Income and Incorporation Tax Act (Montserrat)

Income and Incorporation Tax Act

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Income and Corporation Tax Act
CHAPTER 17.01
INCOME AND CORPORATION TAX ACT
ARRANGEMENT OF SECTIONS
PART 1
PRELIMINARY
SECTION
1. Short title
2. Interpretation
PART 2
IMPOSITION OF INCOME TAX
3. Charge of income tax
4. Basis of assessment
5. Surcharge
PART 3
EXEMPTIONS
6. Exemptions
7. Exemption: interest from housing loans
8. Exemption: interest paid on certain loans
9. Government loans
10. Relief to hotel proprietors from income tax
11. Relief to pioneer industries from income tax
12. Exemption of international business companies
PART 4
COMPUTATION OF CHARGEABLE INCOME
13. Deductions allowed
14. Restriction on deductions: management charges
15. Special deductions for capital expenditure
16. Deductions not to be allowed
17. Allowances for losses
18. Insurance and shipping Companies
19. Trading by non-residents
20. Pensions and superannuation funds
21. Books of account to be kept

PART 5
PERSONS ASSESSABLE
22. Married women
23. Deceased person
24. Partnerships
25. Chargeability of trustees etc.
26. Chargeability of agent of person residing out of Montserrat
27. Acts etc. to be done by trustees
28. Agents etc., of non-residents to be assessed
29. Indemnification of representative
30. Income derived from property transferred to minors
31. Income of property transferred in trust to be income of transferor in certain cases
32. Dispositions for short periods
33. Apportionment of profits of certain companies among members
PART 6
PERSONAL ALLOWANCES
34. General deduction
35. Deduction for mortgage interest paid on residential property
PART 7
RATES OF TAX, ETC.
36. Rates of tax
37. Rates of tax on companies, etc.
38. Tax to be deducted from certain payments
39. Deduction of tax from Government stock
40. Deduction of tax from payments made to non-residents
PART 8
ADMINISTRATION
41. Appointment of administrative authority
42. Official secrecy
43. Making rules
44. Forms
45. Signature on notices
46. Service of notices
47. Refusal or neglect to accept letters
48. Assessment not void by reason of errors

49. Time limits
PART 9
RETURNS AND ASSESSMENTS
50. Return of personal income
51. Returns by employers
52. Official information and official secrecy
53. Power of Comptroller to require accounts and returns
54. List to be prepared by representative or agent
55. Returns of interest
56. Manager of corporate bodies of persons
57. Comptroller to make assessments
58. Transactions designed to avoid liability to tax
59. Appointment of agent in the United Kingdom
60. Omissions and undercharges to be rectified
61. Audit and ancillary powers
62. Attorney-clients privilege
63. List of persons assessed
64. Notices to be served on persons assessed
65. Relief in respect of error or mistake
PART10
OBJECTIONS AND APPEALS
66. Revision of assessment and re-assessment
67. Objections to revised assessments
68. Appeals to High Court
69. Appeals to Court of Appeal
PART 11
COLLECTION AND RECOVERY OF TAX
70. Collection of tax
71. Deduction on payment of emoluments
72. When tax deducted from payments to non-residents is due and payable
73. Definition of emoluments for purposes of section 71
74. Tax in arrears
75. Penalty for non-payment of tax
76. Recovery of tax by levy on goods etc
77. Priority of claim for tax
78. Sale by tax authorities

79. Commission to Bailiff
80. Committal to prison
81. Recovery of tax from and assessment of persons leaving Montserrat
82. Repayment of tax
83. Power to remit tax
84. Write-off of losses, etc.
PART 12
PENALTIES
85. Penalty for offences
86. Penalty for incorrect returns
87. Penalty for false statements and returns
88. Time limit for proceedings
89. Savings for criminal proceedings
90. Power of Director of Public Prosecutions to conduct proceedings
PART 13
DOUBLE TAXATION RELIEF
91. Relief for tax paid in the Commonwealth
92. Double taxation arrangements
93. Tax credits
94. Time limit for claims
95. Adjustment of tax deducted from dividends and set-off
SCHEDULE 1: Deduction of Tax from Payments to Non-Residents
SCHEDULE 2: Rates of Tax
SCHEDULE 3: Rates of Tax on Pensions

CHAPTER 17.01
INCOME AND CORPORATION TAX ACT
(Acts 19 of 1967, 24 of 1968, 14 of 1969, 6 of 1975, 35 of 1975,
9 of 1976, 17 of 1976, 19 of 1980, 2 of 1986, 5 of 1991, 3 of 1994,
13 of 1995, 8 of 1998, 8 of 1999, 3 and 10 of 2005, 11 of 2007,
9 of 2011 and 21 of 2011)
AN ACT TO IMPOSE A TAX ON INCOMES AND TO REGULATE THE COLLECTION
THEREOF.
Commencement
[1 January 1968]
PART 1
PRELIMINARY
Short title
1. This Act may be cited as the Income and Corporation Tax Act.1
Interpretation
2. In this Act, unless the context otherwise requires—
“body of persons” means any body politic, corporate or collegiate and any company, fraternity, fellowship or society of persons whether corporate or not corporate;
“capital expenditure” means the net expenditure after deducting any grants, subsidies or other payments received from third parties on account of the gross expenditure;
“chargeable income” means the aggregate amount of the income of any person from the sources specified in section 3 remaining after allowing the appropriate deductions and exemptions under this Act;
“commercial building” means a building constructed wholly or substantially for the purposes of providing premises for the establishment of a trade, business or profession with or without habitable domestic accommodation, or a building the use of which has been materially changed within the meaning of “development” in the Physical Planning Act, and which is accepted as such a building by the Comptroller;
“Commissioners” means the Commissioners of Income and Corporation Tax appointed under section 41;
1 (Substituted by Act 11 of 2007)

“the Commonwealth” shall be deemed to include those territories and their dependencies which are prescribed;
“Commonwealth Income Tax” means any income tax charged under any law in force in any part of the Commonwealth other than the United Kingdom;
“Company” means any company incorporated or registered under any law in force in Montserrat or any company incorporated or registered outside Montserrat;
“Comptroller” means the Comptroller of Inland Revenue appointed under section 41 and includes any officer acting for or deputed by him;
“double taxation relief” means any relief or credit given in respect of income tax charged in any other territory;
“individual” does not include a body of persons;
“industrial company” means a company which has been declared a development company under the Fiscal Incentives Act;
“off-shore company” means a company which is resident and registered in Montserrat but carries on its entire activities outside Montserrat, and the expression includes an off-shore trust company;
“person” includes a body of persons;
“plant or machinery” excludes expenditure on loose plant, tools, containers, cases, china, glass, soft furnishings and similar objects of a short life or for which the cost of renewals is a deduction allowed in computing the profits;
“prescribed” means prescribed by rules under this Act;
“section” means a section of this Act;
“tax” means the income tax imposed by this Act;
“trade” means any trade, manufacture, business, and any adventure or concern in the nature of trade, and shall include farming, market gardening, husbandry and the occupation of land for any commercial purpose;
“unsafe area” means an area declared as unsafe by Order, made from time to time by the Governor under the Emergency Powers Regulations;
“year of assessment” means the period of twelve months commencing on 1 January in each year.
(Amended by Acts 35 of 1975 and 11 of 2007)

PART 2
IMPOSITION OF INCOME TAX
Charge of income tax
3. Income tax shall, subject to the provisions of this Act, be payable at the rate or rates specified hereafter upon the income of any person accruing in or derived from Montserrat or elsewhere and whether received in Montserrat or not in respect of—
(a) gains or profits from any trade, profession or vocation, for whatever period of time such trade, profession or vocation may have been carried on or exercised;
(b) gains or profits from any employment, including the estimated annual value of any quarters or board or residence or of any other allowance or benefit granted in respect of employment whether in money or otherwise other than in respect of any passage to or from Montserrat granted for leave purposes;
(c) the annual value of land and improvements thereon used by or on behalf of the owner or used other than at full rental value by the occupier, for the purpose of residence or enjoyment, and not for the purpose of gain or profit, such annual value being deemed to be the gross rental value fixed under the Property Tax Act or 5% of the estimated market value of the property whichever is the greater;
(d) dividends, interest or discounts;
(e) charge or annuity;
(f) rents, royalties, premiums and any other profits arising from property;
(g) any annual gains or profits not falling under any of the foregoing heads;
(h) pension income: (Amended by Act 21 of 2011)
Provided that, the income of a building society shall, subject to the provisions of this Act be taxable at the rate specified hereafter from the year of assessment commencing on 1 January 1996, and during each subsequent year of assessment:
Provided also that in the case of income arising outside of Montserrat which is earned income or which arises to a person who is not ordinarily resident in Montserrat, or not domiciled in Montserrat, the tax shall be payable on the amount received in Montserrat, except that where any trade, profession or vocation is carried on or exercised partly within and partly outside Montserrat by a resident body of persons or by a resident individual whose home is in Montserrat, the whole of the gains or profits from any such trade, profession or vocation shall be deemed to have accrued in or to have been derived from Montserrat:

Provided also that tax shall not be payable in respect of any income arising outside of Montserrat and accruing to any person who is in Montserrat for some temporary purpose only and not with any intent to establish his residence therein and who has not actually resided in Montserrat at one or more times for a period equal in the whole to six months in the basic year.
(Amended by Acts 13 of 1995, 3 of 2005 and 11 of 2007)
Basis of assessment
4. (1) Tax shall be charged, levied, and collected and paid annually for each year of assessment upon the total chargeable income of any person for the basic year.
(2) The basic year shall be the period of twelve months ending on the 31st December immediately preceding the year of assessment:
Provided that, where the Comptroller is satisfied that any person usually makes up the accounts of his trade, to some date other than 31 December, he may permit the profits of that trade to be computed for the purposes of this Act upon the income of the year terminating on such date and that year shall accordingly be deemed to be the basic year:
Provided also that, where such permission has been given in respect of any year of assessment the profits for each subsequent year of assessment shall be computed by reference to a basic year terminating on a like date:
Provided also that, where a change occurs in the date to which accounts are made up the Comptroller may make such adjustment for any year or years as in his opinion is just and reasonable, so that the tax payable shall not be less than the tax which would have been payable for that year of assessment if no change in the date had occurred. (Amended by Act 9 of 1976)
(3) Subject to the provisions of this Act, tax shall be chargeable and charged for any year of assessment for which income arose in the basic year from the sources described in section 3 notwithstanding that no such income arose in the year of assessment.
Surcharge
5. (1) There shall be charged, levied, collected and paid upon the tax as assessed and payable in accordance with the provisions of this Act, a surcharge at the rates and to the extent specified in section 41:
Provided that, such surcharge shall not apply to an off-shore company or an industrial company, or to an individual to whom section 36 applies.
(2) For the purposes of Parts 10, 11, 12 and 13, the surcharge payable by any person for any year of assessment shall be deemed to be and shall be treated in all respects as if it were part of the tax payable by such person for such year of assessment:
Provided that, the said surcharge may be paid and collected in such instalments during the remainder of the year of assessment for which the surcharge is payable as the Comptroller shall deem to be reasonable, and the

provisions of section 75 relating to penalty and interest for the non-payment of tax in arrear shall not apply if the surcharge is paid in accordance with this proviso.
(Inserted by Act 35 of 1975 and amended by Act 9 of 1976)
PART 3
EXEMPTIONS
Exemptions
62. There shall be exempt from the tax—
(a) the official emoluments received by the Governor of Montserrat;
(b) the income of any local authority, trade union, or friendly society in so far as such income is not derived from a trade carried on by such local authority, trade union or friendly society. In calculating the income of any local authority for the purposes of this paragraph the income of the local authority derived from the supply of water or from markets, abattoirs, cemeteries and wharves shall be exempt from tax;
(c) the income of any ecclesiastical, charitable or educational institution of a public character in so far as such income is not derived from a trade carried on by such institution except by a charity and that trade subserves one of the main purposes of the charity;
(d) the emoluments payable to members of the permanent consular services of foreign countries in respect of their offices rendered by them in their official capacity;
(e) the emoluments payable for Imperial funds to members of Her Majesty’s Forces and to persons in the permanent service of the Imperial Government in the Island in respect of their offices under the Imperial Government;
(f) wound and disability pensions granted to members of Her Majesty’s Forces;
(g) gratuities granted to members of Her Majesty’s Forces in respect of services rendered during war;
2 S.R.O. 7/ 2009 exempt a developer from the payment of Income Tax derived from the sale or rental of properties for
a period of 5 years from the 21 January 2009. In accordance with S.R.O. 8/2009. S.R.O. 8/2009 has been
replaced by S.R.O. 27/2012 (Customs Duties and Consumption Tax (Developer) (Homes built for sale or
rental) Order 2012. The Order expires on 31 May 2014.
S.R.O. 33/2012 Income and Corporation Tax (Montobacco Ltd) Exemption Order, 2012 – 10% income taxes
for a period of five years. The exemption shall be reviewed by the Ministry of Finance at least 12 months
prior to the end of the five year period.

(h) the income of the Government Savings Bank or other Government institutions which the Governor acting on the advice of Cabinet may declare to be exempt; (Amended by Act 9 of 2011)
(i) the income arising from trading securities listed on an exchange licensed by the Eastern Caribbean Securities Regulatory Commission under the Securities Act; (Inserted by Act 11 of 2007)
(j) the income derived by the Premier from the occupation of his official residence; this exemption does not apply to any housing allowance paid to, or housing benefit received by the Premier if no official residence is provided; (Substituted by Act 21 of 2011)
(k) any sum received by way of gratuity on termination of a contract of employment; (Amended by Act 11 of 2007)
(l) the income of any approved Pension or Superannuation Scheme;
(m) income arising from a scholarship held by a person receiving full-time instruction at a University, college, school, or other educational establishment. The expression “scholarship” includes any exhibition, bursary or any other similar educational endowment;
(n) income arising from the business of shipping carried on by a person not resident in Montserrat:
Provided that, the Comptroller is satisfied that an equivalent exemption from income tax is granted by the country in which such person is resident or persons resident in Montserrat and, if that country is a country other than the United Kingdom, to persons resident in the United Kingdom;
The expression “business of shipping” herein means the business carried on by an owner of ships, and for the purposes of this definition the expression “owner” includes charterer;
For the purposes of this part of this section a company shall be deemed to be resident in the country in which the central management and control of its business is situate:
Provided that, nothing in this section shall be construed to exempt in the hands of the recipients any dividends, interests, bonuses, salaries or wages paid wholly or in part out of the income so exempted;
(o) the interest payable to an individual on—
(i) a savings account; or
(ii) interest bearing deposits; (Substituted by Act 21 of 2011)

(p) any house owned and used by a person as the residence for his family and himself;
(q) the income of ministers of religion derived from their occupation as such;
(r) the income derived from any allowance made to—
(i) a member of the Cabinet or Legislative Assembly or to a public officer by way of entertainment, travel and subsistence allowances, or in respect of any means of transport for the purposes of carrying out the duties of his office; (Inserted by Act 3 of 2005 and amended by Act 9 of 2011)
(ii) an employee of a statutory body, of any person or of body of persons, by way of entertainment, travel and subsistence allowances, or in respect of any means of transport for the purposes of carrying out the duties of his office:
Provided the exemption in relation to any allowance mentioned in subparagraph (ii) shall be an amount not exceeding that applicable to a public officer; (Substituted by Act 11 of 2007)
(s) the income arising from agricultural enterprises including fishing, farming, market gardening and livestock raising; (Inserted by Act 35 of 1975)
(t) the income arising outside Montserrat to a person who is a visitor to Montserrat for some temporary purpose, and who has not resided in Montserrat for a period exceeding six months during the basic year; (Inserted by Act 35 of 1975)
(u) the income of a financial institution as defined by section 2 of the Banking Act, in relation to which there has been in existence for the whole or any part of the year of assessment a valid “B” licence granted under the provisions of section 5 of that Act; (Inserted by Act 19 of 1980)
(v) the income of an enterprise approved under the Fiscal Incentives Act, to the extent provided for in that Act in relation to relief from income tax for that enterprise; (Inserted by Act 19 of 1980)
(w)3 the income of any individual or person in relation to whom the Governor acting on the advice of Cabinet has made an Order
3 See S.R.O. 22/2003 re: Phoenix Inc., S.R.O. 62/2003 re: Family Radio Station
S.R.O. 54 and 58/2003 re: Selsi Ltd., S.R.O. 66/2003 re: Montserrat Adventure Divers
S.R.O. 68/2003 re: Internet Accessible Lottery (M/rat) Ltd.
S.R.O. 31/2005 re: Social Security Contributions paid by Governor of Montserrat on behalf of its employees in
respect of assessment years 1986 – 2004 exempted from Income Tax.
S.R.O. 58/2005 re: Montserrat Composites Ltd - granted exemption from Income Tax for a period of 10 years
from the production day on profits arising from the sale of any approved product (wef 6.9.2005). S.R.O. 59/2005 re: Montserrat Composites Ltd - salary paid to expatriate personnel employed by Montserrat
Composites Ltd and approved by the Ministry of Finance as required for the said approved enterprise shall be
exempted from the payment of income tax in excess of 10% of the salary paid (wef 6.9.05).

declaring such individual or person to be tax exempt either generally or in relation to any particular income or any particular year of assessment; (Inserted by Act 19 of 1980 and amended by Act 9 of 2011)
(x) pensions payable to persons from pension funds or schemes approved by the Governor acting on the advice of Cabinet. (Inserted by Acts 3 of 1994 and renumbered by Act 3 of 2005 and amended by Act 9 of 2011)
Exemptions: Interest from housing loans
7. (1) Subject to this section, where any person whether or not resident in Montserrat, lends money to any other person by way of mortgage in connection with the purchase, construction or reconstruction of residential accommodation in Montserrat, either for owner occupancy or for rental purposes there shall be exempt from tax any income accruing to the mortgage by way of interest on the loan secured by and any service charge payable under such mortgage.
(2) The mortgage referred to in subsection (1) must be approved by the Governor acting on the advice of Cabinet and shall be a mortgage in respect of which the rate of interest and service charge do not exceed seven per cent. (Amended by Acts 13 of 1995 and 9 of 2011)
(3) Where income accrues to a company or building society by way of interest or service charge which is exempt from tax under this section, such exempt income may be distributed by way of dividend to the shareholders and any distribution so made, whether during the period of exemption or at any subsequent time, shall, subject to the satisfaction of the Comptroller be exempt from tax in the hands of such shareholders. (Amended by Act 13 of 1995)
(4) The rate of interest of service charge and the mortgage limit specified in subsection (2) may by Order made by the Governor in Council be varied from time to time. (Amended by Act 9 of 2011)
(5) In this section—
“residential accommodation” means any place of accommodation used solely for residential purposes and includes residential accommodation with a shop attached to it.
(Inserted by Act 2 of 1986)
Exemption: Interest paid on certain loans
8. (1) When a company or a building society carries on a business which consists of the lending of moneys in relation to mortgages, the interest from which is exempt under section 7, the Governor acting on the advice of Cabinet may by Order published in the Gazette exempt in the hands of the debenture holder the amount of any interest payable by that company or society in respect of debenture borrowing by it for the purpose of financing the purchase, construction or reconstruction of houses where he is satisfied as to the reasonableness of—

(a) the period during which the debenture issue is to be repaid; and
(b) the rate of interest payable thereon by the company or society. (Amended by Act 9 of 2011)
(2) Where an Order is made under this section in respect of the debenture borrowing, the company or society shall maintain such special account as the Comptroller may require showing—
(a) the total borrowings; and
(b) the amount loaned by the company or society under mortgage the interest from which is exempt under section 7.
(3) Any order made under this section may be revoked by a further Order by the Governor acting on the advice of Cabinet from such date as he may specify therein, if he is of the opinion that such borrowings are being or have been applied other than under mortgages the interest from which is exempt under section 7, but nothing in this subsection shall be so construed as to prohibit the placing of such borrowings on short term Treasury bills investment or short term deposit with a recognised financial institution prior to the lending out under a programme of mortgage loans.
(Inserted by Act 2 of 1986 and amended by Act 9 of 2011)
Government loans
9. The Governor acting on the advice of Cabinet may by Order published in the Gazette provide that the interest payable on any loan charged on the public revenue of Montserrat shall be exempted from the tax, either generally or only in respect of interest payable to persons not resident in Montserrat; and such interest shall as from the date and to the extent specified in the Order be exempt accordingly. (Amended by Act 9 of 2011)
Relief to hotel proprietors from income tax
10. (1) Notwithstanding anything to the contrary contained in this Act—
(a) in any case approved by the Governor acting on the advice of Cabinet, in which the erection of a hotel or of any extension to a hotel is commenced after 1 January 1960, and in which a licence has been granted to any person in respect of such hotel under the Hotels Aid Act, such person shall be exempt from the tax in respect of the income arising from such hotel in each of the five years of assessment next after the year of assessment in which the erection or extension of such hotel, as the case may be, is completed and where any part of the said income is distributed as dividends to shareholders in any company to which a licence as aforesaid has been granted, any dividend so distributed shall be exempt from the tax in the hands of a shareholder, and thereafter such person or company shall be allowed in each of any five of the eight years of assessment next following to set off against the income as aforesaid arising from such hotel a maximum of one-fifth of the capital

expenditure upon such hotel or extension thereof, as the case may be, so, however, that no such set-off be allowed in any year of assessment later than the thirteenth year of assessment next after the year of assessment in which the erection or the extension of such hotel, as the case may be, is completed and any dividend distributed during any year of set-off shall be exempt from Tax in the hands of a shareholder; (Amended by Act 9 of 2011)
(b) in any case approved by the Governor acting on the advice of Cabinet in which a licence has been granted to any person under the Hotels Aid Act, but which is not within the contemplation of paragraph (a), such person shall be allowed in each of any ten of the twelve years of assessment next after the year of assessment in which the licence is granted to set-off against the income as aforesaid arising from the hotel amount not exceeding 1/10 of the capital expenditure upon such hotel, so, however, that no such set-off be allowed in any year after the thirteenth year of assessment in which the capital expenditure was incurred.
(Amended by Act 9 of 2011)
(2) Where the capital expenditure is allowed to be set off against the income arising from a hotel, section 17 shall not apply in respect of such expenditure.
(3) No loss incurring in connection with any hotel, in any year in respect of which an allowance is granted under this section, shall be set off against profits arising from any other trade, business or vocation carried on by the person to whom the allowance is granted.
(4) For the purposes of this section, the question whether the erection or extension of a hotel was commenced before 1 January, 1960, shall be for determination by the Governor acting on the advice of Cabinet which shall also for the purpose of this section determine on what date the erection or extension of a hotel is completed. Such determination in each case shall be final. (Amended by Act 9 of 2011)
(5) Relief under subsection (1)(a) shall not be granted to any person unless such person—
(a) has applied in writing to the Governor acting on the advice of Cabinet, for approval of relief under the said paragraph in respect of a hotel or extension thereof; and
(b) has notified the Governor acting on the advice of Cabinet in writing of the date on which he intends to commence the erection or extension as the case may be, of the hotel.
(Amended by Act 9 of 2011)
(6) Where any case has been approved by the Governor acting on the advice of Cabinet for the purposes of subsection (1)(a), the Governor acting on the advice of Cabinet shall issue to the Comptroller a certificate stating the fact

of such approval and the dates fixed by him as the dates on which the erection or extension, as the case may be, of the hotel was commenced and completed. (Amended by Act 9 of 2011)
(7) Any person authorised by the Governor acting on the advice of Cabinet in writing so to do, may at any reasonable time enter upon the premises on which a hotel or any extension of a hotel is to be, or is being erected, for the purpose of obtaining such information as will enable the Governor acting on the advice of Cabinet to inform the Comptroller in accordance with the requirements of subsection (6). (Amended by Act 9 of 2011)
(8) The Governor acting on the advice of Cabinet may by regulations make any provision which in his opinion is necessary or expedient for the better carrying into effect of the provisions of this section. (Amended by Act 9 of 2011)
(9) In this section the expression “capital expenditure” means such sum as the Comptroller is satisfied has been expended on—
(a) advertising, publicising and promoting the business of the hotel prior to the commencement of such business;
(b) the purchase of building materials for the construction of the hotel and on effecting such construction;
(c) the purchase of any existing hotel where—
(i) an existing hotel has been purchased;
(ii) there has been a bona fide change of ownership; and
(iii) the purchaser qualifies for relief under the Hotels Aid Act, in respect of the buildings comprising the hotel:
Provided that, no account shall be taken of any sum paid in respect of the purchase price of the land on which such hotel stands or in respect of goodwill;
(d) the purchase of articles of hotel equipment and on the installation of such articles of hotel equipment; and for the purposes of this definition the expressions “articles of hotel equipment”, “building materials”, “construct”, and “hotel” have the same meanings as are respectively assigned to them by section 2 of the Hotels Aid Act.
Relief to pioneer industries from income tax
11. The grant of exemption from income tax to hotels under section 10 and to approved enterprises under the provisions of the Fiscal Incentives Act, shall not confer any exemption from completion of returns under section 50 or 51 or the producing of accounts (including Balance Sheets) under section 51. (Amended by Act 19 of 1980)

