of agreement as aforesaid the employee, on giving
notice to the Commissioner, may appeal to the Commissioner of Taxpayer
:yrl
L,N.
Appeals against the assessment, and the provisions of the Act relating to the 88/2002.
determination of objections to assessments and to appeals to the
Commissioner of Taxpayer Appeals, Revenue Court and to the Court of 7/1956
Appeal shall apply accordingly; and for the purposes aforesaid, the employee S.33,
shall be deemed to be the objector. L.N.
38.-(1) If the tax payable under the assessment is less than the total net 8B/2002.
tax deducted from the employee’s emoluments during the year, the
Commissioner may, and if the employee so requires shall, repay the
Merence to the employee instead of taking it into account in determining the
appropriate code for a subsequent year.
(2) If the tax payable under the assessment exceeds the total net tax

[The tiiciusioii of tills page IS authonzed by L N 88/2003]

236 INCOME TAX

deducted from the employee’s emoluments during the year. the

Commissioner may require the employee to pay the excess to the Collector.
(3) For the purpose of determining the amount of any difference or
excess as aforesaid, any necessary adjustment shall be made to the aforesaid
total net tax in respect of-
(a) any tax which the employer was liable to deduct from the
employee’s emoluments but failed so to deduct having regard to
whether the Commissioner has or has not directed that that tax
shall be recovered from the employee; and
(b) any tax overpaid or remaining unpaid for any year.
39.-(1) Any tax which is payable to the Collector by any employee may
be recoved in the manner provided by the Act.
(2) Any tax which is payable to the Collector under paragraph (2) of
regulation 38 shall be payable within fourteen days of the date on which the
Collector first makes application for payment thereof.
40. An entry on a tax deduction card or other form authorized by the
Commissioner, of the deduction or, as the case may be, repayment of tax
purposing to be made by the employer or other person authorized to make
such entry, shall be prima facie evidence of such deduction or repayment.
LN.
56/96.
APPENDIX A (Regulation 11)
4 1/2002 Value of benefit where Motor Vehicle is available for Private Use
S. 20 (b).

A B
Under 5 years 5 years or more

origulal cost of
Motor Vehicle

uptos 300,000

over s 300,Oooto $ 50,000

s 700,000
over s 700,000to
Sl,O00,000
$ 75,000 $ 80,000 1 $60,000 I $ 65,000

over s1,OoO,000to $ 90,000

$1,500,000
Over $1,500,000
. . _
$120,000 ~ $140,000 1 $98,000 1 $100,000.
[The inclusion of this page IS authonzed by LN 88/2003]
 INCOME TAX 237

41/2002
APPENDIX B (Re@ation S,20 (b),
Employees entitled to relief in respect of allowances
for the provision of uniform and laundry
A. Members of the Jamaica Constabulary Force, Island Special
Constabulary Force and Jamaica Defence Force
Members of the Jamaica Fire Brigade
Persons registered under the Dental Act, Medical Act, Opticians Act,
Veterinary Act, Professions Supplementary to Medicine Act or
Nurses and Midwivcs Act
Porters employed in hospital
Correctional Ofkers
Attorneys-at-law
Resident Magistrates
Judges
Customs Officers
Air Traffic Controllers
Postal workers employed in the delivery of mail
Teachers required to wear protective clothing
Drivers and Conductors of Public Passenger Vehicles
The crew of any aircraft or ship
The staff of an airline company
Port workers
Attendants at petroleum filling stations
Messengers
Drivers
Watchmen
Private Security Guards
Cleaners
Gardeners
Workers employed in the hospitality or manufacturing i n d w ,
restauraots, agriculture, solid waste disposal, mining, or in
refrigexated facilities.
[The inclusion of this page is authorized by L.N. 88/2003l
238 INCOME TRY

B. Other employees approved by the Commissioner. having regard to

paragraph (i) (B) of the proviso to section 5 (1) (c) of the Act.

