INDUSTRIAL INCENTIVES

THE INDUSTRIAL INCENTIVES ACT

ARRANGEMENT OF SECTIONS

1. 5hOd title.

PART I. Gemral

2. Interpretation.
3. Daclaration of approved product.
4. Declaration of approved enterprises.
5. Applications for approval.
6. Objections to proposals to approve a product or an enterprise.
I . Limitations on power of Minister to approve a product or E

8. Minister to have an absolute discretion to refuse approval.

PART 11. Income Tax Benefits

company.

9. Interpretation.
10. Alternative income tax bef i t s .
11. First option.
12. Second option.
13. Dividends.
14. Order under section 4 may be revoked.

PART m. Benefiis in respect of customs duties und general
consmp!ion tax

15. Relief from customs duties and tax.
16. Special provisions re!ating to articlcs imported free of customs

17. Restriction upon disposition of rr'icles imported free of customi
duty and tax.

duty and tax.

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2 1NDUSTRlAL INCENTIVES

18. Date when an approved enterprise ceases to be an approved

19. Restriction on use of factory premises.
enterprise for the purposes of Part In.

PART IV. Misc@Ilaneol*E

20. Savings.
21. Penalties.
22. Power of Commissioner of Income Tax to refuse to treat certain

receipts and payments as received or made in a particular
year of assessment.

23. Commissioner of Income Tax empowered to issue certificates
regarding benefits enjoyed under t h i s Act.

24. Regulations.

PART V. Modification of this Act in relation to
items specified in $ha Third Schedule

25. Modification of this Act in relation to certain items.
26. Amendment of Third Schedule.

PART VI. Incentives applicable to products
declared on or after 28th May 1963

27. Interpretation of this Part.
28. Application of this Part.
29. Tax relief in Elation to manufacture of new product.

SCHEOULES

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INDUSTRIAL 1NCENTIVES 3

lam
4s of 19%.
12 or 19H.

s of 196%
4 of 1%7,
u o f l m [23rd August, 1956.1 (2, &,
56 of1974

SI. 2,
3.5 and 7(2b

12 d 196s

lTE INDUSTRIAL INCENTIVES ACT Actl

seb,
16 of 1991
s.64.

1. This Act may be cited as the Industrial Incentives Act. Short t i k

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

town, Guyana, on the 1st day of June, 1973, and
establishing a Scheme, to be known as the “Har-
monization of Fiscal Incentives to Industry
Scheme”, for implementation by such countries be-
longing to the Caribbean region as participate in
the Scheme under that Agreement;

“annual allowances’’, “chargeable income”, “initial
allowances” and ‘‘year of assessment” shall have
the same meanings as in the Income Tax Act,
and where pursuant to this Act any annual
allowance is made, such allowance shall be made 411967
subject to and in accordaace with the provisions
of that Act;

“approved enterprise” means a company approved by
the Minister under section 4 for the manufacture
of an approved product;

“approved product” means a product of manufacture
approved by the Minister under section 3 for
manufacture by an approved enterprise;

tion.
“the Agreement” means the Agreement done at Gaorge- ;4;974

s z

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. .

A INDUSTRIAL INCENTlVES

21/1991
S. 64.

5/1965
s. 2.
Third
schedulc.

“benefit” means the relief in regard to income tax,
customs duties or general consumption tax enjoyed
by an approved enterprise in virtue of this Act;

“company” means any company incorporated or
registered under any law in force in the Island
and any company which, though incorporated or
registered outside the Island, carries on business
or has an office or place of business therein;

“date of production” means the date declared pursuant
to subsection (2) of section 4;

“factory” includes a place or an establishment at or
in which an item specified in the Third Schedule
is produced;

“manufacture” includes-
(U) the production by any method of an item speci-

fied in the Third Schedule;
(b) preparation for sale;

“Minister” means the Minister responsible for indus-
trial development.

Dec*aration of approved
r n O d U C t

3 . 4 ) Subject to the provisions of sections 6 and 7, the
Minister may, by order, declare that a product of manufac-
ture shall be an approved product for the purpose of this
Act if he is satisfied that the manufacture of the product

(a) be of benefit to the Island, both economic and
non-economic considerations being taken into
account; and

(b) have a beneficial dect on employment both in
numbers and in gross wages.

(2) An order may be made under subsection (1) in
respect of a product which is being manufactured in the
Island at the date of the order.

Would-

-
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INDUSTRIAL INCENTIVES 5

(3) The Minister, before declaring under subsection
(1) that a product of manufacture shall be an approved
product for the purpose of this Act, shall also have regard
to the following mnsiderations-

(a) the effect which approval would have on existing
industries;

(b) whether manufacture of the product would utilize
raw materials or skill available in the Island;

(c) whether the existing capacity for manufacture of
the product is sufficient to meet the demand for
the product;

(d) the element of risk involved in establishing a suc-
cessful manufacture of the product.