Exemption of international business companies
12. Notwithstanding anything contained in this Act—
(a) a company incorporated under the International Business Companies Act; and
(b) all dividends, interest, rents, royalties, compensations and other amounts paid by that company to persons who are not resident in Montserrat; and
(c) capital gains realised in respect of shares, debt obligations or other securities of that company, by persons who are not resident in Montserrat,
are exempt from the provisions of this Act. (Inserted by Act 13 of 1995)
PART 4
COMPUTATION OF CHARGEABLE INCOME
Deductions allowed
13. (1) For the purpose of computing the chargeable income of any person there shall be deducted all outgoings and expenses wholly and exclusively incurred during the basic year by such person in the production of the income, including—
(a) sums paid by such person by way of interest on money borrowed by him, where the Comptroller is satisfied that the interest was paid on capital employed in acquiring the income; (Substituted by Act 9 of 1976)
(b) rent paid by any tenant of land or buildings occupied by him for the purpose of acquiring the income;
(c) any sum expended for repair of premises, plant and machinery employed in acquiring the income, or for the renewal, repair or alteration of any implement, utensil or article so employed;
(d) bad debts incurred in any trade, business, profession or vocation, proved to the satisfaction of the Comptroller to have become bad during the basic year, and doubtful debts to the extent that they are respectively estimated to the satisfaction of the Comptroller to have become bad during the said year notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of the said year:
Provided that, all sums recovered during the said year on account of amounts previously written off or allowed in respect of bad or doubtful debts shall for the purposes of this Act be treated as receipts of trade, business, profession or vocation for that year;

(e) rates and taxes on lands or buildings (but not including income tax);
(f) any contribution to an approved pension or superannuation fund which is an ordinary annual contribution; and any contribution which is not an annual contribution shall be spread forward over such number of years as the Comptroller may deem reasonable having regard to the circumstances in which such contribution was made;
(g) premiums paid on any insurance policy covering loss by fire, earthquake, hurricane, riot, civil commotion, flood, burglary, or other disaster on property used in acquiring the income upon which the tax is payable or on property upon the income from which or upon the value for the use of which the tax is payable;
(h) annuities or other annual payments whether payable within or out of Montserrat, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation thereof, or as a personal debt or obligation by virtue of any contract:
Provided that, no voluntary allowances or payments, of any description, shall be deducted;
(i) any annual sums paid by such person (being an employer) by way of contribution on behalf of an employee in respect of a fund or scheme approved by the Governor acting on the advice of Cabinet in respect of a fund or scheme for providing medical care, housing or recreational facilities for employees; (Amended by Act 9 of 2011)
(j) any contribution made by any person for the advancement of sports and cultural development activities;
(k) such other deductions (not being deductions of the kind disallowed by section 16) as may be prescribed.
(Amended by Acts 2 of 1986 and 5 of 1991)
(2) The Governor acting on the advice of Cabinet may by rules provide for the method of calculating or estimating the deductions allowed under this section. (Amended by Act 9 of 2011)
Restriction on deductions: management charges
14. Notwithstanding section 13, where a person carrying on business in Montserrat incurs expenditure by way of management charges, being expenditure payable—
(a) to a non-resident (such non-resident not being engaged in business in Montserrat giving rise to such management charges); or

(b) by a branch of a non-resident company to its head office or to some other branch outside Montserrat of such company;
a deduction shall be allowed of the lessor of—
(i) the amount of such management charges, or
(ii) five percent of the deduction (exclusive of management charges) allowable under section 13 or such higher amount as in the opinion of the Comptroller is reasonable and any amount of management charge not allowed as a deduction by reason of this subsection shall be deemed not to be a management charge for the purposes of section 40 and Schedule 1.
(Inserted by Act 2 of 1986)
Special deductions for capital expenditure
15. (1) In computing the chargeable income of a person engaged in a trade, profession, business or vocation there shall be allowed—
(a) a deduction (hereinafter called an initial deduction) of one tenth of the capital expenditure incurred during the basic year on the erection, alteration or acquisition of a building or structure which is or is intended to be an industrial building or structure occupied for a trade specified in subsection (6) and of 1/5 of the capital expenditure incurred during the basic year on the provision, alteration or improvement of plant or machinery used or to be used for the purposes of a trade, business, profession or vocation;
(b) a deduction (hereinafter called an annual deduction) of a reasonable amount for wear and tear of—
(i) an industrial building or structure as is owned and used for a trade specified in subsection (6);
(ii) any plant or machinery as is owned by a person and used in a trade, business, profession or vocation.
(c) an annual deduction for wear and tear of a commercial building to the owner of such commercial building calculated at the following rates from the year in which the building was completed for such purposes—
(i) 10% per year of the cost on buildings constructed during the period 1 April 1998 to 31 March 2003;
(ii) 5% per year of the cost on buildings constructed after 31 March 2003:
Provided where a building not constructed with the intent for commercial use is subsequently rented and, the Comptroller, having examined the facts and satisfied himself that such rental is not done on a commercial basis

and with a view to making a profit, no wear and tear shall be allowed as a cost on such building.
(2) The same deductions shall be allowed to a person who incurs the expenditure described in subsection (1)(a) and—
(a) leases the industrial building or structure to another person who occupies it for the purpose of a trade specified in subsection (6);
(b) hires the plant or machinery to another person who uses it for the purpose of his trade, business, profession or vocation.
Where the deductions so allowed to a person who leases the building or hires the plant exceed the rent or hire received, relief shall be given to that person as a loss under section 17.
(3) Where such industrial building or structure or plant or machinery is sold, destroyed or put out of use as being worn out, obsolete or otherwise useless or no longer required there shall in the basic period in which such event occurs—
(a) where there are no sale, insurance, salvage or compensation moneys or where the written down value of the asset immediately before the event exceeds those moneys, be made a deduction (hereinafter called a balancing deduction) of a sum equal to the written-down value or as the case may be the excess over the said moneys;
(b) where the sale, insurance, salvage or compensation moneys exceed the written down value of the asset immediately before the event, be made an addition (hereinafter called a balancing addition) to the profits as otherwise determined for the basic period of a sum equal to the amount of such excess:
Provided that, a balancing addition shall not exceed the aggregate of any deductions granted under this section.
(4) No deduction shall be allowed for any year if the deduction, when added to the deductions allowed in previous years will make the aggregate amount of the deductions exceed the capital expenditure.
(5) Where a building which is or was intended to be an industrial building or structure is not used or ceases to be used as such, then, unless the building or structure has been so used for a period of not less than ten years any initial deductions granted shall be cancelled, and such additional assessments as are necessary shall be made without regard to the time limits imposed by this Act.
(6) A building or structure shall be deemed to be an industrial building or structure for the purposes of this section where it is in use for the purpose of—
(a) a trade carried on in a mill, factory, or other similar premises; or
(b) a trade which consists in the manufacture of goods or materials or the subjection of goods or materials to any process; or

(c) a trade which consists in the storage of goods or materials which are to be used in the manufacture of other goods or materials or to be subjected in the course of a trade to any process,
and in particular the said expression includes any building or structure provided by the person carrying on such a trade or undertaking for the welfare of workers employed in that trade or undertaking and in use for that purpose. (Amended by Act 2 of 1986)
(7) Subsection (6) shall apply in relation to a part of a trade or undertaking as it applies to a trade or undertaking:
Provided that, where part only of a trade or undertaking complies with the conditions set out in the said provisions, a building or structure shall not, by virtue of this subsection, be an industrial building or structure unless it is in use for the purposes of that trade or undertaking.
(8) Notwithstanding anything in subsections (6) and (7), but subject to the provisions of subsection (9), the expression “industrial building or structure” does not include any building or structure in use as, or as part of, a dwelling house, retail shop, showroom or office or for any purpose ancillary to the purposes of a dwelling house, retail shop, showroom or office.
(9) Where part of the whole of a building or structure is, and part thereof is not, an industrial building or structure, and the capital expenditure which has been incurred on the construction of the second mentioned part is not more than one tenth of the total capital expenditure which has been incurred on the construction of the whole building or structure, the whole building or structure and every part thereof shall be treated as an industrial building or structure.
(10) In this section—
(a) where the building or structure is not used as an industrial building or structure in the same basic period as that in which any expenditure was first incurred the expression “incurred during the basic year” means the total of the expenditure incurred in the years up to and including such basic year;
(b) “written down value” means the remainder of the capital expenditure after deducting therefrom any initial deductions and all annual deductions.
(Amended by Act 11 of 2007)
Deductions not to be allowed
16. (1) For the purpose of computing the chargeable income of any person no deduction shall be allowed in respect of—
(a) domestic or private expenses including inter alia—
(i) the cost of travelling between residence and place of business;

(ii) the rent of any dwelling house or domestic offices or any part thereof as is not used in connection with the carrying on by him of his trade, business, profession or vocation;
(iii) any remuneration, or interest on capital, paid or credited to himself;
(iv) the cost price of any goods taken out of the business for the use of the proprietor or any partner or their families;
(b) any disbursements or expenses not being money necessarily, wholly and exclusively laid out or expended for the purpose of acquiring the income;
(c) any capital withdrawn or any sum employed as capital;
(d) any capital employed in improvements;
(e) any sum recoverable under an insurance or contract of indemnity;
(f) rent of or cost of repairs to any premises or part of premises not paid or incurred for the purpose of producing the income;
(g) any amounts paid or payable for income tax or surtax either within Montserrat or in respect of any territory outside Montserrat with which there is a double taxation agreement between that territory and Montserrat except to the extent that the tax payable outside Montserrat remains unrelieved;
(h) any amount paid or payable to a shareholder or any associate of a shareholder by way of salary, wages, overtime, bonus, commission, director’s fees, retiring allowances, management expenses or other payment for services including perquisites in excess of the respective amounts paid or payable during the basic year immediately preceding the year of assessment 1975:
Provided that, the Comptroller may allow such increases or amounts as may in any case appear to him to be just and reasonable:
Provided further that—
(i) in the case of a Company incorporated or registered after the year of assessment 1974; or
(ii) in the case of a person whose employment commenced after the basic year immediately preceding the year of assessment 1975,
the Comptroller may allow as a deduction such amount as may appear to him to be just and reasonable having regard to the size and nature of the business.
For the purposes of this section, “associate” in relation to a shareholder means an individual who is the spouse of a shareholder or is a relative of a shareholder or of his spouse.

(Inserted by Act 17 of 1976)
(2) Notwithstanding section 13, in ascertaining the chargeable income of any person for any year of assessment, no deduction shall be allowed in respect of any amount paid or payable to a non-resident to which section 40 applies unless the Comptroller is satisfied that the withholding tax chargeable thereon has been paid. (Inserted by Act 2 of 1986)
Allowances for loss
17. (1) Where any person incurs a loss in the basic year in any trade, business, profession or vocation carried on or exercised by him either solely or in partnership the amount of such loss shall as far as possible be set-off against his income from other sources for that year:
Provided that, in no case shall such set-off be made against his chargeable income so as to reduce the tax payable by that person for any year to less than one half of the amount which would have been payable had the set- off not been made:
Provided further that no allowance shall be made under this section unless it is shown to the satisfaction of the Comptroller, that the trade, business, profession or vocation was, for the whole of the basic year, carried on or exercised on a commercial basis and with a view to the realisation of gains or profits.
(2) Where owing to an insufficiency of income from other sources the loss allowable to any person under subsection (1) cannot be allowed or cannot be wholly allowed as aforesaid the excess shall be carried forward and shall be set-off against the income of that person for the 6 years next following.
(3) The amount of any loss to be allowed under this section for any year shall not be allowed for any other year under this or any other section.
(4) No loss incurred during a tax holiday period shall be set-off against the income from other sources for the same year, but the net loss incurred during the whole of the tax holiday period shall be available to be carried forward to the post-holiday period for set-off against the income of the specific trade under the provisions of this section.
(Substituted by Act 11 of 2007)
Insurance and shipping companies
18. Notwithstanding anything to the contrary contained in this Act it is hereby provided that—
(a) In the case of an insurance company (other than a life insurance company) where the gains or profits accrue in part outside Montserrat, the gains or profits on which tax is payable shall be ascertained by taking the gross premiums and interest and other income received or receivable in Montserrat (less any premiums returned to the insured and premiums paid on re-insurances), and deducting from the balance so arrived at a reserve for

unexpired risks at the percentage adopted by the company in relation to its operations as a whole for such risks at the end of the basic year and adding thereto a reserve similarly calculated for unexpired risks outstanding at the commencement of the basic year, and from the net amount so arrived at deducting the actual losses (less the amount recovered in respect thereof under re-insurance), the agency expenses in Montserrat and a fair proportion of the expenses of the head office of the company;
(b) In the case of a life insurance company, whether mutual or proprietary, the gains or profits on which tax is payable shall be the investment income less the management expenses (including commission):
Provided that, where such a company received premiums outside Montserrat the gains or profits shall be the same proportion of the total investment income of the company as the premiums received after deducting from the amount so arrived at the agency expenses in Montserrat and a fair proportion of the expenses of the head office of the company;
(c) (i) In the case of a shipowner or owner of aircraft, the gains or profits of his business as shipowner or owner of aircraft shall, if he produces or causes to be produced to the Comptroller the certificate mentioned in subparagraph (ii), be taken to be a sum bearing the same ratio to the sums payable in respect of fares or freight for passengers, goods, or mails shipped in Montserrat as his total profits for the relevant accounting period shown by that certificate bear to the gross earnings for that period;
(ii) The certificate shall be a certificate by the Taxing Authority of the place in which the principal place of business of the shipowner or owner of aircraft is situated and shall state—
(A) that the shipowner or owner of aircraft has furnished to the satisfaction of that Authority an account of the whole of his business; and
(B) the ratio of the gains or profits for the relevant accounting period as computed according to the Income Tax Law of that place (after deducting interest on any money borrowed and employed in acquiring the gains and profits) to the gross earnings of the owner’s fleet or aircraft for that period;
(iii) If the gains or profits of a shipowner or owner of aircraft have for the purpose of assessment in Montserrat under this Act been computed on any basis other than the ratio of the gains or profits shown by a certificate as aforesaid and an assessment has been made accordingly the shipowner or owner of aircraft shall, upon production of such a certificate

at any time within 6 years from the end of the year of assessment be entitled to such adjustment as may be necessary to give effect to the said certificate and to have any tax paid in excess refunded;
(iv) In this paragraph the expression “shipowner or owner of aircraft” means an owner or charterer of ships or aircraft whose principal place of business is situated outside Montserrat, but in a part of the Commonwealth.
Trading by non-residents
19. (1) Where a person not resident in Montserrat (hereinafter in this section referred to as a “non-resident person”) carries on a business with a resident person and it appears to the Comptroller that owing to the close connection between the resident person and the non-resident person, and to the substantial control exercised by the non-resident person over the resident person, the course of business between those persons can be so arranged and is so arranged that the business done by the resident person in pursuance of his connection with the non-resident person, produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non-resident persons shall be assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non-resident person.
(2) Where it appears to the Comptroller that the true amount of the gains or profits of any non-resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the Comptroller may, if he thinks fit, assess and charge the non-resident person on a fair and reasonable percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of returns or particulars by persons acting on behalf of others shall extend so as to require returns or particulars to be furnished by the resident-person of the business so done by the non-resident person through or with the resident person, in the same manner as returns or particulars of income to be charged are to be delivered by persons acting for non-resident persons:
Provided that, the amount of the percentage shall in such case be determined having regard to the nature of the business.
(3) Nothing in this Act shall render a non-resident person chargeable in the name of a broker or general commission agent, or other whom such broker, general commission agent or agent is not an authorised person carrying on the regular agency of the non-resident person or a person chargeable as if he were an agent in pursuance of subsections (1) and (2), in respect of gains or profits arising from sales or transactions carried out through such a broker or agent.
(4) The fact that a non-resident person executes sales or carries out transactions with another non-resident person in circumstances which would make him chargeable in pursuance of subsections (1) and (2) in the name of a

resident person shall not of itself make him chargeable in respect of gains or profits arising from those sales or transactions.
(5) Where a non-resident person is chargeable to tax in the name of any attorney, factor, agent, receiver, branch, or manager in respect of any gains or profits arising from the sale of goods or produce manufactured or produced out of Montserrat by the non-resident person, the person in whose name the non- resident person is so chargeable may, if he thinks fit, apply to the Comptroller to have the assessment to tax in respect of those gains or profits made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retained by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and, on proof to the satisfaction of the Comptroller of the amount of the profits on the basis aforesaid the assessment shall be made or amended accordingly.
Pensions and superannuation funds
20. (1) Where any employer establishes a superannuation fund for the provision of pensions or annuities for the persons employed in any trade or business in Montserrat either on retirement at a specified age, or on becoming incapacitated, or for the widows, children or dependents or persons who have been so employed on the death of those persons, he may apply to the Governor acting on the advice of Cabinet for approval of such fund. (Amended by Act 9 of 2011)
(2) For the purpose of this section, “superannuation fund” means a fund which is approved for these purposes by the Governor acting on the advice of Cabinet, and subject as hereinafter provided, the said Governor acting on the advice of Cabinet shall not approve any fund unless it is shown to his satisfaction that—
(a) the fund is a fund bona fide established under irrevocable trust in connection with some trade or undertaking carried on in Montserrat by a person residing therein; and
(b) the fund has for its sole purpose the provision of annuities for all or any of the following persons in the events respectively specified, that is to say, for persons employed in the trade or undertaking, either on retirement at a specified age or on becoming incapacitated at an earlier age, or for the widows, children or dependents of persons who are or have been employed on the death of those persons; and
(c) the employer in the trade or undertaking is a contributor to the fund; and
(d) the fund is recognised by the employer and employed persons in the trade or undertaking:
Provided that, the Governor acting on the advice of Cabinet may, if he thinks fit and subject to such conditions, if any as he thinks proper to attach to

the approval, approve a fund, or any part of a fund as a super-annuation fund for the purposes of this section—
(i) notwithstanding that the rules of the fund provide for the return in certain contingencies of contributions paid to the fund; or
(ii) if the main purpose of the fund is the provision of such annuities as aforesaid, notwithstanding that such provision is not its sole purpose; or
(iii) notwithstanding that the trade or undertaking in connection with which the fund is established is carried on only partly in Montserrat by a person not residing therein.
(Amended by Act 9 of 2011)
(3) Where such fund is approved, then—
(a) any income of such fund arising in the territory shall be exempt;
(b) any contributions to the fund by the employer shall be allowed as prescribed.
Books of account to be kept
21. (1) A person engaged in any trade, business or in any profession shall keep in the English language proper books of account sufficient to record all transactions necessary in order to ascertain the gains and profits made or the loss incurred in the trade, business or profession, and the books of account shall be kept for at least seven years following their creation.
(2) A person who fails to comply with subsection (1) is guilty of an offence, and in addition to any penalty incurred, he is liable to pay any tax to which he may be assessed under this Act.
(Substituted by Act 21 of 2011)

PART 5
PERSONS ASSESSABLE
Married women
22. Any income accruing to a married woman during the basic year to which this Act applies shall be charged to tax in her own name.
(Substituted by Act 2 of 1986)
Deceased person
23. (1) When any person dies during the year preceding the year of assessment and such person would but for his death have been chargeable to tax for the year of assessment or when any person dies during the year of assessment or within two years after the expiration thereof and no assessment has been made upon him for that year, the personal representative of such

person shall be liable to and charged with the payment of the tax with which such person would have been chargeable, and shall be answerable for doing all such acts, matters and things as such person if he were alive would be liable to do under this Act:
Provided that, in the case of a person dying during the year preceding the year of assessment if his personal representative distributes his estate before the commencement of the year of assessment such personal representative shall pay the tax at the rate or rates in force at the date of distribution of the estate, if the rate of tax for the year of assessment has not been fixed at that date.
(2) In addition to and without prejudice to the liability of the personal representative or to the liability of any person under any other provision, the provisions of subsection (1) shall mutatis mutandis, apply to any person charged by the deceased with the payment of the tax, or whether any person is so charged or not, to every heir (including a testamentary heir or legatee), to every person who has taken possession of or received any property of the deceased, or to whom any property passes for any beneficial interest in possession, and also to every trustee, tutor, guardian, curator, committee or other person in whom any interest in the property so passing or the management thereof is at any time vested.
(3) Any person interested may, on giving five days notice to the person charged with or accountable for, the payment of the tax, apply to the judge in a summary manner to compel the person so charged or accountable, to make the necessary return and to pay the tax.
(4) On any such application, the judge may give all necessary directions and make such orders as may be necessary.
Partnerships
24. Where a trade, business, profession or vocation is carried on by two or more persons jointly—
(1) The income of any partner from the partnership shall be deemed to be the share to which he was entitled during the year preceding the year of assessment in the income of the partnership (such income being ascertained in accordance with the provisions of this Act) and shall be included in the return of income to be made by such partner under the provisions of this Act.
(2) (a) The precedent partner that is to say, the partner who of the partners resident in Montserrat—
(i) is first named in the agreement of partnership; or
(ii) if there be no agreement is named singly or with precedence to the other partners in the usual name of the firm; or
(iii) is the precedent acting partner if the partner named with precedence is not an acting partner,

shall make and deliver a return of the income of the partnership for any year supported by the statement of account including balance sheet, such income being ascertained in accordance with the provisions of this Act, and declare therein the names and addresses of the other partners in the firm together with the amount of the share of the said income to which each partner was entitled for that year.
(b) The Comptroller may require any person resident in Montserrat who is or acts as a partner to make or deliver the return.
(c) Where no partner is resident in Montserrat, the return shall be made and delivered by the attorney, agent, manager or factor of the firm resident in Montserrat.
(d) The provisions of this Act with respect to the failure to deliver returns or particulars in accordance with a notice from the Comptroller shall apply to any return required under this section.
Chargeability of trustees etc.
25. (1) A receiver, trustee, guardian, curator or committee, having the direction, control or management of any property or concern on behalf of any person, shall be assessed to tax in respect of the income derived from such property or concern in like manner and to the like amount as such person would be assessable if he had received such income, and every such receiver trustee, guardian, curator or committee shall be answerable for doing all matters and things required to be done under this Act for the purpose of assessment and payment of tax:
Provided that, nothing in this section shall affect the liability of any person represented by any such receiver, trustee, guardian, curator or committee to be himself charged to tax in his own name.
(2) A trustee under a will, deed, settlement or other disposition shall likewise be chargeable to tax in respect of income arising under such will, deed, settlement or other disposition, where such income arises to two or more beneficiaries or where the whole of the income is not distributed, tax to be charged at the rate specified in section 37.
Chargeability of agent of person residing out of Montserrat
26. A person not resident in Montserrat whether a British Subject or not, shall be assessable and chargeable in the name of his trustee, guardian, curator or committee or of any attorney, factor, agent, receiver, branch or manager, whether such attorney, factor, agent, receiver, branch or manager has the receipt of the income or not, in like manner as such non-resident person would be assessed and charged if he were resident in Montserrat and in the actual receipt of such income:
Provided that, in the case of a person who is not resident in Montserrat no deduction shall be allowed in respect of earned income.
(Amended by Act 8 of 1998)

Acts etc., to be done by trustees
27. The person who is chargeable to tax under sections 25 and 26 shall be answerable for all matters required to be done by virtue of this Act for the assessment of the income of any person for whom he acts and for the payment of the tax chargeable thereon.
Agents etc., of non-residents to be assessed
28. Any resident agent, trustee, mortgager or other person who transmits rent, interest or income derived from any source whatever within Montserrat to a non-resident person shall be deemed to be the agent of such non-resident person and shall be assessed and shall pay the tax accordingly. (Amended by Act 35 of 1975)
Indemnification of representative
29. Every person answerable under this Act for the payment of tax on behalf of another person may retain out of money coming to his hands on behalf of such other person so much thereof as shall be sufficient to pay such tax and shall be and is hereby indemnified against any person whatsoever for all payments made by him in pursuance and by virtue of this Act.
Income derived from property transferred to minors
30. (1) Where any person transfers property to a minor otherwise than in exchange for valuable and sufficient consideration, either directly or indirectly or through the intervention of a trust or by any means whatsoever, such person shall nevertheless, during the period of the minority of the transferee be liable to be assessed on the income derived from such property, or from property substituted therefor, as if such transfer had not been made.
(2) Where such a transfer has been made as is envisaged in subsection (1) then subsequent to such period of minority unless the Comptroller is satisfied that such transfer was not made for the purpose of evading the tax imposed by this Act the transferor shall continue to be assessed in respect of the income derived from such property or from property substituted therefor, as if such transfer had not been made.
(3) Where in the case of any transfer covered by this section the transferee has in fact paid or suffered any tax in respect of the income in ascertaining the total tax chargeable on the transferor in respect of his own income and that charged on him under this section an allowance shall be made equal to the tax paid or suffered already by the transferee.
Income of property transferred in trust to be income of transferor in
certain cases
31. (1) Where a person transfers property in trust and provides that the corpus of the trust shall revert either to the transferor or to such person as he may determine at a future date, or where a trust provides that during the lifetime of the transferor no disposition or other dealing with the trust property

shall be made without the consent, written or otherwise, of the transferor, such person shall nevertheless be liable to be taxed on the income derived from the property transferred in trust, or from property substituted therefor, as if such transfer had not been made.
(2) In this section “disposition” includes any trust, grant, covenant, agreement or arrangement.
Dispositions for short periods
32. Except where otherwise provided in this Act any income which by virtue or in consequence of any disposition made, directly or indirectly, by any person after 1 January, 1962 (other than a disposition made for valuable and sufficient consideration), is payable to or applicable for the benefit of any other person for a period which cannot exceed 6 years shall be deemed for all purposes of this Act to be income of the person, if living, by whom the disposition was made, and not to be the income of any other person.
Apportionment of profits of certain companies among members
33. (1) With a view to preventing the avoidance or reduction of tax it is hereby enacted that where it appears to the Comptroller that a company has not distributed to its shareholders as dividends within nine months of the end of any year or shorter accounting period, a reasonable proportion of its total income from all sources which are assessable to tax and which could have been distributed without detriment to the company’s existing business, the Comptroller may, at any time within six years of the end of such accounting period, direct that that proportion shall be deemed to have been paid as dividend to its members for such period.
(2) This section shall not apply to any company unless—
(a) not more than five persons together exercise control, directly or indirectly, over the company’s affairs; or
(b) not more than five persons possess or are entitled to acquire the greater part of the issued share capital; or
(c) if, the whole of the total income was so deemed to be dividend, not less than 50% thereof would be deemed to be the income of not more than five persons:
Provided that, for the purposes of this section persons who are relatives of one another, persons who are nominees of any other person together with that other person, persons in partnership, and persons interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person, shall respectively be treated as a single person.
For the purpose of this subsection, “relative” means husband, wife, ancestor, lineal descendent, brother or sister.
(3) In having regard to what is a reasonable proportion, the Comptroller may disregard all sums connected with the repayment of debt or connected with any transaction designed to avoid tax.

