SAINT LUCIA
CHAPTER 15.02
INCOME TAX ACT
Revised Edition
Showing the law as at 31 December 2008
This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority
of the Revised Edition of the Laws Act.
This edition contains a consolidation of the following laws—
INCOME TAX ACT
Act 1 of 1989 in force: section 25(1)(j)(i): 1 June 1987
remainder: 1 January 1988
Amended by Act 18 of 1990 in force 26 January 1991
Amended by Act 7 of 1994 in force 25 September 1994
Amended by Act 8 of 1996 in force 25 September 1994
Amended by Act 24 of 1996 in force 9 May 1990
Amended by Act 11 of 1998 in force 2 May 1998
Amended by Act 12 of 1999 in force 27 March 1999
Amended by Act 9 of 2001 in force 23 June 2001
Amended by Act 14 of 2003 in force 22 April 20031
1 Act 14 of 2003 applies in respect of income year 2002. See section 2 and 3 of Act 14 of
2003.
Amended by Act 15 of 2003 in force 22 April 20032
Amended by Act 7 of 2006 in force 6 February 2006
Amended by Act 11 of 2007 in force 17 September 2007
Amended by S.I. 86/1995 in force 29 December 1995
Amended by S.I. 78/1990 in force 1 January 1988
Amended by S.I. 56/1996 in force 26 October 1996
Amended by S.I. 26/1997 in force 26 April 1997
Amended by S.I. 38/1997 in force 17 May 1997
Amended by S.I. 102/1997 in force 27 December 1997
Amended by S.I. 34/1999 in force 22 May 1999
Amended by S.I. 69/2000 in force 25 March 2000
Amended by S.I. 141/2000 in force 1 January 2000
Amended by S.I. 232/2000 in force 25 November 2000
Amended by S.I. 84/2001 in force 8 September 2001
Amended by S.I. 98/2001 in force 13 October 2001
Amended by S.I. 136/2001 in force 1 December 2001
Amended by S.I. 12/2003 in force 10 February 2003
Amended by S.I. 19/2003 in force 3 March 2003
Amended by S.I. 59/2003 in force 21 July 2003
Amended by S.I. 64/2003 in force 25 August 2003
Amended by S.I. 4/2004 in force 9 February 2004
Amended by S.I. 60/2004 in force 9 August 2004
Amended by S.I. 75/2004 in force 1 November 2004
Amended by S.I. 82/2004 in force 29 November 2004
Amended by S.I. 4/2007 in force 12 February 2007
Amended by S.I. 40/2007 in force 8 June 2007
Amended by S.I. 172/2007 in force 29 October 2007
Amended by S.I. 100/2008 in force 3 November 2008
INCOME TAX (EVASION OF TAX PAYMENT) (PREVENTION) RULES – Section 151
Statutory Instrument 18/1971 in force 26 June 1971
Amended by S.I. 19/1977 in force 9 April 1977
Amended by S.I. 38/1993 in force 3 July 1993
Amended by S.I. 32/1998 in force 1 May 1998
INCOME TAX (EXEMPTIONS) PROCLAMATIONS – Section 25
Statutory Instrument 5/1924 and 93/1941
2 Amendments to Schedule 2 by Act 15 of 2003 takes effect in respect of income year
2002. See section 5(2) of Act 15 of 2003.
60
INCOME TAX (DOUBLE TAXATION RELIEF) (UNITED KINGDOM) ORDER – Section
Statutory Instrument 33/1949 in force:
Paragraph 6(3) of Schedule: 7 September 1968
Paragraphs 13(1) and 13(2) of Schedule: 1 January 1968
Remainder: 28 May 1949
Amended by S.I. 33/1951
Amended by S.I. 25/1968 in force 7 September 1968
INCOME TAX (DOUBLE TAXATION RELIEF) (CANADA) ORDER – Section 60
Statutory Instrument 19/1953 in force 4 April 1953
INCOME TAX (DOUBLE TAXATION RELIEF) (SWEDEN) ORDER – Section 60
Statutory Instrument 50/1954 in force 31 December 1954
INCOME TAX (DOUBLE TAXATION RELIEF) (DENMARK) ORDER – Section 60
Statutory Instrument appearing in volume 7, page 1106 of the 1957 Revision of the Laws of
Saint Lucia
INCOME TAX (DOUBLE TAXATION RELIEF) (NORWAY) ORDER – Section 60
Statutory Instrument appearing in volume 7, page 1119 of the 1957 Revision of the Laws of
Saint Lucia
INCOME TAX (DOUBLE TAXATION RELIEF) (U.S.A.) ORDER – Section 60
Statutory Instrument 42/1958 in force 27 December 1958
INCOME TAX (DOUBLE TAXATION RELIEF) (SWITZERLAND) ORDER – Section 60
Statutory Instrument 16/1965 in force 28 August 1965
INCOME TAX FORMS RULES – Section 151
Statutory Instrument 42/1949 in force 30 July 1949
INCOME TAX APPEALS AGAINST ASSESSMENTS RULES– Section 151
Statutory Instrument 14/1924
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Revision Date: 31 Dec 2008
CHAPTER 15.02
INCOME TAX ACT
ARRANGEMENT OF SECTIONS
Section
PART 1 11
PRELIMINARY 11
1. Short title and application................................................................................... 11 2. Interpretation...................................................................................................... 11
PART 2 18
ADMINISTRATION 18
3. Comptroller of Inland Revenue .......................................................................... 18 4. Delegation by Comptroller.................................................................................. 18 5. Indemnity against liability for acts done ............................................................. 18 6. Secrecy .............................................................................................................. 18
PART 3 20
IMPOSITION OF INCOME TAX 20
Division 1 — Charge to Tax ................................................................................... 20
7. Charge to tax: general........................................................................................ 20 8. Scope of charge to tax ....................................................................................... 21 9. Income accrued: meaning of.............................................................................. 21 10. Income deemed to have accrued from sources in Saint Lucia........................... 22 11. Basis of assessment .......................................................................................... 23
Division 2 — Persons Chargeable to Tax .............................................................. 24
12. Persons chargeable: general ............................................................................. 25 13. Married women .................................................................................................. 25 14. Minor children: dispositions to............................................................................ 25 15. Settlements and wills ......................................................................................... 25 16. Revocable dispositions ...................................................................................... 26 17. Deceased persons ............................................................................................. 27 18. Estates of deceased persons............................................................................. 27 19. Incapacitated persons........................................................................................ 28 20. Insolvent persons............................................................................................... 28 21. Partnerships....................................................................................................... 29 22. Non-resident persons......................................................................................... 29 23. Transactions involving liability to tax .................................................................. 30