(4) When approving a product for the purposes of
this Act, the Minister may, by the same order, declare that
all approved enterprises manufacturing the approved pro-
duct shall be entitled either to one hundred per centum or
to fifty per centum of the benefits of this Act, that is to say,
in regard to relief from income tax relief in respect of the
whole of the chargeable income of the company or of
one-half of the chargeable income of the company (as the
case may be) which, but for the provisions of this Act,
would be chargeable with income tax and, in regard to
customs duty, or general consumption tax, either the whole i6/19v1
or one-half of the duty or tax, as the case may be.

4.-(1) Subject to the provisions of sections 6 and 7, the Declaration
Minister may, by order, declare that a company which is cntcrpnsw.
manufacturing, or proposes to manufacture, an approved
product is an approved enterprise for the purpose of this
Act if he is satisfied that the mmpany-

s 64.

of approved

(U) is adequately financed;
(6) has adequate trained personnel in its employ or

is able to obtain the services of such personnel;
(c) has access to the necessary technical information;
(d) is able to obtain adequate raw materials;

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6 INDUSTRIAL INCENTIVES

(e) possesses, or will possess, the necessary factory.
(2) In every order made under subsection (l), a date

shall be declared to be the date on which production is
deemed to begin for the purpose of this Act.

(3) Every order made under this section shall specify
the factory premises in respect of which the benefits of
Part 111 may be enjoyed.

(4) On the application of an approved enterprise, the
Minister may, in his absolute discretion and upon such
conditions as he may think fit, amend an order made under
this section in respect of the factory premises specified
therein if the Minister is satisfied that it is necessary, in
order to promote the manufacturc of the appro-:ed product
by the approved enterprise that the factory premises in
respect of which the order was made, should be varied,
and such amending order shall specify the factory premises
in respect of which the benefits of Part I11 may be enjoyed
after the amending order has been made.

S. ii/i960 2 (5 ) On the application of an approved enterprise the
Minister may, in his discretion and upon such conditions
as he thinks fit, amend an order made under this section
in respect of the date of production specified therein; and
thereupon the provisions of this Act shall, subject to any
conditions specified in relation to such amendment, have
effect as if for the date of production declared pursuant
to subsection (2) there were substituted the date of produc-
tion amended as aforesaid.

(6) Without prejudice to the generality of subsection
(51, the amendment of an order pursuant to that subsection
may be made on terms which permit an option exerciscd
in accordance with subsection (2) of section 10 to be
changed at any time before the date of production as
amended, or on terms which require that no such change
in the exercise of an option shall be made.

1211960 s. 2.

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INDUSTRIAL INCENTIVES 1

5. All applications for the approval of a product as an i4pplicrtionr
approved product or the approval of a company as an
approved enterprise shall be addressed to the Minister in
such form and with such particulars as may be prescribed.
6.-(I) Before any order is made under section 3 or Objections

to propooaali section 4, the Minister shall cause the fact that he is about tOa.Pwoml
to consider whether a product for manufacture should be a”,ynyz
an approved product for the purpose of this Act or whether etiae.
a company should be an approved enterprise for the pur-
pose of this Act to be advertised in the Island and elsewhere
if the Minister shall so deem it necessary.

(2) The advertisement referred to in subsection (1)
shall contain such particulars as to the product or the com-
pany of which such approval is being sought as the Minister
may think necessary in order that any person interested
in the manufacture or the importation of the product may
object to the product or the company being so approved.

(3) The advertisement shall state a period within
which any objection to the approval of the product or the
company shall be made by any person who is interested in
the manufacture or the importation of the product.

(4) Every objection received by the Minister within
the time stated in the advertisement or within such extended
time as the Minister may allow shali be considered by the
Minister before any order is made under section 3 or section
4.

(5 ) This section shall not apply to an amending order
made under subsection (4) of section 4.

7. The Minister shall not approve- I & l h t i O M
on power of

to approve duct; or a produc! or
(4 a product for manufacture as an approved pro- Minister

(b) a company as an approved enterprise, a m w ~ .
if such product or company is approved, recognized or
licensed for the purpose of any of the enactments specified
in the First Schedule. t i t81

%hcdule.
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INDUSTRIAL 1NCENTIVES

S . 4 1 ) Subject to the provisions of this section and
section 7, the Minister shall have an absolute discretion to
grant or refuse to grant approval in respect of a product
for manufacture as an approved product or a company as
an approved enterprise for the purpose of this Act :

Provided that, if a company which is applying for
approval as an approved enterprise is, at the time of such
application, manufacturing the approved product in
Jamaica, the Minister may, as a condition of his granting
the application, require the applicant to incorporate a com-
pany in Jamaica, upon such terms and conditions as he may
determine, and grant approval in respect of that company
when so incorporated.

(2) Upon any application for an order to be made
under section 4 the Minister shall in considering the exercise
of his discretion in that behalf, take account of the Agree-
ment and, if he makes the order, may include therein such
terms as, having regard to the Agreement, he may consider
necessary or expedient for all or any of the following, that
is to say-

(a) restricting, abridging, or stipulating conditions for,
any relief that may (apart from this subwction or
otherwise) be granted by virtue of the order;

(b) extending any relief in respect of customs duties
and general consumption tax to any specified class
of imports required for use in the manufacture of
the approved product in connection with which
the order is made;

Miiatcr
to haVC an
abw1u:c
diSCtttlOn
to refuse
approval.
561 1974
6.3 (a). (b).