(4) The Comptroller may require a company by notice in writing, to produce within a time specified its balance sheets and accounts and such further particulars as he may require including particulars of the membership of the company.
(5) Where a company has failed to furnish any or all of the particulars required within the specified time, the Comptroller may to the best of his judgement estimate the reasonable profit and issue a direction accordingly.
(6) In issuing any direction under this section the Comptroller shall—
(a) issue it to the company in writing;
(b) specify the reasonable proportion as a sum or a proportion of the total income, or as a percentage rate of dividend;
(c) specify the date on which the dividend shall be deemed to have been paid.
(7) Where a company having furnished such particulars as the Comptroller requires, objects to any direction issued by him, it may within fifteen days of the receipt of the direction appeal to the Commissioners, whereupon the provisions in this Act relating to objections and appeals shall apply.
(8) Where a direction has been issued, then in computing the total chargeable income of any member of the company, his share of the reasonable proportion, as determined on appeal when necessary, shall be included in the computation of the total chargeable income of that member, and any dividends which have been paid or which may be in the future out of the reasonable proportion, shall be disregarded.
(9) Any additional tax which may become chargeable and leviable under this section may in default of payment by the member be charged and levied on the company.
PART 6
PERSONAL ALLOWANCES
General deduction
34. (1) In ascertaining the chargeable income of an individual who was resident in Montserrat during the basic year and who has completed a return and given the prescribed particulars there shall be allowed a deduction of—
(a) $5,000 on any year of assessment commencing on or after 1 January, 1987;
(b) $6,000 on any year of assessment commencing on or after 1 January, 1990;
(c) $7,000 on any year of assessment commencing on or after 1 January, 1991;

(d) $10,000 on any year of assessment commencing on or after 1 January, 1992;
(e) $13,000 on any year of assessment commencing on or after 1 January, 1995;
(f) $15,000 on any year of assessment commencing on or after 1 January, 1999.
(Substituted by Act 8 of 1998)
(2) An individual who has primary responsibility for caring for an incapacitated dependent who continuously resides with him during the basic year is entitled to an allowance of $2,400 in the year of assessment commencing on 1 January, 2005.
(3) An individual is entitled, from assessment year 2011, in respect of each of the individual’s incapacitated dependents—
(a) that is wholly maintained by the individual, to an allowance of $2,400; or
(b) that is maintained jointly with one or more other individuals, to a proportion of the allowance of $2,400 that the Comptroller of Inland Revenue considers to reflect the proportion to which the individual maintains the incapacitated dependent.
(4) For the purpose of subsection (3)—
“incapacitated dependent” means a person—
(a) who is rendered unable to work as a result of a disability of the body or mind;
(b) whom the Comptroller considers, having regard to the place of residence of the person as indicated by a certificate from the Community Services Department or otherwise, is in whole or in part maintained by the individual; and
(c) who is not entitled to a pension, income or social welfare benefit exceeding $7,200 in total per year;
(5) An individual who makes payments in respect of life or health insurance premiums, on his own behalf and that of his family members on the policy (which is limited to spouse and children under the age of twenty five in full time education) during the basic year, is entitled to allowances in respect of payments commencing assessment year 1 January, 2008.
(6) An individual is entitled, from assessment year 2011, to an allowance, subject to a maximum of $4,000, of the amount of the total premiums that he proves to the satisfaction of the Comptroller was paid on a policy that he owns in that year in respect of life or health insurance for:
(a) the individual; and
(b) the individual’s husband or wife; and

(c) any child of the individual, whether natural or adopted, who has not attained the age of twenty five and is in full time education.
(7) An individual is entitled, from assessment year 2005, to an allowance in respect of payments of social security contributions made on his own behalf that he proves to the satisfaction of the Comptroller were paid in that year.
(Amended by Acts 3 of 2005, 11 of 2007 and 21 of 2011)
Deduction for mortgage interest paid on residential property
35. (1) Subject to subsections (3) and (4) where a building is —
(a) used by or on behalf of the owner; or
(b) used rent-free by the occupier,
who is a resident individual for the purpose of a residence on Montserrat, there shall be allowed a deduction in respect of interest paid on a loan or mortgage wholly and exclusively used in respect of the building.
(2) A resident individual shall be entitled to a deduction in respect of any amount paid during the basic year by way of interest on a mortgage or loan in respect of the acquisition of or improvements to residential property but the deduction allowable for any year of assessment in respect of such expenditure shall not exceed $5,000 for year of assessment 1987 to 2007, and $8,000 for year of assessment 2008 and subsequent years of assessment.
(3) Where a residential building is jointly owned by individuals and is occupied by all or any of the individuals, a deduction under subsection (2) in respect of the residence may be claimed by each one or any of them in such proportion as they may determine:
Provided the aggregate deductions claimed by all of them shall not exceed the amount of deduction allowable under subsection (2).
(4) Where in a basic year a person claims a deduction under subsection (1) in respect of—
(a) building used by or on behalf of the owner, a deduction shall not be allowed in the same basic year to that person for any other building used by or on behalf of the owner; or
(b) building used rent-free by the occupier, a deduction shall not be allowed in the same basic year to that person for any other building used rent-free by the occupier.
(Substituted by Act 11 of 2007)
PART 7
RATES OF TAX, ETC.
Rates of Tax
36. Tax shall be charged, levied and collected—

(a) at the rates set out in Schedule 2 on the chargeable income of every individual resident in Montserrat or doing business in Montserrat.
(b) at the rates set out in Schedule 3 on the pension of every individual pensioner resident in Montserrat.
(Substituted by Acts 5 of 1991 and 11 of 2007)
Rates of tax on companies, etc.
37. Tax shall be charged, levied and collected on the chargeable income of any company, building society or any body of persons at the rate of thirty per centum.
(Substituted by Act 2 of 1986 and amended by Acts 13 of 1995 and 11 of 2007)
Tax to be deducted from certain payments
38. (1) Where the Accountant General or any officer makes any payment to any person on behalf of the Government in pursuance of a contract other than a contract exempted by the Governor acting on the advice of Cabinet by Order the Accountant General or the officer, as the case may be, shall deduct fifteen percent or such lesser sum as may be determined by the Comptroller and pay the amount so deducted to the Comptroller. (Amended by Act 9 of 2011)
(2) The amount of tax so deducted is to be set off against the tax payable by that person for the year of assessment in which such deduction is made.
(Inserted by Acts 3 of 1994 and 21 of 2011)
Deduction of tax from Government stock
39. (1) When the Accountant General or other appointed officer pays interest on any loan charged on the Public Revenue of Montserrat other than a loan on which exemption has been given wholly or partly under section 9 he shall deduct from such interest tax at the rate prescribed in section 37 and shall forthwith pay over such deductions to the account for income tax.
(2) On making each payment to the person entitled to the interest he shall give a certificate stating the name of the person, the date, the amount of the interest and of the tax deducted.
(3) The amount so deducted shall be deemed to be payment of tax by the person named, and in computing the total chargeable income of that person, the gross amount of the interest shall be included.
Deduction of tax from payments made to non-residents
40. (1) Every person who makes any payments to a non-resident shall deduct tax from such payments in accordance with and in the manner specified in Schedule 1 and shall carry out such other obligations as are imposed by that Schedule.

(2) For the purposes of this section, a person, including a partnership, to whom any payment is made to which this section applies shall be presumed, unless the contrary is proved, to be a non-resident if such payment is made to an address outside Montserrat.
(3) Nothing in this section shall prevent the Comptroller from directing the deduction of a lesser amount than that provided in Schedule 1 where he is satisfied that the person to whom the payment is made is a resident of a country with which an international agreement made under section 92 exists and where there is provision for a lower rate of withholding tax to be deducted other than that provided in Schedule 1.
(4) In this section—
“resident in Montserrat” in relation to a year of assessment means—
(a) in the case of an individual, that—
(i) his permanent place of abode is in Montserrat and that he is physically present therein for some period of time during the basic year unless the Comptroller is satisfied that his absence throughout the whole of the basic year was for the purpose of education, medical treatment, the performance of duties on behalf of the Government or for any other purpose which, in the opinion of the Comptroller is reasonable; or
(ii) he is physically present in Montserrat for not less than 183 days during the basic year; or
(iii) he is physically present in Montserrat for some period of time during the basic year and that such period is continuous with a period of physical presence during the basic year for the immediately preceding or succeeding year of assessment of such duration as to qualify him for the status of a resident for such preceding or succeeding year under subparagraph (ii);
(b) in the case of an estate of a deceased person, that immediately prior to his death the deceased person qualified for the status of a resident under paragraph (a);
(c) in the case of a trust or a body of persons, that such trust or body of persons was established in Montserrat.
Branch profits of non-resident company liable to withholding tax on
dividends remitted
(5) (a) Every non-resident company carrying on business in Montserrat shall be liable to withholding tax under section 40 on the remitted profits of such business for any year of assessment to the extent provided by this section in addition to its liability to

income tax as if such profits were profits derived by a wholly owned subsidiary of a non-resident company.
(b) Notwithstanding subsection (1), where any company to which this section applies shows to the satisfaction of the Comptroller that any part of its chargeable income in respect of any year of assessment has not been remitted, then subsection (1) shall not apply.
(c) The profits of a non-resident company which shall be liable to withholding tax by reason of this section shall be the whole of the chargeable income, accrued from carrying on of business in Montserrat, remaining after the deduction of any income tax payable in respect of such chargeable income.
(Substituted by Act 2 of 1986)
PART 8
ADMINISTRATION
Appointment of administrative authority
41. (1) A Comptroller of Inland Revenue and such Officers and persons as may be necessary for the due administration of this Act may be appointed under the public service law.
(2) The Governor acting on the advice of Cabinet may appoint four Commissioners for the purpose of hearing appeals against assessments and performing such other duties as may be assigned to them by this Act or as may be prescribed, and such Commissioners shall be furnished with warrants of appointment under the hand of the Governor.
(Amended by Act 9 of 2011)
(3) The Commissioners shall appoint one of the members to be Chairman.
(4) The Commissioners shall meet as often as circumstances may require and three members shall form a quorum, of which one shall be the Chairman:
Provided that, where the substantive Chairman is unavailable to attend any scheduled hearing that the other members of the committee (consisting of the required quorum) will select from among themselves a Chairman for that particular meeting.
(5) The Governor acting on the advice of Cabinet may appoint a person to be secretary to the Commissioners and all notices and documents other than decisions of the Commissioners may be signified under the hand of the Secretary.
(Amended by Acts 11 of 2007 and 9 of 2011)

Official secrecy
42. (1) Every person having any official duty or being employed in the administration of this Act shall regard and deal with all documents, information, returns, assessment lists, and copies of such lists relating to the income or items of income of any person as secret and confidential, and shall make and subscribe a declaration in the form prescribed to that effect before a Magistrate, or any other person duly authorised to administer oaths.
(2) Every person having possession of or control over any documents, information, return or assessment lists or copies of such lists relating to the income or items of income of any person, who at any time communicates or attempts to communicate such information or anything contained in such documents, returns, lists or copies to any person—
(a) other than a person to whom he is authorised by the Governor to communicate it; or
(b) otherwise than for the purposes of this Act, shall be guilty of an offence against this Act.
(3) Where provision is made for the granting of double taxation relief under Part 13 the obligation as to secrecy imposed by this section shall not prevent the disclosure of the authorised officers of the Government of a territory of such facts as may be necessary to enable the proper relief to be given there or in Montserrat.
Making rules
43. (1) The Governor acting on the advice of Cabinet may make rules generally for carrying out the provisions of this Act, and may, in particular, by those rules provide—
(a) for the form of return, claims, statements and notices under this Act;
(b) for the collection of tax by instalments or by means of deductions made from emoluments;
(c) for the procedure and criteria to be followed in writing off as losses any outstanding tax; (Inserted by Act 11 of 2007)
(d) for any such matters as are authorised by this Act to be prescribed; and
(e) for any other matter or thing, whether similar or not to those abovementioned, in respect of which it may be expedient to make rules for the purpose of carrying this Act into execution.
(Amended by Act 9 of 2011)
(2) All rules purporting to be made in pursuance of this section shall be published in the Gazette and shall come into operation on such publication or at such other time as may be stated in such rules.

Forms
44. (1) Any form prescribed by this Act, or prescribed by any rule made under the authority of this Act with such variations and additions as the circumstances of the particular case may require, or forms to the like effect, may be used in the cases to which they respectively apply, and shall be deemed good, valid and sufficient.
(2) Unless or until forms are prescribed any document required or used for the purposes of this Act may be in such form as the Comptroller, or in Court matters the Court, Judge or Magistrate may prescribe or approve or use.
(3) It shall not be necessary to publish in the Gazette any form prescribed or to be used under the authority of this Act and when a rule prescribes forms, it shall be sufficient to describe such forms in the rule and to indicate the place at which such forms may be seen or obtained.
Signature on notices
45. (1) Every notice to be given by the Comptroller under this Act shall be signed by him or by a person from time to time appointed by him for that purpose, and every such notice shall be valid if the signature of the Comptroller is duly printed or written thereon.
(2) Any notice given by the Commissioners may be signed by one Commissioner or other person so appointed by them for that purpose.
(3) A signature attached to any notice and purporting to be the signature of any person so appointed shall be taken to be the signature of that person until the contrary be shown.
Service of notices
46. Notice may be served on a person either personally or by being sent through registered post to his last known business or private address, and shall in the latter case be deemed to have been served in the case of persons resident in Montserrat not later than fourteen days succeeding the day when posted and in the case of persons not so resident, one month succeeding the day on which the notice would have been received in the ordinary course of the post, and in proving such service it shall be sufficient to prove that the letter containing the notice was properly addressed and posted.
Refusal or neglect to accept letters
47. Where the person to whom there has been addressed a letter containing any notice which may be given under the provisions of this Act refuses to accept delivery of such letter, or is informed by an employee of the Post Office of the fact that there is a letter awaiting him at the Post Office and such person refuses or neglects to take delivery of such letter, such notice shall be deemed to have been served upon him on the date of his refusal or on which he was informed that there was a letter awaiting him at the Post Office.

Assessment not void by reason of errors
48. (1) No assessment, warrant or other proceeding purporting to be made in accordance with the provisions of this Act, shall be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect, or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Act, and if the person assessed or intended to be assessed or affected thereby is designated therein according to common intent and understanding.
(2) An assessment shall not be impeached or affected—
(a) by reason of a mistake therein as to—
(i) the name or surname of a person liable; or
(ii) the description of any income; or
(iii) the amount of tax charged;
(b) by reason of any variance between the assessment and the notice thereof:
Provided that, in case of assessment the notice thereof shall be duly served on the person intended to be charged, and such notice shall contain, in substance and effect, the particulars on which the assessment is made:
Provided further that, any such mistake shall be corrected immediately in the assessment and notice thereof.
Time limits
49. Where a time limit is laid down in this Act for the rendering of a return or of particulars, or any lists and information required under any section, or giving notice of objection or appeal the respective authority to whom any document, information or notice has to be supplied, or being satisfied that owing to absence from Montserrat, sickness or other reasonable cause an extension of time is reasonable may extend the time limit accordingly.

PART 9
RETURNS AND ASSESSMENTS
Return of personal income
50. (1) It shall be the duty of every person who receives an income to deliver to the Comptroller on or before 31 March in each year, or such other date as may be prescribed, a true and correct return in the form and manner prescribed, of the whole of his income from every source whatever for the basic year and if absent from Montserrat to give the name and address of an agent residing in Montserrat
(2) A person may, in accordance with section 5 of the Electronic Transactions Act, deliver the return in subsection (1) online in the prescribed form.
(3) In the case of persons deriving income from any employment or by way of pensions such returns are to be rendered not later than 31 March in each year.
(4) A person who fails to deliver a true and correct return under subsection (1) shall pay a fine of $10 in respect of each month he fails to submit a return.
(5) Subject to subsection (4), any person who wilfully fails to comply with the provisions of this section shall be guilty of an offence against this Act. (Amended by Act 21 of 2011)
Returns by employers
51. (1) The Comptroller may by notice in writing require any employer to furnish him within the prescribed time with a return for any year containing—
(a) the names and places or residence of all persons employed by him; and
(b) the payments and allowances made to those persons in respect of that employment.
The expression “payments and allowances” in this subsection shall be deemed to include not only monies earned as salary, wages, overtime, or bonus, but also the annual value of any residence, quarters, board and lodging, or other allowances or benefits in kind received by an employee in respect of his services.
(2) Where the employer is a company or body of persons, the manager or other principal officer shall be deemed to be the employer for the purpose of this section, and any director of a company, or person engaged in the management of a company, shall be deemed to be a person employed.

Official information and official secrecy
52. The Comptroller may require any officer in the employment of the Government or any municipality or other public body to supply such particulars as may be required for the purposes of this Act and which may be in the possession of such officer:
Provided that, no such officer shall by virtue of this section be obliged to disclose any particulars as to which he is under any statutory obligation to observe secrecy.
Power of Comptroller to require accounts and returns
53. The Comptroller may by notice in writing require any person or the agent or attorney of any person or the secretary, attorney, manager, agent or other principal officer of any company to furnish him within a reasonable time or such time as may be prescribed with—
(a) a return of income; and
(b) such accounts (including a balance sheet at the terminal date of such accounts) and particulars as may seem necessary to the Comptroller for the purpose of this Act.
List to be prepared by representative or agent
54. Every person who, in whatever capacity, is in receipt of any money or value being income arising from any of the sources mentioned in this Act for or belonging to any person shall, whenever required to do so by any notice from the Comptroller, prepare and deliver within the time therein stated a list in a form approved by the Comptroller, signed by him, containing—
(a) a true and correct statement of all such income;
(b) the name and address of every person to whom the same shall belong.
Returns of interest
55. (1) Every person carrying on the trade or business of banking or any other trade or business which pays interest on sums of money received or retained shall whenever so required by notice furnished to the Comptroller within the time therein stated particulars of the names and addresses of the persons to whom interest was paid or credited and of the amount of the interest for the period specified.
(2) The Accountant General shall furnish the like particulars when required in respect of the Government Savings Bank.
(3) No particulars shall be required to be furnished where the amount of such interest applicable to any person does not exceed $50.
(4) The Comptroller may require any bank or other person at any time to furnish a return showing the amounts credited or paid to any person by such bank or other person in respect of—

(a) interest or dividends on investments abroad; and for
(b) remittances from abroad,
together with the names and addresses of the persons to whom such sums were paid or credited.
Manager of corporate bodies of persons
56. The manager or other principal officer of every corporate body of persons or society shall be answerable for doing all such acts, matters and things as are required to be done by virtue of this Act for the assessment of such body or persons or society and for payment of the tax.
Comptroller to make assessments
57. (1) The Comptroller shall proceed to assess every person chargeable with the tax as soon as may be after the date prescribed for delivering the returns.
(2) Where a person has delivered a return, the Comptroller may—
(a) accept the return and make an assessment accordingly; or
(b) refuse to accept the return and, to the best of his judgement, determine the amount of the chargeable income of the person and assess him accordingly.
(3) Where a person has not delivered a return and the Comptroller is of the opinion that such person is liable to pay tax, he may, according to the best of his judgement, determine the amount of the chargeable income of such person and assess him, accordingly, but such assessment shall not effect any liability otherwise incurred by such person by reason of his failure or neglect to deliver a return.
Transactions designed to avoid liability to tax
58. (1) Where the Comptroller has reasonable grounds to believe that the main purpose or one of the main purposes for which any transaction was or transactions were effected (whether before or after the commencement of “this Act”) was the avoidance or reduction of liability to tax for any year, he may, if he determines it to be just and reasonable, direct that such adjustments shall be made as respects liability to tax as he may deem appropriate so as to counteract the avoidance or reduction of liability to tax which would otherwise be effected by the transaction or transactions:
Provided that, this subsection shall not apply to any transaction the main purpose or one of the main purposes for which was to affect the succession by a resident company, incorporated for that purpose to any business carried on by an individual or partnership.
(2) Without prejudice to the generality of the powers conferred by subsection (1) the powers conferred thereby extend—

