Income and Business Tax Act

Link to law: http://www.belizelaw.org/web/lawadmin/PDF%20files/cap055.pdf
Published: 2000

CAP. 55 INCOME AND BUSINESS TAX ACT BELIZE

INCOME AND BUSINESS TAX ACT

CHAPTER 55

REVISED EDITION 2000

SHOWING THE LAW AS AT 31ST DECEMBER, 2000.

This is a revised edition of the law, prepared by the Law Revision Commissioner

under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,

Revised Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

INTERPRETATION ACT 10 Amendments in force as at 31st December, 2000.

BELIZE

INCOME AND BUSINESS TAX ACT

CHAPTER 55

REVISED EDITION 2000

SHOWING THE LAW AS AT 31ST DECEMBER, 2000.

This is a revised edition of the law, prepared by the Law Revision Commissioner

under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,

Revised Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

INTERPRETATION ACT 10 Amendments in force as at 31st December, 2000.

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Income and Business Tax [CAP. 55

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CHAPTER 55

INCOME AND BUSINESS TAX

ARRANGEMENT OF SECTIONS

PART I

Preliminary

1. Short title.

2. Interpretation.

Administration

3. Appointment of Commissioner, etc.

4. Official secrecy.

Imposition of Income Tax

5. Charge of Income Tax.

6. Basis of Assessment.

7. Special periods of assessment.

Exemptions

8. Exemptions.

9. Business of shipping by non-resident.

10. Government loans.

Ascertainment of Chargeable Income

11. Deductions allowed.

12. Allowance for wear and tear (Fifth Schedule).

13. Deduction not to be allowed.

4

14. Export allowance.

15. Allowance of trade losses.

16. Reduction in case of resident in Belize.

17. Deduction for certain gifts.

18. Special provision as to certain companies and business.

19. Wife’s income.

20. Rates of taxes upon persons other than companies.

21. Flat rate of tax on company.

22. Deduction of tax from dividends of companies.

23. Temporary residents.

Trustees, Agents, etc.

24. Chargeability of trustees, etc.

25. Chargeability of agent of person residing in Belize.

26. Acts, etc., to be done by trustees, etc.

27. Statement to be prepared by trustees, etc.

28. Manager of corporate bodies of persons.

29. Indemnification of representative.

30. Deceased persons.

General Powers of Commissioner

31. Returns.

32. Accounts and records.

33. Audit and ancillary powers.

34. Official information and official secrecy.

35. Partnerships.

36. Signature of notices.

37. Service of notices.

Assessments

38. Commissioner to make assessments.

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39. Additional assessments.

40. Record of persons assessed and notices of assessments.

41. Appointment of agent in the United Kingdom.

42. Power of Commissioner to revise assessment and of Board to

entertain objections to assessments.

43. Appeals against assessments.

44. Errors, etc. in assessments and notices.

45. Evidence.

Relief in Cases of Double Taxation

46. Relief in respect of United Kingdom Income Tax.

47. Relief in respect of Commonwealth Income Tax.

48. Time for making claim.

49. Official secrecy.

50. Double taxation arrangements.

51. Tax credits.

52. Double taxation relief applicable to dividends.

Collection and Repayment of Tax

53. Extracts from assessment lists to be sent to collector.

54. Time within which payment is to be made.

55. Penalty for non-payment of tax, and enforcement of payment.

56. Collection of tax after determination of objection or appeal.

57. Debt to the Crown.

58. Garnishment of Debts.

59. Recovery of tax in certain cases.

60. Exit Certificate.

61. Repayment of Tax.

Proceedings for Recovery of Income Tax

62. Notice to be given to tax defaulters.

6

63. Collector to issue warrant against goods for recovery of taxes.

64. Suspension execution and institution of proceedings before

Magistrates.

Judgment Debtor Process

65. Magistrate may order payment of tax, etc., into court.

66. Imprisonment for failure to obey order.

67. Debtor paying whole of amount ordered to be paid.

Proceedings by way of Distress

68. Form and scope of warrant (First Schedule).

69. Sales on goods levied on and disposal of proceeds.

70. Bailiff’s fees.

Execution Against Lands or Houses

71. Failing to recover on goods the Collector to sell realty of Defaulter

(Second Schedule).

72. Form of praecipe for sale of lands by Revenue Officer (Third

Schedule).

73. On abortive sale of realty and continued default in payment property

to vest in Crown.

74. Conditions of sale.

75. Effect of execution of sale with regard to title.

76. Form of conveyance (Fourth Schedule).

77. Disposal of surplus proceeds of sale.

Claims by Third Parties

78. Affidavit by a person not the defaulter, claiming the property levied

upon.

79. Discontinuance of levy upon bond being given by claimant, etc.

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80. Abandonment of levy or setting cause down for trial.

81. Issue at trial.

82. Procedure to be same as in ordinary cases.

83. Exemption from stamp duties.

84. Onus probandi.

85. Prosecution to commence within six years.

General

86. Penalties for offences.

87. Penalty.

88. False statement and returns.

89. Saving for criminal proceedings.

90. Impeding or obstructing Commissioner or officers.

91. Transfer of property to evade taxation.

92. Procedure and evidence.

93. Use of agents to detect crime.

94. Rules.

95. Minister may remit tax.

Collection of Tax Withholding

96. Failure to deduct and remit.

97. Assessment for failure to deduct or remit.

PART II

Income Tax on Profits Arising from

Petroleum Operations

98. Definitions.

99. Separate accounts for pertroleum operations.

100. Assessment of chargeable income.

101. Valuation of petroleum.

8

102. Tax Accounting Principles carry forward of losses; keeping of ac-

counts; arms length transactions; deductions allowed in ascertainment

of chargeable tax.

103. Application of Part I to Petroleum Profits.

PART III

Business Tax

104. Part III to override other provisions.

105. Interpretation.

106. Imposition of business tax.

107. Rates of tax.

108. Exemptions from tax.

109. Duty to make returns and pay tax.

110. Commissioner to make assessments.

111. Additional assessments.

112. Witholding tax on gross contract payments.

113. Collection of tax on winnings from lottery, tax on interest on time

deposits, dividends or management fees, etc.

114. Refund of excess tax.

115. Carry forward of losses.

116. Penalty for evasion.

117. Liability of purchaser of business or entity to pay arrears of tax.

118. General penalty.

119. Regulations.

120. Transitional provisions.

_____________

SCHEDULES

_____________

FIRST SCHEDULE - Warrant to levy

____________

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SECOND SCHEDULE - Praecipe to levy by sale of lands or houses

_____________

THIRD SCHEDULE - Notice to defaulter

____________

FOURTH SCHEDULE - Form of conveyance

____________

FIFTH SCHEDULE - Allowance for wear and tear

____________

SIXTH SCHEDULE - Petroleum tax capital allowances

_____________

SEVENTH SCHEDULE - Method of calculating export allowance

EIGHTH SCHEDULE

NINTH SCHEDULE

10

CHAPTER 55

INCOME AND BUSINESS TAX

[12th December, 1923]

PART I

Preliminary

1. This Act may be cited as the Income and Business Tax Act.

2. In this Act, unless the context otherwise requires -

Ch. 38,

R.L., 1958.

CAP. 46,

R.E. 1980-1990.

16 of 1958.

11 of 1963.

40 of 1963.

11 of 1964.

4 of 1967.

19 of 1970.

3 of 1971.

9 of 1972.

12 of 1975.

23 of 1975.

6 of 1976.

7 of 1978.

10 of 1980

7 of 1982

3 of 1984.

6 of 1984.

20 of 1984.

6 of 1985.

2 of 1986.

4 of 1986.

22 of 1987.

27 of 1987.

32 of 1987.

3 of 1988.

28 of 1988.

4 of 1989.

9 of 1991.

3 of 1992.

16 of 1994.

8 of 1997.

19 of 1998.

7 of 1999.

S.I. 7 of 1964.

Interpretation.

Short title.

19 of 1998.

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“basis year” means the calendar year coinciding with the year of assessment

except where another period is substituted by the Commissioner under section

7;

“Board” means the Income Tax Appeal Board appointed under section 3(3);

“body of persons” means any body politic, corporate or collegiate and any

company, fraternity, fellowship, partnership, or society of persons whether cor-

porate or not corporate;

“business tax” means the tax levied under Part III of this Act;

“chargeable income” means –

(i) in the case of an employed person, the aggregate amount of the

income from the applicable sources specified in section 5 re-

maining after allowing the appropriate deductions and exemp-

tions under this Act, but does not include “receipts” as defined

in Part III of this Act;

(ii) in the case of any person other than an employed person, the

aggregate amount of the income from the applicable sources

specified in section 5 remaining after allowing the appropriate

deductions and exemptions under this Act;

“Chief Collector” means the Chief Income Tax Collector appointed under sec-

tion 3 (1), and until such time as such appointment is made, the Commissioner

of Income Tax;

“child” includes a stepchild, an adopted child, or a child born out of wedlock

who is wholly maintained by the parent claiming the allowance, but does not

include a child who is married or has been married or is cohabiting in a com-

mon law union;

8 of 1997.

16 of 1994.

7 of 1999.

19 of 1998.

12

“Commissioner” means the Commissioner of Income Tax appointed under

section 3 (1);

“company” means any company incorporated or registered under any law in

force in Belize, and any company which, though incorporated or registered

outside Belize, carries on business, or has an office or place of business therein;

“incapacitated person” means any infant, person of unsound mind, or insane

person;

“judge” means a judge of the Supreme Court;

“lottery” means any scheme for distributing prizes by lot or chance but does

not include raffles where the value of the article raffled is not more than ten

dollars;

“Minister” means the Minister responsible for Finance;

“person” means a natural person or a legal person and includes a firm, a branch

and any body of persons, whether corporate or unincorporate;

“prescribed” means prescribed by rules made under this Act;

“petroleum” means all natural organic substances composed of carbon and

hydrogen; and includes crude oil and natural gas, and all other mineral sub-

stances, products, by-products and derivatives that are found in conjunction

with petroleum;

“petroleum operations” means the operations related to the exploration, de-

velopment, extraction, production, field separation, transportation, storage,

sale or disposal of petroleum, but does not include any transportation or other

operations:

(i) beyond the point of export; or

19 of 1998.

16 of 1994.

9 of 1991.

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(ii) in the case of petroleum which is processed within Belize, be-

yond the point of entry into a refinery or liquefaction or natural

gas treatment plant;

“petroleum profits” means the profits arising from petroleum operations;

“tax” means the income tax imposed by this Act and includes surtax, unless

otherwise specified;

“trade” includes every trade, manufacture, adventure or concern in the nature

of trade;

“year of assessment” means a period of twelve months commencing on 15th

January in each year.

Administration

3.-(1) For the due administration of this Act, the Governor-General shall

appoint a Commissioner of Income Tax, and the Public Services Commission

may appoint a Chief Income Tax Collector and such other officers and collec-

tors as may be necessary to determine, collect, receive and account for the

income tax.

(2) The said Commissioner shall prepare an assessment record and he

shall generally carry out the provisions and exercise the powers delegated to or

vested in him under this Act.

(3) There shall be appointed by the Minister after consultation with the

Public Services Commission an Income Tax Appeal Board to hear and deter-

mine, pursuant to this Act, objections against assessments made in accordance

with this Act.

(4) The Board shall consist of three persons who shall be either persons

holding public office, other than an office constituted under subsection (1), or

persons who have held office in the Public Service.

Appointment of

Commissioners,

etc.

11 of 1964.

Duties of

Commissioner.

Appointment

and functions of

the Income Tax

Appeal Board.

14

(5) The Board so appointed may act by any two of its number and by that

number shall form a quorum.

(6) It shall not be necessary or compulsory, unless otherwise considered

expedient, to make a temporary appointment to the Board during the absence

on leave of any one member of the Board.

(7) Any reference in any other Act or in any statutory instrument to the

Assessor of Income Tax or to the Commissioners of Income Tax, other than a

reference to such Commissioners in relation to their functions of hearing and

determining objections made against assessments, shall be read and construed

as a reference to the Commissioner and any reference in any such Act or

statutory instrument to the Commissioners of Income Tax in relation to their

functions of hearing and determining objections against assessments shall be

read and construed as a reference to the Board.

(8) Wherever by this Act or any other Act or statutory instrument relating to

income tax a discretion is conferred on the Commissioner, that discretion may

be exercised on an objection made against an assessment by the Board, and,

on an appeal under section 44, by a judge.

4.-(1) Every person having any official duty or being employed in the admin-

istration of this Act shall regard and deal with all documents, information, re-

turns, assessment lists and copies of such lists relating to the income or items

of the income of any person, as secret and confidential, and shall make and

subscribe a declaration in the form prescribed to that effect before a justice of

the peace.

(2) Every 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 docu-

ments, returns, lists, or copies to any person -

Official secrecy.

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(a) other than a person to whom he is authorised by the Minister to

communicate it; or

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

is guilty of an offence.

Imposition of Income Tax

5.-(1) Income tax shall, subject to this Act, be payable at the rate or rates

specified hereafter in sections 21 and 22 for the year of assessment commenc-

ing on 15th January, 1999 and for each subsequent year of assessment upon the

chargeable income of any person accruing in or derived from Belize or else-

where, and whether received in Belize or not in respect of:

(a) in the case of a person other than an employed person, the gains or

profits from any trade, business, profession or vocation, for what-

ever period of time such trade, business, profession or vocation

may have been carried on or exercised;

(b) in the case of an employed person, gains or profits from any em-

ployment, including the estimated annual value of any quarters or

board or residence or of any other allowance granted in respect of

employment whether in money or otherwise, but not including-

(i) payment for any passage to or from Belize for

the purpose of leave granted in respect of the

employment, up to a maximum of one month’s

basic salary; or

(ii) any allowance granted for the purchase of uni-

form or the value of any uniform supplied by the

employer;

Charge of

income tax.

7 of 1999.

40 of 1963.

16 of 1994.

16

(c) any pension, charge or annuity.

(2) Where income arises outside Belize which is earned income, or which

arises to a person who is not ordinarily resident in Belize or not domiciled in

Belize, the tax shall be payable on the amount received in Belize.

(3) The gains and profits from any employment exercised in the country

shall be deemed to be derived from the country whether the gains or profits

from such employment are received in the country or not.

(4) Where a loan is made to a director or a shareholder or to a relative of

a shareholder of a company, the amount thereof shall be included in comput-

ing the income of the person to whom the loan was made unless -

(i) the loan was made in the ordinary course of the lender’s busi-

ness and the lending of money was part of its ordinary busi-

ness; or

(ii) bona fide arrangements were made at the time the loan was

made for the repayment thereof within a reasonable time;

(iii) the loan was repaid within one year from the end of the taxa-

tion year of the lender in which it was made and it is estab-

lished, by subsequent events or otherwise, that the repayment

was not made as a part of a series of loans and repayments.

For the purpose of this section –

“relative”, in relation to an individual, means the husband, wife, brother or

sister or any lineal ascendant or descendant of that individual.

6. Tax shall be charged, levied and collected for each year of assessment

upon the chargeable income of any person for the basis year.

11 of 1964.

2 of 1986.

Basis of

assessment.

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7.-(1) Where the Commissioner is satisfied that any person other than an

employed person usually makes up the accounts of his or its trade or business

on some day other than the last day of a basis year the Commissioner shall

permit the gains or profits of that trade or business to be computed for the

purposes of this Act upon the income of the year terminating on that day in the

basis year on which the accounts of the said trade or business have been

usually made up.

(2) In no case where the Commissioner has permitted the gains and profits

of any trade or business to be computed on any date mentioned in subsection

(1) shall any change be subsequently made without prior notice in writing to the

Commissioner and subject to such adjustment of income tax as the Commis-

sioner may determine.

Exemptions

8.-(1) There shall be exempt from tax-

(a) all the official emoluments received by the Of-

ficer Administering the Government during the

period in which he is administering the govern-

ment;

(b) all the emoluments drawn by the Governor-Gen-

eral himself while on leave;

(c) the income of any local authority in so far as such

income is not derived from a trade or business

carried on by the local authority;

(d) the income of any statutory or registered build-

ing or friendly society;

(e) the income of any ecclesiastical, charitable or

Exemptions.

11 of 1964.

12 of 1975.

7 of 1999.

Special periods

of assessments.

18

educational institution of a public character in

so far as such income is not derived from a trade

or business carried on by such institution;

(f) the emoluments payable to members of the per-

manent consular services of foreign countries in

respect of their offices or in respect of services

rendered by them in their official capacity;

(g) the emoluments payable from Imperial Funds

to members of Her Majesty’s Forces and to

persons in the permanent service of the Impe-

rial Government in Belize in respect of their of-

fices under the Imperial Government;

(h) wound and disability pensions granted to mem-

bers of Her Majesty’s Forces;

(i) gratuities granted to members of Her Majesty’s

Forces in respect of services rendered during

the Great War;

(j) the income of the Government Savings Bank;

(k) the income of any institution for the encourage-

ment of thrift which the Minister may declare to

be exempt;

(l) the income arising from a scholarship, exhibi-

tion, bursary or any other similar educational

endowment held by a person receiving full time

instruction at a university, college, school or

other educational establishment;

40 of 1963.

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(m) any interest paid on savings where the invest-

ment does not constitute the ordinary business

of the company or the self-employed person:

(n) interest payable by –

(i) the Government on monies bor-

rowed by it from, or debts owed

by it to, sources outside Belize;

(ii) any financial institution or banking

company to which the Banks and

Financial Institutions applies, on

monies borrowed by such financial

institution or banking company

under a loan agreement approved

by the Government where the

monies are borrowed for the

purpose of advancing any loan to

the Government;

(iii) any person in Belize, on monies

borrowed under a loan agreement

entered into with any such interna-

tional or regional financial institu-

tion in a foreign country as may be

approved in this behalf by the

Government by general or special

order;

(iv) any person on capital used in

specified development industries or

projects;

27 of 1987.

CAP. 263

7 of 1999.

20

(o) any inducement, education or other allowance

and any gratuity attributable thereto paid or pay-

able to an officer by or on behalf of the Gov-

ernment of the United Kingdom under the Over-

seas Service (British Honduras) Agreement

1961, or under any memorandum or agreement

amending, extending or replacing that agree-

ment;

(p) payment received out of the Social Security

Fund established under the Social Security

Act in respect of sickness benefit, maternity

allowance, child’s pension and child’s death

benefits;

(q) any pension paid by the Government of Belize

or by any other person resident in Belize in

respect of the past services of an individual or

of the husband, wife, parent or other relative

of that individual, or given to that individual in

respect of the past services of any other

deceased person, whether or not such indi-

vidual, husband, wife, parent, relative or

deceased person had contributed towards

such pension;

(r) any pension or annuity paid by any person or

authority outside Belize to a retired person

who is ordinarily resident in Belize and when

such pension or annuity is received in Belize;

(s) payments received under any social security

scheme or fund, whether made by a person

resident in Belize or abroad, provided that

12 of 1975.

CAP. 28.

7 of 1982.

CAP. 44.

32 of 1987.

8 of 1997.

32 of 1987.

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such payments are proved to the satisfaction of

the Commissioner to be social security pay-

ments;

(t) gratuities paid by the Government of Belize, or

by a public statutory body, to its employees

(whether contract or non-contract employees)

in respect of past services.

(u) dividends of up to one thousand dollars paid to

a shareholder in any basis year by a company

which is engaged in development industries or

projects;

(v) winnings from –

(i) ‘Boledo lottery’, ‘Jackpot lottery’ or

‘Ordinary lottery’ as those terms are

defined in the Lotteries Control

Regulations, 1966;

(ii) any lottery where the winning is less than

one thousand five hundred dollars;

(w) interest from any debentures, treasury bills,

treasury notes or bonds issued by or under the

authority of the Government of Belize.

(2) Nothing in this section shall be construed to exempt in the hands of

the recipients any dividends, interest, bonuses, salaries or wages paid wholly

or in part out of the income so exempted.

(3) For the purposes of this section, “public statutory body” means the

Development Finance Corporation, Belize Electricity Board, Water and

4 of 1989.

3 of 1992.

16 of 1994.

16 of 1994.

Sub. Leg.,

Vol. III

CAP. 151. p.2.

4 of 1989.

22

Sewerage Authority, Port Authority, Airports Authority, Marketing Board,

Central Bank of Belize, Reconstruction and Development Corporation and

Social Security Board:

Provided that the Minister may, by Order published in the Gazette,

include any other statutory body within the meaning of “public statutory body”

for the purposes of this section.

9.-(1) Gains or profits arising from the business of shipping carried on by a

person not resident in Belize shall be exempted from tax provided that the

Minister is satisfied that an equivalent exemption from income tax is granted

by the country in which the person is resident to persons resident in Belize

and, if that country is a country other than the United Kingdom, to persons

resident in the United Kingdom.

(2) In this section the expression “business of shipping” means the

business carried on by an owner of ships who employs them in the carriage of

passengers or freight, or both, or in the landing, shipping or warehousing of

goods, and for the purposes of this definition the expression “owner” includes

any charterer.

(3) For the purposes of this section a company shall be deemed to

be resident in that country only in which the central management and control of

its business is situate.

10. The Governor-General may by proclamation published in the Gazette

provide that the interest payable on any loan charged on the public revenue of

Belize shall be exempted from tax, either generally or only in respect of

interest payable to persons not resident in Belize, and such interest shall as

from the date and to the extent specified in the proclamation be exempted

accordingly.

Business of

shipping by non-

resident.

40 of 1963.

Government loans.

