Land Development Duty Act

Link to law: http://www.moj.gov.jm/laws/land-development-duty-act-0

L A N D DEVELOPMENT DUTY

THE LAND DEVELOPMENT DUTY ACT

REGULATIONS
(under section 31)

The Land Development Duty Regulations, 1960

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L A N D DEVELOPMENT DUTY

THE LAND DEVELOPMENT DUTY ACT

REGULATIONS
(under section 31)

(Made by the Goverr-aor in Council under the above section and L.N. 45/60
by virtue of section 9 of the Jamaica (Constitution) Order in

Council, 1959 on the 13th day of March, 1960)

1. These Regulations may be cited as the Land Development Duty short title.
Regulations, 1960.

2. In these Regulations, "Commissioner" means the Commissioner internre-
of Income Tax. tatlon.

CapitaE Gains Duty

3.-(1) Any person who sells or agrees to sell the fee simple in any NotiRcption
of sale or land situated in a special development area shall forthwith notify the agreement

Commissioner of such sale or agreement to sell. to sell.

(2) Any person who, without reasonable cause, fails to comply
with the provisions of paragraph (I) shall be guilty of an offence against
these Regulations.

4.-(1) The transferor on sale of the fee simple of any land in a Returnof
special development area shall, within three months of such transfer, %!p"&!
make and deliver to the Commissioner in Form A in the Schedule ,"r'
a return of any capital gain arising from such transfer.

Form A.

(2) The return required under paragraph (I) shall be accompanied
by the instrument by means of which the transfer is effected or agreed
to be effected, or reasonable particulars thereof.

5.-(1) Subject to the provisions of paragraph (3), the Commissioner
shall proceed to assess the amount of capital gains duty payable by Of
every person as soon as may be after delivery of the return required
to be made pursuant to regulation 4.

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

Notice of
assesunent.

Presentation
of
instru-

Note to be
made on
instrument
by Com-
missioner.

(2) Where a person has delivered a return of capital gains the
Commissionar may-

(a) accept the return and assess the duty accordingly; or

( b ) refuse to accept the return and, according to the best of his
judgment, determine the amount at which that person ought
to be charged and assess him accordingly.

(3) Where a person has not delivered a return and the Commis-
sioner is of the opinion that that person is liable to pay capital gains
duty, he may, according to the best of his judgment, make an assessment
upon that person of the amount at which he ought to be charged, but
such assessment shall not affect any liability otherwise incurred by that
person by reason of his failure or neglect to delivm a return.

6. The Cornmissioner shall cause to be sewed upon each person
assessed a notice stating the amount of capital gains assessed and the
amount of capital gains duty payable thereon, and informing the person
of his right under regulation 18.

7. If the return made pursuant to regulation 4 is not accompanied
by the instrument by means of which the transfer is effected or agreed
to be effected, the person assessed shall, upon receipt of the notice of
assessment, present such instrument to the Commissioner to be noted
in accordance with the provisions of regulation 8.

8.-(1) The Commissionex shall upon receipt of the instrument by
means of which the transfer is effected or agreed to be effected, as the
case may be, indicate thereon-

(a) the amount of capital gains duty payable; or
( b ) that no capital gains duty is payable as may be appropriate

in the circumstances of the case.

(2) Where the instrument by means of which the transfer is
effected or agreed to be effected, as the case may be, is, before comple-
tion of the assessment by the Commissioner, required for use by the
person submitting such instrument the Commissioner may--

(a) indicate thereon, if such is the case, that he is satisfied that
all particulars have been delivered to him which in his opinion
are necessary for the purpose of the assessment of capital
gains duty; and

(6 ) if he thinks fit, require that security be given to him for the
payment of such duty.

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THE LAND DEVELOPMENT DUTY REGULA TZONS, 1960

(3) Where the consideration for any transfer or proposed transfer
takes the form of instalment payments the Commissioner shall determine
and fix the amount and time of payment of each instalment of capital
gains duty and shall indicate on the instrument the amount and times
so fixed.