(a) to the charging with tax of persons who, but for the adjustments, would not be chargeable to the same extent; and
(b) to the charging of a greater amount of tax than would be chargeable but for the adjustments.
Appointment of agent in the United Kingdom
59. For the purpose of facilitating the assessment of the income of persons residing in the United Kingdom, the Governor may appoint an agent in the United Kingdom who shall make enquires on behalf of the Comptroller in respect of any such person as may apply to be dealt with through an agent, and shall ascertain and report to the Comptroller the amount of the chargeable income of such person in accordance with this Act, and shall forward to the Comptroller the accounts and computation upon which his report shall enter the amount reported in the assessment list:
Provided that, if it appears to the Comptroller that an error has occurred in the accounts or computation he may refer the report for further consideration:
Provided also that, nothing in this section shall affect the right of objection and appeal provided in this Act.
Omissions and undercharges to be rectified
60. Where it appears to the Comptroller that a person liable to tax has not been assessed, or has been charged on a lesser amount than he ought, or has received deductions or allowances to which he is not entitled, the Comptroller may, within the year of assessment or within 6 years after the expiration thereof, assess such person at such amount or additional amount according to his judgement ought to have been charged, and the provisions of this Act as to notice of assessment, appeal and other proceedings shall apply to such assessment or additional assessment and to the tax charged thereunder.
Audit and ancillary powers
61. (1) A person authorised by the Comptroller for any purpose related to the administration or enforcement of this Act may, at any reasonable time, on production of his letter of authorisation enter into any premises or place where any business is carried on or any property is kept or anything is done in connection with any business or any books or records are or should be kept pursuant to this Act, and—
(a) audit or examine the books and records and any account, voucher, letter, telegram or other document which relates to or may relate to the information that is or should be in the books or records or to the amount of tax payable under this Act;
(b) examine property described by an inventory or any property, process or matter an examination of which may, in his opinion, assist him in determining the accuracy of any inventory or in

ascertaining the information that is or should be in the books or records or the amount of tax payable under this Act;
(c) require the owner or manager of the property or business and any other person on the premises or place to give him all reasonable assistance with his audit or examination either orally or, if he so requires, in writing, on oath or otherwise and, for that purpose, require the owner or manager to attend at the premises or place with him; and
(d) if, during the course of an audit or examination, it appears to him that there has been a violation of this Act or a regulation, seize, take away and retain any of the records, books, accounts, vouchers, letters, telegrams and other documents that may be relevant.
(2) The Comptroller may, for any purpose related to the administration or enforcement of this Act, by registered letter or by a demand served personally, require from any person—
(a) any information or additional information in the form of a return of income or a return of information or otherwise; and
(b) production, or production on oath of any books, letters, accounts, invoices, statements or other document,
within such reasonable time as may be stipulated therein.
(3) The Comptroller may, for any purpose related to the administration or enforcement of this Act, by not less than seven days notice in writing, require any person to attend before him and give evidence on oath and to produce all books, letters, accounts, invoices, statements or other documents in his possession or control.
(4) The Comptroller may, for any purpose related to the administration or enforcement of this Act, authorise in writing any officer or other person employed to administer and enforce this Act, together with such members of the Police Force as that person call upon to assist him, to enter and search, if necessary by force any building, receptacle or place for documents, books, records or things which may afford evidence of a violation of this Act or a regulation and to seize, take away and retain any such documents, books, records or other things.
(5) Where any book, record or other document has been seized, examined or produced under this section, the person by whom it was seized or examined or to whom it was produced may make, or cause to be made, one or more copies thereof and a document purporting to be certified by the Comptroller to be a copy made pursuant to this subsection is admissible in evidence and has the same probative force as the original document would have had if it had been proven in the ordinary way.
(6) No person shall hinder, molest or interfere with any person doing anything that he is authorised by or pursuant to this section to do, or prevent or attempt to prevent any person doing any such thing and, notwithstanding any

other law to the contrary, every person shall do anything that he is required by this section to do.
(7) Without restricting the generality of this section, this section applies to banks and attorneys-at-law, their employees and offices as it applies to any other business, persons and premises.
(Substituted by Act 11 of 2007)
Attorney-clients privilege
62. (1) Where an attorney-at-law is prosecuted for failure to comply with a requirement under section 61 to give information or to produce a document, he shall be acquitted if he establishes to the satisfaction of the Court—
(a) that he, on reasonable grounds believed that a named client of his had an attorney-client privilege in respect of the information or document; and
(b) that he informed the Comptroller within seven days after receiving notice of the requirement that a named client of his had, in the opinion of the attorney-at-law, an attorney- client privilege in respect of the information or document.
(2) Where a person is about to examine or seize a document in the possession of an attorney-at-law and the attorney-at-law claims that a named client of his has an attorney-client privilege in respect of that document, the person shall, without examining or making a copy of the document—
(a) seize the document and place it together with any other document with respect to which the same attorney-at-law makes a similar claim of attorney-client privilege with respect to the same named client in a package; and
(b) seal and identify the package and place it in the custody of the Registrar of the High Court.
(3) Where a document has been placed in the custody of the Registrar under subsection (2), the attorney-at-law or the named client in respect of whom the claim of attorney-client privilege was made in respect of that document may apply to a Judge in Chambers, upon at least three days notice to the Comptroller for an order determining the question of whether that named client has an attorney-client privilege in respect of that document, and on the hearing of that application the Judge may inspect the document.
(Inserted by Act 11 of 2007)
List of persons assessed
63. (1) After completing his assessments the Comptroller shall prepare or cause to be prepared a register of person liable to pay tax and certify the same.
(2) Such register (herein called the assessment lists) shall contain the names and addresses of the persons assessed to tax, the amount of the chargeable income of each person the amount of the tax payable by him, and such other particulars as may be prescribed.

Notices to be served on persons assessed
64. After making assessment in respect of a person for a year of assessment the Comptroller shall cause to be delivered to such person a notice of assessment or re-assessment as the case may be showing the amount of the tax payable by that person in respect of that year of assessment and informing him of his rights under section 66.
(Substituted by Act 35 of 1975)
Relief in respect of error or mistake
65. (1) If any person who has paid the tax charged upon him for any year alleges that the assessment and charge to tax for that year was excessive by reason of some error or mistake in the return or statement made by him for the purposes of the assessment, he may at any time not later than 6 years after the end of the year of assessment, apply in writing to the Comptroller for relief:
Provided that, no relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the applicant ought to have been computed where the return or statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when the return or statement was made.
PART 10
OBJECTIONS AND APPEALS
Revision of assessment and re-assessment
66. (1) Any person who disputes his assessment or re-assessment or any part thereof may, within twenty one days or such longer period as the Comptroller may in any particular case determine, after the date of service of the notice of assessment or notice of re-assessment as the case may be, apply for revision of the assessment or re-assessment by delivering to the Comptroller a notice of disagreement.
(2) A notice of disagreement shall be in writing and shall state the precise grounds on which the assessment or re-assessment is disputed.
(3) No notice of disagreement will be accepted unless such notice is accompanied with a return in respect of the relevant year of assessment. (Inserted by Act 3 of 1994)
(4) On receipt of a notice of disagreement, as soon as conveniently possible thereafter, the Comptroller shall give to the person who has applied for revision of the assessment or re-assessment as the case may be, an opportunity to argue his case orally or in writing and require such person to produce all books and other documents in his possession or under his control as the Comptroller may deem necessary and thereafter the Comptroller may review the assessment or re-assessment in dispute and shall either confirm the same or make a revised assessment.

(5) The Comptroller, as soon as he has either confirmed the assessment or re-assessment in dispute or made a revised assessment, shall deliver to the person who has applied for revision of the assessment or re-assessment a notice of revised assessment as the case may be.
(6) A person who has received a notice of confirmation or a notice of revised assessment may not apply to the Comptroller for a further revision of that assessment or re-assessment as confirmed or of that revised assessment save only for the purpose of correcting an arithmetical error.
(Substituted by Act 35 of 1975)
Objections to revised assessments
67. (1) Any person who has applied for revision of an assessment or re- assessment and who has received notice of confirmation or notice of revised assessment may, within thirty days after the date of service of such notice object to the confirmed assessment or the revised assessment as the case may be, by delivering to the Commissioners 6 copies of a notice of objection.
(2) A notice of objection shall state the precise grounds on which the confirmed assessment or the revised assessment is objected to and the particular matters to be determined by the Commissioners.
(3) The Commissioners shall decide the place, date and time for the hearing of the objection and shall cause the objector and the Comptroller to be notified of that place, date and time at least twenty eight days before the appointed date. (Amended by Act 11 of 2007)
(4) At the hearing of an objection by the Commissioners—
(a) the proceedings shall be in camera;
(b) the objector and the Comptroller may appear in person or may be represented by counsel, a solicitor or an agent; but the Commissioners may require the objector to attend in person and produce all books and other documents in his possession or control relating to his income;
(c) the Commissioners may require the Comptroller to attend in person and give evidence on oath or otherwise and to produce all documents in his possession or control relating to the income of the objector;
(d) the Commissioners may summon any witness, require him to give evidence on oath or otherwise and to produce all books and other documents in his possession or control that they consider may be of assistance in determining the objection;
(e) the onus of proof shall be on the objector.
(5) Upon the conclusion of the hearing of an objection or as soon as conveniently possible thereafter, the Commissioners shall determine the particular matters in issue and shall by order under their hand direct the Comptroller to act in accordance therewith—

either
(a) by confirming the assessment, re-assessment or revised assessment objected to; or
(b) by making a settled assessment as the case may require.
(6) The Commissioners shall transmit one copy of any order made under subsection (5) to the objector and one copy to the Comptroller and shall attach in each case a written statement of the reasons in support of their determination of the objection.
(7) Where the Commissioners are not unanimous in their decision the objection shall be determined by the decision of the majority.
(8) Upon the receipt of an order by the Commissioners pursuant to subsection (5) the Comptroller shall—
(a) if he is directed to confirm the assessment, re-assessment or revised assessment objected to, within 7 days deliver to the objector a notice of confirmation; or
(b) if he is directed to make a settled assessment, within seven days make a settled assessment to give effect to the determination of the objection by the Commissioners and shall deliver to the objector a notice of such settled assessment.
(9) If an objector on receiving a notice of settled assessment believes that the same is not in accordance with the directions of the Commissioners, he may apply to the Commissioners who shall determine the content of the notice of settled assessment which shall then be delivered by the Comptroller to the objector.
(Substituted by Act 35 of 1975)
Appeals to High Court
68. (1) Any person—
(a) who has disputed an assessment or re-assessment and who has received a notice of confirmation or a notice of revised assessment; or
(b) who has objected to the Commissioners and who has received a notice of settled assessment or a notice of determination,
may appeal from the decision of the Comptroller or a decision of the Commissioners, as the case may be, to a Judge of the High Court.
(2) Notice of Appeal to the High Court shall be lodged within thirty days after the date of the service of the notice of confirmation or the notice of revised assessment or the notice of settled assessment and a copy thereof shall be delivered to the Comptroller.
(3) The Comptroller may appeal from the decision contained in an order of the Commissioners to the High Court within thirty days after the date on which the order was received and shall deliver a copy of the appeal to the

Commissioners and to the person in respect of whose assessment the order was made.
(4) A notice of appeal to the High Court shall contain particulars, shortly stated, of the assessment appealed against and shall state the grounds on which the appeal is made.
(5) Either party to an appeal may appear in person or may be represented by counsel or solicitor at the hearing of the appeal but the High Court may require the appellant to appear in person.
(6) Except as may be otherwise provided in any rules made under subsection (11) not less than fourteen days notice shall be given to the appellant and to the respondent in an appeal of the date fixed for the hearing of such appeal.
(7) In any appeal to the High Court—
(a) the proceedings shall be held in camera unless the person whose assessment is in issue requests that the hearing shall be in open court and in such a case the appeal shall be heard in open court;
(b) the onus of proof shall be on the appellant;
(c) costs shall be in the discretion of the Judge hearing the appeal and shall be such sum as the Judge shall determine.
(8) At the conclusion of the proceedings in an appeal the High Court shall by order—
(a) confirm the assessment in issue; or
(b) refer the assessment back to the Comptroller with directions for making a final assessment.
(9) Where the High Court has referred an assessment back to the Comptroller with directions for making a final assessment, the Comptroller shall make a final assessment in accordance with those directions and shall deliver to the person whose assessment was in issue a notice of final assessment.
(10) If the person whose assessment was in issue in an appeal to the High Court believes that the notice of final assessment is not in accordance with the directions of the High Court, he may apply, in chambers, to the Judge who made the order or, if that Judge cannot hear the application, to any other Judge for an order determining the content of the notice of final assessment which shall then be delivered by the Comptroller to that person.
(11) The Chief Justice of the Supreme Court may make rules governing appeals to the High Court and providing for the method of tendering evidence and appointing places for the hearing of such appeals and prescribing the procedure to be followed.
(12) For the purpose of subsections (4), (7), (8), (9) and (10), “assessment” means—

(i) an assessment or re-assessment confirmed by the Comptroller or by order of the Commissioners under the provisions respectively section 66(4) and section 67(5)(a);
(ii) a revised assessment;
(iii) a settled assessment;
(iv) an additional assessment as the context requires. (Substituted by Act 35 of 1975)
Appeals to Court of Appeal
69. (1) Either the appellant or the respondent in an appeal to a Judge of the High Court may appeal to the Court of Appeal and every such appeal shall be made within the time and in the manner laid down for appeals from the High Court to the Court of Appeal and shall be subject in all respects to the law relating to such appeals.
(2) Where there is adequate reason why the time limits in respect of an objection to the Commissioners or in respect of an appeal to a Judge of the High Court could not be complied with the Commissioners or a Judge of such Court, as the case may be, may extend those time limits for a fixed period as may be determined by them or by him.
(3) Subject to section 57(1) and to subsection (1)—
(a) a final assessment or an assessment confirmed by a Judge of the High Court; and
(b) subject also to an appeal to a Judge of such High Court, a settled assessment or an assessment confirmed by order of the Commissioners,
shall be final and binding and except in proceedings on appeal under this Act shall not be questioned in any Court or in any proceedings.
(Substituted by Act 35 of 1975)
PART 11
COLLECTION AND RECOVERY OF TAX
Collection of tax
70. (1) Except in the case of deduction of tax at source under section 40, and on payment of emoluments, tax shall be payable on or before the thirtieth day of June in the year of assessment or within forty five days of the date of service of the notice of assessment, whichever shall be the later date.
(2) Where a person carries on a trade, such person shall pay to the Accountant General, an amount of tax equal to that last assessed by the Comptroller, in three equal instalments during the months of February, April and June in the year of assessment, notwithstanding that no assessment has been made. In cases where the Comptroller is satisfied that the person carrying

on the trade is likely to suffer a loss or reduction of profits, he may make any necessary adjustments to the assessments payable which he regards as fair and reasonable. The amounts paid shall be set off for the purpose of collection against the tax levied under an assessment and if too much has been paid a repayment shall be made, or if too little has been paid, the outstanding tax shall be recovered in accordance with the provisions of this Act.
The collection of tax shall, in cases where notice of objection has been given, remain in abeyance until such objection is determined:
Provided that, the Comptroller may in such case enforce payment of that portion of the tax (if any) which is not in dispute or a sum not less than 75% of the tax assessed.
(3) The Comptroller may agree with the appellant the amounts of tax which is not in dispute, and where the Comptroller fails to agree upon the amount of tax he may refer the matter to the Commissioners for their decision.
(4) Where any payment has been held over pending the result of a notice of objection, the tax outstanding under the assessment as determined on such objection or appeal, as the case may be, shall be payable within thirty days from the day on which the objection was determined, and if such tax is not paid within such period, payment thereof may be enforced under the provisions of this Act.
(5) Notwithstanding that a case has been required to be stated or is pending before the Judge in Chambers or the Court of Appeal, tax shall be paid within thirty days of the determination of the Appeals in accordance with the decision of the Commissioners or of the Judge, and if the amount of the assessment is altered by the order of judgement of the Court of Appeal, then—
(a) if too much tax has been paid, the amount overpaid shall be refunded with such interest if any, as the Judge or the Court of Appeal may allow; or
(b) if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax (except so far as any penalty is incurred on account of arrears) and shall be paid and recovered accordingly.
(6) Where after assessment has been made in accordance with the provisions of this Act any amount collected pursuant to the provisions of section 71 is found to be in excess of the tax shown to be payable in the assessment, such excess shall be refunded as soon as practicable thereafter and in any case, not later than three months after the assessment has been made.
(Substituted by Act 35 of 1975 and amended by Act 11 of 2007)
Deduction on payment of emoluments
71. (1) Notwithstanding anything in this Act contained, on the making of any payment of or on account of any emoluments, tax shall, subject to and in accordance with any rules made under section 43, be deducted or withheld by the person making the payment.

(2) The tax directed to be deducted or withheld pursuant to the provisions of subsection (1) shall be paid to the Accountant General by the person deducting or withholding the same at such time or times and by such date or dates as may be prescribed in the rules made under section 43 and on the payment thereof the Accountant General shall send to the payer a receipt which shall to the extent of the amount referred to therein be a good and sufficient discharge of the liability of the payer for any amount deducted or withheld pursuant to the provisions of this section.
(3) If any person fails to remit to the Accountant General any amount directed to be deducted or withheld pursuant to the provisions of subsection (1) by such date or dates as may be prescribed in the rules made under section 43, he shall be liable to a penalty of five per centum of the amount or part thereof not remitted or $1,000, whichever is the greater in addition to the amount itself with interest on the amount at the rate of ten per centum per annum. (Amended by Act 8 of 1999)
(4) From the returns made as aforesaid and from any other information in his possession the Comptroller shall in and for every year and from time to time, make assessments, in respect of every taxpayer, setting forth the amount upon which tax is payable and the amount of the tax.
(5) Every such assessment shall be made in the form and manner prescribed by regulations, and in default of such regulations, or so far as they do not extend, then as the Comptroller thinks fit.
Public Officers to furnish information to the Comptroller
(6) It shall be the duty of every public officer to furnish the Comptroller on his application in writing with any information required by him for the purpose of this Act, and which may be in his possession or which he may be able to procure.
(7) All amounts deducted or withheld by any person pursuant to the provisions of subsection (1) shall be deemed to be held in trust by such person for Her Majesty, her heirs and successors for the use of Montserrat and shall be kept by such person separate and apart from his own moneys and shall not be subject to attachment in respect of any debt or liability of the said person and in the event of any liquidation, assignment, or bankruptcy the said remains apart and forms no part of the estate in liquidation, assignment or bankruptcy.
(8) Every person who shall have deducted or withheld any tax pursuant to the provisions of subsection (1), shall deliver personally or send by post within such time or times as may be prescribed by rules made under section 43 to the person from whose emoluments the tax was deducted or withheld or to such other person, as may be prescribed by rules made under the said section, such certificate or account relating to the amount of tax deducted by him as may be prescribed by the said rules.
(9) If any person fails to comply with the provisions of subsection (3) or shall fail to deliver or send to the Comptroller within such time or times as may be prescribed by rules made under the said section any return, account or

certificate or any copy thereof which he may be required by the said rules to deliver or send to the Comptroller for the purpose of rendering him accountable to the Comptroller for any tax directed to be deducted or withheld by him pursuant to the provisions of this section, he shall be guilty of an offence and liable on conviction by a court of summary jurisdiction to a fine of $100 for every day during which such failure continues:
Provided that, it shall be a good and sufficient defence to any complaint brought under this subsection that any failure was not due to the wilful neglect or default of the defendant or of any person acting on his behalf. (Amended by Act 8 of 1999)
Validity of assessment
(10) The validity of an assessment shall not be affected by reason that any of the provisions of this Act have not been complied with by the tax payer.
(11) No action shall lie against any person for withholding or deducting any sum of money in compliance or intended compliance with the provisions of subsection (1).
(12) Whereby this Act any obligation is imposed on any person to deduct or withhold any tax pursuant to the provisions of subsection (1) any agreement made by any such person not to withhold or deduct such tax shall be void and of no force or effect whatsoever.
(13) Every person from whose emoluments any amount shall be deducted or withheld pursuant to the provisions of subsection (1) shall upon the amount being so deducted or withheld be deemed to have paid the same and shall thereupon cease to be liable for tax to the extent of the amount so deducted.
When tax deducted from payments to non-residents is due and payable
72. Any tax deducted or deductible from the payment of any income to which section 40 applies to a non-resident shall be due and payable by the person responsible for making such deduction within fifteen days after the end of the month during which that tax was deducted or deductible.
(Inserted by Act 2 of 1986)
Definition of emoluments for purposes of section 71
73. For the purposes of section 71 the expression “emoluments” means all salary, wages, overtime, bonus, commission or other amounts for services, perquisites, directors fees, retiring allowances or pension arising or accruing in or derived from or received in Montserrat and which are assessable to income tax but shall not include any salary or share of profits arising from a trade, profession or vocation carried on by any person either by himself or in partnership with any other person.

Tax in arrears
74. Where the whole tax or an instalment or the amount agreed or determined as in section 70 is not paid on or before the prescribed date or dates then such tax shall be deemed to be in arrears and it shall be lawful for the Comptroller, in his official name, to sue for and recover the tax or such portion thereof as a civil debt in a court of competent jurisdiction or to issue a warrant under his hand directed to the Bailiff setting out in the same or in the Schedule thereto the several sums due on account of the tax from the person against whom the warrant is directed.
Penalty for non-payment of tax
75. (1) Subject to subsections (2) and (3), a person who defaults on the payment of tax in excess of $20 on the due date is liable to a penalty of 5% of the tax in arrears.
(2) The provisions of this Act relating to the collection and recovery of tax apply to the collection and recovery of the penalties in subsection (1).
(3) The Comptroller may waive the penalty in subsection (1) if—
(a) he is satisfied that the failure to pay on or before the due date was not due to wilful negligence; and
(b) the person makes arrangements, which are satisfactory to the Comptroller for the payment of the arrears, before the expiration of thirty days from the due date, or any extended period the Comptroller may in any particular case allow.
(4) A person who makes arrangements for the payment of arrears in accordance with subsection (3)(b) and fails to make payment is liable to the penalty in subsection (1) that was waived.
(Substituted by Act 21 of 2011)
Recovery of tax by levy on goods, etc
76. (1) Where tax is in arrear the Comptroller may, and the Bailiff, immediately on receipt of a warrant, shall proceed to levy upon the goods, chattels and lands of the persons against whom the warrant is directed and to sell in the manner provided in section 78 so much of the same as may be required to satisfy the several sums due on account of the tax from the person against whom the warrant is directed.
(2) Where the amount of tax due or penalty or interest chargeable or otherwise payable under this Act is $20 or less, such amount shall be deemed to have been remitted. (Inserted by Act 13 of 1995)
(3) Notwithstanding the provisions of subsection (1), where the Comptroller believes that any person is indebted to or liable to make a payment to another person or is in possession of or has access to moneys belonging to another person and that other person owes tax deemed to be in arrear under section 74, the Comptroller may deliver to such first mentioned person a demand for the payment, stating the name of the person owing tax in

arrear and the amount of that tax including any fine or penalty due under this part of this Act, and where that first mentioned person is the employer of the person owing tax in arrear, the amount demanded for each pay period expressed either as a dollar amount or a percentage of the remuneration.
(4) Every person who receives a demand for payment under subsection (3) relating to one of his employees shall account to the Comptroller, at the same time as, but for the provisions of this section, he would have paid to the employee, for the amount demanded by the Comptroller or the amount of the employee’s tax in arrear, whichever is the less, and shall continue to do so on each occasion that the employee is entitled to be paid until the employee’s indebtedness under subsection (3) is satisfied.
(5) Every person who receives a demand for payment under subsection (3) relating to some person other than one of his employees shall, if he is indebted to or liable to make a payment or make regular payments to that other person, account to the Comptroller for the amount of his indebtedness or the amount which he is liable to pay to that person or the amount of that person’s tax in arrear, whichever is the less.
(6) Every person who has discharged any liability to a person owing tax in arrear under this Act after receiving a demand for payment under subsection (3) without complying with subsection (4) or (5) is liable to account to the Comptroller for an amount equal to the liability discharged, or for which he was required under subsection (4) or (5) to account to the Comptroller, whichever is the less.
(7) Any amount accounted for under subsection (4) or (5), operates as a discharge of any liability of the person accounting for that amount to the person to whom a payment would but for this section have been made, to the extent of the amount accounted for to the Comptroller.
(Substituted by Act 35 of 1975 and amended by Act 11 of 2007)
Priority of claim for tax
77. (1) No property, goods or chattels whatever, belonging to any person at the time any tax becomes in arrear, shall be liable to be taken by virtue of any execution or other process, warrant or authority whatever, or by virtue of any assignment, or any account or pretence whatever, except at the suit of the landlord for rent, unless the person at whose suit the execution or seizure is made, or to whom the assignment was made pays or causes to be paid to the Comptroller before the sale or removal of the goods or chattels, all arrears of tax which are due at the time of seizure, or which are payable for the year in which the seizure is made.
(2) In case of neglect or refusal to pay the tax so claimed the Bailiff or the Comptroller shall distrain the goods and chattels notwithstanding the seizure or assignment, and shall proceed to the sale thereof for the purpose of obtaining payment of the whole of the tax charged and claimed and the reasonable costs and charges attending such distress and sale. The Bailiff and the Comptroller so doing shall be indemnified by virtue of this Act.
(Substituted by Act 35 of 1975)

Sale by tax authorities
78. (1) Subject to subsection (2) every sale under this Act shall be by public auction held at such time and place as the Comptroller or Bailiff may direct.
(2) A notice of an intended sale shall be given in at least three issues of a newspaper circulating in Montserrat but in no case shall a sale take place before the expiration of ninety calendar days from the date of publication of the first notice.
(3) The proceeds of a sale under this Act shall be applied to the payment of the tax due and the expenses of levy and sale, and the surplus, if any, shall be paid on application to the person entitled thereto.
(Substituted by Act 13 of 1995)
Commission to Bailiff
79. (1) There shall be paid to the Bailiff in respect of the duties performed by him under this Act, a commission of 2½%—
(a) on arrears collected by him;
(b) on the net proceeds of any sale over and above all other expenses of the levy and sale under this Act, not exceeding the amount of commission on arrears to which he would have been entitled had there been no sale.
(2) All sums of money received or recovered by the Bailiff as commission shall be paid into the Treasury.
Committal to Prison
80. (1) If no sufficient distress be found whereby the tax charged upon a person by virtue of this Act may be levied and it is shown by the Bailiff or Comptroller to the satisfaction of a Magistrate that such person either has or had since the date of the levy the means to pay the same, and has refused or neglected or refuses or neglects to pay the same the Magistrate may, by warrant under his hand, commit such person to prison, there to be kept until payment be made of the tax charged or security given to his satisfaction for payment thereof together with such further sum as he may adjudge to be reasonable for the cost and expense of apprehending and conveying such person to prison, where he shall be detained and kept according to the tenor and effect of the warrant:
Provided that, the order of the Magistrate committing such person aforesaid to prison shall be made in open court:
Provided also that, no imprisonment under this section shall operate as an extinguishment of the tax charged.
(2) Proof of the means of the person making default may be given in such manner as a Magistrate may think just, and any person aforesaid and any witness may be summoned and examined under the Criminal Code.