PAR?’ 11. Inconie Tar Rules

1. These Rules may be cited as the Income Tax Rules.
30 1970 2.-(1) If the Commissioner W s fit he may serve on any person a
s. 21. notice requiring that he shall not leave the Island unless at the time of leaving
he has in hs possession a certificate issued by or on behalf of the
Commissioner withm the precedmg ninety days stating that h e -

(a) does not owe any income tax, or

( 6 ) has made satisfactoq arrangements for the payment of income tax
payable by him.
(2) On the application of any person on whom a notice under
paragraph (1) has been served, the Commissioner shall issue to him within
thirty days after the date of the application, a notice of assessment in respect
of all income tax that will be due by him at the date of his intended departure
from the Island.
(3) Where a notice has been served on a person under paragraph (l),
and it has not been withdrawn by a further notice served on him by the
Commissioner, that person shall, if he leaves the Island in contravention of
the notice, be guilty of an offence and liable on summary conviction to a fine
not e x d n g fifty dollars or to a term of imprisonment not exceeding three
months, or to both.
(4) A person who leaves or attempts to leave the Island in
contravention of these Rules may be taken into custody without warrant by
an Imrmgration OfFicer for a period not exceeding twelve hours.
111972
s. 3. THIRD SCHEDULE (Section 98)
PART I. Treatment of farm animalsfor tar purposes

Interpretation. &S part-

1. ~n

L.N. “Commissioner” means the Commissioner of Taxpayer Audit and

16511999.
Assessment;
“connededperson” has the meaning assigned to it by section 2 of the Act;
“herd” includes a flock, and any other collection of animals of the same
species, however named;
[The inclusioii of this page is authorized by L.N. 88i20031
 INCOME TAX 238.01

"production herd' means. in relation to a farmer, a herd (irrespective of

breed) kept by him wholly or mainly for the sake of the products which
the animals therein produce for him to sell, being products obtainable
from the living animal:

"products obtainable from the living animal" means-

(a) the young of the animal: and

( b ) any other product obtainable from the animal, not being a product
obtainable only by slaughtering the animal itself.

2 . 4 1) Subject to the provisions of this Part, animals kept by a farmer for The grneral
the purposes of his farming shall be treated for tax purposes as trading stock: rule.

Provided that animals forming part of production herds with respect to

which an election made under paragraph 3 of this Part has effect shall not be
treated for the said purposes as trading stock, but shall be treated for the said
purposes in accordance with the provisions of th~sPart and any regulations
prescribed under pamgraph 4 of tlus Part.

(2) An election under pamgraph 3 of this Part is hereafter in thu

Schedule referred to as "an election for the herd basis".

3.-41) An election for the herd basis shall apply to all production herds Election for
of a particular class kept by the farmer making the election, including herds the herd
which he has ceased to keep before the making of the election or first begins basis.
to keep after the malang thereof.

(2) An election for the herd basis must be made in writing to the
Commissioner and must spec@ the class of herd to which it relates.

(3) An election for the herd basis in respect of any particular class of
animal shall only be valid-

(a) where a farmer, immediately prior to 3rd February, 1972, had a

herd of that class of animals which was not being dealt with by the
Commissioner on a herd basis, if the fanner elects for the herd
basis not later than two years after the said date;
[The inclusion of this page is atitlionzed by L N 88/2003]
238.02 INCOME TAX

( b ) in the case of a farmer who for the first time. on or after the said
date acquires and keeps a herd of that class of animal if he elects
for the herd basis not later than one year after the year of
assessment in which he first acquires and keeps that herd.

(4) A farmer who. immediately prior to the said date. was keeping a
herd of a particular class of animals which was being dealt with for tax
purposes by the Commissioner on a herd basis shall be deemed for the
purposes of thls Schedule to have made an election for the herd basis.

( 5 ) An election for the herd basis shall be irrevocable and shall have
effect for the first year of assessment in relation to whch the election is made
or is deemed to be made and all subsequentyears of assessment.

Regulations. -l.-(l) The Minister responsible for finance may make regulations for
determining, where an election for the herd basis has effect, the consequences
for tax purposes.

(2) All regulations made under this paragraph shall be subject to

affirmative resolution of the House of Representatives.

.-\PPlicationto 5 . - ( 1 ) The provisions of t h s Part shall. with the necessary adaptations.

trades
consisting
apply in relation to trades consisting only in part of farming, as they apply in
only in part of relation to farming, and references to farmers shall be construed accordingly.
farming.

(2) Laying birds shall be treated for the purposes of this Part as
becoming mature when they first lay.