161 1914
S. 3 (C).

16/,199l
E. 64.

(c) subject to subsection (3), authorizing relief to be
afforded indefinitely or for any specified period
(whether or not in excess of that defined in section
11, 12 or 29) with regard to income tax on export
profits;

(d) determining export profits for the purposes of any
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INDUSTRIAL INCENTIVES 8.01

relief authorized under paragraph (c);
(e) increasing for the purposes of the order any per-

centage (not being one hundred per centurn) appli-
cable in that behalf by virtue of subsection (4) of
section 3 or subsection (I) or (2) of section 15;

(fl providing for any matters appearing to the Minis-
ter to be incidental, ancillary or supplementary to,
or consequential upon, any such relief as may be
afforded pursuant to the order.

(3) No relief shall be authorized under paragraph (c)
of subsection (2) for an approved enterprise during any
period for which the enterprise is afforded under this Act-

(a) any relief as to customs duty or general consump- 1611991 s. 64. tion tax; or
(b) any relief from income tax in respect of profits or

gains (exclusive of any amount allowable by way
of deduction on computing the chargeable income
of the said enterprise), other than sums determin-
able in accordance with provision made in relation
to such enterprise under paragraph (d) of sub-
section (2).

(4) Subject to subsection (5), upon the coming into
force of any order under subsection (2) of section 27 in
circumstances mentioned in paragraph (6) of section 28
(which relate to approved manufacturers of new products),
the order made under section 4 in respect of the approved
enterprise to which those circumstances relate may, by order
of the Minister, be amended to include like terms, with
regard to relief on account of the application of Part VI to
that enterprise, as an order may include under subsection
(2) of this section with regard to relief mentioned in that
subsection.

(5) Where the Minister proposes to make any amend-
ment under subsection (4) to an order, he shall-

(4 cause the proposed amendment to be notified in
writing to the approved enterprise to which that
order relates; and
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8.02 INDUSTRIAL INCENTIVES

(b) afford the approved enterprise a reasonable oppor-
tunity to elect not to accept relief on account of
any application of Part VI to that enterprise,

and where such election is made, Part VI shall not be
deemed applicable in relation to that enterprise and no such
amendment shall be made.

(6) Any terms included pursuant to this section in
any order shall have effect notwithstanding anything to the
contrary provided by or under the Customs Act, the General
Consumption Tax Act, the Income Tax Act, or any other
provision of this Act, exclusive of the proviso to subsection
(2) of section 10 and of subsection (2) of section 29 (but
without prejudice to the power to abridge, pursuant to
paragraph (a) of subsection (2) of this section, any period
of relief).

(7) Save as may be provided pursuant to paragraph
(c) of subsection (2), no benefit in regard to income tax
shall be granted by way of the making under this Act, on or
after the prescribed aate, of any order in connection with
an approved product when in the opinion of the Minister,
who shall take into consideration such information as is
reasonably available in that behalf, sixty per centum or
more of the market in Jamaica for such a product is being
supplied by industry in Jamaica.

(8) In subsection (7), “the prescribed date” means the
30th December, 1974.

(9) Nothing in subsection (7) shall have effect in
reference to any order respecting an enterprise, or in
reference to any industry, to which the Agreement does not,
in the opinion of the Minister, extend.

PART 11. Income Tax Benefits
9. In this Part, unless the context otherwise requires,

“income tax” means the tax payable by companies under
the law for the time being relating to income tax.

Alternative 10.-(1) Subject to the provisions of this Part, an
approved enterprise shall, at its option, be entitled to either

bcncfiu. one or the other of the reliefs from income tax defined in
sections 11 and 12 as the first and second options res-

16/1991 s. 64.

Iotcrprcta-
Lion.

income
tax

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INDUSTRIAL INCENTIVES

pectively for the periods therein respectively stated.
(2) The option created by subsection (1) shall be

exercised before the date of production and, having been
exercised, shall not be capable of change:

Provided that an approved enterprise may, at any time
during the period of seven years referred to in section 11
or during the period of six years referred to in section 12,
surrender the right to benefits in regard to income tax and
elect to be assessed for income tax thereafter under the law
relating to income tax.

(3) Nothing in this Act shall affect any liability to
income tax incurred by an approved enterprise in respect
of profits made prior to the commenmment of the period of
relief defined in section 11 or section 12 or section 29 as 4/1967
the case may be.