9. Any duty assessed by the Commissioner on capital gains shall be Payment of
payable by the transferor to the Commissioner of Stamp Duties who duty.

shall, on presentation to him of the instrument by means of which the
transfer is effected or agreed to be effected, as the case may be, stamp
such instrument pursuant to subsection (3) of section 8 of the Act in
accordance with the direction of the Commissioner under regulation 8: ,

\

Provided that no such instrument shall be stamped in accordance
with paragraph (2) of regulation 8 unless the Comn~issioner indicates
thereon either that he does not require security for payment of the duty
or that the security required by him has been given.

10. Where in accordance with the provisions of subsection (6) of Refund of
duty where section 8 of the Act, any transferor applies to the Commissioner for a transaction

refund to him of duty paid in respect of a transaction which was not abortive.

subsequently carried into effect, he shall furnish to the Commissioner
the particulars set out in Form B in the Schedule and such other in- ~ o r m B.
formation as the Commissioner may require.

Betterment Charge

11. The return required by subsection (2) of section 13 of the Act Returnof
improved

to be made by every person liable to pay betterment charge shall be value.
made to the Commissioner in Form C in the Schedule. F O ~ c.

12.-(1) Where a person has delivered a return of the improved A~~~~~~~~~
value of land in a special development area the Commissioner may $Z,"b'&
accept the return and make an assessment accordingly or he may refuse
to accept the return and, to the best of his judgment, make an assess-
ment upon that person of the amount at which he ought to be charged.

(2) Where a person has not delivered a return and the Commis-
sionm is of the opinion that such person is liable to pay betterment
charge, he may, according to the best of his judgment, make an assess-
ment upon such person of the amount at which he ought to be charged.
but such assessment shall not affect any liability otherwise incurred
by that person by reason of his failure or neglect to deliver a return. -

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T H E L A N D DEVELOPMENT D U T Y REGULATIONS, 1960

Lists of - -. - -
persons
llable for
betterment
charge.

Form D.

Notice of

Payment of
betterment
charge.

13.-(1) After completing the assessment of betterment chacge
payable in respect of any land in a special development area, the Com-
missioner shall prepare lists of persons liable to pay the charge and
such lists shall contain the names and addresses of the persons liable to
pay such betterment charge and the amount payable by each person.

(2) Subject to paragraph (4) the Commissioner shall forward
to the Collector General for collection of betterment charge extracts
from the assessment lists in Form D in the Schedule, and such extracts
shall contain the names and addresses of every person liable to pay
betterment charge togethar with the amount of the charge payable by
each such person.

(3) The production of an extract from the assessment lists shall
be sufficient evidence that any person named in such extract is liable
to pay the amount of betterment charge specified therein in relation to
that person's name, and any document purporting to be such an extract
as aforesaid shall be deemed to be such extract until the contrary is
proved.

(4) Where any person has appealed to the Revenue Court firom
any assessment the name of that person shall not be included in any
assessment list until the Revenue Court has determined the amount of
betterment charge (if any) payable by that person.

14. The Commissioner shall cause to be served on each person whose
name appears on the assessment list, a notice in Form E in the Schedule
stating the amount at which he is assessed and the amount of betterment
charge payable by him, and informing him of his right under regulation
18.

15. Payment of betterment charge shall be made to the Collector of
Taxes for the parish in which is payable the property tax on the land
to which the charge relates.

16.-(1) Payment of betterment charge may be made in equal annual
instalments over a period of five years or may be made in a single
payment.

(2) Where payment of betterment charge is made in a single
payment within six months from the date when it becomes due and
payable there shall be allowed to the person charged with such pay-
ment a rebate of a sum equal to five per centum of the amount of the
charge.
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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

(3) Where payment of bettarment charge is being made by
annual instalments the following provisions shall have effect in relation
thereto-

(a) the provisions of the Tax Collection Act which permit pay-
ment to be made in moieties or quarterly, as the case may be,
shall apply with the necessary modifications to each annual
payment;

(bj if any moiety or quarterly instalment as the case may be
remains unpaid for a space of thirty days after such moiety
or quarterly instalment falls due, the total outstanding amount
of the annual payment shall forthwith become due and
payable;

(c) if any annual payment remains unpaid for a period of twelve
months after such annual payment falls due, the total out-
standing amount of the betterment charge shall forthwith
become due and payable;

(6) the person charged with the payment may at any time pay
in one sum the amount of betterment charge which is out-
standing at that time and such person shall be allowed a
rebate of a sum equal to five per centum of any amount paid
in advance of the date when it would have become due.