(3) A Magistrate may issue his warrant to the Superintendent of Prisons directing the liberation of any defaulter, and, on receipt thereof the Superintendent of Prisons shall forthwith release and discharge such defaulter out of custody, unless he is under detention for some other cause than that set forth in the warrant of commitment.
Recovery of tax from and assessment of persons leaving Montserrat
81. (1) If in any particular case the Comptroller has reason to believe that a person who has been assessed to tax may leave Montserrat before such tax becomes payable without having paid such tax, he may by notice in writing to such person demand payment of such tax within the time to be limited in such notice. Such tax shall thereupon be payable at the expiration of the time to be limited and shall, in default of payment unless security for payment thereof be given to the satisfaction of the Comptroller, be recoverable forthwith in the manner provided by this Act.
(2) If in any particular case the Comptroller has reason to believe that tax upon any chargeable income may not be recovered, he may at any time and as the case may require—
(a) forthwith by notice in writing require any person to make a return and to furnish particulars of any such notice within the time to be specified in such notice;
(b) make an assessment upon such person in the amount of the income returned, or if default is made in making such return or the Comptroller is dissatisfied with such return, in such amount the Comptroller may think reasonable; and
(c) by notice in writing to the person assessed require that the tax be paid forthwith or that security for payment of the tax assessed be forthwith given to his satisfaction, and may by notice in writing to the person assessed require that the tax be paid forthwith or that security for the payment of the tax assessed be forthwith given to the satisfaction of the Comptroller.
Charging tax before year of assessment
(3) Notwithstanding any of the provisions of this Act, if in any particular case the Comptroller has reason to believe that tax upon any income chargeable to such tax may not be recovered, he may at any time—
(a) by notice in writing to the person by whom the tax would be payable to determine a period for which tax shall be charged and require such person to render within the time specified therein, returns and particulars of such income for that period;
(b) make an assessment upon such in the amount of the income returned, or if default is made in making a return, or the Comptroller is dissatisfied with such returns, in such amount as the Comptroller may think reasonable.

(4) Notice of assessment made in accordance with the provisions of subsections (2) and (3) shall be given to the person assessed and any case so assessed (in accordance with the provisions of subsections (2) and (3)) shall be payable on demand made in writing under the hand of the Comptroller, and shall in default of payment unless security for the payment thereof be given to the satisfaction of the Comptroller, be recoverable forthwith.
(5) Any person who has paid the tax in accordance with a demand made by the Comptroller or who has given security for such payment under subsections (2) and (3) shall have the rights of objection and appeal conferred by this Act and the amount paid by him shall be adjusted in accordance with the result of any such objection or appeal.
(6) The provisions of subsections (2) and (3) shall not affect the powers conferred upon the Comptroller by section 59.
Repayment of tax
82. (1) If it is proved to the satisfaction of the Comptroller that any person for any year of assessment has paid tax, by deduction or otherwise, in excess of the amount with which he is properly chargeable, such person shall be entitled to have the amount so paid in excess refunded. Every claim for repayment under this section shall be made within six years from the end of the year of assessment to which the claim relates.
(2) Except as regards sums repayable on an objection or appeal, no repayments shall be made to any person in respect of any year of assessment provided he has received a notice of assessment, as regards which—
(a) that person has failed or neglected to deliver a return within the prescribed time, unless it is proved to the satisfaction of the Comptroller that such neglect or failure to deliver a true and correct return did not proceed from any fraud or wilful act or omission; or
(b) that person has been assessed in a sum excess of the amount contained in his return.
(3) The Comptroller shall give a certificate of the amount to be repaid and upon the receipt of the certificate the Accountant General shall cause repayment to be made in conformity therewith.
Power to remit tax
83. (1) The Governor acting on the advice of Cabinet may remit the whole or any part of the tax payable by any person including any interest or fees or other charges payable if he is satisfied that it would be just and equitable to do so. (Amended by Act 9 of 2011)
(2) The Governor acting on the advice of Cabinet may delegate the power to remit the tax (including any interest, fees or other charges) payable by any person in subsection (1) to—

(a) the Comptroller of Inland Revenue where the amount in question does not exceed $10,000 Eastern Caribbean Dollars, or;
(b) to the Financial Secretary where the amount in question is greater than $10,000 but less than $50,000 Eastern Caribbean dollars.
(Amended by Acts 10 of 2005 and 9 of 2011)
Write-off of losses, etc.
84. The Comptroller may, in accordance with the rules as may be prescribed under section 43 write-off as loss any tax including any interest or fees or other charges outstanding for more than six years from the end of year of assessment.
(Inserted by Act 11 of 2007)
PART 12
PENALTIES
Penalty for offences
85. Any person who without reasonable excuse (whether or not liability to tax is involved)—
(a) is guilty of a breach of official secrecy;
(b) refuses, fails or neglects to render any return or statement;
(c) refuses, fails or neglects to furnish when required any accounts or particulars;
(d) refuses, fails or neglects to attend or to give evidence when required to do so;
(e) fails to pay over any tax which he is required to deduct;
(f) in any other way does not comply with this Act or the rules made under this Act,
shall be guilty of an offence and shall be liable on summary conviction to a penalty of $2,000 and in default of payment to imprisonment for a term of four months, and after judgement has been given for that penalty to a further penalty of $100 for every day during which the refusal, failure or neglect to render any document or to pay over any tax continues.
(Amended by Act 8 of 1999)
Penalty for incorrect returns
86. (1) Any person who without reasonable excuse—

(a) in any returns, accounts, statements or particulars made by him omits the whole or any part of any income assessable under this Act;
(b) renders any return, accounts, or statement which is not true and correct;
(c) gives incorrect or incomplete particulars in any claim for allowances under Part 6; and any person who aids, abets, assists, counsels, incites or induces another person to commit any such offence;
shall be guilty of an offence and shall be liable on summary conviction to a penalty of $4,000 and in default of payment to imprisonment for a term of eight months. (Amended by Act 8 of 1999)
(2) A person who commits any offence within subsection (1) may be proceeded against before the Commissioners within six years of the date on which the offence is alleged to have occurred, and in such case shall forfeit a sum of not exceeding twice the amount of the tax evaded or attempted to be evaded by the omission or untrue or incorrect Return, Accounts or Statement and such penalty shall be recovered in the same manner as any other penalty added to the assessment.
Penalty for false statements and returns
87. (1) Any person—
(a) for the purpose of obtaining any allowance, deduction, rebate, reduction or repayment in respect of tax for himself or any other person, or who in any return, account or particulars made or furnished with reference to tax knowingly makes any false statement or false representation; and
(b) who aids, abets, assists, counsels, incites or induces another person—
(i) to make or deliver any false return or statement under this Act; or
(ii) to keep or prepare false accounts particulars concerning any income on which tax is payable under this Act,
shall be guilty of an offence and shall be liable on summary conviction to a fine of $20,000 or to imprisonment for a term of twelve months. (Amended by Act 8 of 1999)
(2) Any person who commits any offence within subsection (1)(a) may be proceeded against before the Commissioners within six years of the date on which the offence is alleged to have occurred, and in such case shall forfeit a sum not exceeding three times the amount of the tax evaded or attempted to be evaded by the omission or untrue and incorrect Return, Accounts, or Statements and such penalty shall be recovered in the same manner as any

other penalty under this Act and the increased tax shall be added to the assessment.
Time limit for proceedings
88. Any proceeding for the recovery of a penalty in respect of an offence shall be commenced within six years of the date on which the offence is alleged to have occurred.
Savings for criminal proceedings
89. The provisions of this Act shall not affect any criminal proceedings under any other Act.
Power of Director of Public Prosecutions to conduct proceedings
90. (1) Notwithstanding anything contained in section 85, 86, 87, 88 or 89, the Director of Public Prosecutions may institute, take over or discontinue any proceedings brought under this Act and may cause any such proceedings to be brought in or transferred to any Court as he shall deem fit.
(2) Where proceedings are contemplated or pending, the Director of Public Prosecutions may demand from any person whether a taxpayer or not, any returns, books of accounts, statements or particulars in relation to any person’s tax liability.
(3) Any person who refuses, fails or neglects to deliver to the Director of Public Prosecutions any document or thing demanded under the provisions of subsection (1) shall be guilty of an offence and shall be liable on summary conviction to a fine of $2,000 or to imprisonment for two years.
(Inserted by Act 9 of 1976)
PART 13
DOUBLE TAXATION RELIEF
Relief for tax paid in the Commonwealth
91. (1) Subject to the provisions of subsection (3) if any person who has paid by deduction or otherwise or is liable to pay tax under this Act for any year of assessment on any part of his income, proves to the satisfaction of the Comptroller that he has paid, by deduction or otherwise or is liable to pay Commonwealth income tax for that year in respect of the same part of his income, he shall be entitled to relief from tax on that part of his income at a rate determined in subsection (2).
(2) (a) In the case of a resident in Montserrat the relief shall be—
(i) if his rate of Commonwealth income tax does not exceed one half of his rate of tax in Montserrat, at his rate of Commonwealth income tax;
(ii) in any other case, at half his rate of tax in Montserrat.

(b) In the case of a person not resident in Montserrat the relief shall be—
(i) if his rate of Commonwealth income tax does not exceed his rate of tax in Montserrat, at half his rate of Commonwealth income tax;
(ii) in any other case, at a rate equal to the excess of his rate of tax over one half of Commonwealth income tax.
(3) No relief shall be granted in accordance with the provisions of subsection (1) in respect of Commonwealth income tax charged in any part of the Commonwealth unless the Legislature of that part has provided for relief in respect of tax charged on income both in that part and in Montserrat in a manner similar to that part provided for this section.
(4) The expression “rate of tax” when applied to tax paid or payable under this Act, means the rate determined by dividing the amount of the tax paid or payable for that year (Double Taxation Relief being left out of account) by the total income for that year, except that where the income which is the subject of a claim to relief under this section is computed by reference to the provision of section 18 of an amount other than the ascertained amount of the actual profits, the rate of tax shall be determined by the Comptroller.
(5) Where a person is, for any year of assessment, resident in Montserrat and in a part or place in which Commonwealth income tax is chargeable, he shall, for the purposes of this section, be deemed to be resident where, during that year, he resides for the longer period.
Double taxation arrangements
92. (1) If the Governor acting on the advice of Cabinet by Order declares that arrangements specified in the Order have been with the Government of any territory outside of Montserrat with a view to affording relief from double taxation in relation to income tax or any tax of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect, the arrangements shall have effect in relation to income tax notwithstanding anything to the contrary contained in any enactment. (Amended by Act 9 of 2011)
(2) On the making of an Order under this section with respect to arrangements relating to any territory forming part of the Commonwealth, section 91 shall cease to have effect as respects that territory except in so far as the arrangements otherwise provide.
(3) Any Order made under this section may be revoked by a subsequent Order.
(4) The Governor acting on the advice of Cabinet may make rules for carrying out of the provisions of any arrangements having effect under this section. (Amended by Act 9 of 2011)

(5) Notwithstanding anything in any enactment contained, an Order made under this section may be given retrospective effect from any date specified in the said Order.
Tax Credits
93. (1) The provisions of this section shall have effect where under section 92, tax payable (hereinafter called “foreign tax”) in respect of any income in the territory with the Government of which the arrangements are made, is to be allowed as a credit against tax payable in respect of that income in Montserrat.
(2) The amount of the tax chargeable in respect of the income shall be reduced by the amount of the credit:
Provided that, credit shall not be allowed against tax for any year of assessment unless the person entitled to the income is resident in Montserrat for that year.
(3) The credit shall not exceed the amount produced by applying the “rate of tax” as defined in section 91(4) to each amount of income assessable in Montserrat which is doubly taxed and the total credit shall not exceed the total tax chargeable before deducting any credit.
(4) In computing the amount of the income—
(a) where the tax chargeable depends on the amount received in Montserrat the said amount shall be increased by the appropriate amount of the foreign tax in respect of the income;
(b) where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any, and if so, what credit is to be given against income tax in respect of the dividend, the amount of the income shall be increased by the amount of the foreign tax not so chargeable which fails to be taken into account in computing the amount of the credit; but notwithstanding anything in this Act a deduction shall be allowed of any amount by which the foreign tax in respect of the income exceeds the credit thereof.
(5) Subsection (4)(a) (but not the remainder thereof) shall apply to the computation of total income for the purposes of determining the rate of tax mentioned in section 91(4).
(6) Where—
(a) the arrangements provide, in relation to dividend of some classes but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any, and if so what, credit is to be given against tax in respect of the dividends; and

(b) a dividend is paid which is not of a class in relation to which the arrangements so provide,
then if the dividend is paid to a company which controls, directly or indirectly not less than one half of the voting power in the company paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide.
(7) Credit shall not be allowed under the arrangements against tax chargeable in respect of the income of any person for any year of assessment if he elects that credit shall be allowed in the case of his income for that year.
Time limit for claims
94. (1) Any claim for an allowance for relief or by way of credit shall be made not later than 6 years after the end of the year of assessment and in the event of any dispute as to the amount allowable the claim shall be subject to objection and appeal in like manner as an assessment.
(2) Where the amount of any relief or credit given under this Act is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Montserrat or elsewhere, nothing in this Act limiting the time for the making of assessment or claims for relief shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than 6 years from the time when all such assessments, adjustments and other determinations have been made, whether in Montserrat or elsewhere, as are material in determining whether any, and if so what, credit fails to be given.
Adjustment of tax deducted from dividends and set-off
95. (1) Where the tax paid or payable by a company is affected by double taxation relief, the amount to be repaid in respect of the tax deductible from any dividend paid by the company shall be reduced as follows—
(a) if no tax is chargeable on the recipient in respect of the dividend the reduction shall be an amount equal to tax on the amount on the gross dividend at the rate of double taxation relief applicable thereto;
(b) if the rate of tax chargeable on the recipient in respect of the dividend is less than the rate of double taxation relief applicable to the dividend, the reduction shall be an amount equal to tax on the gross dividend at the difference between those two rates.
(2) For the purposes of this section—
(a) if the income of the person chargeable includes one dividend such as is mentioned in the preceding subsection, that dividend shall be deemed to be the highest part of his income;
(b) if his income includes more than one such dividend a dividend shall be deemed to be a higher part of his income than another

dividend if the net local rate applicable to the former dividend is lower than that applicable to the latter dividend;
(c) where the tax is chargeable at different rates in respect of different parts of any such dividend, or where tax is chargeable in respect of some part of any such dividend and is not chargeable in respect of some other part thereof, each part shall be deemed to be a separate dividend.
___________

SCHEDULE 1
(Section 40)
DEDUCTION OF TAX FROM PAYMENTS TO NON-RESIDENTS
Application
1. (1) This Schedule applies to every person who makes any payment by way
of—
(a) a dividend;
(b) interest or discounts;
(c) rental, lease premium or licence in relation to immovable property;
(d) rental of plant, machinery, equipment or other movable property;
(e) royalty;
(f) management charge;
(g) commission or fee, not being in respect of an employment to which section 71 applies;
(h) annuities or other periodic payments including payments by way of alimony or maintenance;
(i) the distribution of income of a trust, being income of the kind specified in paragraph (a) to (h);
(j) any other payment of an income nature,
to a non-resident, and subject to subparagraph (2) does not apply to any other
payments to a non-resident carrying on business or exercising employment in
Montserrat.
(2) This Schedule also applies to any payment to a non-resident in respect of
independent personal services performed in Montserrat other than by way of carrying
on a business in Montserrat through a permanent establishment in Montserrat.
(3) Where the accounts of a business are maintained on an accrual basis and
during the basic year any amount of the kind specified in subparagraphs (1) and (2) is
charged as an expense but payment is not made, tax shall be deducted and accounted
for to the Comptroller as if payment had been made on the last day of such basic year.
(4) For the purposes of proviso (a) to paragraph 2, where the income accruing to a trust is of different kinds, it shall be treated as retaining such character for
determining the rate of tax to be deducted therefrom by the trustee.
Deduction to be made by person making payment
2. Where any payment is made to which this Schedule applies, then such amount shall not form chargeable income of the person to whom the payment is made and the
person making such payment shall deduct tax from the gross amount of such payment
at the rate specified in paragraph 3;

Provided that—
(a) where the income accrues to a trust and a non-resident beneficiary is entitled to the immediate benefit of the whole or part thereof, the
trustee shall deduct the tax;
(b) where income which accrues to a non-resident is payable by another non-resident, then, for the purposes of collection of the tax imposed
by this section, the Comptroller may without relieving the payer of his
obligations under this Schedule, impose the charge directly on the
non-resident to whom the income accrues and the general provisions
of Part 11 relating to the recovery of tax shall apply;
(c) where income accrues to a non-resident, payable to a bank or other agent on behalf of the non-resident, then for the purposes of collection
of the withholding tax, such bank or agent shall deduct and account
for the tax required to be deducted under this Schedule.
Rate of tax to be deducted
3. (1) Tax shall be deducted from the actual amount paid by way of—
(a) dividends, at the rate of 15%;
(b) rental payments in respect of immovable property, at the rate of ten per cent;
(c) rental payments in respect of movable property at the rate of twenty per cent;
(d) fees payable to public entertainers at the rate of 20%;
(e) any other payments of the kind specified in paragraph 1 at the rate of twenty per cent,
of every dollar of such payment and shall be the final liability in respect of such
income.
(2) The provisions of section 13(1) of the Act shall not apply to the payments
specified in subparagraph (1). (Inserted by Act 13 of 1995)
Certificate and record of payments made and tax deducted
4. (1) Every person who has deducted any tax under this Schedule shall furnish
to the person to whom payment is made, a certificate showing the gross amount of the
payment made and the tax deducted therefrom.
(2) Every person making any payment to which this Schedule applies shall
maintain a record showing in relation to each calendar year—
(a) the nature of the payment;
(b) the gross amount thereof;
(c) the amount of tax deducted therefrom; and

(d) the name and address of the non-resident and such record shall be kept available for examination by the Comptroller as and when
required.
Returns of deductions and remittances of tax
5. Every person shall when making any payment under section 72 furnish a
return in such form as the Comptroller may approve, showing the amount of tax
deducted and remitted, together with a copy of all certificates issued under paragraph
4 in respect of such deduction of tax.
Personal liability where failure to deduct tax
6. (1) Where any person fails to deduct any tax under this Schedule he shall, in
addition to any penalty for which he may be liable, be personally liable to pay to the
Comptroller within the time specified in section 72 the amount which he has failed to
deduct.
(2) Where any person pays to the Comptroller the amount of tax which he
failed to deduct, such amount shall be deemed to have been deducted under this
Schedule.
(3) The person making any payment to the Comptroller under this paragraph
shall be entitled to recover such amount from the person to whom payment was made.
(4) Where any person has failed to deduct tax as required under this Schedule
but the Comptroller is satisfied that tax deducted from earlier or later payments is
sufficient to meet the amount of tax which he has failed to deduct, the Comptroller
may absolve such person from his liability under subparagraph (1).
___________

SCHEDULE 2
(Section 36)
RATES OF TAX
The rate of income tax for the years of assessment commencing on or
after 1 January, 1999 are as follows—
On every dollar of the first $2,500 of chargeable income – 20
cents in the dollar;
On every dollar of the next $6,000 of chargeable income viz.
from $2,501 to $8,500 – 25 cents in the dollar;
On every dollar beyond $8,500 of chargeable income – 30
cents in the dollar.
The rates of income tax for any year of assessment commencing on or
after 1 January, 2006 are as follows—
On every dollar of the first $5,000 of chargeable income – 15
cents in the dollar;
On every dollar of the next $6,000 of chargeable income viz.
from $5,001 to $11,000 – 25 cents in the dollar;
On every dollar beyond $11,000 of chargeable income – 30
cents in the dollar.
The rates of income tax for any year of assessment commencing on or
after 1 January, 2013 are as follows—
On every dollar of the first $5,000 of chargeable income – 5
cents in the dollar;
On every dollar of the next $5,000 of chargeable income viz.
from $5,001 to $10,000 – 15 cents in the dollar;
On every dollar of the next $5,000 of chargeable income viz.
from $10,001 to $15,000 – 25 cents in the dollar;
On every dollar of the next $120,000 of chargeable income
viz. from $15,001 to $135,000 – 30 cents in the dollar;
On every dollar beyond $135,000 of chargeable income – 40
cents in the dollar.
(Substituted by Act 21 of 2011)
_____________

SCHEDULE 3
(Section 36)
RATES OF TAX ON PENSIONS
The rate of income tax on pension for any year of assessment commencing on or
after 1 January, 2008 is as follows—
On every dollar up to $60,000 - 0%
On every dollar beyond $60,000 - 5%
(Substituted by Act 21 of 2011)
___________

INCOME TAX (EMPLOYMENT) RULES
ARRANGEMENT OF RULES
RULE
1. Short title
2. Interpretation
3. Filing of declaration
4. Deduction of tax on emoluments
5. Deduction of tax on bonuses
6. Power of Comptroller re deduction
7. Deceased employees
8. Exemptions from deductions
9. Limits on deductions
10. Determination of questions
11. Payment of tax deducted
12. Accounting for tax deducted
13. Statement by employers re bonuses
14. Annual Returns by employers
15. Certificate re former employee
16. Employer ceasing business
17. Death of employee
18. Furnishing of particulars
19. Record of emoluments
MISCELLANEOUS AND PENALTIES
20. Liability of personal representative
21. Change of employer
22. Declaration by employee
23. Tax tables
24. Inspection of wage sheets
25. Notice of complaint
26. Determination of complaint
27. Notices
28. Proceedings
29. Failure to deduct
30. Offences re non-residents
31. Charges of income
32. Obstruction

INCOME TAX (EMPLOYMENT) RULES–SECTION 43
(S.R.O. 3 of 1968 and Act 9 of 2011)