(4) Notwithstanding anything in the law relating to
income tax an approved enterprise shall not, after it has
become an approved enterprise, be entitled to initial
allowances in respect of assets acquired prior to, or during,
the period of relief defined in section 11 or section 12 or 41,967

11. The first option referred to in section 10 shall, sub- $$&,

s. 4.

section 29 as the case may be. S. 4.

ject to the conditions specified in section 10 and in this sec-
tion and to the terms of any order made under subsection
(4) of section 3, comprise the relief from income tax follow-
ing, that is to say-

(a) relief from income tax for seven years from the
date of production in respect of profits or gains
earned from the manufacture of the approved
product;

(b) during the period for which relief from income
tax continues, annual allowances s h d not be
made but a notional depreciation of assets shall
be made at the approved rates within the meaning
of the law relating to income tax;

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9

10 INDUSTRIAL lNCENTIVES

(c) after the expiration of the said period of seven
years, annual allowances may be made upon the
original cost of the assets less the notional depre-
ciation for which provision is made in paragraph

(d) after the expiration of the said period of seven
years, an approved enterprise may, for the purpose
of the assessment of income tax, carry forward
in respect of the next succeeding six years of
assessment losses which have not been written off
incurred in the period during which the company
was an approved enterprise without takmg into
account any depreciation of assets.

(b);

Second 12. The second option referred to in section 10 shall,
subject to the conditions specified in section 10 and in this
section and to the terms of any order made under subsec-
tion (4) of section 3, comprise the relief from income tax
following, that is to say-

(a) relief from income tax in respect of profits or gains
earned from the manufacture of the approved
products for the first four years of a period of
six years from such date as the approved enter-
prise may select not being more than three years
from the date of production, income tax being
payable in respect of the remaining two years of
the said period of six years as follows-

(i) if the relief from income tax is total relief-
In respect of the 6fth year on 334% of

the chargeable income, before deduc-
tion of annual allowances,

In respect of the sixth year on 663% of
the chargeable income, before deduc-
tion of annual allowances;

(ii) if the relief from income tax is in respect of
one-half of the chargeable income-
In respect of the 6fth year on 663% of

optlon.

1211960
s. 3.

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INDUSTRIAL INCENTIVES

the whole of the chargeable income,
before deduction of annual allowances,

In respect of the sixth year on 83%% of
the whole of the chargeable income,
before deduction of annual allowances;

(b) prior to the commencement of the period of six
years referred to in paragraph (a) annual allow-
ances may be made but such allowances shall
cease to be made during the first four years of
the said period of six years;

(c) after the expiration of the first four years of the
said period of six years, annual allowances may
be made upon the original cost of the assets less
any annual allowances made in accordance with
paragraph (b);

(6) after the expiration of the said period of six years,
an approved enterprise may, for the purpose of
assessment of income tax, carry forward in respect
of the next succeeding six years of assessment
losses which have not been written off incurred
in the period during which the company was an
approved enterprise taking into account any
annual allowances made pursuant to paragraphs
(b) and (c).

13.-41) During the period of seven years referred to in
section 11 or the period of six years referred to in section
12 or the period of ten years referred to in section 29,
an approved enterprise shall place in a separate account
all profits or gains which have been relieved of income tax
in accordance with the provisions of section 11 or section
12 or section 29 and, if it intends to pay a dividend to its
shareholders out of such profits or gains, such dividend
shall be paid out of such account.

(2) Unless, pursuant to the proviso to section
38 (1) of the Income Tax Act, the Commissioner of Taxpayer

Dividends.
41 1967
S. 5 (a)
& @I.

L.N.
16511999.

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INDUSTRIAL INCENTIVES

1211985
Sch.

L.N.
16511999.

Audit and Assessment otherwise authorizes, income tax shall
be deducted by an approved enterprise which pays any dividend
pursuant to subsection (1) as if such dividend had been paid out
of profits or gains within the meaning of the provisions of the
law relating to income tax as regards the deduction of tax by a
company on the payment of a dividend by that company.

(3) An approved enterprise making deductions of
income tax pursuant to subsection (2) shall be deemed to
be collecting income tax on behalf of the Commissioner
of Inland Revenue and shall pay to the Commissioner of
Inland Revenue or to such person as he may direct the
amounts so deducted.

(4) A shareholder to whom a dividend is paid pur-
suant to subsection (1) shall be exempt from income tax
in respect thereof if he is-

(a) a resident in the Island; or

(b) if not so resident, is not liable to income tax in
respect of such dividend in the country in which
he is resident:

Provided that the exemption from income tax created by
this subsection shall not exceed, as regards the rate of the
tax from which the shareholder is relieved, the rate of the
tax which would, but for the provisions of this Part, have
been paid by the company on the profits out of which
the dividend is paid.

(5) Where a shareholder to whom a dividend is paid
pursuant to subsection (1) is not resident in the Island and
is liable to income tax in respect of the dividend in the
country in which he is resident, he shall be exempt from
so much of the income tax in respect of that dividend as the
Commissioner of Taxpayer Audit and Assessment is satisfied

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INDUSTRIAL INCENTIVES 13

exceeds his liability in respect of such dividend in the country
in which he is resident :

Provided that the exemption from income tax created
by this subsection shall not exceed, as regards the rate of 2 3 1 ~ ~
the tax from which the shareholder is relieved, the rate of
the tax which would, but for the provisions of this Part,
have been paid by the company on the profits out of which
the dividend is paid.

