Miscellaneous Taxes Amendment Act 1994

Link to law: http://www.bermudalaws.bm/Laws/Annual%20Laws/1994/Acts/Miscellaneous%20Taxes%20Amendment%20Act%201994.pdf

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Miscellaneous Taxes Amendment Act 1994
The Laws of Bermuda
Annual Volume of Public Acts 1994 : 5

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BERMUDA
1994 : 5

MISCELLANEOUS TAXES AMENDMENT ACT 1994

[Date of Assent 22 March 1994]

[Operative Date 25 March 1994]

WHEREAS it is expedient to amend the Miscellaneous Taxes Act
1976:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Short title
1 This Act may be cited as the Miscellaneous Taxes Amendment
Act 1994.

Amends s 9 of Act No 17 of 1976
2 Section 9 of the Miscellaneous Taxes Act 1976 ("the Act") is
amended—

(a) by deleting the headnote and subsection (1) and
substituting the following—

"Meaning of "exempt undertaking"
9 (1) Subject to subsections (2) and (3), for the
purposes of Parts III and IV an exempt undertaking is an
exempted undertaking as defined in the Companies Act
1981.";

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(b) by deleting from subsection (2)(b) the words beginning
with the words "or non-resident" and ending with the
words "or body" and substituting the words "or permit
company which is carrying on any business activity in
respect of which, if the partnership or company";

(c) in subsection (3), by—

(i) deleting the words "an exempted company,
exempted partnership or non-resident corporate
body" and substituting the words "an entity";

(ii) deleting the phrase "company, partnership or
body" wherever that phrase appears and
substituting the word "entity".

Insertion of new s 9A
3 The following section is inserted in the Act next after section 9—

"Election by exempt undertakings
9A (1) An exempt undertaking may make an election
under this section as to the remuneration on which it is to be
charged to tax under Parts I to IV.

(2) An exempt undertaking may for that purpose
choose between option A and option B, and that choice is the
election referred to in subsection (1).

(3) Where an exempt undertaking chooses option A,
Parts I to IV shall have effect in relation to the exempt
undertaking as if this section had not been enacted.

(4) A choice of option A may be made by the exempt
undertaking delivering a notice in writing for the purpose to the
Commissioner in a form approved by him; but, unless the
provisions of the Second Schedule are satisfied in relation to an
exempt undertaking in respect of a tax period, that exempt
undertaking shall be deemed to have chosen option A in respect
of that tax period.

(5) Where an exempt undertaking chooses option B,
Parts I to IV shall, subject to the Second Schedule, have effect in
relation to the exempt undertaking as if it were not an exempt
undertaking.

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(6) The Second Schedule shall have effect as to the
procedure which an exempt undertaking must follow to choose
option B, the consequences of such a choice, and otherwise in
relation to options A and B.".

Amendment of s 22
4 Section 22 of the Act is amended by adding the following
subsection—

" (5) Remuneration which apart from this subsection is
chargeable under subsections (1) to (4) to hospital levy in respect
of an employee of an exempt undertaking shall be disregarded
for the purpose of calculating additional hospital levy payable by
that exempt undertaking under paragraph (b) of subsection (1A)
if the employee—

(a) is a person possessing Bermudian status within
the meaning of the Bermuda Immigration and
Protection Act 1956; and

(b) is receiving training under an approved training
scheme while in the employment of that exempt
undertaking.".

Amendment of s 26
5 Section 26(1)(b) of the Act is amended by deleting "one half" and
substituting "58.33%".

Addition of Second Schedule
6 The Schedule to the Act is re-numbered "First Schedule" (and
references to "the Schedule" consequentially amended throughout the
Act), and the following is added to the Act as its Second Schedule—

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"SECOND SCHEDULE (Section 9A)

Election by Exempt Undertaking under Section 9A

A — Permanent Provisions

Choice of option B: new exempt undertakings
1 This paragraph, paragraphs 2 and 3 and paragraphs 7
to 9 apply in relation to an exempt undertaking which, being an
employer which—

(a) has not previously been registered as an
employer under the Taxes Management Act
1976; and

(b) is not in default in respect of any of its duties as
an employer under that Act,

wishes to choose option B.

2 The exempt undertaking shall forthwith deliver to the
Commissioner notice in writing in a form approved by him that it
has chosen option B.

3 The choice of option B under paragraph 2 takes effect in
law as soon as the notice is received by the Commissioner.

Choice of option B: old exempt undertakings
4 This paragraph and paragraphs 5 to 9 apply in relation
to an exempt undertaking which, not being an employer
described in sub-paragraph (a) of paragraph 1, wishes to choose
option B.

5 The exempt undertaking shall deliver to the
Commissioner notice in writing in a form approved by him that it
has chosen option B in respect of a financial year (specifying the
financial year); and the notice must be received by the
Commissioner on or before the 31st December next preceding
that financial year.

6 The choice of option B under paragraph 5 takes effect in
law as soon as the notice is received by the Commissioner.

Duration of operation of option B
7 (1) Where a choice of option B has once been made
under paragraphs 1 to 3 or, as the case may be, under

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paragraphs 4 to 6, that choice may not be cancelled except with
effect from—

(a) the beginning of the third financial year next
succeeding the financial year in relation to
which that choice first applied; or

(b) the beginning of some later financial year.

(2) An exempt undertaking wishing to cancel a choice
of option B and switch to option A must deliver to the
Commissioner for the purpose notice in writing in a form
approved by him.

(3) A notice under sub-paragraph (2) must specify a
financial year in respect of which option A has been chosen, and
must be received by the Commissioner on or before the 31st
December next preceding that financial year.

(4) A notice once received under sub-paragraph (3)
may not be withdrawn.

Duty to inform employees
8 An exempt undertaking which delivers a notice to the
Commissioner under paragraph 2 or 5 or 7(2) shall within fifteen
days of doing so in writing inform each person who is at the time
an employee of the exempt undertaking of the rights that the
choice the subject of the notice will confer upon the exempt
undertaking as employer to make deductions from that
employee's remuneration.

Offence
9 If an exempt undertaking contravenes paragraph 8, it
commits an offence and is liable on summary conviction to a fine
not exceeding $1,000.

B — Transitional Provisions

Special provision for 1994
10 As respects 1994, paragraphs 1 to 9 above apply with
the modification specified in paragraph 11.

11 In relation to an exempt undertaking to which
paragraph 4 applies and which wishes to choose option B in
respect of the financial year beginning on 1st April 1994, the
words "31st December next preceding that financial year" are

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deleted from paragraph 5 and the words "31st March 1994" are
substituted.".

Commencement
7 This Act comes into operation on 25th March 1994.