Commencement
[1 January 1968]
Short title
1. These Rules may be cited as the Income Tax (Employment) Rules.
Interpretation
2. In these Rules unless the context otherwise requires—
“appropriate form” means a form approved by the Comptroller for use in any
particular case authorised by these Rules;
“declaration” means the declaration referred to in rule 3(1);
“employee” means any person in receipt of emoluments;
“employer” means any person paying emoluments whether on his account or on
behalf of another person;
“total allowances”, in relation to an individual, means the aggregate of any
deductions to which an individual is entitled under the Income Tax Act 1967 in
respect of himself, his wife, children or dependent relatives and includes that
amount of the premiums payable by the individual in each year in respect of a
policy or policies of insurance not exceeding 7% of the capital sum assured in
respect of which the premium is payable or an amount equal to one sixth part
of the gross income, whichever is the less, and any sum deducted from his
emoluments by his employer for or in respect of any amount contributed to any
scheme or fund as the Governor acting on the advice of Cabinet may approve. (Amended by Act 9 of 2011)
Filing of declaration
3. (1) Every person to whom any payment is made of or on account of any
emoluments shall, for the purpose of enabling any deductions which may be made
under section 71 of the Income and Corporation Tax Act, file with the person making
the payment a declaration in duplicate in a form approved by the Comptroller
declaring such particulars as may be prescribed by rules made under the said Act:
Provided that, a declaration shall not be filed by—
(a) a person resident outside of Montserrat;
(b) such persons as may be specified by, or who comply with, any conditions required by the Comptroller by notice published in the
manner provided by these Rules unless the Comptroller in any
particular case authorises any such person to file a declaration; and

Provided further that, if any person entitled to file a declaration is at the time in
the employment of more than one person by whom any emoluments are paid,
he shall file a declaration with only such one of the persons by whom such
emoluments are paid as he may consider to be the chief employer.
(2) The duplicate copy of every such declaration shall be forwarded to the
Comptroller within seven days of such declaration having been made.
(3) Where an employee works under the general control and management of a
person who is not his immediate employer, that person (referred to hereafter in this
rule as the “principal employer”) shall be deemed to be the employer for the purpose
of these Rules, and the immediate employer shall furnish the principal employer with
such particulars of the employee’s emoluments as may be necessary to enable the
principal employer to comply with the provisions of these Rules.
(4) If the employee’s emoluments are actually paid to him by the immediate
employer—
(a) the immediate employer shall be notified by the principal employer of the amount of tax to be deducted when the emoluments are paid to the
employee and shall deduct the amount so notified to him accordingly;
and
(b) the principal employer shall make a corresponding deduction on making to the immediate employer the payment out of which the said
emoluments will be paid.
(5) Every employer shall before employing, and in any event before paying
any emoluments to an employee obtain from him his worker’s number which shall be
prescribed by the Comptroller of Inland Revenue. In the event of doubt such number
should be certified by the Comptroller before any payment is made.
Deductions of tax on emoluments
4. (1) Subject to the provisions of rules 5, 6 and 8, on the occasion of any
payment of emoluments to an employee, the employer shall deduct as tax the amount
appearing in the appropriate column of the table of the tax tables to be used opposite
to that amount appearing in the first column of the said table which is the same as or
the nearest to the amount of the emoluments due to the employee:
Provided that, where—
(a) the pay period for which the emoluments are to be paid is not provided for in the tax tables; or
(b) the emoluments paid per pay period are greater than any amount provided for in the first column of the table to be used; or
(c) the total allowances claimed exceed the amount provided for in the tax tables,
the amount to be deducted shall be determined by the Comptroller.
(2) In the event of the amount of the emoluments due to the employee being
an amount exactly between two amounts appearing in the first column of the table to

be used, the tax to be deducted shall be that amount appearing in the appropriate
column of the said table opposite to the larger of the two such amounts.
(3) For the purposes of this rule, the table of the tax tables to be used shall be
that table of the tax tables prepared by the Comptroller pursuant to rule 23 which
takes into account total allowances and corresponds to the pay period for which the
emoluments are to be paid, and the appropriate column shall be the column of the said
table appearing under that range of total allowances specified in the table within which
the total allowances specified in the table within which the total allowances of the
employee or the greater part thereof from whom tax is to be deducted is included:
Provided that, in the case of an employee—
(a) resident abroad; or
(b) from whom a declaration has not been received by the employer or who is not entitled in accordance with the provisions contained in the
second proviso to rule 3(1) to file a declaration,
the table of the tax tables to be used shall be that prepared by the Comptroller pursuant
to rule 23 of these Rules without taking into account total allowances and which
corresponds to the pay period for which the emoluments are to be paid, and the
appropriate column shall in such cases be the second column of that table.
Deduction of tax on bonuses
5. On payment of a bonus or payment of any sum to meet any retroactive
increases of emoluments granted to an employee, the following deductions of tax
shall, subject to the provisions of rules 6 and 8 of these Rules, be made by the
employer in accordance with the following—
(a) where the employee is at the date of the payment of the bonus in receipt of emoluments from the employer paying the bonus, then—
(i) the total amount of bonus shall be divided by the number of pay
periods—daily, weekly, or monthly—(appropriate to the
employee) in the year in which is paid; and
(ii) the resulting amount shall be added to the amount of emoluments
(before tax was deducted) which were payable to the employee in
the pay period immediately preceding the date on which the
bonus is paid; and
(iii) the amount of tax which should have been deducted in the
immediately preceding pay period aforesaid in respect of such
aggregate sum shall be determined by reference to the
appropriate tax table; and
(iv) the amount of tax to be deducted from the bonus shall be the
difference between the tax, determined under paragraph (iii) and
the tax, if any, actually deducted in the immediately preceding pay period aforesaid, multiplied by the number of pay periods in
the year;

(b) where the employee is at the date of the payment of the bonus no longer in receipt of emoluments from the employer paying the bonus
the amount of tax to be deducted shall be computed in accordance
with rule 5 and where the bonus is paid after five years of cessation of
employment, deduction shall be made in accordance with the
directions of the Comptroller;
(c) in the case of a retroactive payment, the amount of tax to be deducted shall be the difference between the total tax that should have been
deducted pursuant to rule 4 if such payment had been spread evenly
over those pay periods for which payment is made and added to the
amounts of emoluments paid over such pay periods and the amount of
tax deducted in respect of those pay periods prior to the making of the
retroactive payment;
(d) in the case of an annual payment the tax to be deducted shall be in accordance with the directions of the Comptroller or any table which
may be prescribed.
Power of Comptroller re deduction
6. (1) The Comptroller may direct employers as to the amount of tax, if any, to
be deducted from—
(a) the emoluments of employees engaged in casual or seasonal
employment; or
(b) the emoluments of any other class of case which in the opinion of the Comptroller is a class of case of such a nature that deduction of tax by
reference to the tax tables would be impracticable or would constitute
undue hardship.
(2) Without prejudice to the foregoing provisions of this rule, any directions
given pursuant to the provisions of this rule may, in particular include directions as to
the manner in which the tax, if any, shall be deducted, the period over which such
deduction shall be made and such other matters as the Comptroller may think fit and
any employer to whom any such directions may be so given shall comply with the
direction so given.
Deceased employees
7. If any emoluments are paid by an employer at any time after the date of death
of an employee the employer by whom the emoluments are paid shall subject to the
provisions of rule 8, on making any such payment, deduct in accordance with the
provisions of these Rules the tax on those emoluments as if the deceased employee
was still alive at the date of the payment.

Exemptions from deductions
8. Tax shall not be deducted by any employer from—
(a) emoluments paid outside Montserrat to an employee outside of Montserrat; or
(b) a pension benefit or retiring allowance arising out of an employment which was wholly carried on outside of Montserrat; or
(c) the emoluments of any person to whom a notice published pursuant to rule 3(1)(b) applies,
unless the Comptroller, in any particular case, directs the employer to deduct tax.
Limits on deductions
9. The amount of tax to be deducted pursuant to any direction given by the
Comptroller in any particular case shall in no event exceed the amount of tax which is
deductible or would be deductible by reference to the tax tables where such tables
provide for the deduction except in the case where an employee requests and such
request is granted by the Comptroller that a greater amount of tax be deducted than is
provided by the tables.
Determination of questions
10. If any question shall arise as to—
(a) the amount of tax to be deducted on payment of any emoluments; or
(b) whether or not any emoluments are of any class of case specified in rule 6 or in a notice published pursuant to rule 3(1)(b); or
(c) whether or not payment of emoluments is a payment of a bonus or a retroactive payment,
such question shall be determined by the Comptroller.
Payment of tax deducted
11. Within the first fifteen days of every month, every employer will pay to the
Accountant General the total amount of tax deducted by him in accordance with the
provisions of these Rules during the immediately preceding month:
Provided that, where an employer ceases to carry on business all amounts of
tax deducted by him pursuant to these Rules and not paid to the Accountant General
shall be paid by him to the Accountant General within seven days of the day on which
the last payment of emoluments was made.
Accounting for tax deduction
12. Every payment of tax made pursuant to rule 11 shall be accompanied by a
return made out on the appropriate form by or on behalf of the employer and such
return shall be forwarded by the Accountant General to the Comptroller.

Statements by employees re bonuses
13. Where the payment of a bonus or of any sum to meet any retroactive increases
of emoluments granted to an employee is made at any time in any year and the whole
or any part of such payment relates to any periods of any calendar year preceding the
year in which such payment is made, the employer shall within seven days of such
payment being made deliver or send by post to the Accountant General a separate
account of such payments made out on the appropriate form and showing the total of
such emoluments paid and the total amount of tax deducted therefrom.
Annual returns by employers
14. (1) Within the month of January of each year next following a year in which
tax was deducted from the emoluments of an employee the employer by whom tax
was deducted shall, unless he has previously delivered or sent to the employee a
certificate provided for by rules 15, 16 or 17 deliver personally or send by post to the
employee a certificate made out on the appropriate form and containing the following
particulars namely—
(a) the name and address of the employee;
(b) the number used to identify the employee;
(c) the total amount of all emoluments paid by him to the employee during the year immediately preceding that in which the certificate is
by this rule required to be sent or delivered;
(d) the total amount deducted by him for or in respect of any amount contributed by the employee to any scheme or fund approved by the
Governor acting on the advice of Cabinet;
(e) the total amount of tax deducted in accordance with these Rules from those emoluments;
(f) the appropriate code number of the tax table, if any, used in making the deductions of tax; and
(g) the date when the employment commenced if subsequent to 1 January in the year to which the certificate relates.
(Amended by Act 9 of 2011)
(2) The employer required by this Rule to deliver or send a certificate to the
employee shall make on the appropriate forms of two copies of the said certificate
which he shall deliver personally or send by post to the Comptroller by 1 January.
Certificate re former employee
15. (1) If the employer ceases to employ an employee from whose emoluments
tax was deducted by him in accordance with these Rules he shall, not later than the
day on which the last payment of emoluments was made, deliver personally or send by
post to the employee a certificate on the appropriate form containing the following particulars namely—
(a) the name and address of the employee;
(b) the number used to identify the employee;

(c) the date on which the employment ceased;
(d) the total amount of all emoluments paid by him to the employee from 1 January of the year in which the employment ceased up to and
including the day on which the last payment of emoluments was made
to the employee;
(e) the total amount deducted by him for or in respect of any amount contributed by the employee to any scheme or fund approved by the
Governor acting on the advice of Cabinet;
(f) the total amount of tax deducted in accordance with these Rules from those emoluments; and
(g) the appropriate code number of the tax table, if any, used in making the deductions of tax.
(Amended by Act 9 of 2011)
(2) The employer shall make on the appropriate form two copies of the said
certificate which he shall deliver personally or send by post to the Comptroller the day
on which the last payment of emoluments was made.
(3) Retirement on pension shall not be treated as cessation of employment for
the purposes of this rule if the emoluments are paid by the same person both before
and after the retirement.
Employer ceasing business
16. (1) If any employer ceases to carry on business he shall, with respect to each
employee from whose emoluments any tax was deducted during the year in which the
business ceased, personally deliver or send by post not later than the last day on which
a payment of emoluments was made to that employee a certificate made out on the
appropriate form and containing the particulars specified in rule 14 for or in respect of
a period beginning with the first day of the year in which the business ceased to be
carried on and terminating on the day of cessation of that business:
Provided that, in the case of a business commenced to the carried on in the
year in which it ceases on a day other than 1 January in that year, the date of
commencement of the period for or in respect of which the particulars of the
certificate shall relate, shall be the date on which the business commenced to be
carried on in that year.
(2) The employer shall make on the appropriate forms two copies of the said
certificate which he shall deliver personally or send by post to the Comptroller within
one month of the day of cessation of the business.
Death of employee
17. (1) On the death of an employee the employer shall, not later than the
fifteenth day of the month next following that in which the death occurred, deliver personally or send by post to the personal representative or next of kin of the deceased
employee if known to him, the certificate mentioned in rule 15.
(2) The employer shall at the same time deliver personally or send by post to
the Comptroller two copies of the said certificate made on the appropriate forms and

shall insert thereon the name of the personal representative of the deceased employee,
if known to him.
Furnishing of particulars
18. Every employer on making any payment of emoluments to an employee from
whom tax is deducted pursuant to these Rules, shall furnish to the employee
particulars of the payment including particulars of the gross emoluments for the pay
period and of the amount of tax deducted therefrom, in such form as may be approved
by the Comptroller:
Provided that, the Comptroller may in his discretion exempt from the
provisions of this rule all or any employers in respect of such classes of employees as
he shall think fit. Any such exemption may at any time be revoked by the Comptroller.
Record of emoluments
19. Every employer on making any payment of emoluments to an employee shall
keep to the satisfaction of the Comptroller a record of the emoluments paid to each
such employee and the tax, if any, deducted therefrom on each payment thereof.

MISCELLANEOUS AND PENALTIES
Liability of personal representative
20. If an employer dies, anything which he would have been liable to do under
these Rules shall be done by his personal representative, or, in the case of an employer
who paid emoluments on behalf of another person, by the person succeeding him or if
no person succeeds him, the person on whose behalf he paid the emoluments.
Change of employer
21. (1) This rule applies where there has been a change in the employer from
whom an employee received emoluments in respect of his employment in any trade,
business concern or undertaking or in connection with any property, or from whom an
employee receives any annuity or pension or allowance in respect of past service.
(2) Where this rule applies the change shall not be treated as a cessation of
employment for the purposes of rule 15, but, in relation to any matter arising after the
change, the employer after the change shall be liable to do anything which the
employer before the change would have been liable to do under these Rules if the
change had not taken place:
Provided that, the employer after the change shall not be liable for the payment
of any tax which was deductible from emoluments paid to the employee before the
change took place.
Declaration by employee
22. (1) The declaration which a person may file pursuant to rule 3(1), may include
particulars of all or any of his total allowances as the employee by whom the
declaration is filed may think fit.

(2) A person entitled and wishing to file a declaration under rule 3(1) shall do
so at the following times—
(a) on the day on which his employment commences;
(b) within seven days of the day on which a change occurs in the total allowances to which he is entitled;
(c) within such time or times as may be specified by notice published by the Comptroller in the Official Gazette and at least one newspaper in Montserrat, or in such other manner as the Comptroller shall think fit:
Provided that, the Comptroller may in his discretion permit any such person to
file a declaration at any time other than the aforesaid times.
Tax tables
23. (1) The tax tables shall be constructed with a view to securing that so far as
practicable the tax to be deducted pursuant to these Rules from the emoluments of any
employee may be readily ascertained and with a view to securing that so far as
practicable the total tax payable in respect of any emoluments is deducted from the
emoluments paid during the year.
(2) Separate tables shall be prepared for daily, weekly and monthly pay
periods. Such tables shall, make provision for such ranges of total allowances and for
such amounts of emoluments as the Comptroller shall think fit.
(3) In addition to the tables required by paragraph (2), tables shall be prepared
relating to such of the pay periods referred to in that paragraph as the Comptroller
shall think fit, but without taking into account any total allowances.
(4) For the purposes of this rule, references to the total tax payable shall in
relation to the tables referred to in paragraph (2) be construed as references to the total
tax estimated to be payable having regard only to the allowances provided for by these
Rules and without aggregating emoluments from two or more sources or other income
and in relation to the tables referred to in paragraph (3) shall be construed as
references to the total tax estimated to be payable without having regard to any
allowances whatever and without aggregating emoluments from two or more sources
or other income.
Inspection of wage sheets
24. Every employer, when called upon to do so by the Comptroller or any person
authorised in writing by him shall produce to the Comptroller such authorised person
for inspection at the employer’s premises, all wages sheets and other documents and
records whatsoever relating to the calculation or payment of the emoluments of his
employees or the deduction of tax therefrom or the accounting of any tax deducted
therefrom.
Notice of Complaint
25. If any employee considers that any tax deducted by his employer is less than or
in excess of the amount of tax that ought properly to be deducted in accordance with

these Rules from his emoluments, he may in writing give notice of complaint, stating
the grounds of his complaint, to the Comptroller.
Determination of complaint
26. In the event of the Comptroller being satisfied on the complaint of any
employee made under rule 25 that any tax in excess of the amount that ought properly
to have been deducted in accordance with these Rules from the emoluments of the
employee was deducted by the employer, he shall as soon as practicable cause the
excess to be refunded to the employee.
Notices
27. Any notice published by the Comptroller pursuant to rule 3(1)(b) shall be published in the Official Gazette and at least one newspaper in Montserrat or in such other manner as the Comptroller may think fit.
Proceedings
28. (1) Proceedings on complaint may be brought in accordance with the
procedure set out in section 74 of the Income and Corporation Tax Act for the
recovery of the total amount of tax which an employer is liable to pay to the
Accountant General within the times specified in rule 11 with or without the
complaint distinguishing the amounts which the employer is liable to pay in respect of
each employee and with or without the complaint specifying the employees in
question, and for the purposes of such proceedings, the said total amount shall be one
matter or complaint; but nothing in this rule shall prevent the bringing of separate
complaints for the recovery of each of the several amounts which the employer is
liable to pay within the first fifteen days of every month in respect of his several
employees.
(2) A certificate of the Comptroller that any amount of tax as is mentioned in
paragraph (1) has not been paid to the Accountant General, or to the best of his
knowledge and belief, to any person acting on his behalf, shall be sufficient evidence
that the sum mentioned in the certificate is due and unpaid; and any document
purporting to be such a certificate as aforesaid shall be deemed to be such a certificate
until the contrary is proved.
Failure to deduct
29. If an employer shall wilfully fail or neglect to deduct tax in accordance with
these Rules or any direction given thereunder by the Comptroller he shall be guilty of
an offence and liable on conviction by a court of summary jurisdiction to a fine of
$1,000 and in default of payment to a term of imprisonment of four months and after
judgment has been given for that penalty to a further penalty of $50 for every day
during the failure or neglect to deduct or pay over any tax continues.
Offences re non-residents
30. If any person resident outside of Montserrat or any married woman whose
income pursuant to rule 3(1) is chargeable in the name of her husband, shall without
the permission of the Comptroller, file a declaration with his or her employer, or if any

employee in the employment of more than one employer shall contrary to the
provisions of the proviso to 3(1)(b) file a declaration with more than one his employers, he shall be guilty of an offence and liable on conviction by a court of
summary jurisdiction to a fine of $50.
Charges of income
31. If on a charge occurring in the total allowances of any person by whom a
declaration has been filed which results in the total allowances of that person being
less than the total allowances claimed by him in his declaration, such person shall
wilfully fail or neglect to file a further declaration within the time specified in rule
22(2)(b) he shall be guilty of an offence and liable on conviction by a court of
summary jurisdiction to a fine of $50.
Obstruction
32. If any person shall hinder, prevent or obstruct the Comptroller or any person
authorised in writing by him from inspecting any wages sheets or other documents or
records mentioned in rule 24 after being called upon to produce the same, he shall be
guilty of an offence and liable by a court of summary jurisdiction to a fine of $1,000
or to imprisonment for a term of one month or to both such fine and imprisonment.
___________

INCOME TAX RULES
ARRANGMENT OF RULES
RULES
1. Short title
2. Interpretation
3. Date for delivering returns
4. Method of determining the annual value of land and improvements
5. Depreciation or wear and tear
6. Form of declaration of secrecy
7. Form of income tax return. 8. Notice to deliver return
9. Form of notice to furnish particulars
10. Form of notice to employer to deliver statement
11. Form of notice to representative or agent
12. Assessment list
13. Form of notice of assessment
14. Payment of tax
SCHEDULES ___________

INCOME TAX RULES
(S.R.O.s 2/1946 and 21/1959 and Act 21 of 2011)
Short title
1. These Rules may be cited as the Income Tax Rules.
Interpretation
2. In these Rules—
“Act” means the Income and Corporation Tax Act
“Comptroller” means the Comptroller of Inland Revenue.
Date for delivering returns
3. Returns of income required to be delivered to the Comptroller under the
provisions of section 50 of the Act shall be delivered—
(a) in the case of public officers and pensioners not later than 31 January of the year of assessment in respect of that portion of their income
which is derived out of the public revenue of Montserrat;
(b) in every other case not later than 31 March of the year of assessment:
Provided that, the Comptroller may at his discretion extend the time for
delivering the return to such date as he deems proper.

Method of determining the annual value of land and improvements
4. (1) The annual value of land and improvements thereon used by or on behalf
of the owner, or used rent free by the occupier, for the purpose of residence or
enjoyment, and not for the purpose of gain, shall be understood to be 5% of the
estimated value thereof less the following deductions—
(a) the amount paid for land or house tax during the year immediately preceding the year of assessment;
(b) the amount expended during the year immediately preceding the year of assessment on repairs:
Provided that, this deduction shall not exceed one per centum of the estimated value of the property;
(c) the amount expended during the year immediately preceding the year of assessment in insuring the property against fire, etc.:
Provided that this deduction shall not exceed one and one quarter
per centum of the estimated value of the property;
(d) the amount of any interest on a mortgage or loan where the Comptroller is satisfied that the mortgage or loan was effected in
connection with the purchase or improvement of the property.
(2) The Comptroller may, if they deem it necessary, appoint a fit and proper
person or persons for the purpose of estimating the value of properties.
Depreciation or wear and tear
5. (1) The deduction to be allowed under the provisions of section 15 of the Act
for wear and tear of property including plant and machinery shall be at such rate as the
Comptroller may consider just and reasonable.
(2) Where full effect cannot be given to any such deduction in any year owing
to there being no profits or gains chargeable for that year, or owing to the profits or
gains chargeable being less than the deduction, the deduction or part of the deduction
to which effect has not been given, as the case may be, shall, for the purpose of
making the assessment for the following year, be added to the amount of the deduction
for wear and tear for that year, and deemed to be part of that deduction, or, if there is
no such deduction for that year, be deemed to be the deduction for that year and so on
for succeeding years.
(3) No deduction for wear and tear shall be allowed for any year if the
deduction, when added to the deductions allowed on account of previous years will
make the aggregate amount of the deductions exceed the actual cost of the plant or
machinery, including in that actual cost any expenditure in the nature of capital
expenditure on the plant or machinery by way of renewal, improvement or re-
instatement.
Form of declaration of secrecy
6. The declaration required to be made and subscribed under section 42 of the
Act shall be in the form contained in Schedule A.

Form of income tax return
7. (1) The return of income required to be delivered to the Comptroller under
section 50 of the Act shall be in Form A or Form B of Schedule B.
(2) Form A shall be completed by an individual with a single source of
income, who may also claim social security payments and life and health insurance
premiums.
(3) Form B shall be completed by all other individuals. (Substituted by Act 21 of 2011)
Notice to deliver return
8. The notice to a person who has not complied with the provisions of section 50
of the Act requiring him to make and deliver a return of his income shall be in the
form contained in Schedule C.
Form of notice to furnish particulars
9. The notice to a person requiring him under section 55 of the Act to furnish
particulars of his income shall be in the form contained in Schedule D.
Form of notice to employer to deliver statement
10. The notice to employers provided for under section 51(1) of the Act shall be in
the form contained in Schedule E.
Form of notice to representative or agent
11. The notice to a representative or agent provided for under section 54 of the Act
shall be in the form contained in Schedule F.
Assessment list
12. The assessment list provided for under section 63 of the Act shall contain the
particulars set forth in Schedule G.
Form of notice of assessment
13 The notice required to be served under the provisions of section 64 of the Act
shall be in the form contained in Schedule H.
Payment of tax
14. (1) Income tax, save as provided in paragraph (2), shall be payable in one sum
on 30 September of the year of assessment or within one month of the date of the
service of the notice of assessment, whichever is the later.
(2) In the case of public officers and pensioners the income tax payable on that portion of their income which is derived out of the public revenue of Montserrat
may be deducted in proportionate monthly amounts from the salary or pension
payable respectively to the officer or pensioner. ___________

SCHEDULE A
(Regulation 6)
CONFIDENTIAL
INCOME AND CORPORATION TAX ACT
“I ……………………………………………… of ……………..……………………….
a person having official duty under the Income and Corporation Tax Act, hereby declare
that I will regard and deal with the returns, assessment lists and copies of such lists relating
to the income or items of the income of any person, as secret and confidential documents
and that I will not at any time divulge in any manner anything contained in such returns,
lists or copies, save as authorised by the Act.