S. 3 (2) (bL

(6) Save as is otherwise provided in this Part, the
provisions of the law relating to income tax in regard to
the deduction of income tax from dividends and the refund
of income tax to shareholders shall apply to dividends paid
by an approved enterprise pursuant to subsection (1). 2311972

S. 3 (2) (bX

14.-(1) The Minister may, on the application of an orderunder
&on 4 approved enterprise, revoke the order made under sec- m,y bc

tion 4 by which the company became an approved enter- T,:?
prise and, upon such revocation, nothing in this Act shall s. 6 (I).
prevent the company from being granted any special treat-
ment granted pursuant to any of the enactments specified
in the-First schedule. Firm

Schedule

(2) Where any company which is an approved enter- 41196’1
S. 6 (a). prise fails or neglects to commence to manufacture a rele-

vant approved product in marketable quantities on OT be-
fore the date of production, the Miniiter may, by notice
in writing, require such company, within thirty days of
receipt of such notice, to establish to the satisfaction of
the Minister that-

(a) the failure or neglect to commence to manufacture
that approved product in marketable quantities
as aforesaid was due to some cause beyond the
control of the company; and -
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RL-25

14 INDUSTRIAL INCENTIVES

(b) there is a reasonable prospect of that company
commencing to manufacture that approved pro-
duct in marketable quantities within such time as
the Minister may consider to be reasonable,

and if the company fails to satisfy the Minister accordingly
the Minister, if he considers it expedient so to do, may, by
order, terminate the approval of that company in relation
to that product either by amending or revoking, as the
case may require, the order under section 4 by which the
company became an approved enterprise in relation to that
approved product.

4/1967
S. 6 (b).

(3) Where the Minister is satisfied that any repre-
sentations made by or on behalf of a company to him or
to the Jamaica Industrial Development Corporation in con-
nection with the application of that company to be declared
an approved enterprise in relation to an approved product
were false in any material particular or were made with
intent to deceive or were otherwise not made in good faith
and that such representations substantiaily influenced the
decision to declare that company an approved enterprise
in relation to that product the Minister may, by notice in
writing, require such company, within thirty days of receipt
of such notice, to show cause to the satisfaction of the
Minister why the order under section 4 by which the com-
pany became an approved enterprise in relation to that
product should not be revoked or amended so as to ter-
minate the approval of that company in relation to that
product and, if the company fails to show cause accord-
ingly, the Minister may, if he considers it expedient so to
do and after consultation with the Jamaica Industrial
Development Corporation, by order, revoke or amend
accordingly the order made under section 4 by which the
company became an approved enterprise in relation to that
approved product.

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INDUSTRlAL 1NCENTlVE.S 15

(4) Upon the coming into force of an order made 411967
E. 6 a). pursuant to subsection (2) or subsection (3)-

(U) the company to which the order relates shall, as
respects the approved product to which the order
relates, cease to be an approved enterprise for the
purposes of this Act but without prejudice to the
continued operation of section 16 and section 17;
and

(b) without prejudice to the continued operation of
section 19, the factory premises of that company
shall, as respects that product, cease to be factory
premises for the purposes of this Act.

(5) In this section “relevant approved product”, in 4/1961
S. 6 (b). relation to any approved enterprise, means an approved

product in relation to which such approved enterprise has
been declared under section 4 to be an approved enterprise.

PART III. Benefits in respect of customs dulies
avzd general consumption tax 16/1991

s. 64.
%-(I) In an order made under subsection (1) of section R e l k f h

cu4tom 3 the Minister may declare that all approved enterprises dWiwaQkI
manufacturing the approved product referred to in such gIw1
order shall be entitled to one hundred per centurn or fifty S. 64.
per cenfum of the benefits in respect of customs duties and 16/199,

(2) If a declaration of the kind indicated in sub-
section (1) is not made by the order made under subsection
( I ) of section 3 declaring a product to be an approved pro-
duct, the Minister may, by a subsequent order, make such
a declaration.

(3) If an order has been made pursuant either to
subsection (1) or to subsection (2), every approved enter-
prise to which such order applies shall be entitled to import

general consumption tax created by this Part. s. 64.

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16 INDUSTRIAL INCENTIVES

into the Island, during such time as it may continue to
be an approved enterprise, any of the articles specified in
the Second Schedule with the benefit in respect of cus-
toms duty and general consumption tax, if the approved
enterprise satisfies the Cmmsioner of Customs that such
articles are imported for the construction, alteration, recon-
struction or extension of the factory premises specified in an
order made under section 4 or for equipping such faotory
premises or any extension thereof used or intended to be
used for the manufacture by the approved enterprise of the
approved product, but no articles shall be imported with any
benefit in respect of customs duty and general consumption
tax undar this section if the Commissioner of Customs i s
of the opinion that such articles are intended for the purpose
of effecting repairs to the factory or 'to any extension thereof,
or to any apparatus, machinery, appliances or equipment
contained in the factory or any extension thereof or for
replaoing any apparatus, machinery, appliances or equipmat
in the factory or any extension thereof.

Seoond

12/1985

16/1991
s 64.
1a5/im.