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Ascertainment of Chargeable Income

11.-(1) For the purpose of ascertaining the chargeable income of any person

other than an employed person, there shall be deducted all bona fide expenses

wholly and exclusively incurred during the basis year by such person other than

an employed person in the production of the income, including-

(a) any sums paid by such person as-

(i) interest upon any money borrowed by him, where

the Commissioner is satisfied that the interest was pay-

able on capital employed in acquiring the income; or

(ii) interest upon any money borrowed by him for the

acquisition of shares in a company carrying on busi-

ness in Belize;

(b) rent paid by any tenant of land or buildings occupied by him for

the purpose of acquiring the income; or

(c) where any person engaged in any trade, business, profession

or vocation has expended any sum in replacing any plant or

machinery which was used or employed in such trade,

business, profession or vocation, and which has become ob-

solete, an amount equivalent to the cost of the machinery re-

placed, after deducting from that such sum as shall represent

the total depreciation which has occurred by reason of ex-

haustion by wear and tear since the date of purchase of the

plant machinery and any sum realised by the sale thereof;

(d) any sum expended to the satisfaction of the Commissioner on

re-afforestation of any timber land with a view to making good

any depletion caused by the felling of timber thereon;

Deductions

allowed.

7 of 1982.

7 of 1999.

10 of 1980.

11 of 1964.

3 of 1992.

24

(e) any sum expended for repair of premises, plant and machin-

ery employed in acquiring the income, or for the renewal, re-

pair or alternation of any implement, utensil or article so em-

ployed;

(f) bad debts incurred in any trade, business, profession or vo-

cation proved to the satisfaction of the Commissioner to have

become bad during the basis year, and doubtful debts to the

extent that they are respectively estimated to the satisfaction

of the Commissioner to have become bad during the said

year notwithstanding that such bad or doubtful debts were

due and payable prior to the commencement of the said year;

however, all sums recovered during the basis year on ac-

count of amounts previously written off or allowed in respect

of bad or doubtful debts shall for the purposes of this Act be

treated as receipts of the trade, business, profession or voca-

tion for that year;

(g) in the case of a non-resident, so much of the expenditure in

the nature of head office expenditure, as is not in excess of

two and a half per cent of its gross receipts;

(h) any sum expended-

(i) in establishing or developing an industry approved by

the Minister as being to the benefit of Belize; or

(ii) for a purpose approved by the Minister as being for

the welfare of the public or a particular section thereof;

(i) such other deductions as may be prescribed by any rule made

under this Act.

11 of 1964.

2 of 1986.

2 of 1986.

40 of 1963.

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(2) The Minister may by rules provide for the method of calculating or

estimating the deductions allowed or prescribed under this section.

(3) For the purposes of paragraph (h) the Minister may make rules

regarding the industries, class of industries or purposes for which, and the con-

ditions under which, such deductions may be allowed.

12.-(1) In ascertaining the chargeable income of any person engaged in a

trade, business, profession or vocation, there shall be allowed as a deduction a

reasonable amount for exhaustion by wear and tear of any industrial building,

any qualifying hotel building, and any plant and machinery owned by him arising

out of the use or employment of such industrial building or qualifying hotel building

or of such plant or machinery for the purpose of his trade, business, profession

or vocation during the basis year, in the manner and, as regards industrial build-

ings or qualifying hotel buildings, at the appropriate rate set out in the Fifth

Schedule.

(2) “Qualifying hotel” has the meaning assigned to it in paragraph 2 of the

Fifth Schedule.

13. For the purpose of ascertaining the chargeable income of any person no

deduction 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 upon which income tax is payable;

(c) any capital withdrawn or any sum employed or intended to be

employed as capital;

(d) any capital employed in improvements, alterations or additions

except as provided in paragraphs (d) and (h) of section 11(1);

Allowance for

wear and tear.

11 of 1964.

32 of 1987.

Deductions not

to be allowed.

Fifth Schedule.

Fifth Schedule.

40 of 1963

26

(e) any sum recoverable under an insurance or contract of in-

demnity;

(f) rent of or cost of repairs to any premises or part of premises

not paid or incurred for the purpose of producing the income;

(g) any amount paid or payable in respect of the United Kingdom

income tax or surtax or Commonwealth income tax as

defined by this Act.

14.-(1) Subject to subsection (5), where in any basis year a company has

made export sales to a country other than a Member State, the amount of

income tax chargeable in respect of its income shall be reduced by an amount

of an export allowance calculated in the manner specified in the Seventh

Schedule, if the company satisfies the Commissioner that the provisions of this

section are applicable to it.

(2) All exports of products of an industry other than the products declared

by Order published in the Gazette to be traditionally export oriented products

shall be eligible for export allowance.

(3) An export allowance under subsection (2) shall be made only to the

company manufacturing or producing the product of an industry.

(4) An export allowance shall be made if the export profits amount to ten

per centum or more of the entire profits of the company.

(5) No export allowance under this section shall be made in the case of a

company which is declared to be an approved enterprise for the purpose of

the Fiscal Incentives Act in respect of the period during which that company is

enjoying benefits under that Act.

(6) For the purposes of this section -

Export allowance.

32 of 1987.

Seventh Schedule.

11 of 1964.

CAP. 54.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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“Member State” has the same meaning as in section 2 of the Fiscal

Incentives Act;

“company” means a company registered in Belize;

“industry” has the same meaning as in section 2 of the Fiscal

Incentives Act.

15.-(1) Subject to subsection (2) and (3), where the amount of a loss incurred

in the basis year in any trade, business, profession or vocation carried on by

any person either solely or in partnership is such that it cannot be wholly set off

against his income from other sources for the same year, the amount of the loss

shall, to the extent to which it is not allowed against his income from other

sources for the same year, be carried forward and shall, subject as provided in

subsections (2) and (3), be set off against what would otherwise have been his

chargeable income for the following year and the next four succeeding years

thereafter, or for so long as the trade, profession or vocation is carried on by

the person who incurred the loss, whichever is the shorter, save and except that

where the Commissioner is satisfied that an enterprise in the agricultural sector

has sustained operating losses, he may extend the carry forward period for a

further period not exceeding two years:

Provided that if the interest paid by any person on any money

borrowed by him for the acquisition of shares in a company carrying on busi-

ness in Belize is greater in any basis year than the dividend paid on those shares,

the difference may be set off against other income of that person in that year

and the succeeding years until such time as it is absorbed or the capital invest-

ment in those shares is recovered, whichever is earlier.

Provided further that, where a trade, profession or vocation carried on

by a person shows, on an average, a loss on operation during the preceding

five years; or in the agricultural sector during the preceding ten years, the

Commissioner may deem the trade or business a non-commercial venture and

disallow the set-off of any such loss against income from other sources.

Allowance of

trade losses.

11 of 1964.

CAP. 54.

3 of 1992.

16 of 1994.

CAP. 54.

16 0f 1994.

28

(2) The amount of any loss allowed to be set off in computing the

chargeable income of any year shall not be set off in computing the chargeable

income of any other year, and where the loss involves the bankruptcy of a

person, or his compounding with his creditors, he shall not be entitled to set off

such loss against the profits of succeeding years.

(3) In the case of a company there shall not be any set off allowed of

the amount of a loss incurred in any preceding basis year in any case where -

(a) between the end of that preceding year and the end of

the basis year:

(i) more than fifty per cent of the shares carrying

voting power in the company have been ac-

quired by a person or persons who did not at

the end of that preceding year own any of the

shares in the company; or

(ii) control of the company was acquired by a per-

son or persons who did not at the end of that

preceding year control the company; and

(b) the company was not during the basis year carrying on

the business in which the loss was sustained.

16.-(1) In ascertaining the chargeable income of an employed individual who

is resident in Belize there shall be allowed a basic deduction of nineteen thou-

sand six hundred dollars.

(2) Any employed individual who is resident in Belize and whose total

income in a basis year from all sources is less than twenty thousand dollars

shall not be chargeable to tax in that year.

(3) A deduction of $100.00 as a tax credit shall be allowed from the

Deduction in case

of residents in

Belize.

19 of 1998.

16 of 1994.

11 of 1964.

16 of 1994.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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total tax payable of all residents.

(4) Where the Commissioner is satisfied in any particular case arising

during the three basis years commencing from 1st January, 1995 that the basic

deduction allowed under this section is less than what would have been re-

ceived in respect of such claims had this section not been passed, then the

Commissioner shall allow an additional deduction to the extent that the basic

deduction falls short of the value of claims allowable in accordance with previ-

ous provisions.

(5) For the purpose of determining the eligibility for deduction under

this section, all income, whether exempt from tax or not, shall be included as

gross income.

(6) For the purpose of this section, a person shall be deemed to be

resident during a basis year if he spent in the aggregate more than one

hundred and eighty-two days within the country in that basis year or was

domiciled in Belize.

17.-(1) Subject to subsection (2), in ascertaining the chargeable income of a

person who proves to the satisfaction of the Commissioner that during the

basis year he has made several absolute and immediate gifts aggregating two

hundred and fifty dollars or over or one or more absolute and immediate gift

or gifts of the value of two hundred and fifty dollars or over, taking effect in

Belize, for ecclesiastical, charitable, educational, or cultural purposes or for

the improvement of amenities in towns or villages, there shall be allowed a

deduction of the amount of such gifts.

(2) No deduction under this section shall be allowed in any year of

assessment in respect of any such gifts beyond an amount equal to one-sixth

part of the chargeable income of such person estimated in accordance with the

provisions of this Act before making the deductions specified in this section and

in section 16.

Deduction for

certain gifts.

16 of 1994.

16 of 1994.

11 of 1964.

3 of 1971.

16 of 1994.

16 of 1994.

30

(3) Where the amount of any such gifts in the basis year is such that it

cannot be wholly deducted in the year of assessment, the amount of such gifts

shall, to the extent to which it is not deducted, be carried forward and shall,

subject to the same limitation hereinbefore imposed, be deducted from what

would otherwise have been the chargeable income for the next five years in

succession.

(4) Notwithstanding the provisions of subsections (1) and (2) of this

section but subject to subsection (3) above, there shall be allowed a deduc-

tion of up to four hundred dollars for every child, not being a child living with

the individual at any time during the basis year under the age of sixteen years

and wholly maintained by him during the basis year, for any school fees or

books or any contribution to education, provided that the total deduction un-

der this subsection shall not exceed one thousand six hundred dollars.

18. Notwithstanding anything to the contrary in this Act, it is hereby provided

that-

(a) in the case of an insurance company, other than a life

insurance company, where the gains or profits accrue in

part outside Belize, the gains or profits on which tax is

payable shall be ascertained by taking the gross premi-

ums and interest and other income received or receiv-

able in Belize, less any premiums returned to the in-

sured and premiums paid on re-insurances, and deduct-

ing from the balance so arrived at a reserve for unex-

pired risks at the percentage adopted by the company

in relation to its operations as a whole for such risks at

the end of the basis year, and adding thereto a reserve

similarly calculated for unexpired risks outstanding at

the commencement of the basis year, and from the net

amount so arrived at deducting the actual losses less the

amount recovered in respect thereof under re-

insurance, the agency expenses in Belize and a fair pro-

Special provisions

as to certain

companies and

businesses.

3 of 1992.

16 of 1994.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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portion of the expenses of the head office of the com-

pany;

(b) in the case of a life insurance company, whether mutual

or proprietary, the gains or profits on which tax is pay-

able shall be the investment income less the management

expenses, including commission, but where such a com-

pany received premiums outside Belize, the gains or profits

shall be the same proportion of the total investment in-

come of the company as the premiums received in Belize

bore to the total premiums received after deducting from

the amount so arrived at the agency expenses in Belize

and a fair proportion of the expenses of the head office

of the company.

19.-(1) The income of a married woman living with her husband shall, for the

purposes of this Act, be deemed to be the income of the husband, and shall be

charged in the name of the husband and not in her name nor in that of her

trustee, however, that part of the total amount of tax charged upon the husband

which bears the same proportion to that total amount as the amount of the total

income of the husband and wife may, if necessary, be collected from the wife,

notwithstanding that no assessment has been made upon her.

(2) Notwithstanding subsection (1), amounts may be withheld on account

of tax from the emoluments earned by married women during the basis year.

(3) (a) Notwithstanding the provisions of subsection (1) above,

the income of a married woman living with her husband

shall be assessed and charged to tax as if she were unmar-

ried if she and her husband so jointly elect in writing given

to the Commissioner, and every election so made shall

remain in effect until revoked by both parties in like

manner.

Wife’s income.

19 of 1970.

Submission of

separate returns

by husband and

wife.

3 of 1992.

32

(b) The deduction under subsection (1)(a)(ii) and (1) (b)(ii)

of section 11 shall, where the wife is separately assessed

under this section, be allowed to the husband unless the

spouses in their joint election state the extent of their

apportionment to which any deduction thereunder shall

be made in ascertaining the chargeable income of each

spouse, so however that in no case shall the deduction

allowed between the husband and wife exceed the

deduction allowable had the assessment been made un-

der subsection (1) hereof.

(c) No deduction shall be allowed to a husband in any basis

year in respect of his wife if assessments are made in

accordance with paragraph (a) of this subsection.

(d) 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.

20.-(1) Commencing from the first day of the basis year 1999 and for each

subsequent basis year, the tax on the chargeable income of every employed

person shall be charged at the rate of twenty-five per centum of the charge-

able income.

(2) On gross interest income from time deposits, there shall be charged a

tax of 5%, which shall be a final tax.

(3) On gross winnings from lottery or other similar activity, there shall be

charged a tax at the rate of 15% of such winnings, which shall be a final tax.

(4) The tax specified in subsections (2) and (3) above shall be collected

at source.

Rates of taxes

upon persons

other than

companies.

7 of 1999.

4 of 1989.

16 of 1994.

16 of 1994.

16 of 1994.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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21.-(1) Commencing from the first day of the basis year 1999 and for each

subsequent year, the tax upon the chargeable income of any person other than

an employed person shall be charged at the rate of twenty-five per centum of

the amount of the chargeable income.

(2) The business tax paid by any person other than an employed person

under Part III of this Act during the basis year shall count as a credit towards

the income tax payable on such chargeable income.

(3) The excess of any business tax paid by any person other than an em-

ployed person during the basis year over the income tax due on the chargeable

income of such person shall be carried forward as an expense to the next basis

year.

(4) Where the income tax payable by any person during the basis year is

more than the business tax paid by such person during the same basis year, the

excess of income tax so payable shall be remitted by the Commissioner pro-

vided that income tax returns are duly filed by such person within such time as

may be specified by the Commissioner.

22.-(1) Every company shall upon payment of a dividend, whether tax is

deducted therefrom or not, furnish such shareholder with a certificate setting

out the amount of the dividend paid to that shareholder and the amount of tax

which the company has deducted or is entitled to deduct in respect of that

dividend and also, where the tax paid or payable by the company is affected by

double taxation relief, the rate, hereinafter in this Act referred to as “the net

colonial rate”, of the tax paid or payable by the company after taking double

taxation relief.

(2) In this section the expression “double taxation relief” means any credit

for foreign income tax which is allowable against income tax chargeable under

this Act by virtue of arrangements having effect under section 50, and any relief

allowable under section 46 or section 47, including any credit or relief which

has been taken into account in determining the net colonial rate applicable to

Deduction of tax

from dividends.

19 of 1998.

Taxes from 1999

basis year.

7 of 1999.

34

any dividends received by the company.

23. Tax shall not be payable in respect of any income arising out of Belize

which accrues to any person who is in Belize for some temporary purpose

only and not with any intent to establish his residence therein and who has not

actually resided in Belize at one or more times for a period equal in the whole

to six months in the basis year.

Trustees, Agents, Etc.

24. A receiver appointed by the court, trustee, guardian, curator or commit-

tee, having the direction, control, or management of any property or concern

on behalf of any incapacitated person, shall be chargeable to tax in like man-

ner and to the like amount as such person would be chargeable if he were not

an incapacitated person.

25.-(1) A person not resident in Belize, in this section referred to as a non-

resident person, shall be assessable and chargeable in the name of his trustee,

guardian, or committee, or of any attorney, factor, agent, receiver, branch, or

manager, whether such attorney factor, agent, receiver, branch, or manager

has the receipt of the income or not, in like manner and to the like amount as

such non-resident person would be assessed and charged if he were resident

in Belize and in the actual receipt of such income.

(2) In the case of any individual who is not resident in Belize, section 16

shall not apply.

(3) A non-resident person shall be assessable and chargeable in re-

spect of any income arising, whether directly or indirectly, through or from any

attorneyship, factorship, agency, receivership, branch, or management, and

shall be so assessable and chargeable in the name of the attorney, factor, agent,

receiver, branch, or manager.

(4) Where a non-resident person carries on business with a resident

Temporary

residents.

Chargeability of

trustees, etc.

Chargeability of

agent of person

residing out of

Belize.

3 of 1971.

12 of 1975.

6 of 1976.

11 of 1964.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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person, and it appears to the Commissioner that owing to the close connec-

tion between the resident person and the non-resident person the course of

business between those persons can be so arranged and is so arranged, that

the business done by the resident person in pursuance of his connection with

the non-resident person produces to the resident person either no profits or

less 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.

(5) Where it appears to the Commissioner that the true amount of the

gains or profits of any non-resident person chargeable with tax in the name of

a resident person cannot in any case be readily ascertained, the Commis-

sioner may, if he thinks fit, assess and charge the non-resident person on a

fair and reasonable percentage of the turnover of the business done by the

non-resident person through or with the resident person in whose name he is

chargeable as stated in subsection (4), and in such case the provisions of this

Act relating to the delivery of returns or particulars by persons acting on

behalf of others shall extend so as to require returns or particulars to be

furnished 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 or

particulars are to be delivered by persons acting for incapacitated or non-

resident persons of income to be charged.

(6) For the purposes of subsection (5), the amount of the percentage shall

in each case be determined, having regard to the nature of the business, and

shall, when determined by the Commissioner, be subject to review, objection

and appeal as provided by this Act.

(7) Nothing in this section shall render a non-resident person chargeable

in the name of a broker or general commission agent or other agent where such

broker, general commission agent or other agent is not an authorised person

carrying on the regular agency of the non-resident person, or a person charge-

able as if he were an agent in pursuance of subsections (4) and (5) in respect of

11 of 1964.

36

gains or profits arising from sales or transactions carried out through such a

broker or agent.

(8) The fact that a non-resident person executes sales or carries out

transactions with other non-residents in circumstances which would make him

chargeable in pursuance of subsections (4) and (5) in the name of a resident

person shall not of itself make him chargeable in respect of gains or profits

arising from those sales or transactions.

(9) Where a non-resident person is chargeable to tax in the name of any

attorney, factor, agent, receiver, branch or manager, in respect of any gains or

profits arising from the sale of goods or produce manufactured or produced

out of the country 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 Com-

missioner or, in the case of an objection, to the Board, to have the assessment

to tax in respect of those gains or profits made or amended on the basis of the

profits which might reasonably be expected to have been earned by a mer-

chant or, where the goods are retailed by or on behalf of the manufacturer or

producer, by a retailer of the goods sold who has bought from the manufac-

turer or producer direct, and on proof to the satisfaction of the Commissioner

or the Board, as the case may be, of the amount of the profits on the basis

aforesaid, the assessment shall be made or amended accordingly without preju-

dice to any right of appeal conferred by section 43.

26. The person who is chargeable in respect of an incapacitated person, or

in whose name a non-resident is chargeable, shall be answerable for all

matters required to be done by virtue of this Act for the assessment of the

income of any person for whom he acts and for paying the tax chargeable

thereon.

27. Any person who in whatever capacity is in receipt of any money or value

being income arising from any of the sources mentioned in this Act, or belong-

ing to any other person who is chargeable in respect thereof, or who would be

so chargeable if he were resident in Belize and not an incapacitated person

11 of 1964.

Acts, etc., to be

done by trustees,

etc.

Statement to

be prepared by

trustees, etc.

11 of 1964.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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shall, whenever required to do so by any notice from the Commissioner, pre-

pare and deliver within the period mentioned in such notice a list signed by him

containing-

(a) a true and correct statement of all such income;

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

income belongs and such other information as the

Commissioner may think necessary for the purposes

of this Act,

and the provisions of this Act with respect to the failure to deliver lists or

particulars in accordance with a notice from the Commissioner shall apply to

any such list.

28. The manager or other principal officer of every corporate body of persons

shall be answerable for doing all such acts, matters and things as are required to

be done by virtue of this Act for the assessment of such body and payment of

the tax.

29.-(1) Every person answerable under this Act for the payment of tax on

behalf of another person may retain out of any money coming to his hands on

behalf of such other person so much thereof as is sufficient to pay such tax, and

shall be and is hereby indemnified against any person whatever for all payments

made by him in pursuance and by virtue of this Act.

(2) With respect to every person resident in Belize having the receipt, con-

trol, or disposal of money belonging to a non-resident person who derives

income from a source in Belize, the following provisions shall apply-

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

tax due and payable by the non-resident;

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

Manager of

corporate bodies

of persons.

Indemnification

of representative.

38

payable by him on behalf of the non-resident to the

extent of any amount that he has retained or should

have retained under subsection (1), but he shall not

be otherwise personally liable for the tax.

(3) For the purpose 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 chargeable on 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.

30.-(1) Subject to subsection (2), when any person dies during the basis year

and such person would but for his death have been chargeable to tax for the

year of assessment, or when any person dies during the year of assessment or

within two years after the expiration thereof and no assessment has been made

upon him for that year, the personal representative of such person shall be

liable to and charged with the payment of the tax with which such person

would have been chargeable, and shall be answerable for doing all such acts,

matters and things as such person if he were alive would be liable to do under

this Act.

(2) In the case of a person dying during the basis year, if his personal

representative distributes his estate before the commencement of the year of

assessment, such personal representative shall pay the tax at the rate or rates

in force at the date of distribution of the estate, if the rate of tax for the year of

assessment has not been fixed at that date.

General Powers of Commissioner

31.-(1) Every person who is chargeable to tax shall, without notice or

demand, file with the Commissioner on or before the last day of the third

month following the end of the basis year a return of income for that year in the

Deceased

persons.

11 of 1964.

Returns.