“Declared before and in the presence of

Magistrate
__________

SCHEDULE B
FORM A
Inland Revenue Department
P.O. Box 99
Brades
Montserrat
INDIVIDUAL INCOME TAX RETURN

Individual tax return for the period: 1 January to 31 December 20_____.
1. Print IRD Number here:

2. Name: First Name
Surname

3. Address:

4. Profession/Occupation:

5. Contact/Telephone Number:

6. Are you claiming Life and Health Insurance Premiums?

No Go to Q 7. Total claimed
Yes Self Others

$ $
$

7. Are you claiming Personal Social Security Payments?

No Go to Q 8. Total claimed
Yes

$

8. Declaration (MUST BE COMPLETED)

Please note that non-declaration or incorrect submission of the information as
requested in this return could
mean the imposition of penalties in accordance with sections 86 & 87 of the
Income Tax Act (Cap. 17.01).

I__________________________________ of ____________________________ (Name in block letters) (Address)

certify that:
(a) I have a single source of income; (b) the attached IRD5 ‘Annual Employee Certificate’ correctly reflects my
income, income tax deductions and social security payments for the
year ended 31 December 20___;
(c) where applicable, I have attached proof of any life and health insurance premiums I am claiming; and
(d) this return for the year ended 31 December 20___ is a true, correct and complete return.

____________________________ _____________________________ (Signature of Taxpayer (Date)

__________________________________ ______________________

____________________ (Name of Return Preparer (if different to Taxpayer) (Signature of Return Preparer)
(Date)

”

FORM B
Inland Revenue Department
P. O. Box 99
Brades
Montserrat

INDIVIDUAL INCOME TAX RETURN

Individual tax return for the period: 1 January to 31
December

1. If your IRD Number is not shown above, print it here:

2. If your correct name is not shown First Name
above print it here:

Surname

3. If your correct address is now shown
above print it here:

4. Profession/Occupation:

5. Contract/Telephone Number:

6. Did you receive any salary, wages, pension or employment related benefits?
No  Go to Q 7.
Yes  Copy the amounts of income from salary, wages or benefits below:

Employer/Payer Gross income Total Tax deductions
$ $

$ $

$ $
`

7. Did you have any overseas income?
No  Go to Q 8.
Yes  Print the totals here.
Staple proof of Overseas tax paid to the front of the
return

Total overseas tax paid Total overseas income
$

8. Did you receive any rents
No  Go to Q 9.
Yes  Print the rents here and complete Net rents
the profit and loss statement on page 4

9. Did you receive any income from self employment?
No  Go to Q 10.
Yes  Print the net
income here and
complete the profit
and loss statement
on page 4
Withholding tax Withholding tax deductions Self-employed income
$

10. Did you receive any other income? (exclude pension)
No  Go to Q 11.
Yes  Print details here:

Name of Payer Type of income Total other income

11. Add all income shown in Q. 5 to 10 and print the total here: Total income
Go to Q 12.

12. General deduction for resident individuals
Deduct $15,000 personal allowance or the amount Personal allowance deduction
of total Income if less than $15,000. Go to Q13.

$

$

$

$

$

$

$

13. Are you claiming any mortgage interest paid on residential property?
No  Go to Q 14.
Yes  Print amount here and attach a copy of Total mortgage interest
the mortgage interest statement from your $
lending institution. (Maximum $5000 to income year
2006 & $8,000 from income year 2007)
Percentage/proportion of mortgage interest
allowance claim.

14. Are you claiming Life and Health Insurance Premium?
No  Go to Q 15. Total claimed
Yes 

Self
$ Others $ $

15. Are you claiming Personal Social Security Payments?
No  Go to Q 16. Total claimed
Yes  $

16. Are you claiming Incapacitated Dependent Allowances? (Maximum $2,400)
No  Go to Q 17.
Yes 
Full Name of Incapacitated Dependent

Relation of Dependent

Nature of Incapacitation

State income if any of the Incapacitated Dependent

What percentage of the Incapacitated Dependent allowance are you
claiming?

Is the Incapacitated Dependent living with you?

` No  Total claimed
Yes  Age $

17. Add all deductions claim in Q 12 – 16. Total deductions
Print the total here: $

18. Income after deductions
Subtract the total deductions arrived at in Q 17
from the total income as shown in Q 11 and
print the answer here: Income after deductions
Go to Q 19. $

19. Are you claiming any losses?
No  Go to Q 20. Amount brought forward Amount claimed this year Yes  Print net loss amounts here $ $

20. Taxable income
Subtract the loss at Q 19 from the income
after the deductions as shown in Q 18 and
print the answer here.

Taxable income

$

21. Did you receive any pension?
No  Go to Q 22.
Yes  Print details
Total pension

Pension deduction
Pension taxable # 5% (i.e total pension less
pension deduction)

`
$60,000

22. Did you pay any provisional tax for this income year?
No  Go to Q 23.
Yes  Print the total provisional tax here: $

23. Is this income tax return for a full year of working?
No  Please provide details of the period worked
Yes 

Now complete and sign the declaration in Q 24.

24. Declaration (MUST BE COMPLETED)
Please note that non-declaration or incorrect submission of the information as requested in this return
could mean the imposition of penalties is in accordance with sections 86 & 87 of the Income and
Corporation Tax Act (Cap. 17.01).

I, ________________________________________ of ______________________________________
(name in block letters) (Address)

certify that this return for the year ended December 20 …. Is a true, correct and complete return.
________________________ _________________________________
(Signature of Taxpayer) (Date)

______________________________ _____________________ ________________
Name of Return Preparer(if different to Taxpayer) (Signature of Return Preparer) (Date)

`

Inland Revenue Department
P. O. Box 99
Brades
Montserrat

INDIVIDUAL INCOME TAX RETURN
TAX COMPUTATION RATES
The tax upon the taxable income of every person other than a company is as follows:
On every dollar of the first $5,000 of chargeable income – 5 cents in the dollar;
On every dollar of the next $5,000 of chargeable income viz. from $5,001 to $10,000 – 15 cents in the dollar;
On every dollar of the next $5,000 of chargeable income viz. from $10,001 to $15,000 – 25 cents in the dollar;
On every dollar of the next $120,000 of chargeable income viz. from $15,001 to $135,000 – 30 cents in the
dollar;
On every dollar beyond $135,000 of chargeable income – 40 cents in the dollar.
. Profit and loss statement (TO BE USED AS A GUIDE ONLY)
(To be completed by individuals who have rental income or self employment income, i.e have answered ‘yes’
to either Q 8 or Q 9.)

Income $

Other income $

Total Income $

Salary and Wages $

Telephone $

Utilities (Water & Electricity) $

Insurance $

Rent $

Office Supplies $

Building Repairs/Maintenance $

Advertising $

Motor Vehicle $

Accounting and Legal $

Travel $

Interest $

Depreciation $

Other (Specify)
$ $

Total Expenses $

Net Income $

_____________

(Section 1)
DECLARATION AS TO PARTNERS IN A FIRM AND THE DIVISION
OF THE PARTNERSHIP PROFIT

PARTICULARS OF THE SHARE OF EACH PARTNER IN THE PARTNERSHIP PROFITS OF THE
FIRM INCLUDING INTEREST ON CAPITAL AND SALARIES OF PARTNERS.
Name of
partners as at
1st Janaury,
20….
Residence of partners
State
whether
personally
acting in
the
partnership
Basis of
distribution of
the partnership
profits as at
1st January,
20….
Amount of each
partnership’s
share on profits
for year 20….

Date ………………. …………………….
Precedent partner
____________

(Section 2)
DECLARATION TO BE MADE BY A BRITISH SUBJECT OR
A PERSON RESIDENT IN MONTSERRAT

I DECLARE THAT—

*I am resident in Montserrat
*I am a British subject.

Given under my hand this day of , 20 .

Signature.

Residence.
*Strike out portion not applicable.
____________

(Section 4)
Heads of Income
(Col.1) Sources of Income under each Head
Amount of income
(Col 3). If under any
Head you have no
income write the word
“none” opposite the
Head in this column
TOTAL OF INCOME RETURNED.

Deduct:—
Exhaustion, wear and tear

Attach a statement showing (1) subjects
on which the allowance is claimed, (2)
values at the commencement of the
preceding year, (3) rate per cent claimed,
(4) what sums, if any, are written off in
the proprietor’s accounts.
$ ¢
____________

(Section 5)
DEDUCT:— “Encumbrances” on above income, viz :—

Mortgages or loans

Name and full address of person to whom payable
On what secured
For what precise purpose incurred
Amount paid for the
preceding year ended
……………, 20 ….

$ ………
at …..%

………………..
………………..
………………..

….……….
…….…….
…………..

……….….
……….….
…………..
$
……
¢
…..
$
……
¢
….
$ ………
at …..%
………………..
………………..
………………..
…….…….
…….…….
…………..
…….…….
…….…….
…………..
…… ….. ….. …..
$ ………
at …..%
………………..
………………..
………………..
….……….
….……….
…………..
…….…….
…….…….
…………..
…… ….. ….. …..

Other legal obligations (if any) ………………………………………
…………………………………………………………………………
(State nature of payment and name and address of the person to whom
payable)

N.B – Voluntary payments of allowances are not deductible

Net Income $

___________

(Section 6)
CLAIM IN RESPECT OF WIFE
Full Christian name of wife.
State whether your wife was
living with you or wholly
maintained by you during 20 ….

____________
(Section 7)
CLAIM FOR RELIEF IN RESPECT OF CHILDREN UNDER THE AGE OF 16 YEARS AT THE
COMMENCEMENT OF THE YEAR PRECEDING THE YEAR OF ASSESSMENT.
Name of each child under the
age of 16 years on 1st January,
20 …
Date of Birth
P la
ce o
f B
ir th

W h
et h
er c
h il
d
o r
st ep
ch il
d
W as
t h
e ch
il d
li
v in
g o
n 1
st
Ja n
u ar
y , 2
0 …

Surname Full Christian Name Day Month Year

____________

(Section 8)
CLAIM FOR RELIEF IN RESPECT OF CHILDREN OVER THE AGE OF 12 YEARS AND
UNDER 25 YEARS OF AGE WHO ARE RECEIVING FULL TIME INSTRUCTION AT
UNIVERSITY ETC. OUTSIDE MONTSERRAT
Name of each child over the
age of 12 years and under 25
years on 1st January, 20 …
Date of Birth
P la
ce o
f B
ir th

W h
et h
er c
h il
d o
r
st ep
ch il
d
W as
t h
e ch
il d

li v
in g
o n
1 st

Ja n
u ar
y , 2
0 …

N am
e o
f th
e
U n
iv er
si ty
,
C o
ll eg
e o
r
S ch
o o l,
e tc
.
Surname Full Christian
Name Day Month Year

____________

(Section 9)
CLAIM FOR RELIEF IN RESPECT OF CHILDREN OVER THE AGE OF 12 YEARS AND
UNDER 25 YEARS OF AGE WHO ARE RECEIVING FULL TIME INSTRUCTION AT
COLLEGE, ETC. WITHIN MONTSERRAT
Name of each child over the
age of 12 years and under 25
years on 1st January, 20 …
Date of Birth
P la
ce o
f B
ir th

W h
et h
er c
h il
d o
r
st ep
ch il
d
W as
t h
e ch
il d

li v
in g
o n
1 st

Ja n
u ar
y , 2
0 …

N am
e o
f th
e
C o
ll eg
e o
r
S ch
o o l,
e tc
.
Surname Full Christian
Name Day Month Year

____________

(Section 10)
CLAIM FOR RELIEF IN RESPECT OF DEPENDANT RELATIVES. ALLOWABLE ONLY IN
RESPECT OF AN INCAPACITATED CHILD, BROTHER, OR SISTER; AND IN RESPECT OF
THE MOTHER (WHETHER INCAPACITATED OR NOT) OF A PERSON OR HIS WIFE (OR
HER HUSBAND IN THE CASE OF A WOMAN.)

Full name of
dependant.
State relation of
dependent to you.
State income, if any of
dependent
State proportion of
your contribution
towards support of
dependent

___________
(Section 11)
CLAIM FOR DEDUCTION IN RESPECT OF PREMIUMS PAID
TO ANY LIFE INSURANCE COMPANY, ETC.
NOTE:— No allowance can be claimed for premiums on the lives of persons other
than the taxpayer or his wife.

State whether the
assurance is on the life
of “self” or of “wife”
Name of insurance
company
Amount of premiums
paid during the year
ended 31st December,
20 ….
State by whom
the premiums
were paid

Total

N.B. No deduction is allowable in respect of any annual amount of premiums beyond one-sixth part of the chargeable income of the claimant before making this deduction and the deductions for wife and children. The receipts for any premiums paid or satisfactory proof that such premiums have been paid must be annexed for endorsement and allowance by the Comptroller. Premium receipts will be returned in due course.
___________

(Section 12)
GENERAL DECLARATION
I declare that in the foregoing statement and in any statements or accounts sent
herewith, I have given a full, just and true return and particulars of the whole of the
income from every source whatsoever chargeable under the Income and Corporation Tax
Act, to the best of my judgment and belief, according to the directions and Rules of the
said Act; also that the declarations, claims and statements in sections 1, 2, 4, 5, 6. 7, 8, 9,
10 and 11 inclusive of this Form, are true and correct to the best of my judgment and
belief.
…………………………………………………..…………………………………Signature
…………………………………………………………………………….Business address.
…………………………………...………………………………………….Private address. __________________________________________________________________________________
NOTE:—A woman must state after her signature whether married, widow or single.
____________
SCHEDULE C
(Rule 8)
INCOME AND CORPORATION TAX ACT

NOTICE TO A PERSON TO DELIVER A RETURN OF HIS INCOME To of
Take notice that you are hereby required to deliver to the Comptroller within
fourteen days after the service of this notice upon you a true and correct return of your
whole income as required by the Act, for the year 20…. and that you are liable to
prosecution under section 85 of the Act.
Dated this day of 20 .

For the Comptroller
____________
SCHEDULE D
(Rule 9)
INCOME AND CORPORATION TAX ACT
NOTICE TO FURNISH PARTICULARS

To of
Take notice that you are hereby required to furnish to the Comptroller within
days after the service of this notice upon you, replies to the inquiries set out on the other
side hereof.
Dated this day of 20 .
For the Comptroller
____________

SCHEDULE E
(Rule 10)
INCOME AND CORPORATION TAX ACT

NOTICE TO EMPLOYER TO DELIVER STATEMENT AS TO PERSONS
EMPLOYED BY HIM UNDER SECTION 51(1)

To of

Take notice that you are required to deliver to the Comptroller within days
after the service of this notice upon you, a full and correct statement as required by section
51(1) of the Act, of the names and places of abode of and the salary or wages paid to all
the persons employed by you (or the company as the case may be).

Dated this day of 20 .

For the Comptroller

RETURN OF PERSONS WHOLLY OR PARTLY EMPLOYED

*Christian
Name and
surname of
persons
employed
Nature of
employment
Place of
abode.
For the year ended 31st December, 20 …
Amount of
salary or wages
Amount of
commission,
bonuses,
perquisites or
other
emoluments
Total
$ ¢ $ ¢ $ ¢
*Insert full name.

GENERAL DECLARATION
*I do hereby declare that all the particulars
required in this notice to be returned are in every respect fully and truly stated herein
according to the best of my judgment and belief.
Signature

Description

Date
*Insert full name.
___________

SCHEDULE F
(Rule 11)
INCOME AND CORPORATION TAX ACT

NOTICE TO A PERSON REFERRED TO IN SECTION 54

To of

Take notice that you are hereby required to deliver to the Comptroller
within days after the service of this notice upon you, a list containing a true
and correct statement of all money, value, profits or gains received by you and belonging
to any persons, resident or non-resident, who are chargeable in respect thereof.

Dated this day of 20 .

For the Comptroller

RETURNS BY PERSONS IN RECEIPT OF MONEY, VALUE, PROFITS OR
GAINS BELONGING TO ANY OTHER PERSON

Christian name, surname and address of owners
Sources of money, value, profits or gains
Amount received
$ ¢
____________

SCHEDULE G
(Rule 12)

INCOME AND CORPORATION TAX ACT

Year of Assessment 20…..

ASSESSMENT LIST 1. No. of assessment

2. Name of person assessed.

3. Address.

4. File No.

5. Description of trade, profession,
employment or other profits
chargeable.

6. Returns and assessments of
preceding year of assessment, 20 ..
(a) Gross amount returned.
(b) Deductions claimed.
(c) Gross amount assessed.
(d) Deductions allowed

7. Amount returned by employer.

8. Particulars from return—
(a) Gross amount.
(b) Total deductions.
(c) Net amount.

9. Gross amount assessed by
Commissioners under each
head in return.

10. Deductions allowed under
section 13.

11. Allowance for exhaustion, wear
and tear.

12. Losses of previous years
allowed.
13. Net amount assessed by
Comptroller.

14. Relief from total income assess-
able, claimed and allowed (as
amended where necessary)—
(a) Earned income.
(b) Resident or British Subject.
(c) Wife.
(d) Children.
(e) Dependants.
(f) Life Assurance.

15. Total relief

16. Net total on which tax is payable.

17. Tax payable.

18. Relief in respect of U.K. or
Commonwealth Tax. Section
91/92.

19. Amount of set off.

20. Net tax payable

21 Date due.

22. General notes.

23. Particulars of payment.
(Receipt No.)

24. Particulars of discharge or re-
payment.
(Voucher No.)

____________

SCHEDULE H
(Rule 13)
INCOME AND CORPORATION TAX ACT

NET TAX PAYABLE

If you do not object to this assessment the NET TAX AS ABOVE must be paid or
remitted without further application or notice to the Comptroller on or before
the day of 20 being the date prescribed by Rule.

OBJECTIONS TO ASSESSMENT

If you object to the above assessment or any part thereof you may give notice of
objection in writing to the Comptroller within fifteen days from the date of the service of
this notice. Such notice must state precisely the grounds of your objection to the
assessment. The Comptroller may, notwithstanding the lapse of the above period of fifteen
days, allow an objection to the assessment if it is shown to their satisfaction that owing to
absence from Montserrat, sickness or other reasonable cause, you were prevented from
making the objection within fifteen days.

……………………………
For the Comptroller. ____________

INCOME TAX (APPEAL) RULES
ARRANGEMENT OF RULES

RULE
1. Short title
2. Interpretation
PART 1
APPEAL TO A JUDGE IN CHAMBERS
3. Notice of appeal
4. Service and filing of notice of appeal
5. Notice of hearing of appeal
6. Comptroller statement of facts and reasons
7. Copies to be supplied by the Registrar
8. Place for hearing appeals
9. Parties limited to grounds stated
10. Leave to amend
11. Extension of time
12. Withdrawal of appeal
PART 2
CASE STATED FOR THE CONSIDERATION OF THE COURT OF APPEAL
13. Time to apply for a stated case
14. Form of case stated
15. Notice of hearing of stated case
16. Applicant for stated case to be deemed the appellant
17. Hearing by the Court of Appeal
PART 3
MISCELLANEOUS
18. Service of documents
19. Judgment to be filed by the successful party
20. Application of Rules of Court
21. Fees to be taken by the Registrar
SCHEDULES

INCOME TAX (APPEAL) RULES
(S.R.O. 14/1932)
Short title
1. These Rules may be cited as the Income Tax (Appeal) Rules.
Interpretation
2. In these Rules—
“case” means a case stated on a question of law under section 69(3) of the Act;
“Form” means a form in Schedule I;
“Judge” means a Judge of the High Court in Chambers;
“Act” means the Income and Corporation Tax Act.
PART 1
APPEAL TO A JUDGE IN CHAMBERS
Notice of appeal
3. A notice under section 66 of the Act shall be in Form A and it shall set out a
full statement of the grounds of appeal by specifically stating the several facts and
contentions of law upon which the appellant alleges that the assessment of the
Comptroller was erroneous and it shall give an address in Montserrat at which
documents may be served upon the appellant or his solicitor.
Service and filing of notice of appeal
4. A copy of every such appeal notice shall be filed with the Registrar together
with an affidavit of service and the Registrar shall thereupon lay the same before the
Judge who shall appoint a day for hearing the appeal. Instead of an affidavit of service
there may be substituted an indorsement under the Rules of the Supreme Court in
respect of the service of a Writ of Summons.
Notice of hearing of appeal
5. The Registrar shall forthwith cause due notice, in Form B, of the day appointed
for the hearing of the appeal to be served on the Comptroller and the appellant or their
respective solicitors. Not less than fourteen clear days’ notice shall be given.
Comptroller statement of facts and reasons
6. (1) Within five days of the service of the notice the Comptroller shall file with
the Registrar a statement of the material facts upon every point specified in the appeal
notice as a ground of appeal together with the reasons in support of the assessment.
(2) The Judge may cause the statement and reasons to be sent back to the
Comptroller for amendment and thereupon they shall be amended accordingly and
returned to the Registrar.

(3) The Judge may direct the Registrar to request the Comptroller to send to
the Registrar any papers in relation to the assessment that may appear to the Judge to
be material for the determination of the appeal and any papers so sent to the Registrar
shall be treated by him as confidential.
Copies to be supplied by the Registrar
7. Either party shall be entitled, on payment of the proper fee, to obtain from the
Registrar a copy of the Comptroller statement of material facts and of the reasons in
support of the assessment, and/or a copy of the appellant’s grounds of appeal.
Place for hearing appeals
8. (1) An appeal under the Act shall be heard in Chambers unless the Judge
hearing the appeal otherwise directs.
(2) If evidence is tendered it shall be taken orally unless the Judge otherwise
directs.
(3) Either party may be represented by counsel or solicitor at the hearing of
the appeal; and if it is intended that the appeal shall be attended by counsel for the
appellant, it shall be so stated in the notice of appeal.
(4) The Comptroller and the appellant shall be entitled to be present at the
hearing of the appeal.
(5) An appeal may be heard in vacation if the Judge so directs.
Parties limited to grounds stated
9. Without leave of the Judge an appellant shall not be entitled to rely upon any
facts or contentions of law other than those stated in the notice of appeal, and without
such leave the Comptroller shall not be entitled to rely upon any facts other than those
stated by them under these Rules.
Leave to amend
10. The Judge may at any time allow any amendment upon such terms as he may
think right.
Extension of time
11. The Judge may extend the time for doing any act or taking any proceeding
under these Rules upon such terms as he may think just, and any such extension may
be ordered although the application for it is not made until after the expiration of the
time appointed or allowed.
Withdrawal of appeal
12. (1) An appellant may withdraw an appeal by filing with the Registrar a notice of withdrawal before the day fixed for hearing, and the appellant shall forthwith serve
on the Comptroller a copy of the notice of withdrawal. Upon the filing of a notice of
withdrawal the assessment shall have full force and effect as a final and conclusive
assessment.