Schcdulc

sch

LN

12/1985

16/1991

165/1999.

scb.

s. 64.
L.N.

11/1%0
5. 5.

(4) For the purpose,^ of this section-

(a) articles for equipping factory premises (or any
extension thereof) shall be deemed to include
equipment for offices and other ancillary facilities
necessary for the proper administration of the
factory premises (or any extension thereof) and for
the health, safety, hygiene and welfare at the fac-
tory premises (or any extension thereof) of penmm
there employed; and

(b) an approved enterprise which, during the period
from the date of application to be declared an
approved enterprise to the date on which the
declaration is made, imports any article to which
me inclusion of nhis page is authorized by L.N. 3/2Mll]

INDUSTRIAL INCENTIVES

subsection (3) relates, shall be regarded as having
been an approved enterprise with effect from the
first date during that period on which it imported
any such article as aforesaid.

17

(5) The Minister may from time to time, by order,

(U) by deleting therefrom any article bejng manufac-
tured in Jamaica, if the Minister is satisfied that
such article manufactured as aforesaid is available
in a quantity sufficient to meet the demand there-
for and is of a quality and is sold at a price
reasonably comparable with the quality and price
of similar articles not manufactured in the Island;
or

(b) by adding any article thereto.

Second amend the Second S c h e d u l e Schedule.

16. Every approved enterprise which imprts into the E+C&I~IO
Island any article with any benefit in respect of customs daring to
duty and general consumption tax under the provisions of gg:e:,
section 15 shall, upon being required to do so by the Com- f- of

(a) keep such record in such form and containing such %!%5
particulars as may be required by the Commis- 16/19al
sioner of Customs of the articles so imported by tz

(b) cause such articles to be marked with such mark
and in such manner as may be required by the
Commissioner of Customs; and

(c) permit the C o d s i o n e r of Customs or any person
authorized by him at all reasonable times to insped
such record and to have access to any factory,
warehouse or other premises under its control for
the purpose of examining any such articles which
the Commissioner of Custom may believe to be t;y;1999,
tberein and of satisfying himself of the accuracy

ViSiOOa

customs missioner of Customs- duty
m d tar.

him; and 165/ 1999.

LN.
165/1999.

[lk inclusion of this page is authorized by L.N. 312W11

18 INDUSTRIAL INCENTIVES

Restriction
upon dis-
position 01
articles im.
porfed free
of CUStOrnS
duty and
tax.
16/1991
S. 64.

12/19#5
kb.
L.N.
I65l1999.
16/1991
S. 64.

of the particulars in relation to such articles con-
tained in such record.

17. No article imported into the Island by an approved
enterprise with any benefit in respect of customs duty
and general consumption tax under the provisions of this
Act shall be used for purposes other than the manufacture
of the approved product or sold, given away or otherwise
disposed of by such enterprise except-

(a) in the case of an assignment of the factory for the
purpose of which such article was imported into
the Island, to the assignee of such factory; or

(b) upon the approved enterprise paying or giving
security to the satisfaction of the Commissioner of
Customs for the payment of an amount equivalent
to the amount of customs duty and general con-
sumption tax which would have been payable upon
the importation of such article but for the pro-
visions of this Act; or

(d after the expiration of five years from the date
of the importation into the Island of such article.

when 18. An approved enterprise shall cease to be an approved
enterprise enterprise for the purpose of this Part at the expiration
. n a p p r o v ~ or sooner determination of the period of seven years re-
for pu~. ferred to in section 11 or of the period of six years referred

of to in section 12 or of the period of ten years referred to
4/1967 in section 29, as the case may be.

Rcrtriction 19,--(1) Subject to the provisions of subsection (9, no
f.clo,ry factory premises in respect of which benefits under Part IIJ
prcmisen. have been enjoyed, whether they are still being used for
s. 6. the manufacture of an approved product by an approved

enterprise or not shall, without the prior approval of the
Minister, be used at any time within ten years from the
date declared by an order made under section 4 to be the
date on which production is deemed to begin for any other

80 approved

ccnsca to be

enterprise

Part I l l .

6. 7.