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24. Responsibility of representative taxpayers..........................................................31
PART 4 31
EXEMPT INCOME 31
25. Exemptions .........................................................................................................31 26. Exemption: hotels ...............................................................................................38 27. Exemption: income from residential accommodation....................................... 38A 28. Exemption: interest from housing mortgages....................................................38b 29. Exemption: interest paid on approved borrowings by mortgage companies .......39 30. Comptroller may require Company to keep special account...............................39 31. Exemption: approved enterprises for fiscal incentive relief .................................40
PART 5 40
ASCERTAINMENT OF ASSESSABLE INCOME 40
Division 1 — Gains or Profits forming Assessable Income ....................................40
32. Assessable income: general ...............................................................................40 33. Business income.................................................................................................41 34. Employment income ...........................................................................................42 35. Loans or advances by a controlled company to a shareholder, director or
higher paid employee..........................................................................................43 36. Rental income.....................................................................................................44
Division 2—Deductions allowable in ascertaining assessable income ..................45
37. Deductions allowable : general ...........................................................................45 38. Deductions allowable : specific ...........................................................................45 39. Restrictions on deductions: management charges and certain payments
by controlled companies to shareholder .............................................................50 40. Capital allowance............................................................................................. 40B 41. Deduction for losses ...........................................................................................51 41A. Interpretation in respect of sections 41B to 41J ..................................................52 41B. Determination of subsidiary company .................................................................53 41C. Claim for group relief...........................................................................................54 41D. Companies joining group ................................................................................. 54A 41E. Relief obtainable once for the same amount.................................................... 54A 41F. Aggregate of claim........................................................................................... 54B 41G. Capital Allowances........................................................................................... 54B 41H. Tax recovery .................................................................................................... 54B 41I. Exempt companies .......................................................................................... 54B 41J. Profits and losses and distribution or charge on income vis-a-vis group
relief ................................................................................................................. 54C 41K. Exemption from stamp duty ............................................................................. 54C 42. Deductions not allowable under more than one provision................................54C 43. Expenditure for which no deduction allowable .................................................54D
PART 6 54E
ASCERTAINMENT OF CHARGEABLE INCOME : DEDUCTIONS AND ALLOWANCES 54E
44. Concessional deductions: general ................................................................... 54E 45. Personal allowance to individuals .................................................................... 54E 46. Allowance for spouse....................................................................................... 54E 47. Deduction for maintenance or alimony................................................................55
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48. Deduction for maintenance of children............................................................... 55 49. Deduction for education of certain children........................................................ 56 50. Deduction for higher education .......................................................................... 56 51. Allowance for housekeeper................................................................................ 57 52. Allowance for dependent relative ....................................................................... 58 53. Deduction for contributions to life assurance, or other retirement benefits......... 58 54. Deduction for mortgage interest, rates and insurance on owner occupied
property.............................................................................................................. 60 55. Deduction for gifts for certain approved purposes.............................................. 61 56. Deduction for medical expenses ........................................................................ 61 57. Deductions for payments to co-operative or building society ............................. 63 58. Deduction for interest on student loan ............................................................... 63 59. Deductions for purchase of new shares in a Resident Public Company ............ 64
PART 7 64
SPECIAL PROVISIONS RELATING TO CERTAIN TAXPAYERS 64
Division 1 – Variation of Normal Bases of Taxation............................................... 64