19 of 1970.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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form prescribed and containing the information prescribed.

(2) Notwithstanding subsection (1), an employee need not file a return if

his only income was emoluments except-

(a) when claiming a refund of tax deducted by the

employer; or

(b) when requested by the Commissioner so to do; or

(c) where, on or after the end of the basis year, the

amount of tax payable on income for such basis year

is not fully paid.

(3) The Commissioner may by notice in writing require any person to

furnish him within a specified time with a return of income and such particulars

as may be required for the purposes of this Act to enable him to ascertain the

income of such person and, in particular, may require any person to produce all

books or other documents in his custody or under his control relating to such

income.

(4) Every person, whether he is or is not liable to pay income tax, upon

whom the Commissioner may cause a notice to be served requiring him to

make and deliver a return of his income, shall, within fifteen days after the

service of such notice, make and deliver to the Commissioner a return as afore-

said.

(5) A person who fails to deliver any return of income under this section

within the time specified, or within such extended period of time as the

Commissioner may allow, shall pay to the Commissioner a penalty of three

per cent of the tax that was unpaid when the return was required to be filed

for each month or part of a month in which the return was not delivered

continuing for a period of twenty months.

3 of 1971.

7 of 1982.

3 of 1971.

11 of 1964.

11 of 1964.

40

(6) Any penalty levied under subsection (5) may be varied or dis-

charged by the Income Tax Appeal Board appointed under section 3 (3)

(notwithstanding that no question of assessment is involved) upon proof of

reasonable cause for the default.

(7) A penalty under subsection (5) shall not be levied where the return

was filed under subsection (2)(a) for the sole purpose of claiming a refund.

(8) Every person required by this section to file a return of income shall

in the return estimate the amount of tax payable in respect thereof.

32.-(1) Every employer or other person who is or may be required by this

Act or rules made thereunder to collect or pay any tax or other amount shall

keep in the country records and books of account including an annual inven-

tory in such form and containing such information as will enable the amounts of

the taxes payable under this Act or the taxes or other amounts that should

have been deducted, withheld or collected to be determined.

(2) Notwithstanding the generality of subsection (1), every person

carrying on a profession or business in which charges are made for services

rendered to members of the public shall make a separate record of every

service transaction made in the course of that profession or business except

where otherwise authorised in writing by the Commissioner.

(3) Where a person has failed to keep records and books of account

adequate for the purposes of this Act, the Commissioner may require him to

keep such records and books of account as he may specify and that person

shall thereafter keep records and books of account as so required.

(4) Every person required by this section to keep records and books of

account shall retain every record or book of account and every account,

voucher or other record necessary to verify such record or book of account

for a period of six years or until written permission for their earlier disposal

is obtained from the Commissioner.

19 of 1970.

Accounts

and records.

3 of 1971.

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

Income and Business Tax [CAP. 55

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(5) Every person who contravenes any of the provisions of this section is

guilty of an offence.

33.-(1) The Commissioner or a senior officer of his department who has

been authorised by him may, for any purpose related to the administration or

enforcement of this Act, at any reasonable time having regard to the regular

working hours and the related circumstances of the particular business, and

on production of his letter of authorization, enter into any premises or place

where a business is carried on or any property is kept or anything is done in

connection with the business or any books or records are or should be kept

pursuant to this Act and may:-

(a) audit or examine the books and records and any

account, voucher, letters, telegram or other docu-

ments which relates or may relate to the informa-

tion that is or should be in the books or records or

to the amount of tax payable under this Act;

(b) examine property described by an inventory or any

property, process or matter, an examination of which

may, in his opinion, assist in determining the accu-

racy of an inventory or in ascertaining the informa-

tion that is or should be in the books or records or

in determining the amount of tax payable under this

Act;

(c) require the owner or manager of the property or

business and any other person on the premises or

place to give him all reasonable assistance with his

audit or examination either orally or, if he so re-

quire, in writing, on oath or otherwise and, for that

purpose, require the owner or manager to attend at

the premises or place with him; and

Audit and

ancillary powers.

3 of 1971.

42

(d) if during the course of such an audit or examination

it appears to him that there has been a violation of

this Act or a rule made thereunder, seize, take away

and retain any of the records, books, accounts,

vouchers, letters, telegrams and other documents

that appear to be relevant.

(2) Any records, books, accounts, vouchers, letters, telegrams and

other documents that are so seized or taken away shall be returned immedi-

ately if on appeal the Board is not satisfied that a violation of the Act ap-

pears to have been committed. (Notwithstanding that no question of assess-

ment is involved).

(3) An appeal made to the Board against any action by a person

authorised by the Commissioner to conduct an audit or examination under

subsection (d) of section (1) shall be lodged with the Chairman of the Board

within seven days of the date of seizure. The decision of the Board on this

matter shall be final.

(4) The Commissioner may, for any purpose related to the administration

or enforcement of this Act, by not less than seven days notice in writing,

require any person to attend before him and give evidence on oath and to

produce on oath all relevant books, letters, accounts, invoices, statements or

other documents in his possession or control.

(5) The Commissioner may, for any purpose related to the administration

or enforcement of this Act, authorize in writing any senior officer of his

department when accompanied by a Police Officer to enter and search, by

force, if necessary, any building, receptacle or place for documents, books,

records or other things which may afford evidence of a violation of this Act or

of a rule made thereunder and to seize, take away and retain any such docu-

ments, books, records or other things.

(6) Where any book, record or other document has been seized,

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examined or produced under this section, the person by whom it was seized

or examined or to whom it was produced may make, or cause to be made,

one or more copies thereof and in any case in which the person to whom the

original document was returned refuses or neglects to produce the original

document in court, after having been required to do so by the Commissioner,

a document purporting to be certified by the Commissioner to be a copy

made pursuant to this subsection shall be admissible in evidence and shall be

conclusive evidence of the contents of the original document.

(7) Any person who hinders, molests or in any way interferes with any

person, in the exercise of this authority under this section is guilty of an of-

fence.

34.-(1) The Commissioner may require any officer in the employment of the

government or any municipality or other public body to supply such particulars

as may be required for the purposes of this Act and which may be in the pos-

session of such officer.

(2) No officer mentioned in subsection (1) shall by virtue of this section be

obliged to disclose any particulars as to which he is under any statutory obliga-

tion to observe secrecy.

(3) Every employer, agent, contractor or other person when required to do

so by notice from the Commissioner shall within the time limited in the notice,

prepare and deliver a return or returns containing such information as the Com-

missioner may think necessary for the purposes of this Act, and the provisions

of this Act with respect to the failure to deliver returns or particulars in accor-

dance with a notice from the Commissioner shall apply to any such return or

returns.

(4) Where the employer, agent, contractor or other person is a body of

persons the manager or other principal officer shall be deemed to be the em-

ployer for the purposes of this section, and any director of a company, or

person engaged in the management of a company, shall be deemed to be a

Official

information and

official secrecy.

11 of 1964.

19 of 1970.

44

person employed.

(5) Notwithstanding subsections (1) and (3), the Minister may make rules

requiring any person to prepare and deliver returns containing any information

required under this Act at such times and in such form as may be prescribed.

35.-(1) Where a trade, business, profession or vocation is carried on by two

or more persons jointly-

(a) the income of any partner from the partnership shall

be deemed to be the share to which he was entitled

during the basis year in the income of the partnership,

such income being ascertained in accordance with the

provisions of this Act, and shall be included in the

return of income to be made by such partner under

this Act;

(b) the precedent partner shall, when required by the Com-

missioner, make and deliver a return of the income of

the partnership for any year, such income being as-

certained in accordance with the provisions of this

Act, and declare therein the names and addresses of

the other partners in the firm together with the amount

of the share of the said income to which each partner

was entitled for that year;

(c) where no partner is resident in Belize, the return shall

be made and delivered by the attorney, agent, man-

ager or factor of the firm resident in Belize;

(d) the provisions of this Act with respect to the failure to

deliver returns or particulars in accordance with a no-

tice from the Commissioner shall apply to any return

required under this section.

Partnerships.

19 of 1970.

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(2) In this section “precedent partner” means the partner who of the part-

ners resident in Belize-

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

(b) if there be no agreement, is named singly or with

precedence to the other partners in the usual name of

the firm; or

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

with precedence is not an acting partner.

36.-(1) Every notice to be given by the Board or the Commissioner under this

Act shall be signed by a member of the Board or the Commissioner, as the case

may be, or by some person or persons from time to time appointed by the

Board or by the Commissioner for the purpose, and such notice shall be valid if

the signature of a member of the Board or of the Commissioner, as the case

may be, or of such 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 Board or to the Commissioner or any notice

under this Act requiring the attendance of any person or witness before the

Board or the Commissioner, shall be personally signed by the Commissioner or

a member of the Board or by any person duly authorised by the Commissioner

or the Board, as the case may be.

(2) A signature attached to any notice and purporting to be the signature of

any person so appointed shall be taken to be the signature of that person until

the contrary be shown.

37. Notice may be served on a person either personally or by being sent

through registered post to his last known business or private address, and

shall in the latter case be deemed to have been served, in the case of persons

resident in Belize, not later than the tenth day succeeding the day when

Signature

of notices.

11 of 1967.

Service of

notices.

46

posted, and in the case of persons not so resident, the tenth 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.

Assessments

38.-(1) The Commissioner shall with all due dispatch assess the tax for the

basis year and levy any penalty that may be payable.

(2) Where a person has delivered a return, the Commissioner may –

(a) accept the return and make an assessment accord-

ingly; or

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

judgment, determine the amount of the chargeable

income of the person and assess him accordingly.

(3) Where a person has not delivered a return and the Commissioner is

of the opinion that such person is liable to pay tax, he may, according to the

best of his judgment, determine the amount of the chargeable income of such

person and assess him accordingly, 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) If the Commissioner -

(a) has refused to accept the return of income rendered

and charged a person to income tax in respect of a

sum in excess of the amount of income stated in the

return by such person, or

Commissioner

to make

assessments.

11of 1964.

3 of 1971.

8 of 1997.

19 of 1998.

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(b) discovers that a charge to income tax in re-

spect of a sum in excess of such amount ought

to be made, and an assessment is made at any

time within the year of assessment or within six

years after the expiration thereof,

the Commissioner, if satisfied that the act of omission or commission amounts

to fraud, art or contrivance, or gross and willful neglect on the part of the per-

son assessed or to be assessed, may charge such person, in respect of such

excess, additional income tax and surtaxes not exceeding double the amount of

the income tax and surtax payable on the excess.

(5) If a person has been assessed to income tax and it is discovered that

he was assessed on an amount less than the amount on which he should have

been assessed the Commissioner shall assess to income tax the additional

amount discovered and, unless the person has voluntarily reported the

omission or error before the due date for filing of the return of income or

before the assessment is made the Commissioner shall in addition charge a

sum equal to 10 per cent of the additional tax.

(6) Any additional tax charged under this section shall be added to the

assessment, and shall be collected and levied in a like manner as any tax

included in such assessment may be collected and levied.

(7) The Commissioner, in any case for reasons which may appear to him

sufficient, may, on appeal, remit the additional tax or any part thereof.

(8) Liability for tax shall not be affected by the fact that no assessment has

been made.

39. Where it appears to the Commissioner that any person liable to tax has not

been assessed or has been assessed at a less amount than that 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

3 of 1971.

3 of 1971.

Additional

assessments.

48

or additional amount, as according to his judgment ought to have been charged,

and the provisions of this Act as to notice of assessment, appeal and other

proceedings under this Act shall apply to such assessment or additional as-

sessment and to the tax charged thereunder.

40.-(1) The Commissioner shall as soon as possible prepare a record of per-

sons assessed to tax.

(2) Such records, in this Act hereinafter called the assessment records,

shall contain the names and addresses of the persons assessed to tax, the

amount of the chargeable income of each person, the amount of tax payable

by him, and such other particulars as may be prescribed.

41.-(1) For the purpose of facilitating the assessment of the income of persons

residing in the United Kingdom, the Minister may appoint an agent in the United

Kingdom who shall make enquires 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 in-

come of such person in accordance with this Act and shall forward to the

Commissioner the accounts and computations upon which his report is based.

(2) The Commissioner on receipt of the report shall enter the amount

reported in the assessment records, however-

(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; and

(b) nothing in this section shall prevent an objection to the Board

or an appeal on a point of law to a judge conferred by sec-

tions 42 and 43.

Record of persons

assessed and

notices of

assessment.

11 of 1964.

Appointment

of agent in the

United Kingdom.

40 of 1963.

11 of 1964.

4 of 1962.

11 of 1964.

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42.-(1) The Commissioner shall cause to be served personally or sent by

registered post to each person whose name appears in the assessment

records, a notice addressed to him at his usual place of abode or business

stating the amount of his chargeable income andamount of the tax payable by

him and informing him of his rights under subsections (2) and (4), and of the

provisions of subsection (8).

(2) If any person disputes the assessment he may apply to the Commis-

sioner by notice in writing to review and to revise the assessment made upon

him and such notice shall state the precise grounds on which the assessment

is disputed.

(3) In the event of any person assessed who has disputed an assessment

agreeing with the Commissioner as to the amount at which he is liable to be

assessed, the assessment, where necessary, shall be amended accordingly

and notice of the tax payable shall be served upon such person.

(4) If any person assessed who has disputed an assessment made upon

him shall fail to agree with the Commissioner as to the amount at which he is

liable to be assessed, the Commissioner shall in writing notify him of the

amount at which he has been assessed and the person disputing the assess-

ment may, in writing by a notice of objection setting out as the grounds of his

objection the grounds stated in the application made under subsection (2),

apply to the Board requesting it to hear and determine his objection.

(5) On an objection against an assessment made to the Board, the onus

of proving that the assessment complained of is excessive shall be on the

appellant.

(6) On receipt of a notice of objection, a meeting of the Board shall be

summoned to hear the objection of the person assessed, and the Board may-

(a) require the person assessed and the Commissioner to

furnish such particulars as the Board may think neces-

Power of

Commissioner

to revise

assessments

and of Board

to entertain

objections to

assessments.

11 of 1964.

50

sary in order to ascertain the income or to determine

the amount of tax payable;

(b) require the person assessed and the Commissioner to

produce all books or other documents in their cus-

tody or under their control relating to such income;

(c) summon any person who the Board thinks is able to

give evidence respecting the assessment to attend be-

fore the Board;

(d) examine either on oath or otherwise the person as-

sessed, the Commissioner and any other person at-

tending before them (except the clerk, agent or other

person confidentially employed in the affairs of the

person assessed) by whom evidence is to be given.

(7) When the Board has heard the objection and determined the amount

of the assessment, any necessary amendment shall be made in the amount

assessed reducing it by the amount overcharged or increasing it by the amount

undercharged and notice of the amount of tax, if any, payable shall be served

upon the person assessed and that amount of tax shall, subject to section 43,

be the tax payable.

(8) Subject to subsection (9), the notice to be sent under subsection (2)

shall be sent within fifteen days from the date of the service of the notice of

assessment and the notice of objection to be sent under subsection (4) shall be

sent within fifteen days from the date of service of the notification of the amount

of the assessment sent by the Commissioner under subsection (4).

(9) Where owing to absence from the country, sickness or other reason-

able cause, the Board is satisfied on an application to that effect made by a

person wishing to dispute or object to an assessment that such person was

unable within the time mentioned in this section to make his application to the

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Commissioner for a review or revision of the assessment or that having made

such application he was unable within the time mentioned in this section to

serve a notice of objection on the Board, the Board by notice in writing ad-

dressed to such person and to the Commissioner may grant such extension of

time as the Board considers reasonable in the circumstances.

43.-(1) If either the Commissioner or a person whose objection has been

determined by the Board is dissatisfied with the decision of the Board on the

ground that the decision was erroneous in point of law, he may appeal to a

judge in chambers to hear and determine any question of law arising on the

objection and the decision of the Board, upon giving notice in writing to the

other party to the proceedings before the Board within thirty days from the

date of the decision of the Board.

(2) Notwithstanding the lapse of such period of thirty days, any person

may appeal against the said assessment if he shows to the satisfaction of a

judge that, owing to absence from the country, sickness or other reasonable

cause, he was prevented from giving notice of appeal within such period, and

that there has been no unreasonable delay on his part.

(3) Any person who appeals against an assessment shall attend before a

judge in person on the day and at the time fixed for the hearing of his appeal.

(4) If it be proved to the satisfaction of a judge that owing to the

absence from Belize, sickness, or other reasonable cause, any person is

prevented from attending in person at the hearing of his appeal on the day

and at the time fixed for that purpose, a judge may postpone the hearing of

the appeal for such reasonable time as he thinks necessary for the attendance

of the appellant, or he may admit the appeal to be made by any agent, clerk

or servant of the appellant, on his behalf.

(5) Ten clear days’ notice shall, unless rules made hereunder otherwise

provide, be given to the appellant and respondent of the date fixed for the

Appeals against

assessments.

11 of 1964.

4 of 1976.

4 of 1967.

4 of 1967.

11 of 1964.

52

hearing of the appeal.

(6) The onus of proving that the assessment or any part thereof is

wrong shall be on the appellant.

(7) If a judge is satisfied that the appellant is overcharged he may

reduce the amount of the assessment by the amount of the overcharge, and

if he is satisfied that the appellant is undercharged, he may increase the

amount of the assessment by the amount of the undercharge.

(8) Notice of the amount of tax payable under the assessment as

determined by a judge shall be served by the Commissioner upon the

appellant.

(9) All appeals shall be heard in camera, unless a judge shall, on the

application of the appellant, otherwise direct.

(10) The costs of the appeal shall be in the discretion of the judge

hearing the appeal, and shall be a sum fixed by the judge.

(11) The judge may make rules governing such appeals and providing for

the method of tendering evidence.

(12) The decision of a judge shall be final, but a judge if he so desires

may, and on the application of the appellant or of the Commissioner, shall,

state a case on a question of law for the decision of Her Majesty in Council

under the provisions of the Privy Council Appeals Act.

44.-(1) No assessment, warrant or other proceeding, purporting to be

made in accordance with the provisions of this Act, shall be quashed, or

deemed to be void or voidable, for want of form, or be affected by the

reason of a mistake, defect or omission therein, if it is in substance and

effect in conformity with or according to the intent and meaning of this Act

or any Act amending it, and if the person assessed or intended to be

11 of 1964.

11 of 1964.

4 of 1967.

4 of 1967.

4 of 1967.

4 of 1967.

4 of 1967.

4 of 1967.

CAP. 92.

Errors, etc., in

assessments and

notices.

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Income and Business Tax [CAP. 55

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assessed or affected thereby is designated therein according to common

intent and understanding.

(2) An assessment 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 tax charged;

(b) by reason of any variance between the assessment

and the notice thereof.

(3) In cases of assessment the notice thereof shall be duly served on the

person intended to be charged and such notice shall contain, in substance and

effect, the particulars on which the assessment is made.

45. The production of any document under the hand of a member of the

Board or the Commissioner or of any person or persons appointed by the

Board or the Commissioner purporting to be a copy of or extract from any

return or assessment shall in all courts and in all proceedings be sufficient

evidence of the original, and the production of the original shall not be neces-

sary, and all courts shall in all proceedings take judicial notice of the signa-

tures of a member of the Board or the Commissioner or of any person or

persons appointed by the Board or the Commissioner either to the original or

to such copy or extract.

Relief in Cases of Double Taxation

46.-(1) Any person 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

Evidence.

11 of 1964.

Relief in respect

of United

Kingdom

54

and who proves to the satisfaction of the Commissioner that he has paid by

deduction or otherwise or is liable to pay income tax in the United Kingdom

for that year in respect of the same part of his income, shall be entitled to

relief from 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 for United King-

dom tax.

(2) If, however, the rate of tax appropriate to his case under this Act

exceeds the appropriate rate of United Kingdom tax he shall be entitled only

to relief at a rate equal to half the appropriate rate of United Kingdom tax:

Provided that where in the case of any individual but for this proviso

the amount of tax payable under this Act after allowance of any relief under

subsection (1), when added to the amount of income tax payable in the

United Kingdom in respect of the same part of his income after allowance of

such relief as is granted by section 27 of the Finance Act 1920, 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 and in United Kingdom respectively which

amounts are hereinafter referred to respectively as “the gross Colonial tax”

and “the gross United Kingdom tax”, the Commissioner may, if he is satis-

fied that special hardship would otherwise be caused, grant such additional

relief from 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 Colonial tax

or the gross United Kingdom tax, whichever is the greater.

(3) For the purposes of this section a certificate issued by or on behalf

of the Commissioners of Inland Revenue in the United Kingdom shall be

receivable in evidence to show what is the appropriate rate of United

Kingdom tax or the net United Kingdom tax in any particular case.

(4) For the purposes of this section, the expression “rate of tax”, when

Income Tax.

11 of 1964.

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Income and Business Tax [CAP. 55

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applied to tax paid or payable under this Act means the rate determined by

dividing the amount of the tax paid or payable for any year before the deduc-

tion of the relief granted under this section by the amount of the income in

respect 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 is computed by reference to section 25 of this Act on

an amount other than the ascertained amount of the actual profits, the rate of

tax shall be determined by the Commissioner.

47.-(1) If any person resident in Belize who has paid, by deduction or

otherwise, or is liable to pay, tax under this Act for any year of assessment or

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 same part of his income, he shall be

entitled to relief from tax in Belize paid or payable by him on that part of his

income at a rate thereon to be determined as follows-

(a) if the Commonwealth rate of tax does not exceed

one-half of the rate of tax appropriate to his case

under this Act in Belize the rate at which relief is to

be given shall be the Commonwealth rate of 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.

(2) If any person not resident in Belize 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 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-

Relief in

respect of

Commonwealth

Income Tax.

11 of 1964.

56

(a) if the Commonwealth rate of tax 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 Commonwealth

rate of tax;

(b) if the Commonwealth rate of 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 Commonwealth rate of tax.