on use of

1211960

~~~~ ~~ - ~~
[The inclusion of this page is authorized by L.N. 3/2001]

INDUSTRIAL INCENTIVES 19

purposes than those of the manufacture of an approved
product by an approved enterprise:

Provided that the Minister may, as a condition for the
grant of his Consent, require that all the sums, or in his
discretion any part of such sums which but for the provi-
sions of this Part would have been payable as customs duty
on the importation of any articles used in the construction,
alteration, reconstruction, extension or equipping of the fac- ;fB5
tory premises shall be paid to the Commissioner of Customs. L.N.

(2) Any person using, or permitting another person
to use, any such factory in contravention of the provisions
of subsection (1) shall be guilty of an offence and on sum-
mary conviction before a Resident Magistrate shall be liable
to a fine not exceeding two hundred dollars and in default
of payment to imprisonment for a term not exceeding six
months and in the case of a continuing offence to a further
fine of one hundred dollars in respect of each day during
which the offence continues.

1651 1999.

(3) The provisions of this section shall not apply to
any factory premises which have ceased to be used for the
manufacture of an approved product by an approved enter-
prise if all the sums which but for the provisions of section
15 would have been payable as customs duty on the
importation of any articles for the construction, alteration,
reconstruction or extension of such premises or for equip
ping such premises or any extension thereof for the purpose
of manufacturing the approved product have been paid.

P ~ T lV. Miw&meous
213. Nothing in this Act shall exempt an approved adfla.

enterprise from making any return to the Commissioner of L.N.
Inland Revenue or frm canplying with the law relating to 165/1999,
income tax in any other respect so as to establish the
-

F e inclusioi of *hihis page i s authorized by L.N. 3/2001]

20 INDUSTRIAL INCENTIVES

liability, if any, of the approved enterprise to income tax
nor from complying with the law relating to the collection
of customs duties and general consumption tax so as to
establish the liability, if any, of the approved enterprise. to
customs duties and to such tax.

12/1985

16/1991
S. 64.

I 6 / l w 1

sm.

S. 64.

Pmdtia. 2 1 . 4 1 ) The provisions of section 99 of the Income Tax
Act shall apply to any false statement or representa-
tion made or any false return delivered or any false accounts
kept or prepared with reference to any of the benefits
created by Part I1 as if such false statement or representa-
tion had been made or such false return had been delivered
or such false accounts had been kept or prepared with
reference to income tax or profits or gains chargeable under
the Income Tax Act.

(2) Every approved enterprise which contravenes the
provisions of section 16 and every director, manager, agent
and officer of the approved enterprise who is knowingly a
party to the contravention shall be guilty of an offence and
on summary conviction thereof before a Resident Magis-
trate shall be liable to a fine not exceeding one thousand
dollars and, in default thereof, every such director, manager,
agent or officer shall be liable to be imprisoned for a term
not exceeding twelve months.

(3) Every approved enterprise which contravenes the
provisions of section 17 and every director, manager, agent
and officer of the approved enterprise who is knowingly a
party to the contravention shall be liable to a penalty of
three times the value of the article in respect of which the
contravention occurred and, in default of payment, every
such director, manager, agent or officer shall be liable to be
imprisoned for a term not exceeding twelve months.

[The inclusion of this page is authorized by L.N. 3/uw)ll

INDUSTRIAL INCENTlVES 21

22. For the purpose of assessment to income tax, either Ponrerot
at the full or, in virtue of the provisions of this Act, at E!:
a reduced rate, of the chargeable income of a company :;msp
which is, or has been, an approved enterprise, the Corn- tobatem-
missioner of Taxpayer Audit and Assessment m y refuse to nesim

an expense incurred by the company in a paFticular year of
assessment which is shown by the company in its accounts particular
as payable, paid or incurred, as h e case may be, in that year n-t.
of assessment on the ground that such an amount relates to %;,W.
a transaction entered into by the company, otherwise than
in the normal course of business, with the object either
of inflating its profits or gains in a year of assessment in
which its profits or gains were, in virtue of the provisions
of this Act, either wholly or partially relieved of income
tax or with the object of artificially reducing its profits
or gains in a year of assessment in which its profits or
gains are not, in virtue of the provisions of this Act, wholly
relieved from income tax.

Iain

accept an amount as payable or paid to the company or as and my-

yur of

Commit- 23. Notwithstanding the provisions of section 4 of the uoocr . or
Income Tax Act, it shall be lawful for the Commis- :=&?
sioner of Inland Revenue to cedify in such form as may be toiasuo,
prescribed the benefits enjoyed by an approved enterprise mB
under the provisions of this Act in order that such certificate dfy
may be produced by the approved enterprise to the fiscal
authorities of any other country in which the approved LN.
enterprise may be liable to suffer taxation.

attiaclta
bcnoe

16511999.

24. The Minister may make regulations in regard to- RwI1.tion
(a) any matters required by this Act to be prescribed,
(6) the adjustment of profits or gains when the :!:%’

accounting period of an approved enterprise falls
partly within and partly outside-
- me inclusion of bhis page is authorized by L.N. 3/2001]

22 INDUSTRlAL INCENTIVES

(i) the period of seven years or six years under
section 11 or section 12, as the case may be;
or

(ii) the period of ten years under section 29,
during which relief in respect of income tax is
enjoyed pursuant to this Act;

(c) the adjustment of profits and gains, including the
adjustment of allowances and carrying forward of
losses, when a company was at the time that it
became an approved enterprise, already engaged
in business;