(3) The provisions of this Part shall (both in relation to farming

[The iticliisioii of this page IS authonzed by L N 88/2003]

 INCOME T A X 239

and in relation to other trades) apply. with the nmssary adaptations,

in relation to animals kept singly as they apply in relation to herds
6. Nothing in this Part shall apply in relation to any animal kept EXckJrio11
of certain
wholly or mainly for- ...,...".,
."il"l*
( U ) public exhibition or racing or other competitive purposes: or
( b ) the work they do in connection with the carrying on of farniinp.
7. Where an election for the herd basis is made, every person carrying Rclurns. CIE
on any farmin2 or other trade afTected by h e election shall. if required
to do w by notice from h e Commissioner. make and deliver to the
Commissioner. within the time specified in the notice, such returns
as to. and as to he products of. the animals kept by him for the
purposes of the trade as may be required by the notice; and the
provisions of section 70 of the Act (which relares to return! of income,
RCCOLIO~S.etc.) shall apply in relation to any return under this paragraph
as they apply in rel3tion to returns and accounts therem referfed 10.
PARTII I n i rwiiiettt Alloumces f u r expendifirre on
livestock breediiig
I . In this Pan- I ntcrprew-
"approved animals" means beef cattle. dairy cattle. sheep. goats. p ~ g sl l 0 D
and such othcr animals as mas be ~xscribed bv thc Minister
responsible for agriculture:
"connected person" has the meaning assigned to it by section 2 of the
Act.
2. Subject to the provisions of this Part, capital expenditure to which nsfinhtinn
thii Part applies is capital expenditure which the Commissioner is
satisfied is incurred by a fanner on the purchase of an approved animal 1oWh,ch
for the purpose of carrying on livestock breeding as a business. Ihir Part
3 . 4 i ) Subject to the provisions of this Part. where on or after the ::;Rent
1st day of April. 1968, a fanner incurs expenditure to which this Part a!~onnnsel.
applies an allowance (in this Part referred to as "investment allowance")
equal to forty per centurn of such expenditure is to be made to him
after all other permissible allowances and deductions have been made,
for the year of assessment in which the expenditure is incurred.
(2) An investment allowance under this Part shall not be made
to any person in respect of the purchase of an approved animal unless-
the animal-is, at the &d of the year bf asscssnent in respxt
of which the allowance is claimed, in we in the trade or
business of livestock breeding carried on by that person;
the person claiming the allowance had elected under Part I
to be assessed on the herd basis in relation to that class of
animal, and the animal is kept on the herd basis in accordance
with that election;
the person claiming the allowance furnishes to the Commis-
sioner a cenificate from the Minister responsible for agriculture
setting out such particulars in relation to the animal as that
Minister may consider approprirrte for the purpose of
identifying the animal in respect of which the allowance is
claimed.
[The inclusion of this page k authorized by L.N. 951 19971
?40 Ih'COME T A X

4 . 4 1 j K%;twiLh;a!idin: a?ythk: con:ainzd .. in thz Act, io tire extint

~.,:L< u . ! c . s !]I:: I ' x t is ni.! ~it:ii/:~.I in tl:e y e ~ r
f;!!z::-r Lecoiiies entitled iherctc hi!ailow;ui;e
(as the cilse may he) shall be mxle--
(a) to &at farmer, or ( i t s the case may bc.!:
( b ) to any o t k r f r r n e r acqlJiring fro% thc farmer alor%%id the
approvcd nfliinal for purposes of 1ives:xk breetlkig who
satisfies the ij:hcr rquirciiwn:s of this Pm.
in the followins eleven years of a s s m m n t un!il thc alloivance h?.? be.n
and in rclation to any such ycer the provision in sub.
fii!ly utilize:!.
p"rngap11 (1) @f parngraph 3 of 2 h Pdrt Il-hich requires all o!!?r
pcrmissib!e altowance: and dediicrioi?~to be made hcfore an inves!mcnt
allowance is made shd! h a w effect i n the sxn; !na!ins as it 3pplies :o
the year of asse.snient in nhieh the expenditore is incurrzd:
Provided that no part of such in\,estinent nllorvnnrc shal! t x takm
ifiito ascomt i n cornputin? m y Dart of !Ix t x i n c r ' s cS::r:cable i ! i c ~ ~
uiiich arijes from scurces ether than h u s h x d r y .
( 2 ) Nothing in !his Part sh3?1 5e constnied as authorizing more
tfian one investment allowance in respxct of any one approved aniiial.