General

17. Where for the purposes of the Act any valuation has been made Noriceof
of land in a special development area notice of valuation in writing E'i$2tE
shall be given by the Commissioner of Valuations to the person in ;=%%.
possession of the land and such notice shall state that any person dis-
satisfied with the valuation may lodge with the Commissioner of
Valuations an objection to the valuation within thirty days after service
of the notice of valuation.

18. If any person disputes the assessment of capital gains duty or Disputeof
duty or

betterment charge he may, by notice of objection in writing, apply to charge.
the Commissioner to review and revise the assessment made upon him.
Such application shall state precisely the grounds of objection to the
assessment and shall be made within thirty days from the date of service
of the notice of assessment :

Provided that the Commissioner, upon being satisfied that owing to
absence from the Island, sickness, or other reasonable cause, the person
disputing the assessment was prevented from making the application
within such period, may extend the period as may be reasonable in the
circumstances.

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8 THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

Particulars c
obiecdon
to assess-
ment.

Agreed
assessment.

Refund of
excess duty
or charge.

)f 19.--(I) On receipt of the notice of objection the Commissioner may
require the person giving the notice to furnish such particulars as the
Commissioner may think relevant to the assessment of capital gains
duty or betterment charge, as the case may be, and to produce all
books and other documents in his custody or under his control relating
thereto and the Commissioner may by notice summon any person whom
he thinks able to give evidence respecting the assessment to attend
before him and may examine such person upon oath or otherwise.

(2) Any person who without lawful excuse refuses or neglects to
attend or to give evidence in pursuance of a notice served on him under
paragraph (I), or to produce any books or documents which he is
required to produce under the said paragraph, or who refuses to answer
any lawful question touching the matters under consideration, or who
knowingly gives any false evidence before the Commissioner, shall be
guilty of an offence against these Regulations.

2041) Where a person who has objected to an assessment made
upon him agrees with the Commissioner as to the amount at which
he is liable to be assessed, the assessment shall be amended accordingly.
In any other event the Commissioner shall give notice in writing to the
person of his decision in respect of the objection.

(2) Where no valid objection to an assessment has been lodged
within the time limited by these Regulations or where the amount at
which a person is liable to be assessed has been agreed upon under
paragraph (1). or whme the assessment has been determined on objection
or appeal, such assessment as made or agreed to or determined on
objection or appeal, as the case may be, shall be final and conclusive as
regards the amount thereof :

Provided that nothing herein contained shall prevent the Commis-
sioner from making any refund under the piovi,sions of regulation 21
or any assessment which does not involve re-opening any matter which
has been determined on objection or appeal.

21,-(1) If it be proved to the satisfaction of the Commissioner that
any person has paid capital gains duty or betterment charge, as the
case may be, in excess of the amount with which he is properly charge-
able, such person shall be entitled to have the amount so paid in
excess refunded and the Commissioner shall make the refund accord-
ingly and in the case of capital gains duty shall note the amount of
such refund on the instrument which had been stamped in relation to
that capital gains duty.

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

(2) Any claim for repayment undm this regulation shall, in the
case of capital gains duty, be made within six years of the date on which
the duty first became due, and in the case of betterment charge, within
six years from the end of the valuation period to which the charge
relates.

(3) Except as regards sums repayable OR an objection or appeal.
no repayment shall be made to any person in respect of any assessment
made upon a person who has failed or neglected to deliver a return.
unless it is proved to the satisfaction of the Commissioner that such
failure or neglect did not proceed from any fraud ar wilful act or
omission on the part of such person.

(4) Any person who objects to the amount of any refund made
by the Commissioner may appeal to the Revenue Court in the same
manner as an appeal may be made against an assessment.

22. Save as is otherwise provided in regulation 17, where in any ~ o t i c w .
regulation notice in writing is required to be served upon any person
the provisions of section 26 of the Act shall apply to the giving and
service of such notice.

23.41) Any person guilty of an offence against these Regulations Psnalty,for
offences.

shall be liable on summary conviction before a Resident Magistrate to
a fine not exceeding fifty dollars or to imprisonment with hard labour
for a term not exceeding three months.

(2) Where a company is guilty of an offence against these
Regulations every director, manager, agent and officer of the company
in this Island who is knowingly a party to such offence shall be liable
to the penalties specified in paragraph (1).