(3) For the purposes of this section, Commonwealth income tax means

any income tax charged under any law in force in a Commonwealth country

or in any place under Her Majesty’s protection other than the United

Kingdom or Belize, where the legislature of that country or place has

provided for relief in respect of tax charged on income both in that country

or place and in Belize in a manner similar to that provided in this section.

(4) For the purposes of this section, the rate of tax under this Act shall

be computed in the manner provided by section 46 (3) and the Common-

wealth rate of tax shall be computed in a similar manner.

(5) Where a person is for any year of assessment resident both in Belize

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 during

that year he resides for the longer period.

48.-(1) Subject to subsection (2), a claim for relief under section 46 or 47

shall be made within two years from the end of the year of assessment to

which it relates.

(2) A claim for relief under section 46 or 47, though not made within the

Time for

making claim.

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Income and Business Tax [CAP. 55

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said period of two years, shall be admitted if made within six months from the

date upon which the relevant amount of United Kingdom income tax or of

Commonwealth income tax, as the case may be, has been ascertained.

49. Where, under any law in force in a Commonwealth country or in any

place under Her Majesty’s protection, provision is made for the allowance of

relief from income tax in respect of the payment of income tax in Belize, the

obligation as to secrecy imposed by section 4 shall not prevent the disclosure

to the authorised officers of the government in that Commonwealth country

or in that place under Her Majesty’s protection of such facts as may be

necessary to enable the proper relief to be given in cases where relief is

claimed from income tax in Belize or from income tax in that part or place

aforesaid.

50.-(1) If the Minister by Order declares that arrangements specified in the

Order have been made with the government of any territory outside Belize

with a view to affording relief from double taxation in relation to income tax

and any tax of a similar character imposed by the laws of that territory, and

that it is expedient that those arrangements should have effect, the arrange-

ments shall have effect in relation to income tax notwithstanding anything in

any enactment.

(2) On the making of an Order under this section with respect to ar-

rangements relating to the United Kingdom, section 46 shall cease to have

effect except in so far as the arrangements otherwise provide.

(3) On the making of an Order under this section with respect to

arrangements relating to any Commonwealth country other than the United

Kingdom, or Belize, section 47 shall cease to have effect as respects that

territory except in so far as the arrangements otherwise provide.

(4) Any Order made under this section may be revoked by a subsequent

Order.

Official secrecy.

Double taxation

arrangements.

40 of 1963.

58

(5) Where any arrangements have effect by virtue of this section, the

obligation as to secrecy imposed by section 4 shall not prevent the disclo-

sure to any authorised officer of the government with which the arrange-

ments are made of such information as is required to be disclosed under the

arrangements.

(6) The Minister may make rules for carrying out the provisions of

any arrangements having effect under this section.

51.-(1) The provisions of this section shall have effect where, under ar-

rangements having effect under section 50, tax payable in respect of any

income in the territory with the Government of which the arrangements are

made is to be allowed as a credit against tax payable in respect of that

income in Belize, 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, but credit shall not be allowed

against income tax for any year of assessment unless the person entitled to

the income is resident in Belize 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 then charging it to income tax at a rate ascertained by dividing

the income tax chargeable before allowance of credit under any arrange-

ments having effect under section 50 on the total income of the person

entitled to the income by the amount of his total income.

(4) Without prejudice to subsection (5), the total credit to be allowed

to a person for any year of assessment for foreign tax under all arrange-

ments having effect under section 50 shall not exceed the total income tax

payable by him for that year of assessment, less any tax payable by him

Tax credits.

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Income and Business Tax [CAP. 55

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under section 31.

(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 Belize, 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 ac-

count in computing the amount of the credit, but

notwithstanding anything in paragraphs (a) and (b) of

this subsection, a deduction shall be allowed of any

amount by which the foreign tax in respect of the

income exceeds the credit therefor.

(6) Paragraphs (a) and (b) of subsection (5) but not paragraph (c)

shall apply to the computation of total income for the purposes of determining

the rate mentioned in subsection (3), and of which credit falls to be given for

foreign tax under arrangements for the time being in force under section 50.

(7) Where-

60

(a) 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 indi-

rectly, 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 arrangements 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 assessment, and in the event

of any dispute as to the amount allowable, the claim shall be subject to

review, objection and appeal in like manner as an assessment.

(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 tax payable either in Belize or elsewhere, nothing in this Act limiting

the time for the making of assessments or claims for relief shall apply to any

assessment or claim to which the adjustment give rise, being an assessment

or claim made not later than two years from the time when all such assess-

ments, adjustments and other determinations have been made, whether in

Belize or elsewhere, as are material in determining whether any, and, if so,

11 of 1964.

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what credit falls to be given.

52.-(1) Where the tax paid or payable by a company is affected by double

taxation relief, the amount to be set off under section 51 to be repaid under

section 61, 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 reduction 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 rate of double taxation relief

applicable to the dividend, the reduction shall be an

amount equal to tax on the gross dividend at the differ-

ence 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 subsection (1), that

dividend shall be deemed to be the highest part of his

income;

(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 Colonial 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 any such

Double taxation

relief applicable

to dividends.

62

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

meaning as in section 22, 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 colonial rate appli-

cable thereto.

Collection and Repayment of Tax

53.-(1) The Commissioner shall from time to time deliver to the Chief

Collector certified extracts from the assessment records containing the

names and addresses of the persons assessed together with the amount of

tax payable by each person.

(2) A notice of a review or an objection or an appeal against the

assessment made by the Commissioner shall not result in the suspension of

such assessment, and the entire tax due as determined by the Commissioner

shall be payable before any such review, objection or appeal is entertained.

(3) The Chief Collector shall in every case enforce payment of the tax

as assessed by the Commissioner irrespective of any pending review,

objection or appeal.

(4) Where any review, objection or appeal as aforesaid results in less

tax being payable by the taxpayer than that assessed by the Commissioner,

the excess tax paid by the taxpayer shall, subject to any further appeal by

the Commissioner or the taxpayer, be promptly refunded to the taxpayer

with interest thereon from the date of payment of such excess tax until the

date of such refund, at such rate of interest as may be determined by the

Extracts from

assessment lists

to be sent to

Collector.

11 of 1964.

7 of 1999.

7 of 1999.

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person or body conducting or hearing the review, objection or appeal, as the

case may be.

54. Tax shall be payable within the period prescribed.

55. If any tax is not within the period prescribed -

(a) a sum equal to 1½ per cent of the amount of the tax

not paid shall be added thereto per month commenc-

ing the day following the last day of the prescribed

period and continuing until the date of payment, and

the provisions of this Act relating to collection and re-

covery of tax shall apply to the collection and recovery

of such sum;

(b) the Chief Collector shall serve a demand note upon

the person assessed, and if payment is not made within

thirty days from the date of the service of such demand

note, the Chief Collector may proceed to enforce pay-

ment as provided in sections 57 to 59.

56.-(1) Where payment of tax in whole or in part has been held over

pending the result of a review or of a notice of objection or of an appeal, the

tax outstanding under the assessment as determined on such review, objec-

tion or appeal, as the case may be, shall be payable within thirty days from

the receipt by the person assessed of the notification of the tax payable.

(2) Notwithstanding the provisions of subsection (1) of this section,

where as a result of review, objection, or appeal, as the case may be, some

tax (whether more or less than the original tax assessed) remains payable by

the taxpayer, such tax shall be deemed as arrears of tax and the provisions of

section 55 of this Act relating to penalty shall apply to such tax.

Penalty for

non-payment of

tax, and

enforcement of

payment.

3 of 1971.

3 of 1984.

16 of 1994.

Time within

which payment

is to be made.

Collection of

tax after

determination

of objection or

appeal.

16 of 1994.

64

57. All taxes, penalties, costs or other amounts payable under this Act,

or under rules made thereunder, are debts due to the Crown and recover-

able as such in any court of competent jurisdiction or in any other manner

provided by this Act.

58.-(1) When the Commissioner has knowledge or suspects that a person is

or is about to become indebted to or is otherwise liable to make a payment

to a person who has failed to make a payment due under this Act or under

rules made thereunder, the Commissioner may, by registered letter or by

letter served personally, require such first mentioned person to pay the

moneys otherwise payable to such second mentioned person in whole or in

part to the Commissioner on account of the liability of the second mentioned

person to make a payment due under this Act or rules made thereunder.

(2) The receipt of the Commissioner for moneys paid as required

under this section shall be to the extent of payment a good and sufficient

discharge of the original debt or other liability.

(3) Where the Commissioner pursuant to subsection (1) has

required an employer to pay to him on account of an employee’s liability

under this Act or rules made thereunder moneys otherwise payable by the

employer to the employee as emoluments, the requirements shall apply to all

future payments by the employer to the employee in respect of emoluments

until such liability is satisfied, and shall operate to require payments to the

Commissioner out of each payment of emoluments of such amounts as may

be required by the Commissioner.

(4) Any person, who has made any payment by way of satisfaction,

in whole or in part, of any debt or other liability due to another person and

has failed to comply with any requirement of the Commissioner under this

section, is liable to pay to the Crown an amount equal to the amount paid by

way of such satisfaction or the amount which he was required to pay the

Commissioner, whichever be the less.

Garnishment

of debts.

3 of 1971.

Debt to

the Crown.

3 of 1971.

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(5) Notwithstanding subsection (1), where the person who is or is

about to become so indebted or otherwise liable carries on business under a

name or style other than his own name, the registered or other letter contain-

ing the Commissioner’s requirement may be addressed in the name or style

under which he carries on business and in the case of personal service shall

be deemed to have been served if it is left with an adult person at the place of

business of the addressee.

(6) Notwithstanding subsection (1), where the persons who are or

are about to become so indebted or otherwise liable carry on business as a

partnership, the registered or other letter containing the Commissioner’s

requirement may be addressed in the partnership name and in the case of

personal service shall be deemed to have been served if it has been served

on any one of the partners or has been left with an adult person employed at

the place of business of the partnership.

(7) For the purposes of this section “Commissioner” includes any

officer or other person from time to time authorized by the Commissioner to

act pursuant thereto.

59.- (1) If in any particular case the Commissioner has reason to believe

that a person who has been assessed to tax may leave Belize before the tax

becomes payable under section 53, 54 or 55 without having paid such tax,

he may by notice in writing to such person demand payment of the tax within

the time to be limited in the notice.

(2) Such tax shall thereupon be payable at the expiration of the time

so limited and shall in default of payment, unless security for payment thereof

be given to the satisfaction of the Commissioner, be recoverable forthwith in

the manner prescribed by section 57.

(3) If in any particular case the Commissioner has reason to believe

that tax upon any chargeable income may not be recovered, he may at any

time and as the case may require-

Recovery

of tax in

certain cases.

11 of 1964.

66

(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;

(b) make an assessment upon such person in the

amount of the income returned; or if default is made

in making such return or the Commissioner is

dissatisfied with such return, in such amount as the

Commissioner may think reasonable;

(c) by notice in writing to the person assessed require

that security for the payment of the tax assessed be

forthwith given to his satisfaction.

(4) If in any particular case the Commissioner has reason to believe

that tax upon any income which would upon the issue of a proclamation

imposing tax for any year of assessment become chargeable to such tax may

not be recovered he may at any time-

(a) by notice in writing to the person by whom the tax

would be payable determine a period for which tax

shall be charged and require such person to render

within the time specified therein returns and

particulars of such income for that period;

(b) make an assessment upon such person in the

amount of the income returned or, if default is

made in making a return or the Commissioner is

dissatisfied with such return, in such amount as the

Commissioner may think reasonable, and such

assessment shall be made at the rate of tax imposed

by the last preceding proclamation.

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(5) Notice of any assessment made in accordance with subsections

(3) and (4) shall be given to the person assessed, and any tax so assessed in

accordance with subsections (3) and (4) shall be payable on demand made

in writing under the hand of the Commissioner and shall in default of pay-

ment, unless security for the payment thereof be given to the satisfaction of

the Commissioner, be recoverable forthwith in the manner prescribed by

section 57.

(6) Any person who has paid the tax in accordance with a demand

by the Commissioner or who has given security for such payment under

subsections (3) and (4) shall have the rights of review, objection and appeal

conferred by sections 42 and 43 and the amount paid by him shall be ad-

justed in accordance with the result of any such review, objection or appeal.

(7) Subsections (3) and (4) shall not affect the powers conferred

upon the Commissioner by section 39.

60.-(1) Subject to subsection (3), no person shall leave or attempt to leave

Belize, unless such person has in his possession a certificate in the prescribed

form issued by the Commissioner on payment of the prescribed fee certifying

that such person –

(a) does not owe any income tax; or

(b) has made satisfactory arrangements for the payment

of any income tax payable by him.

(1A) The certificate issued under subsection (1) may be valid for

such period as may be prescribed.

(2) Any person who neglects to comply with or acts in contravention

of this section is guilty of an offence.

(3) It shall be a good defence to any proceedings against any person

Exit certificate.

11 of 1964.

32 of 1987.

32 of 1987

68

in respect of an offence against this section to prove that the certificate

required by subsection (1) could properly have been issued and that there

has been undue delay on the part of the Commissioner in issuing it.

(4) Subsection (1) shall not apply to-

(a) any member of the Military, Naval or Air Forces of

Her Majesty or of any foreign state;

(b) any person in the diplomatic or consular service of a

foreign state unless any such person is also engaged

in any business or other employment in Belize;

(c) any person to whom the Diplomatic Privileges and

Consular Conventions Act applies;

(d) any person under 16 years;

(e) any passenger in transit.

(5) The Minister may, from time to time by Order published in the

Gazette, prescribe the fees to be paid for the issue of exit certificates.

(6) Every Order made by the Minister under subsection (5) shall as

soon as may be after the making thereof be laid before the House of Repre-

sentatives and shall be subject to negative resolution.

61.-(1) If it be proved to the satisfaction of the 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.

(2) 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

32 of 1987.

CAP. 23.

32 of 1987.

32 of 1987.

Repayment

of tax.

11 of 1964.

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relates.

(3) The Commissioner shall give a certificate of the amount to be

repaid and upon the receipt of the certificate the Chief Collector shall cause

repayment to be made in conformity therewith.

(4) Except as regards sums repayable on a review or an objection or

appeal, no repayment shall be made to any person in respect of any year of

assessment as regards which that person has failed or neglected to deliver a

return or has been assessed in a sum in excess of the amount contained in his

return, if he has received notice of the assessment made upon him for that

year, unless it is proved to the satisfaction of the Commissioner that such

failure or neglect to deliver a true and correct return did not proceed from

any fraud or wilful act or omission on the part of that person.

Proceedings for Recovery of Income Tax

62.-(1) The Chief Collector shall from time to time cause to be inserted in

three consecutive issues of the Gazette a notice to the effect that warrants

will be issued for the recovery of all income tax remaining unpaid for over

sixty days from the issue of notice of assessment, together with the fines due

thereon.

(2) A definite day may be fixed in the said notice, which shall not be

less than one month from the first publication of the said notice, and such

publication shall be sufficient notice to all defaulters.

(3) Where persons have made arrangements with the Chief Collector

to pay their income tax by instalments, and make default in the payment of

any instalment, the whole of the tax then remaining unpaid shall immediately

become due and payable, but steps to recover it shall not be taken under this

section unless sixty days have elapsed since the issue of the notice of assess-

ment or until any instalment is in arrear for fifteen days.

Notice to be

given to tax

defaulters.

11 of 1964.

11 of 1964.

70

63.-(1) The Chief Collector shall, from time to time, issue to any persons

whom he may employ in the several districts as bailiffs for this purpose

(hereinafter referred to as “bailiffs”) warrants directing and authorising them

in manner hereinafter provided to make a levy upon the goods of all default-

ers for the payment of taxes and fines thereon remaining unpaid for more

than sixty days from the issue of the notice of assessment.

(2) In all cases where default has been made by several persons in

the same district, it shall be sufficient for the Chief Collector to attach to any

warrant a list duly signed by him setting out extracts from the assessment

records showing the names of such defaulters, the particulars of the proper-

ties charged with unpaid income tax, the taxes which are unpaid together

with the amounts of such taxes and the fines due thereon respectively.

64.-(1) Notwithstanding that the name of the person who has made default

in the payment of the tax is included in a list to any warrant authorising a levy

as provided in section 10, the Chief Collector may at any time that such tax

remains unpaid cause the operation of the said warrant to be suspended as

against such defaulter and in lieu thereof to apply to the magistrate of the

district in which the person in default is for the time being staying or residing,

for a summons directing the defaulter to attend before such magistrate, at a

time to be named in the summons, to show cause why he should not be

ordered to pay the amount aforesaid, as a judgment debt, and the magis-

trate may issue such summons and cause it to be served and deal with the

defaulter in such manner as is provided in section 65.

(2) Notice of any application intended to be made under this

section shall be given by the Chief Collector to the Minister.

Judgment Debtor Process

65. If a summons for enabling the defaulter to show cause as mentioned in

section 71 is issued, the magistrate may on the date named in the summons

or at any other date to which the hearing may be adjourned, order the

Collector to issue

warrants against

goods for

recovery of taxes.

11 of 1964.

11 of 1964.

Suspension of

execution and

institution of

proceedings before

Magistrates.

Magistrate may

order payment of

tax, etc., into court.

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defaulter to pay into court the amount of the unpaid tax and fines, and such

costs and expenses as are for this purpose from time to time fixed by the

Minister, or order him to pay into court any part of such amount which the

magistrate may think the defaulter able to pay or arrange for paying, within

seven days of the order or within such extended time as may be determined

by the magistrate, and either in a lump sum or by instalments.

66.-(1) If the person summoned as provided in section 64 fails to comply

with the summons without lawful excuse or if he makes default in payment

into court in the manner aforesaid, the magistrate may commit such person to

prison for a term not exceeding six weeks or until payment of the sum

ordered to be paid (if paid before the expiration of such term).

(2) No committal under subsection (1) shall be ordered for default in

payment unless it be proved to the satisfaction of the magistrate that the

person making default either has or has had since the date of the order, the

means to pay the sum in respect of which he has made default, and has

refused or neglected, or refuses or neglects, to pay it.

(3) Proof of the means of the person making default may be given in

such manner as the magistrate thinks just, and, for the purposes of such

proof, the debtor and any witness may be summoned and their attendance

enforced by the same processes as in cases in which the magistrate has

summary jurisdiction in criminal matters, and such debtor and witnesses may

be examined on oath.

(4) Every order of committal under this section shall be issued,

obeyed, and executed in manner similar to commitments by magistrates in the

exercise of their summary jurisdiction in criminal cases.

(5) Imprisonment under this section shall not operate as a satisfac-

tion or extinguishment of the judgment debt.

40 of 1963.

Imprisonment for

failure to obey

order.

72

67. In any event of the defaulter paying the whole of the amount ordered to

be paid as provided in section 65, the magistrate shall give notice of such

payment to the Minister and shall remit to the Chief Collector the amount so

paid, deducting such parts thereof as may represent the court costs.

Proceedings by way of Distress

68.-(1) For the purpose of levying any distress a bailiff shall execute a

warrant issued to him by the Chief Collector according to the tenor thereof,

and such warrant shall be in the form set out in the First Schedule.

(2) On payment of the tax and fines and expenses accrued thereon,

the bailiff shall give acquittances under his hand unto the persons who pay

them onnumbered (counterfoil) receipt forms with which the bailiff shall be

supplied by the Chief Collector, and shall pay over to the Chief Collector

daily, or at such other times as the Chief Collector may direct, all money

received by him under this Act.

69.-(1) When any goods or chattels are distrained on, they shall, after due

notice given in the Gazette, be sold by the bailiff at public auction in such a

manner as is usual in sales under executions issuing out of the district court

and, until the sale, the goods shall be kept in the custody of the Commis-

sioner.

(2) The money arising from the sale shall be paid over by the bailiff to

the Chief Collector after deducting therefrom all reasonable and necessary

charges and expenses attending the levy and sale which may be allowed by

the Chief Collector, and these proceeds of sale shall be applied by the Chief

Collector towards satisfaction of the unpaid tax, fines, and costs, and the

surplus (if any) shall be restored on demand to the owner of the goods

distrained, but -

(a) tools of trade, bedding and wearing apparel amounting in all

Debtor paying

whole of amount

ordered to be paid.

Form and scope of

warrant.

First Schedule.

Sale of goods

levied on and

disposal of

proceeds.

8 of 1997.

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Income and Business Tax [CAP. 55

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to the value of fifty dollars shall be exempted from execution;

(b) after a levy the owner of the goods seized may redeem them

at any time before the time appointed for the sale by paying

to the bailiff the full amount of the tax and fines thereon,

together with all costs and expenses incurred in relation

thereto by the date of such payment;

(c) if at such public auction there are no bids sufficient to cover

the tax, fines, costs and expenses, the unsold goods shall

become the property of the Government of Belize.

70.-(1) The bailiff’s fees which may be included in a claim of levy under a

warrant may be in such sum and according to such scale as is fixed from time

to time by the Minister.

(2) All such fees shall be paid by the defaulters against whom warrants

are issued, and the Minister may award to any bailiff such proportion thereof

as he thinks fit.

Execution Against Lands or Houses

71.-(1) If the amount of the taxes due and recoverable from a defaulter and

of the fines, costs and expenses chargeable as aforesaid have not been, or in

the opinion of the Chief Collector cannot be, raised by the sale of the goods

of the defaulter, the Chief Collector may put up for sale either the whole of

any lands or houses in Belize to which the defaulter is beneficially entitled, or

such part thereof as in the discretion of the Chief Collector may be selected

and marked off as sufficient to realise the required amount.

(2) In default of satisfaction of the debt by any such sale as described

in subsection (1), then, if the lands or houses charged with the payment of

unpaid income tax had passed out of the possession of the defaulter before

the date of the said sale and consequently such last mentioned lands or

Bailiff’s fees.