(2) Where an appeal is withdrawn the Judge may, on the application of the
Comptroller, order that the appellant shall pay such a sum for costs as the Judge may
think just.
PART 2
CASE STATED FOR THE CONSIDERATION OF THE COURT OF APPEAL
Time to apply for a stated case
13. An application by the appellant or the Comptroller for a case to be stated may
be made orally to the Judge at the hearing of the appeal, or in writing within seven
days of the determination of the appeal. If the Judge desires to state a case of his own
accord he shall do so within seven days of the determination of the appeal.
Form of case stated
14. A case stated shall be in Form C with such modifications as may be necessary.
Notice of hearing of stated case
15. The Registrar on receipt of a stated case shall forthwith cause a copy of the
case to be served on the respective parties or their solicitors together with a notice, in
Form D, of the day appointed for hearing the case. Not less than fourteen clear days’
notice shall be given of the date of hearing.
Applicant for stated case to be deemed the appellant
16. (1) The party on whose application a case has been stated shall be deemed to
be the appellant in the case.
(2) If the Judge states a case of his own accord he shall direct who shall be
deemed to be the appellant.
Hearing by the Court of Appeal
17. Proceedings in the Court of Appeal shall be conducted as on the hearing of an
appeal; and the Court of Appeal—
(a) shall hear and determine any question of law arising on the case and shall reverse, affirm or amend the determination in respect of which
the case has been stated; or
(b) may remit the matter to the Comptroller with the opinion or direction of the Court thereon; or
(c) may make such other order in relation to the matter and may make such order as to costs, as to the Court may seem fit.

PART 3
MISCELLANEOUS
Service of documents
18. Any document to be served under these Rules shall be deemed to be duly
served—
(a) on the Comptroller, if left with the Comptroller or if sent by registered post addressed to “The Comptroller of Income Tax, Government
Headquarter, Brades”;
(b) on any other party, if served on such party personally or on his solicitor or sent by registered post to his address for service stated in
the notice of appeal.
Judgment to be filed by the successful party
19. (1) Every judgment or order of the Judge in Chambers or of the Court of
Appeal shall, unless otherwise directed by the Judge or the Court of Appeal, be drawn
up by the successful party and filed by him with the Registrar.
(2) The Registrar shall forthwith send to the Comptroller a copy of every
judgment or order filed by him.
Application of Rules of Court
20. Save as otherwise provided in the Act or in these Rules, the Rules of Court as
to applications in Chambers, as to appeals, and as to the taxation of costs, shall with
the necessary modification, if any, apply to appeals to a Judge in Chambers and to
cases stated under the Act.
Fees to be taken by the Registrar
21. The fees specified in Schedule II shall be taken by the Registrar in proceedings
under the Act and these Rules. Save as therein provided, the fees prescribed by the
Rules of Court shall be taken by the Registrar so far as they may be applicable.
___________

SCHEDULE I
(Rule 3)
FORM A
NOTICE OF APPEAL

In the matter of The Income and Corporation Tax Act

Appellant
and

The Comptroller of Income Tax Respondents

TAKE NOTICE that the above named A.B., intends to appeal against the
decision of the Comptroller given on the day of
20 .

And further take notice that you are required to attend the Judge in
Chambers at the Court House, Brades on the day and at the time notified by the
Registrar for the hearing of the said appeal against the decision of the
Comptroller.

(If the appeal is to be attended by counsel, add:—

And further take notice that it is the intention of the said A.B., to attend
the appeal by counsel).

The grounds of appeal are as follows:—

Dated the day of 20 .

(Signed) A.B.
or
C.D.
Solicitor for the said A.B.

The said A.B.’s (or C.D.'s) address for service is Brades.
____________

FORM B
(Rule 5)
NOTICE OF DATE OF HEARING OF APPEAL

IN THE HIGH COURT OF JUSTICE

In the matter of the Income and Corporation Tax Act

Between

A.B. of , Appellant

and

The Comptroller of Income Tax, Respondents

TAKE NOTICE that the Judge will hear this appeal on the day of
20 , at o’clock in the forenoon.

Dated the day of 20 .

Registrar

To
_____________

FORM C
(Rule 14)
STATED CASE

IN THE HIGH COURT OF JUSTICE

In the matter of The Income and Corporation Tax Act
Between :

A.B. of , Appellant

and

The Comptroller of Income Tax, Respondents

This is a special case stated pursuant to section 66 of the Income and Corporation
Tax Act

(Here state the facts giving rise to the questions of law.)

The questions of law for the opinion of the Court of Appeal are whether

(Here state the question of law.)

(Signed) Y .Z.,
Judge
_______________

FORM D
(Rule 15)
NOTICE OF HEARING OF STATED CASE

IN THE HIGH COURT OF JUSTICE

In the matter of The Income and Corporation Tax Act

Between:

A.B. of , Appellant

and

The Comptroller of Income Tax, Respondents

Take notice that the Court of Appeal will hear the case stated in the above
mentioned matter on the day of 20 , at the hour
of o’clock in the forenoon.

Dated the day of 20 .

Registrar

To
____________

SCHEDULE II

FEES TO BE TAKEN BY THE REGISTRAR IN PROCEEDINGS
UNDER THE INCOME AND CORPORATION TAX ACT

$ ¢
On filing a notice of appeal (including hearing fee) ................. 4.80
For copy of statement of facts and reasons of Comptroller or
copy of appellant‘s grounds of appeal (Rule 7) ..........

.92
For copy of case stated (Rule 15) ............................................ .92
On filing notice of withdrawal (Rule 12) .................................. .96
On filing any judgment or order of a Judge or the Court of
Appeal (Rule 19) .......................................................

1.92
On filing any exhibit or document other than those
mentioned above. ........................................................

.48
On inspection of any exhibit or document ................................ .24
For every taxation of a bill of costs (including certificate) ....... 2.40
___________

INCOME TAX (DOUBLE TAXATION RELIEF)
(TAXES ON INCOME) (MONTSERRAT) ORDER
(S.R.O.s. 1/1948, 17/1968 and 32/2010)
Short Title
1. This Order may be cited as the Income Tax (Double Taxation Relief) (Taxes on Income) (Montserrat) Order.
Declaration
2. It is hereby declared—
(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of
Montserrat with a view to affording relief from double taxation in
relation to income tax, excess profits tax or the national defence
contribution and taxes of a similar character imposed by the laws of
Montserrat; and
(b) that it is expedient that those arrangements should have effect.
SCHEDULE
ARRANGEMENT BETWEEN HIS MAJESTY’S GOVERNMENT AND THE GOVERNMENT
OF MONTSERRAT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

ARTICLE 2
1. (1) The taxes which are subject of this Arrangement are—
(a) In the United Kingdom:
The income tax (including surtax) and the profits tax (hereinafter
referred to as “United Kingdom tax”).
(b) In Montserrat:
The income tax (hereinafter referred to as “Montserrat tax”).
(2) This Arrangement shall also apply to any other taxes of a substantially
similar character imposed in the United Kingdom or Montserrat after this
Arrangement has come into force. (Amended by S.R.O. 17/1968)
2. (1) In this Arrangement, unless the context otherwise requires— (Inserted by S.R.O. 32/2010)
(a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man.
(b) Deleted by S.R.O. 17/1968).
(c) The terms “one of the territories” and “the other territory” mean the United Kingdom or Montserrat, as the context requires.

(d) The term “tax” means United Kingdom tax or Montserrat tax, as the context requires.
(e) The term “person” includes anybody of persons, corporate or not corporate.
(f) The term “company” includes anybody corporate.
(g) The terms “resident of the United Kingdom” and “resident of Montserrat” mean respectively any person who is resident in the
United Kingdom for the purposes of United Kingdom tax and not
resident in Montserrat for the purposes of Montserrat tax and any
person who is resident in Montserrat for the purposes of Montserrat
tax and not resident in the United Kingdom for the purposes of United
Kingdom tax; and a company shall be regarded as resident in the
United Kingdom if its business is managed and controlled in the
United Kingdom and as resident in Montserrat if its business is
managed and controlled in Montserrat.
(h) The terms “resident of one of the territories” and “resident of the other territory” mean a person who is resident of the United
Kingdom or a person who is a resident of Montserrat, as the context
requires.
(i) The terms “United Kingdom enterprise” and “Montserrat enterprise” mean respectively an industrial or commercial enterprise
or undertaking carried on by a resident of the United Kingdom and an
industrial or commercial enterprise or undertaking carried on by a
resident of Montserrat; and the terms “enterprise of one of the
territories” and “enterprise of the other territory” mean a United
Kingdom enterprise or a Montserrat enterprise, as the context
requires.
(j) The term “industrial or commercial profits” includes rentals in respect of cinematograph films.
(k) The term “permanent establishment”, when used with respect to an enterprise of one of the territories, means a branch management or
other fixed place of business, but does not include an agency unless
the agent has, and habitually exercises, a general authority to
negotiate and conclude contracts on behalf of such enterprise or has a
stock of merchandise from which he regularly fills orders on its
behalf. An enterprise of one of the territories shall not be deemed to
have a permanent establishment in the other territory merely because
it carries on business dealings in that other territory through a bona
fide broker or general commission agent acting in the ordinary course
of his business as such. The fact that an enterprise of one of the
territories maintains in the other territory a fixed place of business
exclusively for the purchase of goods or merchandise shall not of
itself constitute that fixed place of business a permanent
establishment of the enterprise. The fact that a company which is a resident of one of the territories has a subsidiary company which is a
resident of the other territory or which is engaged in trade or business
in that other territory (whether through a permanent establishment or

otherwise) shall not of itself constitute that subsidiary company a
permanent establishment of its parent company.
(l) the term “competent authority” means—
(i) in the case of the United Kingdom, the Commissioners for Her
Majesty’s Revenue and Customs or their authorised
representative;
(ii) in the case of Montserrat, the Comptroller of Inland Revenue.
(2) Where under this Arrangement any income is exempt from tax in one of
the territories if (with or without other conditions) it is subject to tax in the other
territory, and that income is subject to tax in that other territory by reference to the
amount thereof which is remitted to or received in that other territory, the exemption
to be allowed under this Arrangement in the first-mentioned territory shall apply only
to the amount so remitted or received.
(3) In the application of the provisions of this Arrangement by the United
Kingdom or Montserrat, any term not otherwise defined shall, unless the context
otherwise requires, have the meaning which it has under the laws of the United
Kingdom, or as the case may be, Montserrat, relating to the taxes which are the subject
of this Arrangement. (Amended by S.R.O. 17/1968)
3. (1) The industrial or commercial profits of a United Kingdom enterprise shall
not be subject to Montserrat tax unless the enterprise is engaged in trade or business in
Montserrat through a permanent establishment situated therein. If it is so engaged, tax
may be imposed on those profits by Montserrat but only on so much of them as is
attributable to that permanent establishment.
(2) The industrial or commercial profits of a Montserrat enterprise shall not be
subject to United Kingdom tax unless the enterprise is engaged in trade or business in
the United Kingdom through a permanent establishment situated therein. If it is so
engaged, tax may be imposed on those profits by the United Kingdom, but only on so
much of them as is attributable to that permanent establishment.
(3) Where an enterprise of one of the territories is engaged in trade or business
in the other territory through a permanent establishment situated therein, there shall be
attributed to that permanent establishment the industrial or commercial profits which it
might be expected to derive from its activities in that other territory if it were an
independent enterprise engaged in the same or similar activities under the same or
similar conditions and dealing at arm's length with the enterprise of which it is a
permanent establishment.
(4) No portion of any profits arising from the sale of goods or merchandise by
an enterprise of one of the territories shall be attributed to a permanent establishment
situated in the other territory by reason of the mere purchase of the goods or
merchandise within that other territory. (Amended by S.R.O. 17/1968)

4. Where—
(a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other
territory, or
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an
enterprise of the other territory, and
(c) in either case conditions are made or imposed between the two enterprises, in their commercial or financial relations, which differ
from those which would be made between independent enterprises,
then any profits which would but for those conditions have accrued to one
of the enterprises but by reason of those conditions have not so accrued
may be included in the profits of that enterprise and taxed accordingly.
5. Notwithstanding the provisions of paragraphs 3 and 4, profits which a resident
of one of the territories derives from operating ships or aircraft shall be exempt from
tax in the other territory.
6. (1) Dividends paid by a company resident in one of the territories to a resident
of the other territory who is subject to tax in that other territory in respect thereof and
not engaged in trade or business in the first-mentioned territory through a permanent
establishment situated therein, shall be exempt from any tax in that first-mentioned
territory which is chargeable on dividends in addition to the tax chargeable in respect
of the profits or income of the Company.
(2) Where a company which is a resident of one of the territories derives
profits or income from sources within the other territory the Government of that other
territory shall not impose any form of taxation on dividends paid by the company to
persons not resident in that other territory, or any tax in the nature of an undistributed
profits tax on undistributed profits of the company, by reason of the fact that those
dividends or undistributed profits represent, in whole or in part, profits or income so
derived.
(3) If the recipient of a dividend is a company which owns 10% or more of the
class of shares in respect of which the dividend is paid then subparagraph (1) shall not
apply to the dividend to the extent that it can have been paid only out of profits which
the company paying the dividend earned or other income which it received in a period
ending twelve months or more before the relevant date. For the purposes of this
subparagraph the term “relevant date” means the date on which the beneficial owner
of the dividend became the owner of 10 per cent. or more of the class of shares in
question:
Provided that, this subparagraph shall not apply if the beneficial owner of the
dividend shows that the shares were acquired for bona fide commercial reasons and
not primarily for the purpose of securing the benefit of this paragraph. (Amended by S.R.O. 17/1968)
7. (1) Any royalty derived from sources within one of the territories by a
resident of the other territory who is subject to tax in that other territory in respect
thereof and is not engaged in trade or business in the first-mentioned territory through

a permanent establishment situated therein, shall be exempt from tax in that first-
mentioned territory; but no exemption shall be allowed under this paragraph in respect
of so much of any royalty as exceeds an amount which represents a fair and
reasonable consideration for the rights for which the royalty is paid.
(2) In this paragraph the term “royalty” means any royalty or other amount
paid as consideration for the use of, or for the privilege of using, any copyright, patent,
design, secret process or formula, trade-mark, or other like property, but does not
include a royalty or other amount paid in respect of the operation of a mine or quarry
or of other extraction of natural resources.
8. (1) Remuneration, including pensions, paid by the Government of one of the
territories to any individual for services rendered to that Government in the discharge
of governmental functions shall be exempt from tax in the other territory if the
individual is not ordinarily resident in that other territory or (where the remuneration
is not a pension) is ordinarily resident in that other territory solely for the purpose of
rendering those services.
(2) The provisions of this paragraph shall not apply to payments in respect of
services rendered in connection with any trade or business carried on by either of the
Governments for purposes of profit.
9. (1) An individual who is a resident of the United Kingdom shall be exempt
from Montserrat tax on profits or remuneration in respect of personal (including
professional) services performed within Montserrat in any year of assessment if—
(a) he is present within Montserrat for a period or periods not exceeding in the aggregate 183 days during that year, and
(b) the services are performed for or on behalf of a person resident in the United Kingdom, and
(c) the profits or remuneration are subject to United Kingdom tax.
(2) An individual who is a resident of Montserrat shall be exempt from United
Kingdom tax on profits or remuneration in respect of personal (including professional)
services performed within the United Kingdom in any year of assessment if—
(a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
(b) the services are performed for or on behalf of a person resident in Montserrat, and
(c) the profits or remuneration are subject to Montserrat tax.
(3) The provisions of this paragraph shall not apply to the profits or
remuneration of public entertainers such as stage, motion picture or radio artists,
musicians and athletes.
(Amended by S.R.O. 17/1968)

* 4 10. Pensions, annuities and other similar remuneration paid to an individual who is
a resident of one of the territories, other than pensions exempt from tax in that
territory by virtue of paragraph 8(1) of this Arrangement, shall be taxable only in that
territory. (Substituted by S.R.O. 32/2010)
11. (1) The remuneration derived by a professor or teacher who is ordinarily
resident in one of the territories, for teaching, during a period of temporary residence
not exceeding 2 years, at a university, college, school or other educational institution
in the other territory, shall be exempt from tax in that other territory.
12. A student or business apprentice from one of the territories who is receiving
full-time education or training in the other territory, shall be exempt from tax in that
other territory on payments made to him by persons in the first-mentioned territory for
the purposes of his maintenance, education or training.
13. (1) Subject to the provisions of the law of the United Kingdom regarding the
allowance as a credit against United Kingdom tax of tax payable in a territory outside
the United Kingdom (which shall not affect the general principle hereof)—
(a) Montserrat tax payable under the laws of Montserrat and in accordance with this Arrangement whether directly or by deduction,
on profits or income from sources within Montserrat shall be allowed
as a credit against any United Kingdom tax computed by reference to
the same profits or income by reference to which Montserrat tax is
computed:
Provided that, in the case of a dividend the credit shall only take
into account such tax in respect thereof as is additional to any tax
payable by the company on the profits out of which the dividend is
paid and is ultimately borne by the recipient without reference to any
tax so payable. (Amended by S.R.O. 17/1968)
(b) Where a company which is a resident of Montserrat pays a dividend to a company resident in the United Kingdom which controls directly
or indirectly at least 10 per cent. of the voting power in the first-
mentioned company, the credit shall take into account (in addition to
any Montserrat tax for which credit may be allowed under (a) of this sub-paragraph) the Montserrat tax payable by that first-mentioned
company in respect of the profits out of which such dividend is paid. (Amended by S.R.O. 17/1968)
(Inserted by S.R.O. 17/1968)
4 6. Each of the territories shall notify to the other the completion of the procedures required by its law for the bringing
into force of this Arrangement. This Arrangement shall enter into force on the date of the later of these notifications.
The new paragraphs 2(1)(l), 14 and 14A of the 1947 arrangement shall thereupon have effect immediately. The new
paragraph 10 of the 1947 Arrangement shall have effect—
(a) in the United Kingdom: in respect of income tax, for any year of assessment beginning on or after the
6th April next following the date this Arrangement enters into force; (b) in Montserrat: in respect of Montserrat tax, for any year of assessment beginning on or after the 1
st January
next following the date this Arrangement enters into force.

(2) Subject to the provisions of the law of Montserrat regarding the allowance
as a credit against Montserrat tax of tax payable in a territory outside Montserrat
(which shall not affect the general principle hereof)—
(a) United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Arrangement, whether directly or by
deduction, on profits or income from sources within the United
Kingdom shall be allowed as a credit against any Montserrat tax
computed by reference to the same profits or income by reference to
which the United Kingdom tax is computed. Provided that in the case
of a dividend the credit shall only take into account such tax in
respect thereof as is additional to any tax payable by the company on
the profits out of which the dividend is paid and is ultimately borne
by the recipient without reference to any tax so payable.
(b) Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Montserrat which controls directly
or indirectly at least 10 per cent. of the voting power in the first-
mentioned company the credit shall take into account (in addition to
any United Kingdom tax for which credit may be allowed under (a) of this sub-paragraph) the United Kingdom tax payable by that first-
mentioned company in respect of the profits out of which such
dividend is paid.
(3) For the purposes of this paragraph profits or remuneration for personal
(including professional) services performed in one of the territories shall be deemed to
be income from sources within that territory, and the services of an individual whose
services are wholly or mainly performed in ships or aircraft operated by a resident of
one of the territories shall be deemed to be performed in that territory.
(4) Where Montserrat income tax is payable for a year for which this
Arrangement has effect in respect of any income in respect of which United Kingdom
income tax is payable for a year prior to the year beginning on the 6th April, 1947,
then—
(a) in the case of a person resident in Montserrat, the Montserrat income tax shall, for the purposes of subparagraph (2) of this paragraph, be
deemed to be reduced by the amount of any relief allowable in respect
thereof under the provisions of section 27 of the United Kingdom
Finance Act 1920; and
(b) in the case of a person resident in the United Kingdom, the provisions of
5 section 51 of the Montserrat Income Tax Ordinance 1945 shall
apply for the purposes of the allowance of relief from the Montserrat
tax.
(Amended by S.R.O. 17/1968)
14. (1) The competent authorities of the territories shall exchange such
information as is foreseeably relevant for carrying out the provisions of this
Arrangement or to the administration or enforcement of the domestic laws of the
5 Section 51 (Relief in respect of United Kingdom income tax). The Income Tax Ordinance 1945 (No. 6 of 1945) was
repealed by Income Tax Act 1967 (No. 19 of 1967). The Income Tax Act was renamed as the Income and Corporation
Tax Act by Act 11 of 2007).

territories concerning taxes of every kind and description imposed on behalf of the
territories, insofar as the taxation thereunder is not contrary to this Arrangement, in
particular, to prevent fraud and to facilitate the administration of statutory provisions
against tax avoidance. The exchange of information is not restricted by paragraph 1 of
this Arrangement.
(2) Any information received under subparagraph 1 of this paragraph by a
territory shall be treated as secret in the same manner as information obtained under
the domestic laws of that territory and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of, the determination of
appeals in relation to, the taxes referred to in subparagraph 1, or the oversight of the
above. Such persons or authorities shall use the information only for such purposes.
They may disclose the information in public court proceedings or in judicial decisions.
Notwithstanding the foregoing, information received by a territory may be used for
other purposes when such information may be used for such other purposes under the
laws of both territories and the competent authority of the supplying territory
authorises such use.
(3) In no case shall the provisions of sub-paragraphs 1 and 2 of this paragraph
be construed so as to impose on a territory a requirement—
(a) to carry out administrative measures at variance with the laws and administrative practice of that territory or of the other territory;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that territory or of the other
territory;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or
information the disclosure of which would be contrary to public
policy.
(4) If information is requested by a territory in accordance with this
paragraph, the other territory shall use its information gathering measures to obtain the
requested information, even though that other territory may not need such information
for its own tax purposes. The requirement in the preceding sentence is subject to the
limitations of subparagraph 3 of this paragraph but in no case shall such limitations be
construed to permit a territory to decline to supply information solely because it has
no domestic interest in such information.
(5) In no case shall the provisions of subparagraph 3 of this paragraph be
construed to permit a territory to decline to supply information solely because the
information is held by a bank, other financial institution, nominee or person acting in
an agency or a fiduciary capacity or because it relates to ownership interests in a
person. (Inserted by S.R.O. 32/2010)
14A. (1) Where a resident of one of the territories considers that the actions of one or both of the territories result or will result for him in taxation not in accordance with
the provisions of this Arrangement, he may, irrespective of the remedies provided by
the domestic law of those territories, present his case to the competent authority of the

territory of which he is a resident. The case must be presented within three years from
the first notification of the action resulting in taxation not in accordance with the
provisions of this Arrangement or, if later, within six years from the end of the taxable
year or chargeable period in respect of which that taxation is imposed or proposed.
(2) The competent authority shall endeavour, if the objection appears to it to
be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the
case by mutual agreement with the competent authority of the other territory, with a
view to the avoidance of taxation which is not in accordance with this Arrangement.
Any agreement reached shall be implemented notwithstanding any time limits or other
procedural limitations in the domestic law of the territories, except such limitations as
apply for the purposes of giving effect to such an agreement.
(3) The competent authorities of the territories shall endeavour to resolve by
mutual agreement any difficulties or doubts arising as to the interpretation or
application of this Arrangement. They may also consult together for the elimination of
double taxation in cases not provided for in the Arrangement.
(4) The competent authorities of the territories may communicate with each
other directly for the purpose of reaching an agreement in the sense of this paragraph. (Inserted by S.R.O. 32/2010)
15. This Arrangement shall come into force on the date on which the last of all
such things shall have been done in the United Kingdom and Montserrat as are
necessary to give the Arrangement the force of law in the United Kingdom and
Montserrat respectively, and shall thereupon have effect—
(a) in the United Kingdom, as respects income tax for the year of assessment beginning on the 6th day of April, 1947, and subsequent
years; as respects surtax for the year of assessment beginning on the
6th day of April, 1946, and subsequent years; and as respects profits
tax for any chargeable accounting period beginning on or after the
first day of January, 1947, and for the unexpired portion of any
chargeable accounting period current at that date;
(b) in Montserrat, as respects income tax for the year of assessment beginning on the first day of January, 1947, and subsequent years.
(Amended by S.R.O. 17/1968)
16. This Arrangement shall continue in effect indefinitely but either of the
Governments may, on or before the 30th day of June in any calendar year after the
year 1948, give notice of termination to the other Government and, in such event, this
Arrangement shall cease to be effective—
(a) in the United Kingdom as respects income tax for any year of assessment beginning on or after the 6th day of April in the calendar
year next following that in which such notice is given; as respects
surtax for any year of assessment beginning on or after the 6th day of
April in the calendar year in which such notice is given; and as
respects profits tax for any chargeable accounting period beginning on or after the first day of January in the calendar year next following
that in which such notice is given and for the unexpired portion of any
chargeable accounting period current at that date;

(b) in Montserrat, as respects income tax for any year of assessment beginning on or after the first day of January in the calendar year next
following that in which such notice is given. (Amended by S.R.O. 17/1968)
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