(d) model clauses to be included in orders or any class
thereof pursuant to section 8 (but without prejudice
to the Minister’s discretion in that behalf);

(e) any other matter or thmg, whether similar to the
above or not, in respect of which it may be
expedient to make regulations for the purpose of
Carrying this Act into effect.

PART V. Modification of this Act in relation to i t e m
specified in the Third Schedule

25. Notwithstanding any other provisions of this Act,
in the case of a company declared to be an approved enter-
prise in relation to an approved product being an item
specified in the Third Schedule the period o€ relief from
customs duties and income tax permitted under this Act
shall not exceed seven years and only the fist option
referred to in section 10 (that is to say, the reliefs from
income tax de6ned in section 11) shall be available to such
company.

5611974 s. 5.

5611974 s. 5.

511965 s 3.

IdOMca-
Lion of
this A d
in relation
!o mrtain
ItemS.
Third
S c h d U l C .

Amendment

SCMJC.

26. The Minister may from time to t h e , by order,
amend the Third Schedule :

Provided that where any order under this section removes
any item from that Schedule such removal shall not affect

of Third

[The inclusion of this page is authorized by L.N. 3120011

INDUSTRIAL INCENTlVES 23

the validity or continuance of anything done or entered into
or any approval given before the coming into operation
of the order.

PART VI. Incentives applicable to products declared :!:67
on or after 28th May, 1963

27.41) In this Part-
“new product” means-

Intuprr
lrtion of
this Part.

(a) a product which is, pursuant to section 3,
declared an approved product on or after the
28th day of May, 1963; or

(b) a product which was, pursuant to section 3,
declared an approved product prior to the
28th day of May, 1963, and which the Minister
declares to be a new product pursuant to sub-
section (2) of this section;

“income tax” has the same meaning as that ascribed to

(2) The Minister may by order declare an approved
product to be a new product if he is satisfied that companies
approved under section 4 to manufacture that product
(whether or not companies to which this Part applies) are
not exploiting the market potential of the product.

(3) For the purposes of subsection (2) companies
therein specified shall be regarded as not exploiting the
market potential of a product if, having regard to such
information as is reasonably available, the Minister is satis-
fied that less than twenty per centurn of the market in
Jamaica for that product is being supplied by such com-
panies.

it by section 9.

28. This Part shall apply to any company which- Applica-
(a) on or after the 28th day of May, 1963, is, pursuant thispart.

to an order under section 4, declared to be an
tion of

me inclusion of this page is authorized by LN. 480/19731

24 INDUSTRIAL lNCENTlVE.3

approved enterprise in relation to a new product;
or

Ih) at the date of the coming into force of an order
made pursuant to subsection (2) of section 27 is
an approved enterprise in relation to the manufac-
ture of a product declared by that order to be a
new product and at that date is engaged in the
manufacture of that product on terms which
attract relief from income tax pursuant to para-
graph (U) of section 11 or paragraph (U) of section
12, as the case may be.

Tax relief
in relation
to manu-

facture of new
pmduct.

29.-(1) Notwithstanding any other provision of this Act,
in lieu of the relief from income tax permitted pursuant
to subsections (1) and (2) of section 10 and either section 11
or section 12, an approved enterprise to which this Part
applies shall, subject to the provisions of subsection (2), be
entitled to the following relief from income tax, that is
to say-

(U) relief from income tax in respect of profits or gains
earned from the manufacture of the new product
for a period of ten years commencing-

(i) in the case of an approved enterprise which
pursuant to the exercise of an option under
section 10 is enjoying benefits under section
12, from the date selected for the com-
mencement of income tax relief pursuant to
paragraph (a) of section 12;

(ii) in any other case, from the date of produc-
tion applicable to the approved enterprise
pursuant to section 4;

(b) prior to the commencement of the period of ten
years referred to in paragraph (a) annual allow-
ances may be made but such allowances shall cease
to be made during the said period of ten years;

m e indusion of this page is autharivd by LN. 480/1973]

INDUSTRIAL INCENTl YES

(c) after the expiration of the said period of ten years
annual allowances may be made upon the original
cost of the assets less any annual allowances made
in accordance with paragraph (b);

(d) after the expiration of the said period of ten years
the approved enterprise may, for the purpose of
assessment of income tax, carry forward in respect
of the next succeeding six years of assessment
losses which have not been written off incurred
during the period of ten years aforesaid.

(2) An approved enterprise to which this Part applies
may at any time during the period of ten years referred to
in subsection (1) surrender the right to benefit in regard
to income tax and elect to be assessed for income tax
thereafter under the law relating to income tax.

25

.-
F inclusion of this page is mtbrized ,by L.N. 41119873

26 INDUSTRIAL LNCENTlVES

FIRST SCHEDULE (section n
The Hotels (Incentives) Act
The Motion Picture Industry (Facouragement) Act

SECOND SCHEDULE (Section 15)
All building materials. tools. plant, machinery, pipes. pumps, con-

veyor belts 01 other appliances and materials necessary for and used
in amstruction, alteration and extension of the factory premises spai-
tied in an order made under section 4 of this Act or for equipping such
factory premises or any extension thereof used or intended to be used
for the manufacture by the approved enterprise of the approved pro-
duct.

111965
a~ 4. THZRD SCHEDULE(Wms 2,25 and 26) Prescribed items which may be declared approved products

under this Act
Tropical aquarium fishes.

L.N. , Oysters.
Mushrooms. 36911971

LN. CNShCCaIlS.
'7011S71 L.N.
10511972
L.N.
55/1973

Glywprotein and other products derived from the, fruit and other
prts of the Synsepalum Dulcificum tree.