40 of 1963.

40 of 1963.

Failing to recover

on goods the

Collector to sell

realty of defaulter.

74

houses had not been levied upon as aforesaid, the Chief Collector may in

the last instance proceed to levy and sell the lands or houses last mentioned.

(3) The Chief Collector may issue to the officer in charge of the

Revenue Office of the district in which any lands or houses intended for sale

are situate, a praecipe to levy the tax by the sale of the lands or houses

therein mentioned which praecipe shall be in the form set out in the Second

Schedule.

72.-(1) Before proceeding with the sale of any land or house as described

in section 71 the Chief Collector or the officer conducting such sale shall

serve or cause to be served on the person in default a notice in the form set

out in the Third Schedule.

(2) Except in cases specially sanctioned by the Chief Collector, or the

officer conducting the sale, every such notice shall be served personally on

the person in default.

(3) Whenever the Chief Collector or the officer conducting the sale

has reason to think that the person in default is avoiding service of the

notice, or that neither he nor his authorised agent can be found, the Chief

Collector or officer may order the notice to be affixed in some conspicuous

manner to the property with respect to which the praecipe to levy has been

issued.

(4) The server or bailiff serving any such notice personally shall

endeavour to explain its purport fully to the person upon whom it is served,

and shall offer to prepare, and, if so requested, shall write out the statement

which such person is required to make.

(5) In this latter event, the signature or mark of such person shall, if

practicable, be attested by a witness other than the server or bailiff.

Second Schedule.

Form of praecipe for

sale of lands by

Revenue Officer.

Third Schedule.

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(6) The bailiff or server of such notice shall write upon it the date when

it is served by him, and shall enter upon a counterfoil of the notice or upon

some other record the date and manner of service and the place where it was

made.

(7) Every person duly served but failing to make such statement as

mentioned in subsection (4) within the time and in the manner prescribed is

liable on summary conviction to a fine not exceeding twenty-five dollars,

unless he proves either that, previous to the notice being served, he had paid

the tax or fine, or that no tax or fine was or is due from him.

73.-(1) When the whole of any land or any house in respect of which a levy

is made, is offered for sale and no bid is made for it equal to or in excess of

the tax, fines, costs and charges thereon, it shall be liable to forfeiture at the

discretion of the Minister.

(2) As a condition precedent to the forfeiture the Chief Collector shall

cause to be served on the defaulter a notice that such land or house is liable

to forfeiture within one month from the date of the service of the notice, if the

amount due be not paid.

(3) When any land or house has been declared by the Minister to be

forfeited it shall vest in the Government of Belize.

(4) The Chief Collector shall forward to the Registrar of the Court for

the purpose of registration a statement in a form to be prescribed by the

Minister, which statement shall contain the particulars of the land or house,

the name of the person in default, the amount due, the date of the abortive

sale, and the date of the service of the notice of liability to forfeiture.

(5) The registration of the statement shall constitute an indefeasible title.

On abortive sale

of realty and

continued

default in

payment

property to vest

in Crown.

76

74. In all cases of the sale of lands or houses under this Act, the

following shall be the conditions of sale:-

(a) the purchaser buys at his own risk as to the provisions of

the law necessary to authorise the sale having been com-

plied with;

(b) a person who intends to purchase shall be allowed access

to all documents which show that such provisions have been

complied with;

(c) the purchaser shall not require any proof (beyond the

assessment record, and the praecipe with the list of default-

ers’ notices with service) of the identity of the contents,

dimensions, or other particulars of the “property” offered

for sale with that advertised;

(d) the highest bidder for each lot may be the purchaser;

(e) if any dispute arises as to any bidding, the property may

again be put up for sale;

(f) the reserve price will be the amount of the tax, costs, and

charges;

(g) the advance on the bidding may be declared by the Chief

Collector or officer conducting the sale on putting up the

specific lot;

(h) no bid shall be retracted without the consent of the Chief

Collector or the said officer;

(i) immediately after the sale, the purchaser shall pay to the

Chief Collector, or to the officer who conducts the sale, a

Conditions of

sale.

11 of 1964.

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deposit of one-fourth of his bid, and the balance within seven

days thereafter;

(j) in default of payment of the deposit, the property shall be

offered for sale immediately and any subsequent bid by the

person who has made default as aforesaid, shall be ignored

or refused;

(k) if the purchaser fails to complete his purchase within seven

days, the deposit shall be forfeited, and the property shall be

re-offered for sale, when any deficiency on the first bid may

be recovered from the first bidder as a debt;

(l) except in special cases to which the Minister may give his

sanction, conveyances for lanes, tenements and heredita-

ments will only be executed on the prescribed form;

(m) conveyances will not be executed until one month has

elapsed from the date of sale, and during this period the

right is reserved for the Minister to cancel the sale.

75.-(1) All sales of any lands or houses charged with the payment of unpaid

income tax shall, if the provisions of this Act have been duly complied with,

operate to confer on the purchaser an indefeasible title thereto, free from all

encumbrances.

(2) All sales of lands or houses other than those previously specified in

this Act shall have the effect of conveying to the purchaser the right, title, and

interest therein of the person who has made default in the payment of tax,

but-

(a) no purchaser shall have, or be capable of granting, any title

to any land, house or goods purchased under the powers of

this Act, if the purchase has been made with intent to defraud

Effect of

execution sales

with regard to

title.

78

creditors, or as agent or trustee for the taxpayer in default,

or for his wife or family;

(b) any such sale to the taxpayer in default shall be void.

(3) Any person having a charge or debt by way of specialty or other-

wise upon any property of the person named in the assessment record may

pay the tax, fines, costs and expenses properly due under this Act by such

person named as aforesaid, and shall be entitled to add the moneys thus

paid to such charge or debt, and thereupon the increased charge or debt

shall bear the same interest and may be enforced and recovered in the same

manner as the original charge or debt.

76. Where any land or house is sold under this Act, the Chief Collec-

tor shall execute and deliver on completion a conveyance thereof to the

purchaser in the form set out in the Fourth Schedule.

77.-(1) Any surplus moneys arising on any sales under this Act, after

payment of the tax, fines and costs, shall be paid by the Chief Collector to

the owner of the property sold, if known, and if not known, then they shall

be at the disposal of the Minister on the application of any person entitled

for six years from the day of sale, after which they shall be appropriated to

the Consolidated Revenue Fund.

(2) If the Chief Collector has notice that any person other than the

owner of the property sold has a claim to the surplus moneys or any part

thereof either by way of mortgage or other legal encumbrance, the Chief

Collector may send to the said owner, by post, a letter addressed to him at

his last known place of abode stating that the moneys or some specified part

thereof, will be paid to such claimant, mortgagee or encumbrancer, unless

the owner informs the Chief Collector within ten days from the date of the

said letter that he does not admit the said claim.

(3) If no reply is received from the owner within the time specified in

11 of 1964.

Form of convey-

ance.

Fourth Schedule.

Disposal of

surplus proceeds

of sale.

40 of 1963.

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subsection (2) the surplus moneys, or such part thereof as specified in the

said letter, may be paid to the claimant by the Chief Collector.

(4) If the owner denies the claim, the Chief Collector shall pay the

surplus moneys to the Registrar of the Supreme Court, to be placed by the

latter to the credit of an account in court, to abide the settlement by the court

of the question as to what person is entitled to it.

(5) The Chief Collector shall not be held responsible for any payment

made by him under this section.

Claims by Third Parties

78. If any person, other than the person making default, claims that he

is the owner of any goods or lands which are levied upon, as belonging to a

party who is named in the assessment record, such person, or any attorney

on his behalf, may file an affidavit in the Supreme Court-

(a) specifying which of the goods or lands he claims as his

property;

(b) stating full particulars of his title thereto; and

(c) stating the value of the property.

79. If any such person, either at the time of or subsequent to filing the

affidavit, gives security by bond with two sureties (such bonds being hereby

exempted from stamp duty) to the satisfaction of the Registrar of the

Supreme Court in a sum of five hundred dollars, conditioned to secure,

firstly, either the total amount of taxes, fines, costs, and expenses unpaid or

such part thereof as may be equivalent to the value of the property claimed,

and, secondly, all costs of the legal proceedings incidental to the trial of the

issue specified in section 81 hereinafter, the Registrar shall notify the Chief

Collector to discontinue his levy upon such of the goods and lands as are

Affidavit by a

person not the

defaulter,

claiming the

property levied

upon.

11 of 1964.

Discontinuance

of levy upon

bond being

given by

claimant, etc.

80

specified in the affidavit until the determination of the issue.

80.-(1) At any time within seven days after receipt of the notification of the

levy being discontinued the Chief Collector may abandon the levy alto-

gether, and thereupon shall notify the Registrar and the claimant that the levy

is wholly withdrawn and that no further legal proceedings will take place.

(2) If no notice of abandonment is given by the Chief Collector in the

manner provided in subsection (1), the Registrar shall set the matter down

for trial at the next sitting of the Supreme Court held not later than two

weeks subsequent to security being so given in accordance with the

summary procedure of that court.

81. At the hearing, the issues shall be whether or not the claimant

has made out his title to the goods or lands specified in the affidavit, and

whether the value thereof has been correctly stated in the affidavit and, upon

the issues being determined, the Court shall order the bond to be enforced

or cancelled, as the case may be.

82. Throughout the proceedings in the case of the goods being claimed

as aforesaid, the bailiff by whom the levy was made, or, in the case of lands

being claimed, the Chief Collector shall be the defendant, and all steps may

be taken and things done as in ordinary cases before the said court, but the

defendant shall not be ordered to pay any costs unless the court is of

opinion that he has been guilty of wilful neglect or misconduct.

83. No summons, process or other document issued by or for any

person acting under this Act shall be subject to stamp duty.

84. The burden of proof of exemption from or abatement of the tax

levied under this Act shall lie on the party claiming the exemption or abate-

ment.

Abandonment of

levy or setting

down for trial.

Issue at trial.

Procedure to be

same as in

ordinary cases.

Exemption from

stamp duties.

Onus probandi.

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85. Any prosecution instituted against any person for the commission of

any offence against this Act shall be commenced within six years from the

time of the offence committed and not afterwards.

General

86. Any person who is guilty of an offence against this Act for which no

punishment is herein otherwise specified shall be liable on summary convic-

tion to a fine not exceeding five hundred dollars and in default of payment to

imprisonment for a term not exceeding six months.

87. Any person who has failed to make a return as and when required

by paragraph (1) of rule 4 or by paragraph (2) of rule 14 of the Rules Gov-

erning Payment of Income Tax, or by section 34 of this Act is liable to a

penalty of five dollars a day for each day of default so long as such penalty

shall not exceed one thousand dollars.

88.-(1) Any person who, for the purpose of obtaining any deduction,

rebate, reduction or repayment in respect of tax for himself or for any other

person, or who in any return, account or particulars made or furnished with

reference to tax, knowingly makes any false statement or false representa-

tions shall be liable on conviction to a fine not exceeding five hundred dollars

and to forfeit treble the amount of the tax with which be ought to be charged

under this Act, or to imprisonment for a term not exceeding six months.

(2) Any person who aids, abets, assists, counsels, incites or induces

another person-

(a) to make or deliver any false return or statement under this

Act; or

(b) to keep or prepare any false accounts or particulars

Prosecutions to

commence within

six years.

Penalties for

offences.

Penalty.

S.I. 52 of 1970.

3 of 1971.

False statements

and returns.

82

concerning any income on which tax is payable under this

Act,

is liable on summary conviction to a fine not exceeding five hundred dollars

or imprisonment for a term not exceeding six months.

89. This Act shall not affect any criminal proceedings under any other

Act or law.

90. Any person who obstructs or impedes or insults or molests the

Commissioner, Chief Collector or other officer lawfully authorised by this

Act or any amendment thereto in the discharge of his duties or in his official

capacity or in the exercise of his powers is guilty of an offence.

91.-(1) Any person who reduces his income by the transfer or assignment

of any real or personal, movable or immovable property to any member of

the family of such person shall nevertheless be liable to be taxed as if such

transfer or assignment had not been made, unless the Commissioner is

satisfied that such transfer or assignment was not made for the purpose of

evading the taxes imposed under this Act or any part thereof.

(2) Where a person transfers property in trust and provides that the

corpus of the trust shall revert either to the donor or to such person as he

may determine at a future date, or when a trust provides that during the

lifetime of the donor no disposition or other dealing with the 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.

(3) Where the Commissioner is of the opinion that any transaction

which reduces or would reduce the amount of tax payable by any person is

artificial or fictitious or that effect has not, in fact, been given to any disposi-

tion, the Commissioner may disregard the transaction or disposition, and the

Saving for criminal

proceedings.

Impeding or

obstructing Com-

missioner or

Officers.

Transfer of

property to evade

taxation.

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persons concerned shall be assessable accordingly.

(4) Nothing 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 tested on review, objection or appeal against an assess-

ment.

(5) In this section “disposition” includes any trust, grant, covenant,

agreement or arrangement.

(6) Where it appears to the Commissioner that with a view to the

avoidance or reduction of tax, a company controlled by not more than five

persons has not distributed to its shareholders, in such manner as to render

the amount distributed liable to taxation in the hands of the shareholders,

profits made in any period ending after the 31st December, 1943, which

could be distributed without detriment to the company’s existing business, the

Commissioner, by notice in writing to the company, may direct that, for the

purposes of assessment to income taxes and surtaxes, such profits for the

period specified in the notice be deemed to be the income of the members,

and the amount thereof shall be apportioned among the members in accor-

dance with the respective interests of the members, and taxes shall be

assessed and charged on the members in respect of the sum so apportioned

as if this distribution had in fact been carried out.

(7) Where it appears to the Commissioner that with a view to the

avoidance or reduction of tax property has been sold at a price below that

which it would ordinarily be expected to fetch in a transaction between an

independent buyer and an independent seller, the income, profits or losses

arising from such sale shall be computed by reference to the price which the

Commissioner considers appropriate in all the circumstances of the sale.

(8) For the purposes of subsection (7), the expressions “sold” or “sale”

include the expressions grant, hire, lease, assignment, transfer or other disposi-

tion of any right or interest in property.

12 of 1965.

12 of 1965.

84

92.-(1) Any information or complaint under this Act or rules made there-

under may be laid or made by an officer of the Income Tax Department, by

a member of the Belize Police Department, or by any person authorized in

writing by the Commissioner.

(2) Where provision is made for sending by post a request for infor-

mation, a notice or demand or notice of assessment or a requirement of the

Commissioner, an affidavit of an officer of the Income Tax Department

setting out that he has charge of the appropriate records, that he has knowl-

edge of the facts in the particular case, that such a request, notice, demand

or requirement was sent by registered letter on a named day to the person

to whom it was addressed (indicating such address) and that he identifies as

exhibits attached to the affidavit the post office certificate of registration of

the letter or a true copy of the relevant portion thereof, and a true copy of

the request, notice, demand, notice of assessment or requirement, shall be

received as prima facie evidence of the posting and of the request, notice,

demand, notice of assessment, or requirement.

(3) Where provision is made for personal service of the request for

information, notice, demand, notice of assessment or requirement, an

affidavit of an officer of the Income Tax Department setting out that he has

charge of the appropriate records, that he has knowledge of the facts in the

particular case, that such a request, notice, demand, notice of assessment or

requirement was served personally on a named day on the person to whom

it was directed or on a person pursuant to section 58 (5) or (6), and that he

identifies as an exhibit attached to the affidavit a true copy of the request,

notice, demand, notice of assessment or requirement, shall be received as

prima facie evidence of the personal service of such document.

(4) Where a person has been required to make a return, statement, or

answer, an affidavit of an officer of the Income Tax Department setting out

that he has charge of the appropriate records and that after a careful exami-

nation and search of the records he has been unable to find in a given case

that the return, statement or answer, as the case may be, has been made by

Procedure and

evidence.

3 of 1971.

42 of 1999.

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such person, shall be received as prima facie evidence that in such case the

return, statement or answer, as the case may be, was not received by the

Income Tax Department or any officer thereof.

(5) Where a person has been required to make a return, statement or

answer, an affidavit of an officer of the Income Tax Department setting out

that he has charge of the appropriate records and that after careful examina-

tion of such records he has found that the return, statement, or answer was

filed on a particular day, shall be received as prima facie evidence that it was

filed that day and not prior thereto.

(6) With the leave of the court an affidavit of an officer of the Income

Tax Department, setting out that he has charge of the appropriate records

and that a document annexed thereto is a document or true copy of a docu-

ment made by or on behalf of the Commissioner, or some person exercising

the powers of the Commissioner or by or on behalf of a taxpayer, shall be

admissible in evidence together with the document so annexed which shall be

conclusive evidence of the contents of the original document.

(7) Where evidence is offered under this section by an affidavit from

which it appears that the person making the affidavit is an officer of the

Income Tax Department, it shall not be necessary to prove his signature or

that he is such an officer nor shall it be necessary to prove the signature or

official character of the person before whom the affidavit was sworn.

(8) Every document purporting to be a direction, demand, notice,

certificate, requirement, assessment or other document purported to have

been executed under or in the course of the administration or enforcement of

this Act over the name of the Commissioner or an officer authorized to

exercise the powers of the Commissioner under this Act shall be prima facie

evidence that the document was signed, made and issued by the Commis-

sioner or such officer.

(9) In any prosecution, an affidavit of an officer of the Income Tax

86

Department setting out that he has charge of the appropriate records and

that an examination of the records show that an amount required to be

remitted to the Commissioner has not on a specified date been received by

the Commissioner shall be received as prima facie evidence of the state-

ments contained therein.

93.-(1) Notwithstanding any rule of law or practice to the contrary, it shall

be lawful for the Commissioner to authorise any person to act as an agent

for the purpose of detecting corruption or the evasion of income or business

tax imposed by this Act or the commission of any other related offence, and

the evidence of such a person shall be valid and effectual for all purposes

and shall be receivable in all courts in Belize.

(2) Any such agent as aforesaid shall not be treated as an accomplice

for the purpose of the law on corroboration.

(3) The fact that a crime has been induced by the activities of any such

agent shall not be treated as a mitigating factor on sentence by any court.

94.-(1) The Minister may make rules generally for carrying out the provi-

sions of this Act, and may, in particular, by those rules provide-

(a) for the form of returns, claims, statements and notices under

this Act;

(b) for the deduction and payment of tax at the source in

respect of emoluments and pensions payable out of the

revenue of Belize;

(c) for the payment of income tax by monthly or other

instalments;

(d) for the deduction and payment of tax from emoluments and

pensions payable by an employer in Belize to an employee;

Use of agents to

detect crime.

7 of 1999.

7 of 1999.

Rules.

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and

(e) for any such matters as are authorised by this Act to be

prescribed.

(2) If any person fails to comply with or contravenes a rule made under

this Act he is guilty of an offence.

(3) All rules made under this Act shall be judicially noticed.

(4) For the purposes of this section and any rules made thereunder-

“emoluments” includes all salaries, fees, wages, commissions, or profits or

gains whatever arising from an office or employment, and references to

payments of emoluments include references to payments on account of

emoluments;

“employer” means a person liable to pay emoluments whether on his own

account or on behalf of another person and in relation to an officer, means

the person from whom the officer receives his emoluments;

“employee” means any person in receipt of emoluments, and includes an

officer;

“office” means the position of an individual entitling him to a fixed or

ascertainable stipend or remuneration and includes a judicial office, the office

of a Minister of the Government, the office of a member of the Senate or

House of Representatives of Belize and any other office the incumbent of

which is elected by popular vote or is elected or appointed in a representa-

tive capacity, and also includes the position of a company director;

“officer” means an individual holding such an office.

16 of 1994.

19 of 1970.

88

95.-(1) The Minister may remit the whole or any part of the income tax

payable by any person if he is satisfied that it would be just and equitable to

do so.

(2) Notices of such remission shall be published in the Gazette.

Collection of Tax Withholding

96.-(1) Subject to subsection (2), every employer who fails to deduct and

remit an amount from the emoluments of an employee as and when required

by rules made under this Act shall be liable to pay the Commissioner the

whole amount that should have been deducted and remitted from the time

prescribed for deducting the same.

(2) An employer who has failed to deduct an amount as prescribed

may recover that amount from subsequent payments of emoluments made to

the employee provided that he does so within twelve months after the

making of the payment from which the prescribed amount was not deducted

and does not deduct from each payment of emoluments during this twelve

months period more than twice the amount of the deduction prescribed for

the payment being then made.

(3) Every employer who fails to remit to the Commissioner the total

amount that he was required to remit at the time when he was required to

do so shall be liable to a penalty of 10 per cent of the amount that he failed

to remit or ten dollars, whichever is the greater, and in addition shall be

liable to pay on the amount not remitted the surcharge prescribed by section

55.

97.-(1) The Commissioner may assess an employer for an amount payable

by him by rules made under this Act or may re-assess such employer or

make additional assessments as the circumstances require and the expres-

sion “assessment” when used with reference to any action so taken by the

Commissioner under this section includes any re-assessment or additional

Minister may remit

tax.

40 of 1963.

Failure to deduct

and remit.

19 of 1970.

Assessment for

failure to deduct

or remit.

19 of 1970.

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assessment.

(2) After assessing an employer under subsection (1) for an amount

payable by him the Commissioner shall cause a notice of assessment to be

served personally or sent by registered post to the employer, and the assess-

ment, subject to being varied or discharged on objection under section 42 or

on appeal under section 43, shall be deemed to be valid and binding and the

employer shall be deemed to be in default and shall be liable to pay to the

Commissioner the amount thereof forthwith.