60. International agreement for the avoidance of double taxation............................ 64 61. General insurance companies and associations of underwriters ....................... 65 62. Life assurance companies ................................................................................. 66 63. Approved pension funds .................................................................................... 67 64. Deductions dependent on place where fund established ................................... 71 65. Interpretation of this Part.................................................................................... 72 66. Applications for registration................................................................................ 72 67. Conditions subject to which registration may be granted ................................... 72 68. Permitted provisions in annuity contracts........................................................... 73 69. Registration........................................................................................................ 74 70. Change in annuity contracts............................................................................... 74 71. Withdrawal of registration................................................................................... 75 72. Comptroller to be notified of payments under annuity contract and to be
provided with returns.......................................................................................... 75 73. Allowable deductions ......................................................................................... 75 74. Deductions for payments to a RHOS plan ......................................................... 75 75. Tax Credit in respect of Foreign Currency from Income Year 2001
onwards ............................................................................................................. 76
Division 2 — Withholding Tax on Payments to Non-Residents and Deduction of Tax by Employers, by Companies and from Payments to Contractors .............................................................................................. 77
76. Deduction of tax from payments made to non-resident...................................... 77 77. Deduction of tax by employers........................................................................... 78 78. Deduction of tax from payments to contractors.................................................. 78 79. Indemnification for tax paid to Comptroller......................................................... 79
PART 8 79
ASCERTAINMENT OF TAX PAYABLE 79
80. Rates of tax........................................................................................................ 79 81. Credit for tax deducted or paid........................................................................... 80 82. Credit for tax paid outside Saint Lucia ............................................................... 80 83. Calculation of tax credit for foreign tax ............................................................... 81
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PART 9 81
RETURNS AND NOTICES 81
84. Returns of income: general.................................................................................81 85. Returns of income: cessation of income during any year of income ...................83 86. Returns of income: where no return furnished ....................................................83 87. Further return or information, production of books and giving of evidence
to Comptroller .....................................................................................................83 88. Examination of business records ........................................................................85 89. Powers of entry...................................................................................................86 90. Maintenance of proper records of transactions, methods of accounting
and preservation of books of account and records .............................................87 91. Submission of accounts with return of income and certificate relating to
preparation of accounts ......................................................................................88 92. Principal officer of company................................................................................89 93. Precedent partner of partnership ........................................................................90 94. Returns deemed to be furnished by due authority and in full knowledge of
contents ..............................................................................................................91 95. Returns: method of furnishing.............................................................................91 96. Returns: extensions of time for furnishing...........................................................91
PART 10 92
ASSESSMENT OF TAX 92
97. Assessments ......................................................................................................92 98. Additional assessment ........................................................................................92 99. Transactions designed to avoid liability to tax.....................................................93 100. Reduced assessments........................................................................................93 101. Determination of assessed loss ..........................................................................94 102. Time limits for assessments................................................................................95 103. Notice of assessment..........................................................................................95 104. Record of assessment ........................................................................................96 105. Finality of assessment ........................................................................................96
PART 11 97
OBJECTIONS AND APPEALS 97
106. Objection to assessment.....................................................................................97 107. Decision by Comptroller on objection..................................................................98 108. Appeal Commissioners .......................................................................................98 109. Appeal from decision by Comptroller ..................................................................99 110. Hearing by Appeal Commissioner.....................................................................100 111. Right of further appeal ......................................................................................101 112. Payment of tax suspended by objection or appeal ...........................................101