Wjih!loldtng 5.-(1) If, in the case of any expenditure to which this Part applies,
and any of thc transactions mentioned k sub-porograph (2) is carried w t
withdrawd withlri ihz period of three yea:$ following the year of assessment in
of which t!x expenditure was incwred, no invesment aIlowance sha?I be
alluylance~.
made in rsspect cf the expmdirore orl if such an allcnmce has been
ni:ide &fore the c3rryiy oiit of thc transaction, it shall be withdrawn
wlcss the person inrxring th,: expenditure satisfies rfie Coninkion::
that the transaction d'd no: have as its objcct, or oiie cf its objects. h e
avaidance ot tan.
(2) The transactions refcrrcd to in sub-paragraph ( I ) are-
(0) any appropria:ion of the asset representing the expenditure
mad< by the p r m n incurring the expetrd~tureor by a con-
nected pcrson to a purpose other lhan purpose3 uf lives!wk
breeding:
(b) any sale or transfer of the asset represen:ing the expenditure
made by !he person incurring the expenditure or by a
connected person othemise than to a person acquiring the
asset for purposes of livestock breeding:
(r) any sale, transfcr or othcr dealing with the asset representing
the expznditure by the person incurring the expenditure or by
a connated person being a case where it appears either-
(i) that the expenditure was incurred in contemplation of
the asset being so deaIt with: or
(ii) that the sole or main benefit which accrued from that
person's incurring the expcnditore and the asset beins
~

F e inclusion of this page i? authorized L.p L.N. 95: l9?:71

 lNCOME T A X 241

so dealt with was or derived from the investment and

other allowances in respect of the asstt.

6 . 4 1 ) The person who has incurred any expenditure in respect of hformation

which an investment allowance has been made and has not been with- ~,!&cd,o
dram shall give notice to the Commissioner, if to his knowledge any cornm,,-
of the following events occufs at any time before the expirabon of the sioncr.
period of three years following the completion of the work in esprxt
of which the expenditure was incurred, that is to say-
(U) the asset in respect of which it was incurred is sold bv him
or a connected person to a person who is not carrying on
livestock breeding as a business; or
(b) the a s s t is appropriated by him or a connected person to a
purpose other than the purposes of livestock breeding.
(2) Any notice of a sale or transfer given under the foregoing
sub-paragraph shall state the name and address of the person to whom
the sale or transfer is made.
(3) Any person who, without reasonable cause. fails to comply
with this paragraph shall be liable, in an additional assessment. to a
penalty of two hundred dollars and a further penalty not exceeding
three times the tax on the investment allowance made in respect of the
expenditure in question.
7. All such additional asSeSSments and adjustments of assessmenis
shall be made as may be necessary for or in consequence of the with- of
drawal of an investment allowance under this Part. useamenb.

FOURTH SCHEDULB (Section MA)3/1987

Approved Retirement schemes s. 2s.
Interpreta-
1. In this Schedule- tion.
“Corn~ssioiier”means the Commissioner of Taxpayer Audit and L.N.
Assessment; 16511999.
“retiring benefits” as respects any contributor to an approved re-
tirement scheme, means-
(U) pensions or annuitia;
(b) lump sums not exceeding scvcnty-five thousand dol-
lam.
payable either to the contributor or in the event of his death
to his widow, children or dependents.
2 . 4 1 ) Subject to sub-paragraph (21, the Commissioner may approve Condi-
any retirement scheme for the purposes of this Act but h e shall not, lions for
approval
except as hereafter provided, approve any scheme unless it is shown to of re,ire.
his satisfaction that- men1
(U) the scheme is a scheme bona fidc established under irrevocable schema.
trusts in connection mth the provision of retiring benefits for
pensions contributing thereto:
~. .-
[The inclusion of this page is authorized by L.N. 312001J
142 IKCOME T A X

(6) the scheme has for its sole purpose the provision in any case.
for payment of retiring benefits either on attaining a specified
age or on becoming incapacitated at some earlier age;
(c) the interest of a contributor in the scheme cannot he pledged.
assigned or in an way alienated as security for a loan or for
any purpose other than that provided for payment of retiring
benefits or annuity to the contributor:
( d ) contributions to the scheme are by self-employed penons or
persons who are employees but who arc not contributors to an
approved superannuation fund;
(c) the assets of the scheme will not be commingled with other
property except in a common trust fund or common investment
fund.
(2) The Commissioner may. if he thinks lit, and subject to such
conditions, if any, as he thinks proper to attach to the approval, approve
a scheme or any part of a scheme, as an approved retirement scheme for
the purposes of this Act, notwithstanding that-
(U) the rules of the scheme provide for the return in certain con-
tingencies of contributions paid to the scheme;
(b) the provision of retiring benefits although the main purpose
is not the sole purpose, of the scheme:
(c) the scheme provides for the payment of lump sums exceeding
the amount specified in paragraph 1 if they are paid in com-
mutation or in lieu of pensions or annuities not exceeding that
amount.