PART II

Income Tax on Profits arising from Petroleum Operations

98. For the purposes of this Part-

(1) “Affiliated Company” shall mean any entity, directly or indirectly

effectively controlling or controlled by, or under direct or indirect effective

common control, with a specified entity. For the purposes of this definition,

“Control”, when used with respect to any specified entity, means the power

to direct, administer and dictate policies of such entity (it being understood

and agreed that it is not necessary to own directly or indirectly fifty percent

(50%) or more of such entity’s voting securities to have effective control over

such entity, but ownership, direct or indirect, of fifty percent (50%) or more

of such entity’s voting securities shall automatically indicate effective control),

and the terms “controlling” and “controlled” have meanings corresponding to

the foregoing.

(2) “Contractor” shall mean a person who has entered into a contract

with the Government under the Petroleum Act.

(3) “Crude Oil” shall mean Petroleum which is in liquid state at the well

head or gas/oil separator or which is extracted from Natural Gas, including

distillate and condensate.

Definitions.

9 of 1991.

90

(4) “Delivery Point” shall mean the FOB point of export in Belize or

such other point which may be agreed by the Government and the

Contractor.

(5) “Gross Revenues” shall mean the sums of all proceeds of sales and

the monetary equivalent of the value of other dispositions of Petroleum

produced and saved and not used in Petroleum Operations and any other

proceeds derived from Petroleum Operations.

(6) “Initial Commercial Production” shall mean the date on which the

first regular shipment of Crude oil or Natural Gas, or both, is made under a

program of regular production and sale.

(7) “Natural Gas” shall mean all Petroleum which at atmospheric

conditions of temperature and pressure is in a gaseous phase, including wet

mineral gas, dry mineral gas, wet gas, and residue gas remaining after the

extraction, processing or separation of liquid Petroleum from wet gas, as

well as non Petroleum gas or gases produced in association with liquid or

gaseous Petroleum.

(8) “Associated Natural Gas” shall mean natural gas which is

produced in association with Crude Oil.

“Non-Associated Natural Gas” shall mean Natural Gas which is

produced without association with Crude Oil or in association with Crude Oil

which cannot be produced commercially.

(9) “Net Petroleum” shall mean the value of the total quantity of Petro-

leum produced and saved in a given Calendar Year and not used in Petroleum

Operations after deduction of the value of the Royalty in such Calendar Year

and after recovery of Petroleum Operations Expenditures pursuant to a

Contractor’s contract with the Government.

(10) “Petroleum Operations Expenditures” shall mean expenditures made

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in conducting Petroleum Operations hereunder, determined in accordance with

the Sixth Schedule.

(11) “Royalty” shall mean the royalty described in section 31 of the

Petroleum Act.

99. A Contractor carrying on any trade or business which consists of or

includes Petroleum Operations shall keep separate accounts of such Petroleum

Operations, and the Chargeable Income of such Contractor for each Basis

Year shall be computed as if such Petroleum Operations were a separate trade

or business of that Contractor.

100. The Chargeable Income of a Contractor derived from Petroleum

Operations for the applicable Basis Year shall be determined by deducting

from Gross Revenues for such Basis Year-

(i) the value of any Royalty in such Basis Year;

(ii) the value of the Government’s total share of Net

Petroleum in such Basis Year; and

(iii) all allowable Petroleum Operation Expenditures

incurred in such Basis Year. The Tax upon the

Chargeable Income of a Contractor shall be

charged at the tax rate of general application to all

companies in Belize, and the Contractor shall be

obligated to pay such Tax to the Government for the

Basis Year in question.

101-(1) Petroleum sold to third parties shall be valued at the net realized price

at the Delivery Point.

(2) Crude Oil sold to other than third parties shall be valued as

Sixth Schedule.

CAP. 225.

Separate

accounts for

petroleum

operations.

Assessment of

Chargeable

Income.

Valuation of

Petroleum.

92

follows:-

(a) by using the weighted average unit price received from sales

to third parties at the Delivery Point, net of any commissions

and brokerages paid in relation to such third party sales,

during the ninety (90) days preceding such sale, adjusted as

necessary for quality, grade and gravity, and taking into

consideration any special circumstances with respect to such

sales, unless less than fifty percent (50%), by volume, of Crude

Oil sales during such period are made to third parties, in which

case Crude Oil sold to other than third parties shall be valued

in accordance with paragraph (b);

(b) if no third party sales have been made during such period of

time, then (i) on the basis used to value other Crude Oil from

Belize of similar quality, grade and gravity (or, if not similar,

adjusted as necessary for quality, grade and gravity) and

taking into consideration transportation cost differentials and

any special circumstances with respect to sales of such Crude

Oil, or (ii) if there is no other Crude Oil from Belize, on the

basis used to value Crude Oil from other sources in Central

America, Columbia and Venezuela of similar quality, grade

and gravity and taking into consideration transportation cost

differentials and any special circumstances with respect to sales

of such similar Crude Oil.

(3) Natural Gas sold to other than third parties shall be valued by agree-

ment between the Government and the Contractor, provided, however, that

such value shall reflect the following:

(i) the quantity and quality of the Natural Gas;

(ii) the price at which sales of Natural Gas from other

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sources in Belize, if any, are then being made;

(iii) the price at which sales, if any, of Natural Gas imported

into Belize are being made;

(iv) the purpose for which the Natural Gas is to be used;

and

(v) the international market price of competing or

alternative fuels of feedstocks.

(4) Third party sales referred to in this section shall mean sales other than

barter sales made by the Contractor to purchasers which are not Affiliated

Companies of the Contractor in arms length transactions and with whom (at the

time the same is made) the Contractor has no contractual interest involving

directly or indirectly any joint interest.

(5) Commissions or brokerages incurred in connection with sales to third

parties, if any, shall not exceed the customary and prevailing rate.

102.-(1) In the event that a Contractor at any time comprises more than one

corporation, individual or entity, in the form of a partnership, joint venture,

unincorporated association or other combination of entities or individuals,

Tax shall in all cases be calculated and assessed on the basis of the Charge-

able Income of each corporation, individual, partner, joint venturer, associate

or other entity comprising the Contractor.

(2) Commencing with the Basis Year in which Initial Commercial

Production first occurs, any allowable deductions for Tax purposes with

respect to Petroleum Operations Expenditures, the Royalty and the

Government’s share of Crude Oil production which remain unrecovered in

any Calendar Year from Gross Revenues shall be treated as an operating loss

and may be carried forward as an allowable deduction to subsequent Basis

Years until fully recovered from Gross Revenues. In the event that an oper-

ating loss remains unrecovered upon the termination of this Agreement, such

Tax accounting

principles.

Carry forward of

losses.

94

loss may be carried over and deducted from other revenues of the Contrac-

tor from Petroleum Operations in Belize.

(3) All Books, accounts and records shall be prepared on an accrual

basis. Revenues shall be attributable to the accounting period in which they

are earned, and costs and expenses to the accounting period in which they

are incurred, without the need to distinguish whether cash is received or

disbursed in connection with a particular transaction. Cost and

expenses shall be deemed to have been incurred, in the case of physical

items, in the accounting period when title thereto passes, and in the case of

services, in the accounting period when such services are performed.

(4) Except as may be otherwise agreed in writing between the Gov-

ernment and the Contractor, all transactions giving rise to revenues, costs or

expenses, shall for tax purposes be deemed to have been conducted at

arm’s length or on such a basis as will assure that all such revenues, costs or

expenses will not be higher or lower, as the case may be, than would result

from a transaction conducted at arm’s length on a competitive basis with

third parties.

(5) For each Basis Year, commencing with the Basis Year in which

Initial Commercial Production first occurs, Petroleum Operations Expendi-

tures which shall be deductible for the purpose of the calculation of Tax

Payable shall consist of the sum of-

(1) The current Basis Year’s operating expenditures incurred,

including the current Basis Year’s allowable deductions for

depreciation of capital expenditures determined in

accordance with paragraph 2 of the Sixth Schedule; and

(2) An amount with respect to any operating loss from prior

Basis Years, determined in accordance with subsection (2)

of this section.

Keeping of ac-

counts.

Arm’s length

transactions.

Deductions

allowed in

ascertainment of

Chargeable Tax.

Sixth Schedule.

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103. Subject to the provisions of this Part, Part I shall apply to the

Petroleum Profits of any person.

PART III

Business Tax

104. The provisions of this Part shall apply notwithstanding anything to

the contrary contained in Parts I and II of this Act or in any other law.

105.(1) In this Part, unless the context otherwise requires:-

“business” means any trade, manufacture, adventure or concern in the nature

of trade;

“employment income” means income derived from services provided under a

contract of service or apprenticeship or tenure of office, and includes income

from employment as a consultant where such employment is for more than

60 days in the aggregate in any basis year;

“Public Investment Company” or “PIC” means a company which is desig-

nated as such under Part XI of the International Business Companies Act;

“PIC Group Company” means a company comprised in a PIC Group as that

term is defined in the International Business Companies Act, as amended;

“receipts” means all revenues, whether in cash or in kind, or whether re-

ceived or accrued, of a person or entity carrying on trade or business or

practicing his or its profession or vocation in Belize without any deduction,

and includes:-

(a) rents, royalties, premiums and any other revenue receipts

arising from property;

Application of

Part I to

Petroleum

Profits.

19 of 1998.

Part III to over-

ride other

provisions.

Interpretation.

CAP. 270.

CAP. 270.

7 of 1999.

96

(b) commissions, royalties and discounts;

(c) dividends, interest including interest from investments,

debentures, bills, bonds and notes:

Provided that in the case of a financial institution licensed under the

Banks and Financial Institutions Act, “interest” shall mean the difference

between the interest earned and the interest paid on deposits as well as the

interest paid on funds borrowed from abroad for on-lending in Belize as

certified by the Central Bank of Belize;

(d) winnings from lotteries;

(e) management fees, rental of equipment and charges for

technical services;

but does not include:-

(i) revenue replacement duty on fuel;

(ii) supply sales by a designated bulk fuel importer to

other bulk fuel supplier;

(iii) excise duty;

(iv) accommodation tax payable under the Hotels and

Tourist Accommodation Act;

(v) sales tax payable to Government;

(vi) funds received as an agent; or

(vii) any payment by a PIC Group Company of :-

CAP. 263.

CAP. 285.

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(a) a dividend or other distribution (whether by way of

distribution of a profit of an income or capital

nature); or

(b) interest or principal on any indebtedness,

to the PIC or to another PIC Group Company;

(viii) absolute and immediate gifts amounting in the

aggregate to five hundred dollars or more, taking

effect in Belize, for sports, religious, charitable,

educational or cultural purposes or for the

improvement of amenities in towns or villages, up to

a maximum of $30,000 per annum, provided that

the Commissioner is satisfied that the gifts were

actually made;

“management fees” means payment for the provision of industrial or commer-

cial advice or for management or technical services or similar services or

facilities;

“professional” means any person or firm or any body of persons (whether

corporate or unincorporate) engaged in a vocation or occupation in Belize

including, but not limited to, the vocations, and occupations listed in the

Eighth Schedule to this Act:

“rental” means payments of any kind received as consideration for the hire of

plant or machinery or equipment of any kind or description, but does not

include payments made under bona fide hire purchase agreements;

“revenue receipts” means any receipts other than receipts of a capital nature;

“tax” means the business tax levied under section 106 of this Act;

7 of 1999.

Eighth Schedule.

98

“telecommunication services” means the provision of telephone and other

ancillary or related services;

(2) For the purpose of the definition of the expression “receipts”, the

receipts shall be deemed to have accrued at the time when the goods or

services are supplied or performed irrespective of the fact that payment or

consideration therefor may have been deferred, and in the case of dividends

and interest, the receipts shall be deemed to have accrued at the time when

payment becomes due.

(3) The Minister may from time to time by Order published in the

Gazette amend the Eighth Schedule to this Act.

(4) Where a word or expression used in this Part is not defined herein,

the respective meaning assigned to that word or expression in Part I of this

Act shall mutatis mutandis apply.

106.-(1) Subject to this Part, there shall be levied upon and paid by every

individual, self-employed person, professional, firm, partnership or company

(whether corporate or unincorporate) a tax to be known as “business tax”

at the rates specified in section 107 of this Act, on all receipts as defined in

this Part, whether received in Belize or elsewhere.

(2) For the purposes of this Part, interest paid by the Government, or

by a resident or non-resident of Belize, on debts incurred or money bor-

rowed and used for the purposes of a business or profession carried on in

Belize shall be deemed to accrue in Belize and, as such, shall be subject to

the provisions of this Part.

(3) Subsection (1) above shall not apply to employment income as

defined in this Part.

(4) Where the Commissioner is satisfied that-

Eighth Schedule.

Imposition of

business tax.

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(a) a person or entity liable to pay tax is engaged primarily in

export business or industry and the primary product

originates in Belize; and

(b) the respective incomes of the processor/exporter and the

primary producer arising out of such business or industry

are determined by reference to a price formula or a scheme

for cooperative distribution; and

(c) the business or industry involved is in the nature of

agriculture, food or food processing,

the tax shall be computed by reference to the receipts derived at the comple-

tion of processing and be levied on the processor/exporter accordingly, and

shall not be recoverable from primay producers.

107.-(1) Commencing from July1, 1998 and for each subsequent month the

tax on the receipts shall be levied at the rates set out from time to time in the

Ninth Schedule to this Act.

(2) The National Assembly may at any time by resolution amend the

Ninth Schedule and every such resolution shall, unless it be otherwise ex-

pressed in the resolution and subject to subsection (4) below, take effect

from the passing thereof.

(3) A Bill to validate any such resolution shall be introduced into the

National Assembly at its next practicable sitting after the passing of such

resolution.

(4) In case no Bill is introduced into the National Assembly as pro-

vided in subsection (3) above or on the withdrawal or rejection by the

National Assembly of such Bill, or in case such Bill otherwise fails to become

law, every such resolution shall cease to have effect.

Special arrange-

ments for certain

industries and

businesses.

Rates of Tax.

Ninth Schedule.

100

(5) In the event of such resolution ceasing to have effect-

(a) a refund of any increased tax collected under the resolution

shall be made to the person who shall have paid the same;

and

(b) when the resolution shall have effected a reduction of the tax

from any person, the Commissioner is hereby authorized to

collect the difference between the tax payable at the time of

reduction and that fixed by the resolution.

108.-(1) There shall be exempt from tax-

(a) receipts from trade, business, profession or vocation of less

than $54,000.00 per annum;

(b) rental receipts of less than one thousand six hundred and

fifty dollars per month where rents form the only source of

livelihood of the individual, or where receipts from rents and

any other source do not in the aggregate exceed one

thousand six hundred and fifty dollars per month;

(c) winnings from Boledo and Jackpot Lottery;

(d) any lottery where the winnings is less than one thousand

five hundred dollars;

(e) interest from any debentures, treasury bills, treasury notes

or bonds issued by or under the authority of the Govern-

ment of Belize;

(f) receipts of any local authority, statutory board or corpora-

tion or friendly society, or credit union or ecclesiastical,

charitable or educational institution of a public character in

Exemptions from

tax.

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so far as such receipts are not derived from a trade or

business carried on by any of these entities;

(g) interest on savings paid to any person provided that in the

case of any person other than an employed person, the

investment of funds does not constitute the normal trading

activities of such person;

(h) earnings from employment which are already subject to

income tax under Parts I and II of this Act;

(i) receipts of Belize Electric Company Limited and its

successors and permitted assigns as provided in the

Mollejon Hydroelectric Project (Exemptions from Taxes

and Duties) Act;

(j) receipts of an Export Processing Zone Business in

accordance with section 12 of the Export Processing Zone

Act.

(2) The Minister, may on application made to him and on the recom-

mendations of the Revenue Advisory Board, by Order published in the

Gazette, exempt from the payment of tax a newly-established business or

industry during the first two years of its operation if in his opinion it is neces-

sary to do so to alleviate hardship or financial difficulty:

Provided that in the case of a person or entity involved in the

production of citrus or other long-term crops where the date of production is

longer than two years from the start of the operation, the Minister may, acting

as aforesaid, exempt such person or entity from the payment of tax for a

maximum period of five years.

7 of 1999.

CAP. 59.

7 of 1999.

CAP. 280.

102

109.-(1) Every person or entity who is liable to be taxed under this Part

shall file a return of total receipts by the 15th day following the end of every

month, or at such other times as may be specified, in a form prescribed by

the Commissioner and accompanied by payment of the estimated tax due

for that period:

Provided that if receipts are solely from rents, royalties, premiums

or other revenue receipts arising from real property, the returns shall be

made half-yearly:

Provided further that if any such person or entity ceases to carry

on business or to practise a profession, he or it shall file a return within

seven days after the date of such cessation.

Provided further that in the case of a financial institution licensed

under the Banks and Financial Institutions Act, the returns shall be made

quarterly.

(2) Whoever fails to file a return required under subsection (1) of this

section commits an offence and shall be liable on summary conviction to a

fine not exceeding ten thousand dollars and in default of payment of fine, to

imprisonment for a term not exceeding two years.

(3) Without prejudice to subsection (2) above, every person who fails

to file a return and pay the tax due, within the prescribed time, shall be liable

to pay a penalty of ten percent of the amount due or assessed for each

month or part of a month in which the return was not delivered continuing

for a period of twenty four months, and in addition, shall be liable to pay

interest at the rate of one and a half per centum per month.

110.-(1) Where a return has been delivered under this Part, the

Commissioner may:-

(a) accept the return and make an assessment;

Duty to make

returns and pay

tax.

CAP. 263.

7 of 1999.

Commissioner to

make assessments.

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(b) refuse to accept the return and determine to the best of his

judgment the amount of tax payable and assess accordingly.

(2) Where a return has not been delivered, the Commissioner shall use

his best judgment to determine the proper amount of tax due and make an

assessment accordingly.

(3) The Commissioner may by notice in writing require any person or

entity to furnish, within a specified time, a return of receipts and such par-

ticulars as may be required for the purposes of this Part to enable him to

ascertain the receipts of such person or entity and, in particular, may require

any person to produce all books, bank accounts, statements or other docu-

ments in his custody or under his control relating to the business.

(4) Every person or entity, whether or not such person or entity is liable

to pay tax shall, if required by the Commissioner by notice in writing to make

and deliver a return of his or its receipts, make and deliver such return to the

Commissioner within ten days of the service of such notice.

(5) The tax assessed under this section is payable to the Commissioner

by the person or entity assessed as a debt due and payable without further

demand notwithstanding any review or appeal made under this Act and such

tax or part thereof shall be refunded if the review or appeal is determined in

favour of the person or entity.

111.-(1) Where it appears to the Commissioner that any person or entity

liable to pay tax has not been assessed or has been assessed at a lower

amount than that which ought to have been charged, the Commissioner may,

at any time within the year of assessment or within six years after the expira-

tion thereof, assess such person or entity at such additional amount as

according to his judgment ought to have been charged, and the provisions of

this Act as to notice of assessment, appeal and other proceedings shall apply

to such assessment or additional assessment and to the tax charged

thereunder.

Additional

assessments.

104

(2) The Commissioner may, if satisfied that the act of omission or

commission amounts to fraud or contrivance, or gross and willful neglect on

the part of the person or entity assessed, or to be assessed, charge such

person or entity in respect of such additional tax and penalty an amount

equal to double the amount of the tax and penalty payable on the excess.

(3) Where it comes to the notice of the Commissioner that a person or

entity has not reported or disclosed any receipts which ought to have been

reported or disclosed, such unreported receipts shall, notwithstanding the

rates specified in the Ninth Schedule to this Act, be taxed at the rate of 50%

of such receipts, in addition to any other penalties leviable under this Act or

regulations made thereunder.

(4) Where a person dies and such person would but for his death

have been chargeable to tax, the personal representatives of such person

shall, to the extent of the estate of the deceased person, be liable to and

charged with the payment of the tax which such person would have been

chargeable, and shall be answerable for doing all such acts, matters and

things as such person if he were alive would be liable to do under this Act.

(5) The provisions relating to assessments, review, objections, ap-

peals, collections and the recovery of income tax contained in Part I of this

Act shall apply mutatis mutandis to assessments, review, objections,

appeal, collections and the recovery of tax under this Part.

112.-(1) There shall be levied on all gross contract payments a withholding

tax at the rate of three per centum of such payments.

(2) The amount levied under subsection (1) above shall operate as a

credit against the tax due from the contractor.

(3) For the purpose of this section:-

“contract” means a contract awarded to or to be performed by a self-

Ninth Schedule.

Withholding tax

on gross contract

payments.

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Income and Business Tax [CAP. 55

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employed person, professional or entity for the carrying out of works or

services, or for the supply of labour or materials, or for such other works or

services as the Minister may by Order published in the Gazette prescribe;

“gross contract payment” means the total contract price without any deduc-

tion whatsoever.

(4) Where the gross contract payment is less than three thousand

dollars the provisions of this section shall not apply.

(5) Every person who makes or is liable to make any gross contract

payment to any person, professional or entity shall deduct therefrom the

amount specified under subsection (1) of this section and shall forthwith

render an account and remit the amount so deducted to the Commissioner,

and every such sum shall be a debt owing from him to the Government and

shall be recoverable as such.

(6) Whoever fails or neglects to withhold the amount payable under this

section shall, without prejudice to any other remedy available to the Commis-

sioner, be guilty of an offence and shall be liable on summary conviction to a

fine not exceeding one thousand dollars and in default of payment of the fine

to imprisonment for a term not exceeding six months.

113.-(1) Where any person or entity pays any winnings or prize from or in

respect of a lottery or other similar activity, he or it shall, before paying any

such winnings or prize, deduct therefrom tax at the rate of fifteen percent of

such winnings or prize, and shall forthwith pay over to the Commissioner the

amount of tax so deducted, and every such amount shall be a debt owing

from him to the Government and shall be recoverable as such.

(2) Every company which pays dividend shall before making such

payment deduct therefrom tax at the rate specified in the Ninth Schedule and

shall within seven days render an account and remit the amount so deducted

to the Commissioner and every such amount shall be a debt owing from the

Collection of tax

on winnings

from lottery, tax

on interest on

time deposits,

dividends or

management

fees, etc.

