Assets (Tax (Specified Bodies) Act

Link to law: http://www.moj.gov.jm/laws/assets-tax-specified-bodies-act
Published: 2003-01-02

A.SSETS TAX (SPEC'IFIEU BODIES) I

THE ASSETS TAX (SPECIFIED BODIES) ACT Acts 33 0f2002,
31 of ZOOS.

[Znd January, 2003. ]

1. This Act may be cited as the Assets Tax (Specified Bodies) s h ~ titla.
Act.

2.-(1) In this Act, unless the context otherwise requires- ~ntcrpre
tntiun.

"Commissioner" means the Commissioner of Inland
Revenue;

"specified body" means-

(a) a company within the meaning of the
Companies Act other than a company in
respect of which a licence has been granted
pursuant to section 16 of that Act by the
Minister responsible for the administration of
companies,

(h) a society registered under the Industrial and
Provident Societies Act;

(c) such other body as may be prescribed by order
subject to negative resolution.

3.-(1) Subject to the provisions of this section and sections A ~ u a l
declaration 4 and 5, every specified body shall make and submit to the

Commissioner an annual declaration of the value of its assets
and shall in relation thereto pay the tax prescribed in the Schedule.
Schedule.

(2) The declaration required by subsection (1) shall-
.\ (a) subject to subsection (3), be submitted on or before the

1st day of September in each year (hereinafter referred
to as the relevant date);

(b) be in such form and accompanied by such documents
as the Commissioner may prescribe by notice
published in the Gazette;

IThe lnrlualon of this page la authorbed by L.N. 180Al10061

(c) subject to subsection (3), be based upon the value of
assets of the specified body as indicated by the balance
sheet and profit and loss account as relates to the
assessment of income tax for the year of assessment
immediately prior to the relevant date or the date
authorized pursuant to subsection (3).

(3) The Commissioner may, on the application of any
specified body, allow the body to submit its declaration for any
year specified in the application, on or before such date as the
Commissioner may authorize in writing.

(4) The Commissioner may act in accordance with
subsection (5) if he is satisfied that-

(a) any specified body is not carrying on any business
which would necessitate the preparation of a balance
sheet or profit and loss account; or

(h ) having regard to the date on which a specified body
started operations, a balance sheet and profit and loss
account referred to in subsection (2) (c) are not
available.

(5) Subject to subsection (6) , the Commissioner may in
writing authorize the body-

(a) to base its declaration for the purposes of this section
on an estimate of the value of its assets at the end of the
year preceding that in respect of which the declaration
is required and pay the prescribed tax; or

(b) to submit a declaration that, by reason of the absence of
assets at the end of the preceding year, a valuation
cannot be made as required by this section.

(Tho lnclu~ion of lhlr page lr authorized by L.N. IBOA/ZW61

ASSETS TAX (SPECIFIEL) BODIES) 3

(6) An authorization referred to in subsection (5) may be
subject to a requirement that the estimate or declaration, as the
case may be, shall be verified at such later time as the
Commissioner may specify in such manner and by reference to
such documents as may be so specified.

(7) Where any specified body fails to furnish to the
1 Commissioner any declaration or the prescribed tax in

accordance with this section, he may issue the prescribed notice
to the specified body requiring that body to submit the
declaration and pay the tax within the period specified in the
notice.

(8) Where it appears to the Commissioner of Taxpayer
Audit and Assessment that the value of assets of any specified
body shown in any declaration is incorrect, he may, at any time
not later than the end of five years next after the end of the year
in which the tax is due and payable, serve on that specified body
a notice stating that for the purposes of this section, the value of
assets of that body and the tax payable thereon shall, subject to
sections 4 and 5, be assessed at the amounts respectively
specified in the notice; and, subject as aforesaid, the tax shall be
paid in accordance with that assessment.