Commis 3 . 4 1 ) The Commissioner may by notice in writing-

sioner
may (U) require the trustees or other persons having the management of
require an approved retirement scheme to deliver to the Commissioner
certain within such time as he may s p d y in such notice. such-infor-
parti-
culars of mation and particulars as the Cornmissloner may requln for
withdraw the purposes of this Schedule;
approval.
(b) addressed to the trustees or other persons having the manage-
ment of an approved retirement scheme, withdraw his approval
of the scheme if it appears to him-
(i) that any of the conditions specified in sub-paragraph (I)
( 0 ) to (e) of paragraph 2 a n not aatisticd: or
(ii) that any conditions imposed by him under sub-
paragraph (2) of paragraph 2 have been contravened,
or qualify his approval of the scheme if it appears to h e that.
havin_eregard to the value of assets in the scheme and Its pro-
bable future resources, the income of the scheme does not need
to be exempted from income tax in order for the schemq to pe
of a size to enable it to be reasonably w e of meetmg its
present and future obligations.
[The inclusion of thin page is authorized by L.N. 3/2001]
 INCOME TRY 213

(2) Where approval of a scheme is withdrawn by a notice under sub-

paragraph (1). the withdrawal shall operate from the date of the notice or
from such earlier date as may be specified in the notice. not being earlier than
the first date on which the condition in question was not satisfied or was
contravened.
(3) Where approval of a scheme has been qualified by a notice under
sub-paragraph (1). the qualification shall take effect from the date of the
notice. and the Commissioner may. if at any time it appears to h m that the
circumstances which led to the qualification being imposed no longer apply.
by a further notice in writing addressed to the trustees or other persons having
the management of the scheme. remove the qualification: but while the
qualification remains in force it shall have the effect of &sapplying the
exemption from tax conferred by paragraph 0)of section 12 in relation to the
income of the scheme.

(4) An appeal may be made to the Revenue Court in any case where
the Commissioner refuses. withdraws or qualifies approval of a retirement
scheme under this paragraph and the decision of that Court shall be final.

8/ 1990
FIFTHSCHEDULE (Section 12 (ac) and (ad) ) S. 3.

Interest pqments on deposits in foreign currency with approved persons

1. This Schedule applies to interest paid or credited by an approved person
to any person arising from a deposit with that approved person of foreign
currency in a specified account.

2. In this Schedule-

”approved person” means any person approved by the Bank of Jamaica

for the purposes of this Schedule:
“Commissioner” means the Commissionerof Inland Revenue: L.N.
16511999
“specified account” means an account whch the Commissioner is
satisfied i s -

( a )an account which pursuant to directions issued by the Bank

of Jamaica. is-

(i) designated as a foreign currency “ A deposit account;

(ii) denominated in foreign currency:

II‘IIuIIICIIISIIIII 0 1 (111spage IS ;iiilhonzed by L N 88/2003]
244 INCOME TAX

(iii) comprised of moneys derived from sources outside

of Jamaica: and
(iv) credited and debited in accordance with such
dircctions as aforesaid:
( h ) an account which, pursuant to duections issued by the Bank of
Jamaica, i s -

(i) designated as a foreign currency"'B" deposit account;

(ii) denominated in Jamaica dollars;
(iii) comprised of moneys derived from sources outside
of Jamaica; and
(iv) credited and debited in accordance with such
directions as aforesaid.

4 1I2MJ2 SIXTH SCHEDULE (Sections 12 and 3 1A )

s. 21,
PAkT I
Registration of Investment Accounts

Within tturty days after the end of the month in which the account is
opened, the relevant prescribed person shall supply to the Minister
responsible for fmance or hs nominee, the following information-

(a) the taxpayer registration number of each account holder;

(h) the amount invested;
( c ) the date on which the account is opened; and
(d) the taxpayer registration number of the prescribed person.

PART I1
Certificate of Interest Paid and Tax withheld by
Prescribed Person

Where tax is withheld from the interest paid or credited by a prescribed

person, life insurance company or the trustees of a qualified unit trust
scheme, a certificate of interest paid and tax withheld shall be provided on
request to the investor. The certificate shall contain the following
partiCUlarS-
[The iticlustoii of this page IS authonzed by L N 88/2003]
 INCOME TRY 2-15

date of certificates:
the name and address of issuer:
taxpayer registration number of issuer:
inyestor's name and address:
type of account/instmment/investment:
number of account/instrument/investment:
gross interest and period involved:
amount of withholdtng tax
net interest credited or paid:
a declaration cemfjing that the tax deducted has been or will be
accounted for to the Commissioner of Inland Revenue in
accordance with the Income Tax Act.

O I ~this page IS aiithonzed by L N

[The I I ~ C ~ I I S I of 88/2003]