Ninth Schedule.

106

company to the Government and shall be recoverable as such.

(3) Every person who pays any management fees, rental of plant or

equipment, or charges for technical services and insurance premium to a

non-resident shall deduct therefrom tax at the rate of twenty-five percent of

such payment and shall forthwith render an account and remit the tax so

deducted to the Commissioner and every such amount shall be a debt owing

from him to the Government and shall be recoverable as such.

(4) Every person who pays interest on loans to a non-resident shall

deduct therefrom tax at the rate of fifteen percent of such payment and shall

forthwith render an account and remit the tax so deducted to the Commis-

sioner and every such amount shall be a debt owing from him to the Gov-

ernment and shall be recoverable as such.

Provided that the tax shall not be deducted if-

(a) interest is paid on capital used in the development industries

or projects specified by the Minister by Order published in

the Gazette; and

(b) the Minister is satisfied with the ratio of paid up share

capital to loan capital in such industries or projects; and

(c) tax is not chargeable on such interest payments in the

country of residence of the person to whom such interest is

paid, provided that the Minister may waive this requirement

if he is satisfied that the loan capital could not be reasonably

procured in Belize:

Provided further that where there is a difference or dispute as to

whether tax is deductible under this section, the decision of the Minister

thereon shall be final.

7 of 1999.

7 of 1999.

7 of 1999.

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(5) Whoever fails or neglects to deduct the amount or to render an

account or to pay the amount deducted to the Commissioner as provided in

subsections(1), (2), (3) and (4) above shall, without prejudice to any other

remedy available to the Commissioner, be guilty of an offence and shall be

liable on summary conviction to a fine not exceeding one thousand dollars

and in default of payment of fine to imprisonment for a term not exceeding six

months.

(6) In the case of dividends or interest paid by a PIC Group Company

to another PIC Group Company or to the PIC itself, the provisions of

subsections (2) and (4) of this section shall not apply.

114.-(1) Where the Commissioner is satisfied that tax has been paid on

receipts which turn out to be bad debts, he may allow a reduction in the

receipts in respect of the current period to the extent of such bad debts:

Provided that if such bad debt is subsequently recovered the same

shall be added to the receipts for the period in which such debt is recovered.

(2) Every person or entity who proves to the satisfaction of the Com-

missioner that he has paid tax in excess of the amount which he or it is

required to pay under this Part, having regard to the exemptions contained in

paragraphs (a) and (b) of subsection (1) of section 108, shall be entitled to

have the excess amount so paid refunded.

115. A person who has brought forward losses as agreed with the

Commissioner during any basis year may be allowed to set off the tax credit

derived from such loss against the business tax due and payable in the

subsequent years, provided that the set off of such tax credit does not reduce

the business tax payable by such person in any tax period by more than

20%.

116. Every person or entity who for the purpose of evading the payment

of tax by himself or itself or by any other person or entity, knowingly makes

Refund of excess

tax.

7 of 1999.

Carry forward of

losses.

7 of 1999.

Penalty for

evasions.

19 of 1998.

108

any false statement or false representation shall be liable on summary

conviction to a fine not exceeding ten thousand dollars or to imprisonment

for a term not exceeding twelve months.

117. Every person or entity who purchases an entity or business shall

first ensure that all taxes due from such entity or business under this Part

have been paid as evidenced by a certificate issued by the Commissioner,

and in the event of his or its failure or neglect to obtain such certificate the

purchaser shall be liable to pay to the Commissioner all arrears of tax due

from such entity or business.

118. Every person on entity who contravenes any provision of this Part

for which no specific penalty is provided commits an offence and is liable on

summary conviction to a fine not exceeding one thousand dollars or to

imprisonment for a term not exceeding six months, or to both such fine and

term of imprisonment.

119.-(1) The Minister may make regulations for the better carrying out of

the provisions of this Part and for prescribing anything that needs to be

prescribed, including any special provisions for the administration and

collection of tax in any particular business or industry.

(2) All regulations made by the Minister under this Part shall be laid

before the National Assembly as soon as may be after the making thereof

and shall be subject to negative resolution.

120. The following provisions shall have effect for the basis year 1998

in respect of self-employed persons, companies and other entities who

remain liable to pay income tax under section 5 (a) of this Act up to the

period ending 30 June, 1998:-

(a) in section 2, the “year of assessment” shall mean the six

month period from 1st January to 30th June, 1998;

Liability of pur-

chaser of business

or entity to pay

arrears of tax.

19 of 1998.

General penalty.

Regulations.

Transitional

provisions.

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(b) in section 12, subsection (1)(a)(ii), the words “two

thousand dollars” [as inserted by Act No. 3 of 1992] shall

be read as “one thousand dollars”;

(c) in section 12, subsection (1)(b)(ii), the words “seven

hundred and fifty dollars” [as inserted by Act No. 3 of

1992] shall be read as “three hundred and seventy-five

dollars”;

(d) in section 12, subsection (1)(j), [inserted by Act No. 3

of 1992] the words “one thousand dollars” shall be read as

“five hundred dollars”;

(e) in section 17 (1) [inserted by Act No. 16 of 1994], the

figures “$25,000.00”, “$10,400.00” and “$8,000.00” shall

be read as “$12,500.00”, “$5,200.00” and “$4,000.00”

respectively.

121.-(1) In the case of a company enjoying, as of 1st July, 19981 , an income

tax concession (wholly or partially) under the Fiscal Incentives Act, the

Minister may, on application made by the company and by Order published

in the Gazette, grant a reduction not exceeding fifty percent of the business

tax payable by such company for the remaining period of its tax concession:

Provided that the Minister may waive the whole or part of business

tax payable by such company if he is satisfied that it is necessary to do so to

alleviate hardship or financial difficulty.



(2) The abolition of corporate income tax effected by the Income

Tax (Amendment) Act, 1998, did not affect the liability of such company to

1

This provision was added by Act 19 of 1998, which came into force on 1st

July, 1998.

Provisional

arrangements for

companies

enjoying a tax

holiday.

CAP. 54.

7 of 1999.

19 of 1998.

Commencement.

110

pay the tax before the commencement of the Act, and any tax arrears or tax

due or outstanding at the commencement may be collected, and assess-

ments therefor may be issued, as if the amendment of corporate income tax

had never been made. 1

1 This provision was added by Act 19 of 1998 which came into force on 1st July, 1998.

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FIRST SCHEDULE

[Section 68]

Warrant to levy.

Under the Income and Business Tax Act,

Chapter 55 of the Revised Edition, 2000

Belize

By Chief Income Tax Collector of the

Country of Belize.

a bailiff appointed by the said

TO

Chief Income Tax Collector in this behalf.

WHEREAS the several persons named in the List attached to this Warrant are

respectively liable in respect of income tax to pay the several amounts set opposite

their names respectively in such List:

AND WHEREAS default has been made in payment of the same: YOU are

therefore hereby enjoined and required to make demand of the several sums mentioned

in the said List from the persons liable therefor or on the premises charged with the

assessment, as the case may require, and upon payment thereof, to give acquittances

under your hand unto the several persons who shall pay the same; and if any sum or

sums remain unpaid after demand duly made by you then you are hereby enjoined and

required to levy upon each and every of the persons named in the List such sums of

money as shall be sufficient to pay the amount set opposite to the names of such

persons in the said List together with the cost attending any levy and any sale thereon

or any and all other proceedings consequent thereon. And of your proceedings herein

you are forthwith to make your Return to me or to the Revenue Officer of

GIVEN under my hand at Belize City, Belize, the day of , 20

....................................Chief Income Tax Collector

112

SECOND SCHEDULE

[Section 71(3)]

Praecipe to levy by sale of lands or houses.

Under the Income and Business Tax Act,

Chapter 55 of the Revised Edition, 2000

BELIZE

By Chief Income Tax Collector of

BELIZE

TO the Sub-Treasurer (or) Revenue

Officer in charge of the District.

WHEREAS the lands or houses of the several persons named in the List to this

Warrant attached are respectively liable under for the several amounts set opposite

their respective names: AND WHEREAS the lands or houses named in the said list

are likewise respectively liable for the amount aforesaid whether or not the persons

named are in possession thereof:

AND WHEREAS default has been made in payment of the said amounts: YOU are

therefore hereby enjoined and required to levy upon and sell the lands of which the

several persons named in the said list are possessed, or a sufficient part thereof, to

satisfy the amounts set opposite their respective names as aforesaid together with the

costs attending any such levy and sale and all other proceedings consequent

thereon.

AND in default of satisfaction thereby, then, if the persons named are not now in

possession of the lands or houses named in the said List, you are hereby enjoined

and required to levy upon the lands or houses last mentioned. And of your proceed-

ings herein you are to make Returns to me at the end of every calendar month

commencing from the date hereof until your final Return which you are to make to me

on or before the thirtieth day of April next.

GIVEN under my hand at Belize City, Belize, the day of 20

..........................................

Chief Income Tax Collector.

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Income and Business Tax [CAP. 55

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THIRD SCHEDULE

[Section 72]

Under the Income and Business Tax Act,

Chapter 55 of the Revised Edition, 2000

TAKE NOTICE that you are hereby required to fill in the following form with the

statements and information thereby required, to sign the same and to deliver it within

seven days from the date of the service thereof to the Officer in charge of the Revenue

Office of the District in which you live.

AND FURTHER TAKE NOTICE that in default of your delivering such form duly

filled in and signed as aforesaid, you will be liable to a fine not exceeding twenty-five

dollars.

FORM

Do you admit that you owe $ ................................................................ for Income

Tax and $ .................................................... for fines in respect of .......................?

If the whole of the above-mentioned amount is not owing by you, state how much is

owing by you.

If the above-mentioned amount or any part thereof is not owing by you, but is owing

by some other person, state the name of that person.

Have you any right, title or interest in the following properties? If you have, state the

nature of your interest therein.

...................................................................................................

...................................................................................................

...................................................................................................

...................................................................................................

State any reason you may have for claiming that your property should not be sold to

satisfy the amount due by you.

DATED this day of 20

TO Chief Income Tax Collector.

Served by me on the day of 20

Bailiff or Server

114

FOURTH SCHEDULE

[Section 76]

Conveyance

THIS INDENTURE made the day of 20

,between the Chief Income

Tax Collector of the country of Belize (hereinafter called “the Chief Collec-

tor”) of the one part and (hereinafter called “the Grantee”)

of the other part:

WITNESSETH that in consideration of the sum of

paid by the Grantee to the Government of Belize (the receipt whereof is

hereby acknowledged) the Chief Collector doth, pursuant to and in exercise

of the powers in him vested by the laws of Belize relating to Income and

Business Tax, hereby grant to the Grantee ALL THAT

EXCEPTING AND RESERVING to the Crown, out of the grant

hereby intended to be made, all the rights, liberties and benefits in respect of

the said land and every portion thereof reserved to the Crown under and by

virtue of the National Lands Act, Chapter 191 of the Revised Edition,

2000, to hold the said hereditaments unto and to the use of the Grantee in

fee simple.

IN WITNESS whereof the Chief Collector has hereunto set his hand

and seal the day and year above written.

SIGNED, sealed and delivered by the said

L. S.

in the presence of

Chief Income Tax Collector

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No. 1 Power Lane,

Belmopan, by the authority of

the Government of Belize.

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FIFTH SCHEDULE

[Section 12]

Arrangement of Paragraphs

1. Years of assessment affected.

2. Interpretation.

3. Owner and meaning of relevant interest.

4. Sale of buildings.

5. Annual allowances.

6. Asset to be in use at end of basis period.

7. Balancing allowances.

8. Balancing charges.

9. Residue.

10. Meaning of “disposed of”.

11. Value of an asset.

12. Apportionment.

13. Part of an asset.

14. Extension of meaning of “in use”.

15. Exclusion of certain expenditure.

16. Application to lessors.

17. Asset used or expenditure incurred partly for the purposes of a

trade or business.

18. Disposal without change of ownership.

19. Application to professions, vocations and employments.

20. Partnerships.

21. Meaning of allowances made.

22. Claims for allowances.

23. Election in double taxation cases.

24. Manner of making allowances and charges.

_________

1. The provisions of this Schedule with respect to the making of allowances

and charges shall have effect for the year of assessment commencing on the Years of assess-

ment affected.

116

1st January 1964, and for each succeeding year of assessment and any

references in this Schedule to a year of assessment do not include any year

of assessment commencing prior to the 1st January 1964, except where

specific reference is made in paragraph 16 to the year of assessment com-

mencing on the 1st January 1963.

2. For the purposes of this Schedule-

“lease” includes an agreement for a lease where the term to be covered by

the lease has begun, any tenancy and any agreement for the letting or hiring

out of an asset, but does not include a mortgage, and the expression “lease-

hold interest” shall be construed accordingly and-

(a) where, with the consent of the lessor, a lessee of any asset

remains in possession thereof after the termination of the

lease without a new lease being granted to him, that lease

shall be deemed for the purposes of this Schedule to

continue so long as he remains in possession as aforesaid;

and

(b) where, on the termination of a lease of any asset, a new

lease of that asset is granted to the lessee this Schedule shall

have effect as if the second lease were a continuation of the

first lease;

“qualifying expenditure” means, subject to the express provisions of this

Schedule, expenditure incurred in a basis year which is-

(a) capital expenditure (in this Schedule called “qualifying plant

expenditure”) incurred on plant, machinery or fixtures;

(b) capital expenditure (in this Schedule called “qualifying

industrial building expenditure”) incurred on the construction

of industrial buildings, structures or works of a permanent

Interpretation.

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nature, other than expenditure which is included in sub-

paragraph (a) of this definition.

For the purposes of this definition where-

(i) expenditure is incurred for the purposes of a trade or

business by a person about to carry on such trade or

business, and

(ii) that expenditure is incurred in respect of an asset

owned by that person,

if that expenditure would have fallen to be treated as qualifying expenditure if

it had been incurred by that person on the first day on which he carries on

that trade or business, that expenditure shall be deemed to be qualifying

expenditure incurred by him on that day;

“trade or business” means a trade or business or that part of a trade or

business the profits of which are assessable under this Act;

“industrial building or structure” means any building or structure in regular

use-

(i) as a mill, factory, mechanical workshop, or other

similar building, or as a structure used in connection

with any such buildings;

(ii) as a dock, port, wharf, pier, jetty or other similar

building or structure;

(iii) as a storehouse or for housing any plant and in

either case used wholly and exclusively for or in

connection with either any building or structure

mentioned in provisions (i) or (ii);

118

(iv) for the operation of a railway for public use or of a

water, or electricity undertaking for the supply of

water or electricity for public consumption;

(v) for husbandry or the working of a plantation or

forestry enterprise;

(vi) as a dwelling, or building or structure constructed

for occupation by, or for the welfare of, employed

persons whose duties are performed or mainly

performed in the industrial buildings or structures

falling with (i), (ii), (iii), or (iv) or who are engaged

in husbandry or who are working on the land or in a

factory on a plantation or forestry enterprise;

(vii) as a warehouse, whether refrigerated or not, wholly,

exclusively and regularly in use for the hire of

storage space to the public, and any dwelling

wholly, exclusively and regularly in use by

employees of the owner of such dwelling whose

duties are solely concerned with the running of any

such warehouse;

“qualifying hotel” means a hotel registered under the Hotels and Tourist

Accomodation Act which complies with the following requirements-

(a) it is open for at least four months (one hundred and twenty

days) in the season, which means the seven months from

first September to thirty-first March;

(b) that during the time when it is open in the season-

(1) it has at least ten letting bedrooms;

32 of 1987.

CAP. 285.

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(2) the sleeping accommodation offered at the hotel

consists wholly or mainly of letting bedrooms; and

(3) the services provided for guests normally include the

provision of breakfast and an evening meal, the

making of beds and the cleaning of rooms.

3.-(1) For the purposes of this Schedule, where an asset consists of an

industrial building, structure or works the owner thereof shall be taken to be

the owner of the relevant interest in such building, structure or works.

(2) Subject to this paragraph, in this Schedule, the expression “the

relevant interest” means, in relation to any expenditure incurred on the

construction of an industrial building, structure or works, the interest in such

industrial building, structure or works to which the person who incurred such

expenditure was entitled when he incurred it.

(3) Where, when he incurs qualifying industrial building expenditure on

the construction of an industrial building, structure or works, a person is

entitled to two or more interests therein, 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 Schedule.

4. Where capital expenditure has been incurred on the construction of an

industrial building, structure or works and thereafter the relevant interest

therein is sold, the person who buys that interest shall be deemed, for all the

purposes of this Schedule, to have incurred, on the date when the purchase

price became payable, capital expenditure on the construction thereof equal

to the price paid by him for such interest or to the original cost of construc-

tion whichever is the less:

Provided that, where such relevant interest is sold before the

industrial building, structure or works has been used, the foregoing paragraph

shall have effect with respect to such sale and the original cost of construction

Owner and

meaning of

relevant interests.

Sale of buildings.

120

shall be taken to be the amount of the purchase price on such sale:

Provided also that where any such relevant interest is sold more than

once before the industrial building, structure or works is used, the foregoing

proviso shall have effect only in relation to the last of those sales.

5.-(1) Subject to this Schedule, where in his basis year for a year of

assessment the owner of any asset has incurred in respect thereof qualifying

expenditure wholly and exclusively for the purposes of a trade or business

carried on by him, there shall be made to that person for each year of

assessment, in his basis year for which that asset was used for the purposes

of that trade or business, an allowance (in this Schedule called “an annual

allowance”) at the appropriate rate per centum, mentioned in subparagraph

(2), of the residue of such expenditure at the end of the basis year for that

year of assessment:

Provided that where the basis period for any year of assessment is a

period of less than one year any such allowance for that year of assessment

shall be proportionately reduced.

(2) The said rate shall in the case of-

(i) qualifying industrial building expenditure be at the

following rates-

Buildings housing machinery 5%

Reinforced concrete buildings 2½%

Wooden and other buildings 3%

(ii) qualifying hotel building be four per centum;

(iii) qualifying plant expenditure, be such rate per centum as shall

Annual allow-

ances.

32 of 1987.

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be determined by the Commissioner to be just and reasonable

having regard to the working life of the asset and to the

estimated value thereof at the end of such working life.

6. An annual allowance in respect of qualifying expenditure incurred in

respect of any asset shall only be made to a person for a year of assessment

if at the end of his basis period for that year he was the owner of that asset

and it was in use for the purposes of a trade or business carried on by him.

7. Subject to this Schedule, where in his basis period for a year of assess-

ment the owner of an asset, who has incurred in respect thereof qualifying

expenditure wholly and exclusively for the purposes of a trade or business

carried on by him, disposes of that asset an allowance (in this Schedule

called “a balancing allowance”) shall be made to that person for that year of

the excess of the residue of that expenditure, at the date such asset is

disposed of, over the value of that asset at that date:

Provided that a balancing allowance shall only be made in respect

of such asset if immediately prior to its disposal it was in use by such owner

in the trade or business for the purposes of which such qualifying expenditure

was incurred.

8. Subject to this Schedule, where in his basis period for a year of assess-

ment the owner of an asset, who has incurred in respect thereof qualifying

expenditure wholly and exclusively for the purposes of a trade or business

carried on by him, dispose of that asset, a charge (in this Schedule called “a

balancing charge”) shall be made on that person for that year of the excess of

the value of that asset, at the date of its disposal, over the residue of that

expenditure at that date:

Provided that a balancing charge shall only be made in respect of such

asset if immediately prior to its disposal it was in use by such owner in the

trade or business for the purposes of which such qualifying expenditure was

incurred and shall not exceed the total of any allowances made under this

32 of 1987.

Asset to be in use

at end of basis

period.

Balancing allow-

ances.

Balancing

charges.

122

Schedule in respect of such asset.

9.-(1) The residue of qualifying expenditure, in respect of any asset, at

any date, shall be taken to be the total qualifying expenditure incurred on or

before that date, by the owner thereof at that date, in respect of that asset,

less the total of any annual allowances made to such owner, in respect of

that asset, before that date.

(2) For the purposes of this paragraph, an annual allowance shall be

deemed to be made at the end of the basis year for the year of assessment

for which any such allowance is made.

10. Subject to any express provision to the contrary, for the purposes

of this Schedule-

(a) an industrial building, structure or works of a

permanent nature is disposed of if any of the

following events occur-

(i) the relevant interest therein is sold; or

(ii) that interest, being a leasehold interest,

comes to an end otherwise than on the

person entitled thereto acquiring the interest

which is reversionary thereon; or

(iii) the industrial building, structure or works of

a permanent nature are demolished or

destroyed or, without being demolished or

destroyed, cease altogether to be used for the

purposes of a trade or business carried on by the

owner thereof;

(b) plant, machinery or fixtures are disposed of if they are sold,

Residue.

Meaning of “dis-

posed of”.

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Belmopan, by the authority of

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discarded or cease altogether to be used for the purposes of

a trade or business carried on by the owner thereof.

11.-(1) The value of an asset at the date of its disposal shall be the net

proceeds of the sale thereof or of the relevant interest therein, or, if it was

disposed of without being sold, the amount which, in the opinion of the

Commissioner, such asset or the relevant interest therein, as the case may be,

would have fetched if sold in the open market at that date, less the amount of

any expenses which the owner might reasonably be expected to incur if the

asset were sold.

(2) For the purpose of this paragraph, if an asset is disposed of in such

circumstances that insurance or compensation monies are received by the

owner thereof, the asset or the relevant interest therein, as the case may be,

shall be treated as having been sold and as though the net proceeds of the

insurance or compensation monies were the net proceeds of the sale thereof.