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

SCHEDULF

C.G. 2 FORM A (Regulation 4(1) )

THE LAND DEVELOPMENT DUTY ACT

Capital Gains Duty

Valuation period the day of
to the day of

Return of Capital Gains

In pursuance of the provisions of the Land Development Duty Act, you are
required to make on this form a true and correct return of the capital gain
realised by you on the transfer on sale of the fee simple of land in the special
development area of ..................................... h n g the
valuation period referred to above.

.... Dated this.. ............................................ ..day of.. ........................ 19..
Commissioner of Income Tax,

Income Tax Department,
Kingston.

NOTE: The instrument by means of which the transfer was effected, or agreed
to be effected, should be attached to this form and sent along therewith.
Where such instrument is not available at the time of submission of
this return reasonable particulars thereof shodd be furnished.

Statement of Capital Gain

...
Name of development area.

Location of property Situation of property.
Date of transfer.

... Gross value of consideration ... ... S
Less

Value of growing crops, etc., deductible
by virtue of section 21 (1) (a) ... ... ... S

... Net value of consideration ... ... $
Less

(a) Improved value of the land at ... the specified base date $
(b) Any expenditure on the land of

a capital nature subsequent to
... ;the specified base date $
... (c) Legal expenses, etc. $ $

Capital gain ... $

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

DECLARATION WHICH MUST BE COMPLETED AND SIGNED

I declare that, to the best of my judgment and belief, in the foregoing
statement and In the mstrument (sent herewith) whereby the transfer was
effected or agreed to be effected-

(a) I have given a full, just and true return and particulars of the whole
of the capital gain whatsoever chargeable under the Land Develop-
ment Duty Act, according to the directions and regulations of the
said Act; and

( b ) all statements and declarations are true and correct.

Given under my hand this day of 19

If absent from the Island state the name and address of an agent residing,
in the Island.

..................................................... Name of Agent
Address of Agent ....................................................

FORM B (Regulation 10)

THE LAND DEVELOPMENT DUTY ACT

Information required on application for refunds under section 8(6)

(1) Date of transfer agreement.

(2) Value of consideration.

(3) Description of land.

(4) Special development area in respect of which duty was paid.

(5) Valuation period.

(6) Assessment number.

(7) Amount of duty paid.

(8) Date of payment.

(9) Name and address of payer.

(10) The stamped instrument ,or agreement of transfer in resoect of which
the duty was paid.

(11) The official receipt number, etc.

(12) (Any other information, document or thing which the Commissioner may
deem necessary in order to satisfy himself that the transaction in respect
of which the duty has been paid was not carried into execution. This
may include affidavits.)

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THE LAND DEVELOPMENT DUTY REGULATIONS, I960

B.C. 2 FORM C (Regulation 11)

THE LAND DEVELOPMENT DUTY ACT

BE~TERMENT CHARGE

DEVELOPMENT DATE.. .....................................

Valuation period the day of

to the day of

Return of Betterment
In pursuance of the provisions of the Land Development Duty Act, you are

required to make on this form a true and correct return of the amount on which
betterment charge is due and payable in respect of each parcel of land in your
possession on the development date referred to above in the special develop-
ment area of ............................................................... and in respect of the
valuation period the day of

19 to the day of 19

Dated this ................................................... day of ..................... 19 .........
Commissioner of Income Tax,

Kingston.

NOTE: If you have already made your return for this valuation period please
give the following particulars-

(a) location of property in respect of which return was made;
(b) business or other address from which return was made;
(c) date on which return was made.

(The rest of the form need not then be completed).

Statement of Betterment

Location of property

... ...
Improved value of land at
development date

Less :
(a) Improved value of land at speci-

fied base date

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

Value of consideration if land
purchased by you subsequent
to specified base date ... $

(b) Capital expenditul z incurred sub-
sequent to specified base date or
purchase ... S

Amount on which betterment ~harge is
assessed

NOTE: IF you were in possession jointly with any other person or persons
on the development date under reference kindly state the name and
address of such person or persons in the space provided hereunder-

Name. ........................................................................

.......................................... ...................... Address.. ..
Name. .............. . ................

Address. ....................................................................

Name.. ........................ .... .........................................
Address. ..................................................................