(9) In this section and section 4 "the value of assets" of
any specified body means, subject to subsection (lo), the
aggregate of-

(a) the amount which the Commissioner is satisfied, on the
certificate of an auditor of the specified body, is the
value (as shown in the books of account) of that body's
assets as follows-

(i) any estate or interest in land;

(ii) equipment, furniture, machinery, plant and
other movable property;

[The larlvrion of lhls p q r la authorlmd by L.N. 180A110061

ASSETS TRY (SPECIFIED BODIES)

(iii) any other interest, right or benefit;

(h) the amount of-

(i) outstanding balances on loans and advances
made by the specified body;

(ii) the specified body's cash in hand and in bank
deposit; A v

(iii) outstanding balances due to the specified body
by sundry debtors other than those specified in
sub-paragraph (i).

(10) If the Commissioner of Taxpayer Audit and
Assessment is of the opinion that the value of any asset of a
specified body shown in the books of account is not correct, he
may substitute therefor such amount as he estimates to be the
correct value, not exceeding the amount which he is satisfied is
the amount expended by the specified body in acquiring the
asset

Miniserrnay 3A. The Minister may, from time to time, by order, subject to
ammd rate of
taxby affirmative resolution of the House of Representatives, amend or
3'nrJ0S vary the rate of any tax specified in the Schedule.
S. 2.
Schedule.

Ob~enions 4.-(I) Where a specified body disputes the amount of the
assessmets.

assessed value of assets or the tax payable thereon specified in
any notice served pursuant to section 3(8), that body may apply
to the Commissioner of Taxpayer Audit and Assessment, by
notice of objection in writing, to review and revise that amount.

(2) An application pursuant to subsection (1) shall state
precisely the grounds of objection and shall be made within 0
thirty days from the date of the service of the notice, so,
however, that, the Commissioner, upon being satisfied that
owing to some reasonable cause the specified body was
prevented firon] making the application within that period, shall
extend the period as may be reasonable in the circumstances.

lThe lneiwion of this imgc is nulhorized by L.N. 180AiZ0061

ASSETS TAX (SI'ECIFIEI) BODIES)

(3) On receipt of any objection referred to in subsection
(I), the Commissioner may-

(a) by notice in writing, require the specified body
concerned to furnish such particulars as he may deem
necessary with respect to the value of the assets of the
body and to produce all books and documents relating
thereto; and

(b) summon any person to attend before him and give
evidence relating to the assets of the specified body and
may examine such person on oath or otherwise.

(4) Any person who-

(a) without lawful excuse refuses or neglects-

(i) to produce any books or documents which he is
required to produce under subsection (3);

(ii) to attend in accordance with any summons
issued under that subsection or to give evidence
pursuant to any such summons; or

(iii) to answer any lawful question touching the
matters under consideration; or

(b) knowingly or wilfully gives any false evidence before
the Commissioner,

shall be guilty of an offence and shall be liable on summary
conviction in a Resident Magistrate's Court to a fice not
exceeding one hundred thousand dollars.

(5) In the event of any specified body which has objected
to any amount specified in a notice of assessment subsequently
agreeing with the Commissioner of Taxpayer Audit and
Assessment as to the amount of the value of assets or the tax
payable thereon, the notice of assessment shall be amended
accordingly.

[The inrluaion of this page i a nulhorimd by L.N. l80A110061

ASSETS TAX (SPECIFIED BODIES)

(6)Where no such agreement is reached, the
Commissioner shall give notice in writing to the specified body
of his decision in respect of the objection and if the valuation is
altered or the tax payable varied, due adjustment shall be made
and amounts paid in excess shall be refunded and amounts
payable shall be recoverable as arrears.

APPSIS. 5.-(1) Any person aggrieved by any decision of the

Commissioner under section 4 may appeal to the Commissioner r:
of Taxpayer Appeals within thirty days of receiving the
Commissioner's decision.

(2) The Commissioner of Taxpayer Appeal shall-

(a) consider every appeal made under subsection (1) at
such time and in such manner, either in the presence or
absence of the appellant as he may think fit; and

(b) make such decision in relation thereto, as he may think
fit.

(3) An appellant who is dissatisfied with the decision of
the Commissioner under subsection (2) may appeal to the
Revenue Court within thirty days of the date of receiving that
decision.

Enforcing
payment of

6.-(1) Where any tax being due and payable, remains
tax. unpaid after the relevant date or the date authorized under

section 3(3), interest shall be charged thereon from the day next
after the relevant date or that other date, as the case may be,
until the date of payment, at the rate of fifteen per centum per
annum.