12.-(1) Any reference in this Schedule to the disposal, sale or purchase of

any asset includes a reference to the disposal, sale or purchase of that asset,

as the case may be, together with any other asset, whether or not qualifying

expenditure has been incurred on such last-mentioned asset, and, where an

asset is disposed of, sold or purchased together with another asset, so much

of the value of the assets as, on a just apportionment, is properly attributable

to the first-mentioned asset shall, for the purposes of this Schedule, be

deemed to be the value of or the price paid for that asset, as the case may

be.

(2) For the purposes of this sub-paragraph, all the assets which are

purchased or disposed of in pursuance of one bargain shall be deemed to be

purchased or disposed of together, notwithstanding that separate prices are

or purport to be agreed for each of those assets or that there are or purport

to be separate purchases or disposals of those assets.

(3) Sub-paragraph (1) shall apply, with any necessary modifications, to

Value of an asset.

Apportionment.

124

the sale or purchase of the relevant interest in any asset together with any

other asset or relevant interest in any other asset.

13. Any reference in this Schedule to any asset shall be construed

whenever necessary as including a reference to a part of any asset (including

an undivided part of that asset in the case of joint interests therein) and when

so construed any necessary apportionment shall be made as may, in the

opinion of the Commissioner, be just and reasonable.

14.-(1) For the purposes of this Schedule, an asset shall be deemed to be

in use during a period of temporary disuse.

(2) For the purposes of paragraphs 5 and 6-

(a) an asset in respect of which qualifying expenditure has been

incurred by the owner thereof for the purposes of a trade or

business carried on by him shall be deemed to be in use, for

the purposes of that trade or business, between the dates

hereinafter mentioned, where the Commissioner is of the

opinion that the first use to which the asset will be put by the

person incurring such expenditure will be for the purposes

of that trade or business;

(b) the said dates shall be taken to be the date on which such

expenditure was incurred and the date on which the asset is

in fact first put to use:

Provided that where any allowances have been given in conse-

quence of this sub-paragraph and the first use to which such asset is put is

not for the purposes of such trade or business, all such additional assess-

ments shall be made as may be necessary to counteract the benefit obtained

from the giving of any such allowances.

Part of an asset.

Extension of

meaning of “in

use”.

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Belmopan, by the authority of

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15. Where any person has incurred expenditure which is allowed to be

deducted, in computing the gains or profits of his trade or business under

section 12, such expenditure shall not be treated as qualifying expenditure.

16.-(1) Where the owner of an asset-

(a) has incurred capital expenditure in respect thereof for the

purposes of leasing that asset for use wholly and exclusively

for the purposes of a trade or business carried on or about to

be carried on by a person; and

(b) leases the asset to such person; and

(c) during the whole or part of the term of the lease, the asset is

used wholly and exclusively by such person in such trade or

business,

this Schedule shall apply, with such necessary modifications as the Commis-

sioner may direct, as though such expenditure were incurred wholly and exclu-

sively for the purposes of a trade or business carried on by the owner from the

date when such expenditure was incurred and as though the owner were using

the asset for the purposes of such last-mentioned trade or business in the way

in which and for the period or periods during which the asset is in fact used in

the first-mentioned trade or business.

(2) For the purposes of this paragraph in relation to the trade or

business which an owner is to be treated as carrying on, his basis year for

any year of assessment shall be taken to be the year immediately preceding

that year of assessment.

Exclusion of

certain expendi-

ture.

Application of

lessors.

126

17.-(1) This paragraph shall apply where either or both of the following

conditions apply with respect to any asset-

(a) the owner of the asset has incurred in respect thereof

qualifying expenditure partly for the purposes of a trade or

business carried on by him and partly for other purposes;

(b) the assets in respect of which qualifying expenditure has

been incurred by the owner thereof is used partly for the

purposes of a trade or business carried on by such owner

and partly for other purposes.

(2) Any allowances and any charges which would be made if both

such expenditure were incurred wholly and exclusively for the purposes of

such trade or business and such asset were used wholly and exclusively for

the purposes of such trade or business shall be computed in accordance

with this Schedule.

(3) So much of the allowances and charges computed in accordance

with subparagraph (a) shall be made as in the opinion of the Commissioner

are just and reasonable having regard to all the circumstances and to the

provisions of this Schedule.

18. Where an asset in respect of which qualifying expenditure has

been incurred by the owner thereof has been disposed of in such circum-

stances that such owner remains the owner thereof, then, for the purposes

of determining whether and, if so in what amount, any annual or balancing

allowance or balancing charge shall be made to or on such owner in respect

of his use of that asset after the date of such disposal-

(a) qualifying expenditure incurred by such owner in respect of

such asset prior to the date of such disposal shall be left out

of account; but

Assets used or

expenditure

incurred partly for

the purposes of a

trade or business.

Disposal without

change or owner-

ship.

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(b) such owner shall be deemed to have bought such asset

immediately after such disposal for a price equal to the

residue of such qualifying expenditure at the date of such

disposal, increased by the amount of any balancing charge or

decreased by the amount of any balancing allowance made

as a result of such disposal.

19. In relation to qualifying plant expenditure, this Schedule shall apply as if

references to a trade or business included references to a profession or

vocation the profits of which are assessable under this Act.

20.-(1) This paragraph shall have effect for the purposes of this Schedule,

in relation to a trade or business and the person or persons hereinafter

mentioned carrying on such trade or business, throughout the period (herein-

after called “the relevant period”) being-

(a) any period during which the trade or business is carried on

by persons in partnership and at least one of such persons,

engaged in carrying on the trade or business as a partner in

a partnership at any time, is so engaged immediately after

that time, whether as a partner in the same partnership or as

a partner in a different partnership carrying on the trade or

business; or

(b) the aggregate of any of the following periods which are

successive-

(i) any period, ending immediately prior to a person

becoming a partner in a partnership carrying on the

trade or business, during which such person was

carrying on the trade or business on his own

account;

Application to

professions or

vocations.

Partnership.

128

(ii) any period ascertained under subparagraph (a);

(iii) any period during which a person is carrying on the

trade or business on his own account, where such

person was a partner in a partnership carrying on

the trade or business immediately before such

period.

(2) Such trade or business shall throughout the relevant period be

deemed to be carried on by one and the same person (hereinafter called

“the deemed person”) and any allowance or charge which would then fall

to be made to or on the deemed person, under this Schedule, if the

deemed person were an actual person, shall be computed as though the

deemed person had done all things which were done for the purposes of

such trade or business by the person or persons actually carrying on such

trade or business during the relevant period.

(3) The amount of any such computed allowance or charge in respect

of any asset shall be allocated to the person, or apportioned amongst the

persons, actually carrying on the trade or business, in the same manner as

any capital loss, in the case of an allowance, or any capital gain, in the case

of a charge, in respect of such asset, would fall on or accrue to such

person or persons, if such loss or gain arose in the course of carrying on

the trade or business and as a result of an event occurring-

(a) in the case of an annual allowance, at the end of the basis

period by reference to which such allowance has been

computed; and

(b) in the case of a balancing allowance or charge, at the date

of the disposal of the asset.

(4) Any amount so allocated to or apportioned to any person in

respect of any such computed allowance or charge shall be treated as an

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allowance or charge for the purposes of this Schedule relating to deduction

from and additions to the chargeable income and shall be made to or on him

for the year of assessment for which the amount of such allowance or charge

has been so computed.

(5) For the purposes of this paragraph, an asset is not disposed of

within the meaning of paragraph 10 so long as the asset is used for the

purposes of the trade or business during the relevant period and at least one

of the persons actually engaged in carrying on the trade or business has an

interest in the asset, or in the relevant interest therein, during the relevant

period.

(6) In the application of this paragraph with any of the other paragraphs

those provisions shall be applied with any modifications which the Commis-

sioner may consider necessary in order to give effect to the principles and

provisions of this paragraph, and, if he sees fit, the Commissioner may from

time to time prescribe rules embodying any such modifications as he may

consider necessary.

21. Any reference in this Schedule to an allowance made includes a

reference to an allowance which would be made but for an insufficiency of

chargeable income against which to make it.

22.-(1) No allowance shall be made to any person for any year of assess-

ment under this Schedule unless claimed in the statement required to be

delivered by him under section 31 for that year or, where the Commissioner

is of the opinion that it would be reasonable and just to do so, in such form

and within such time as the Commissioner may allow.

(2) In the case of a partnership there shall be included in the form of

return required to be delivered by any partner under section 35, such par-

ticulars and information as may be necessary for the purpose of any claim by

any partners for any allowance which falls to be computed by reference to

the provisions of paragraph 22.

Meaning of

allowances made.

Claims for allow-

ances.

130

23.-(1) Where a person makes a claim to an annual allowance under this

Schedule in connection with any trade or business, if the taxes in respect of

the profits of that trade or business are the subject of an arrangement,

having effect by virtue of section 50, between the Government of Belize and

the Government of any other territory, for relief from double taxation, he

may elect, at the time of making such claim or within such reasonable time

thereafter as the Commissioner may allow, that that allowance shall be

calculated at a lesser rate than that provided for in paragraph 5 and in

making such election he shall specify the amount of such lesser rate.

(2) Where an election has been made under this paragraph the amount

of such lesser rate shall be taken to be the appropriate rate in relation to that

allowance for all the purposes of this Schedule.

24.-(1) The amount of any charge to be made on a person under this

Schedule shall be made on him by making an addition to his chargeable

income for the year of assessment for which such charge falls to be made

under this Schedule:

Provided that where any such charge falls to be made on any

person for any year of assessment, whenever necessary by reason of the

assessment on that person having become final and conclusive for that year

or for other sufficient reason, the Commissioner may make an additional

assessment upon such person in respect of the amount of such charge.

(2) The amount of any allowance to be made to a person under this

Schedule shall be made to him by making a deduction in arriving at the

amount of his chargeable income for the year of assessment for which such

allowance falls to be made under the provisions of this Schedule. Where

such deduction creates or adds to a loss in the basis year, the loss or

increased loss shall be the loss falling within section 15.

Election in double

taxation cases.

Manner of making

allowances and

charges.

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Belmopan, by the authority of

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SIXTH SCHEDULE

[Sections 98 (10) and 102 (5) (1)]

Petroleum Operations Expenditures

1. Petroleum Operations Expenditures shall be calculated and ac-

counted for in a manner consistent with the following principles and defini-

tions and shall include all reasonable and necessary expenses for the conduct

of Petroleum Operations, including but not limited to:

(1) Cost of hiring sub-contractors and of salaries and wages of the

contractor’s employees directly engaged in Petroleum Operations, including

costs of holidays, vacations, sickness, living and housing allowances, travel

time, bonuses and other established plans for employee benefits customarily

granted to the Contractor’s employees and their families in similar ventures.

(2) Costs of material, equipment, machines, tools and any other goods of

a similar nature used or consumed in Petroleum Operations subject to the

following:

(a) acquisition - the Contractor shall only supply or purchase

materials for use in Petroleum Operations that may be used in

the foreseeable future. The accumulation of surplus stocks

and inventory shall be avoided. Inventory levels shall, how-

ever, take into account the time lag for replacement, emer-

gency needs and similar considerations;

(b) components of costs - costs of materials purchased by the

Contractor for use in Petroleum Operations may include, in

addition to the invoice price (subtracting the discounts given,

if any), freight costs and costs of transportation between the

supply point and delivery point (provided that such costs are

not included in the invoice price, inspection costs, insurance,

Petroleum Opera-

tions Expenditure.

Labour cost.

Material costs.

132

custom duties, taxes and other items that may be charged to

imported materials or to materials purchased in Belize);

(c) accounting - such materials costs shall be charged to the

accounting records and books based on the “First-in First-

out” (FIFO) method;

(d) supply of materials by Affiliated Companies - materials

supplied by the Contractor’s Affiliated Companies shall be

charged to the accounting records and books at prices no

higher than the prices for comparable material purchased

on a competitive basis from third party suppliers. This

criterion shall apply to both new and used materials;

(e) inventories - the Contractor shall maintain both a physical

and accounting inventory of all materials in stock in accor

dance with generally accepted practices in the international

petroleum industry. The Contractor shall make a physical

inventory of all such materials at least twice yearly. The costs

of non capital items purchased for inventory shall be charged

to operating expenditure when issued from stock for

consumption.

(3) The value of technical services costs relating to Petroleum Opera-

tions shall be:

(a) in the case of technical services performed by third parties

directly subcontracted, including outside consultants,

contractors and utilities, the price paid by the Contractor,

provided that such prices are no higher than the prices charged

by other suppliers for comparable work and services; and

(b) in the case of technical services performed by the Contractor

or its Affiliated Companies, prices which are no higher than

Technical service

costs.

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the most favourable prices charged to third parties for compa-

rable services.

(4) The value of insurance relating to Petroleum Operations shall be:

(a) in the case of insurance purchased from third parties, the

price paid by the Contractor, provided that such price is no

higher than the price charged by other insurers for

comparable insurance;

(b) in the case of insurance purchased from an Affiliated

Company, the price shall be no higher than the most

favourable price charged to third parties for comparable

insurance.

The proceeds of any insurance or claim shall be credited against

Petroleum Operations Expenditures. Except in cases where insurance cover-

age is required pursuant to its contract with the Government, if no insurance is

carried for a particular risk, all costs incurred by the Contractor in settlement of

any related loss, claim, damage or judgment, including legal services, shall be

includable in Petroleum Operations Expenditures provided that such costs did

not result from the Contractor’s gross negligence.

(5) Costs and expenses of litigation and legal or related services

necessary or expedient for the protection of the area covered by a Contractor’s

contract with the Government. Any damages or compensation received shall

be credited against Petroleum Operations Expenditures. The Contractor’s costs

incurred in arbitrating a dispute with the Government relating to its contract

shall not be included in Petroleum Operations Expenditures.

(6) So much of the expenditure in the nature of general services and

administrative costs, other than direct costs, as is not in excess of three per cent

(3%) of total petroleum operating expenditure, including, but not limited to:

Insurance and

Claims.

Legal and

litigation costs.

General adminis-

tration and

services over-

head costs.

134

(a) the Contractor’s personnel and services costs outside of Belize

relating to administration, legal, accounting, treasury, auditing,

taxation, planning, employee relations, purchasing and other

functions related to Petroleum Operations under its

Agreement; and

(b) reasonable and necessary travel expenses of the

Contractor’s personnel in the general and administrative

categories listed in (a) above for the purpose of inspections

and supervision of Petroleum Operations in Belize shall be

allocable to Petroleum operations Expenditures according

to methods agreed to by the Contractor and the

Government.

(7) Interest, fees, duties, taxes and other financial charges relating to

loans and credits obtained by the Contractor to acquire funds for the

execution of its obligations under this Agreement at rates not exceeding

the prevailing commercial rates or in the aggregate not exceeding twenty-five

percent (25%) may be charged to Petroleum Operations Expenditures.

(8) Staffing and maintenance of the Contractor’s head office in Belize

and other offices in Belize, including rent, telephone, telex and radio expenses,

as well as the expenses of general facilities such as shore bases, warehouses,

water, power and communication systems, roads and bridges.

(9) All payments to the Government or any local authority, including but

not limited to surface rentals, fees, taxes, imposts, dues and levies, but

excluding tax and royalty.

2. Petroleum Operations Expenditures consist of capital and operating

expenditures.

(1) Capital Expenditures are those Petroleum Operations Expenditures

for assets that normally have a useful life which extends beyond the year in

Maximum interest,

etc., on loans and

credits to be

charged to Petro-

leum Operations.

Office costs, etc.,

in Belize.

Payment to the

Government.

Capital and Operat-

ing Expenditures.

Capital Expendi-

tures.

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which the asset was acquired.

In addition to expenditures relating to assets that normally have a

useful life beyond the year in which the asset was acquired, the costs of devel-

opment operations, as described in paragraph (e) below, and signature and

production bonuses as listed in (f) below, will be classified as capital expendi-

tures.

Capital expenditures include, but are not limited to, the following:

(a) construction utilities and auxiliaries - work shops, power

and water facilities, warehouses, and field roads, cost of crude

oil treating plants and equipment, secondary recovery systems,

natural gas plants and steam systems;

(b) construction housing and welfare housing - recreational

facilities and other tangible property incidental to construction;

(c) production facilities - production rigs (including the costs of

labour, fuel, hauling and supplies for both the offsite fabrication

and onsite installation of rigs, and other construction costs in

erecting rigs and installing pipelines), wellhead equipment, sub-

surface lifting equipment, production tubing, sucker rods, sur-

face pumps, flow lines, gathering equipment, delivery lines and

storage facilities;

(d) movables - surface and subsurface drilling and production

tools, equipment and instruments, barges, floating craft, auto

motive equipment, aircraft, construction equipment, furniture

and office equipment and miscellaneous equipment;

(e) development and production drilling - labor, materials and

services used in drilling wells with the object of penetrating a

proven reservoir, including the drilling of delineation wells as

136

well as redrilling, deepening or recompleting wells, and ac-

cess roads, if any, leading directly to wells;

(f) signature and production bonuses.

(2) Operating Expenditures are all Petroleum Operations Expenditures

other than capital expenditures, including but not limited to:

(a) exploration drilling - labor, materials and services used in

the drilling wells with the object of finding unproven reservoirs

of crude oil and natural gas, and access roads, if any, lead-

ing directly to wells;

(b) surveys - labor, materials and services used in aerial,

geological, topographical, geophysical and seismic surveys,

and Core hold drilling; and

(c) other exploration expenditures - auxiliary or temporary

facilities having lives of one year or less used in exploration

and purchased geological and geophysical information.

3. Capital expenditures, as defined in paragraph 1, shall be depreciated or

amortized for the purpose of the calculation of tax. For the purpose of deter-

mining the amount of depreciation or amortization which is allowable as a

deduction in each calendar year, the following principles shall apply:

(1) Capital expenditures will be depreciated or amortized using the straight

line method over five (5) years.

(2) A full year’s depreciation or amortization may be taken in the first

Calendar Year in which such depreciation or amortization is allowable.

(3) Deductions with respect to depreciation or amortization of capital

expenditures incurred shall be allowable commencing with (A) the Basis Year

Operating Expendi-

tures.

Depreciation

Amortization.

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in which the capital asset is placed into service, or, if the capital expenditure

does not relate to an asset that normally has a useful life beyond the year in

which it is placed in service, the Calendar Year in which the capital expenditure

is incurred, or (B) the Calendar Year in which Initial Commercial Production

first occurs, whichever is later.

4. The following expenditures shall not be included in Petroleum Operations

Expenditures:

(a) costs and expenses incurred at any time prior to the effective

date of the Contractor’s contract with the Government, unless

expressly permitted in such contract;

(b) costs relating to Petroleum marketing or transportation be-

yond the Delivery Point;

(c) contributions and donations, except those approved by the

Government;

(d) gifts or rebates to suppliers, and gifts or commissions to

intermediaries arranging service or supply contracts;

(e) any fines, monetary corrections or increases in expenses

resulting from the Contractor’s failure to comply with the

obligations under its contract with the Government, or

applicable law; and

(f) any other expenditures not directly related to Petroleum

Operations or not in compliance with the provisions of this

Sixth Schedule.

General Exclu-

sions.

Sixth Schedule.

138

SEVENTH SCHEDULE

[Section 14]

Method of Calculating Export Allowance

1. An export allowance for the purpose of subsection (1) of section

14 shall not exceed the percentage (being percentage of the whole of the tax

liability on the entire export profits) specified in the table below opposite the

percentage of export profits-

Amount of Export Profits Maximum Percentage of

Expressed as a Percentage Tax Relief

of the Entire Profits

10% or more but less than 21 % 25%

21 % or more but less than 41 % 35%

41 % or more but less than 61 % 45%

61 % or more 50%

2. The following formula shall be used to ascertain export profits for

the purpose of this section-

E x P

S

where “E” represents the proceeds from export sales for the year;

and “P” represents the profits made by the enterprise from all

sales for the year;

and “S” represents the proceeds of all sales for the year.

32 of 1987.

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EIGHTH SCHEDULE

[Sections 105 (1) and (3)]

1. Accountants

2. Architects

3. Attorneys-at-Law

4. Auctioneers

5. Building Contractors

6. Consultants

7. Customs Brokers

8. Dentists

9. Engineers

10. Insurance Brokers and Underwriters

11. Mechanics

12. Medical Practitioners

13. Moneylenders

14. Ophthalmologists

15. Opticians

16. Optometrists

17. Real Estate Agents

18. Shipping Agents

19. Surveyors

20. Tour Operators

21. Travel Agents

22. Veterinarians

140

NINTH SCHEDULE

[Sections 111 (3) and 113 (2)]

RATES OF TAX

(a) Receipts from radio, on-air television and

newspaper business....................................................0.75%

(b) Receipts from domestic air line business......................0.75%

(c) Receipts of service stations from the sale of

fuel and lubricants.......................................................0.75%

(d) Receipts from other trade or business..........................1.25%

(e) Rents, royalties, premiunms and any other receipts from

real property...............................................................1.5%

(f) Receipts from a profession, vocation or occupation.....4%

(g) Receipts of an insurance company licensed under

the Insurance Act........................................................1.5%

(h) Commissions, royalties, discounts, dividends,

winnings from lotteries, and interest on loans

paid to non-residents..................................................15%

Provided that in the case of commissions of less than $25,000.00 per annum, the rate shall be

5%.

(i) Receipts of a financial institution licensed under the Banks and

Financial Institutions Act...............................................10%

Provided that in the case of a financial institution which falls within a “PIC Group” as

defined in the International Business Companies Act, the rate shall be 4%.

( j) Management fees, rental of plant and equipment and charges for technical

services-

(i) if paid to a non-resident....................................25%

(ii) if paid to a resident .................. the rate applicable to the particular

trade, business, profession, vocation

or occupation of the payee.

(k) Receipts of entities providing telecommunication

services......................................................................19%.

18 of 1998.

7 of 1999.

7 of 1999.

7 of 1999.

7 of 1999.

7 of 1999.

7 of 1999.

7 of 1999.

CAP. 270.
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