DECLARATION WHlCH MUST BE COMPLETED AND SIGNED

I declare that, to the bes: of my judgment and belief, in the foregoing
statement-

(a) I have given a full, just and true return and particulars of the whole
of the amount. on which betterment charge is due and payable under
this Act according to the directions and regulations of the said Act; and

(b) all statements and declarations are true and correct.

Given under lily hand this day of 19

..................................... B s s Address
....................................................................................
.............................................................. .Private Address

If absent from the Island state the name and address of an agent residing in the
Island.

Name of agent .........................................................
..................................................... Address of agent..

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

B.C. 4 FORM D (Regulation 13(2) )
........... THE LAND DEVELOPMENT DUTY ACT Extract No.

Valuation period the
For use in the Income Tax

Department day of

19 , to the day of Compared with
assessment list

19 . Cast
BETTERMENT CHARGE Sent Collector General

Extract from the assessmerit list
Betterment charge

payable on or before

Assessment notices
posted

For the special development area of ............................................................
con@.ining the names and addresscs of Every person assessed in respect of
betterment charge together with the amount of betterment charge payable by each
such person within the above special development area on the development date
of for valuation period the day of

19 , to the day of

Forwarded to the Collector General for collection of the said betterment
charge under the provisions of the Land Development Duty Act.

BETTERMENT CHARGE

Amount
of

Annual
Instalment

Receipt 1 No. of No. of
Receipt Book

Cause
of

Non-
collection

7

iyg: ires

I the undersigned Commissioner of Income Tax do hereby certify as correct
the foregoing extract from the assessment list for the aforesaid special develop-
ment area of amounting in the whole to the sum of

dollars cents

Betterment
Charge

Assessment taxed on
L1st ---

Given under my hand this day of 19 .
Commissioner of Income Tax

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THE LAND DEVELOPMENT DUTY REGULATIONS, 1960

FORM E (Regulation 14)
THE LAND DEVELOPMENT DUTY ACT

~ ~ M E N T CHARGE

Special development area of ........................................................................
Development date ....................................................................................
Valuation period the day of 19 t o t h e

day of 19

Notice o f Assessment under the Land Development Duty Act

................................................................................. Location of property
.............................................................. No. of assessment.

Of: .........................................................................................

TAKE NOTICE that assessment of betterment charge has been duly made
upon you by the Commissioner of Income Tax in respect of land in your
possession on the development date of .........................................................
in the special development area of ...............................................................
for the valuation period the day of 19 to

the day of 19 as follows-

Location of property
Improved value of land at development 16

date
Less :

(a) Improved value of land at speci-
fied base date

OR

Value of consideration if land
purchased by you subsequem to ... specified base date S

(b) Capital expenditure incurred sub-
sequent to specified base date or ... purchase S S

S S

Amount on which the better-
ment charae now due and pay- ... able

... Betterment charge S

N.B.-Re Notlce of Objaction to Aamwents and Apw14--(Scc Ovcduf.)

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THE LAND DEVELOPMENT DUTY REGULATIONS. 1960

OBJECTIONS TO ASSESSMENTS

If you dispute this assessment or any part thereof you may apply to the
Commissioner of Income Tax by notice of objection in writing to review and
to revise the assessment. Such notice must state precisely the grnunds of your
objection to the assessment and must be made within thirty days from the date
of the service of this notice upon you.

The Commissioner may, notwithstanding the lapse of the above period of
thirty days, extend such period for such time as may be reasonable in the
circumstances, if it is shown to his satisfaction that owing to absence from
the Island, sickness or other reasonable cause you were prevented from
making the objection within the aforesaid period of thirty days.

APPEALS

Any person who has disputed his assessment by notice of objection and
is dissatisfied with the decision of the Commissioner thereon, may give to the
Registrar of the Revenue Court, written notice of his intention to appeal against
such decision.

Notice of appeal must be given within thirty days of the date of receiving
the Commissioner's decision, and a copy of such notice must also be served
upon the Commissioner.

The total betterment charge on any notice of assessment must be paid
to the Collector of Taxes within the time stipulated by Regulations made
under the Act.

No further demand for payment will be made.

Ircome Tax Department,
Kingston.

Date.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
Commissioner of Income Tax

Ill10 hdusion of thb pago L authorlPd by L.N. 4119761
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