(2) Interest payable under subsection (1) may-

(a) be added to the tax payable and may be collected and
recovered as if it were such; and

(b) be remitted in whole or in part by the Commissioner
for reasons which appear to him to be sufficient.

IThe Inclusion of this page la suthorizd by L.N. 180A120061

ASSETS TAX (SP1iCIFIlZD BODES) 7

(3) The Minister may, by order subject to negative
resolution of the House of Representatives, vary the rate of
interest specified in subsection (1).

(4) Any tax, and any interest payable thereon pursuant to
subsection (I), may be sued for and recovered in a Resident
Magistrate's Court as a debt due to the Government.

-,
.~ 7. The provisions of the Tax Collection Act concerning

payment, collection and recovery of tax and the enforcement of ~ u ~ e c t i o n
payment thereof shall apply to tax imposed under this Act. Act.

&-(I) Every person having any official duty or being rc''''
employed in the administration of this Act shall regard and deal declarations,
with all declarations, documents, information, assessments and dOculnents~ ~ . . BS
copies thereof relating to the assets of any specified body, as recreti~ndto
secret and confidential, and shall make and subscribe a
declaration to that effect.

(2) Every person referred to in subsection (1) having
possession of or control over any declarations, documents or
assessments who at any time communicates or attempts to
communicate anything contained therein to any person-

(a) other than a person to whom he is authorized under this
Act or any other enactment to communicate it; or

(6) otherwise than for the purposes of this Act or any other
enactment,

commits an offence and is liable on summary conviction thereof

7
in a Resident Magistrate's Court to a fine not exceeding five

L hundred thousand dollars or to imprisonment for a term not
exceeding six months or to both such fine and imprisonment.

(The indualon of lhls page 11 nuthorimd by L.N. 180A120061

ASSElS TAX (XPECIFIED BODIES)

SCHEDULE (Sections 3. 13A)

Rate o f ?bx in relation to Declaration q f h s e t s

PART I. Companies

Description of Company

Where the agp,regate value of the
assets does not exceed $50.000 . . .

Where the aggregate value of the
assets exceeds $50.000 but does not
exceed $500.000 .,.

Where the aggregate value of the
assets exceeds $500,000 but does
not exceed $1.000,000 ...

Where the aggregate value of the
assets exceeds $1,000,000 but does
not exceed $5.000.000 . . .

Where the aggregate value of the
assets exceeds $5,000,000 but does
not exceed $10,000,000 . . .

Where the aggregate value of the
assets exceeds $10,000,000 but
does not exceed $50,000,000 . . .

Where the aggregate valuc of the
assets exceeds $50,000,000 but
does not exceed $100,000,000 ...

Where the aggregate value of the
assets exceeds $100,000,000 . . .

Tax
-

$1,000

$2.0M)

$4,000

$10.000

$15,000

$20,000

$25,000

$35,000

IThc lneluslon or lhls page la suthorhd by L.N. 180A120061

ASSETS 1iiX (SPECIFIED BODIES)

SCHEDULE. contd.

PART 11. Registered Societies

Description of Registered
Society Tax
- -

Where the aggregate value of thc
assets does not exceed $50,000 . . . ... $1,000

1

Where the aggregate value of the
assets exceeds $50,000 but does not
exceed $500,000 . . . ... $2,000

Where the aggregate value of the
assets exceeds $500.000 but does
not exceed $1,000,000 ... ... $4,000

Where the aggrega:e value of the
assets exceeds $1,000,000 but does
not exceed $5,000,000 . . . ... $10,000

Where the aggregate value of the
assets exceeds $5,000,000 but does
not exceed $10,000,000 ... ... $lS,000

Where the aggregate value of the
assets exceeds $10,000,000 but
does not exceed $50,000,000 ... ... $20,000

Where the aggregate value of the
assets exceeds $50,000,000 but
does not exceed $100,000,000 ... ... $25,000

Where the aggregate value of the
assets exceeds $100,000,000 . . . ... $35,000
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