PART 12 102
PAYMENT, RECOVERY AND REFUND OF TAX 102
113. Advance payment of tax ...................................................................................102 114. When tax is due and payable............................................................................103 115. Interest on unpaid tax .......................................................................................104 116. When tax deducted from remuneration, payments to contractors or
payments to non-residents is due and payable.................................................104 117. Interest on unpaid tax deductions .....................................................................105 118. Recovery of tax by court action.........................................................................105
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Revision Date: 31 Dec 2008
119. Recovery of tax by distraint.............................................................................. 105 120. Obstruction of officers ...................................................................................... 106 121. Recovery of tax as privileged debt by registration as judgement debt ............. 107 122. Recovery of moneys from persons leaving Saint Lucia.................................... 107 123. Recovery of tax from assets of certain dispositions ......................................... 108 124. Recovery of tax from representative taxpayer.................................................. 108 125. Right of representative tax payer to indemnity ................................................. 109 126. Personal liability of representative taxpayers ................................................... 109 127. Recovery of tax from persons holding money for another person.................... 110 128. Priority of tax debt upon bankruptcy or liquidation ........................................... 111 129. Refund of tax overpaid ..................................................................................... 111 130. Remission of tax .............................................................................................. 112
PART 13 112
OFFENCES 112
Division 1 – Civil Penalties ................................................................................... 112
131. Penalties: general ............................................................................................ 112 132. Penalties: failure to furnish return of income .................................................... 113 133. Penalties: failure to furnish correct return of income ........................................ 113 134. Penalties: failure to pay tax by due date .......................................................... 114 135. Penalties: failure to deduct tax or account for tax deducted............................. 114 136. Penalties: failure to comply with notice to give information, produce
documents or give evidence to Comptroller ..................................................... 114 137. Notice of intention to impose penalty to be given............................................. 115
Division 2 – Criminal Proceedings ....................................................................... 115
138. Sanction for prosecution .................................................................................. 115 139. Offences: breach of secrecy ............................................................................ 115 140. Offences: failure to comply with requirements of the Act ................................. 116 141. Offences: intent to evade liability to tax............................................................ 117 142. Offences: deduction of withholding tax and tax from payments to
contractors ....................................................................................................... 117 143. Offences: by employers or employees ............................................................. 118 144. Offences: evasion of tax in relation to deduction of tax by employer ............... 119 145. Aiding or abetting an offence ........................................................................... 119 146. Mitigation of penalties and compounding of offences ...................................... 120 147. Time limits for proceedings to be taken............................................................ 121
PART 14 121
MISCELLANEOUS 121
148. Forms of notices and returns ........................................................................... 121 149. Service of notices or documents ...................................................................... 122 150. Change of address for service of notice........................................................... 123 151. Regulations ...................................................................................................... 124 152. Amendment of Schedules and rates specified in the Act ................................. 125 153. Saving.............................................................................................................. 125
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SCHEDULE 1 126
SCHEDULE 2 128
SCHEDULE 3 143
SCHEDULE 4 147
SCHEDULE 5 157
SCHEDULE 6 158
SCHEDULE 7 159
SCHEDULE 8 161
11Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
CHAPTER 15.02
INCOME TAX ACT
(Acts 1 of 1989, 18 of 1990, 7 of 1994, 8 of 1996, 24 of 1996, 11 of 1998, 12 of 1999, 9 of
2001, 14 of 2003, 15 of 2003, 7 of 2006, 11 of 2007 and S.I. 86/1985, 78/1990, 56/1996,
26/1997, 38/1997, 102/1997, 34/1999, 69/2000, 141/2000, 232/2000, 84/2001, 98/2001,
136/2001, 12/2003, 19/2003, 59/2003, 64/2003, 4/2004, 4/2007, 40 of 2007, 172/ 2007
and 100/2008)
AN ACT to revise and consolidate the law relating to income tax.
Commencement [Section 25(l)(j)(i):1 June 1987]
[Remainder:1 January 1988]
PART 1 PRELIMINARY
1. SHORT TITLE AND APPLICATION
(1) This Act may be cited as the Income Tax Act.
(2) Subject to subsection (3), this Act applies to—
(a) the income year 1988 and subsequent years of income;
and
(b) the deduction of withholding tax from payments made on
or after 1 January 1988.
(3) Sections 58 and 65 to 74 inclusive apply to tax on income
derived in the year 1998 and each subsequent income year.
(Amended by Act 12 of 1999)
2. INTERPRETATION
(1) In this Act, unless the context otherwise requires—
―agent‖ includes any partnership, company or body of persons
which is acting as an agent;
―appeal commissioners‖ means the Appeal commissioners
appointed under section 108;
12 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
―approved pension fund‖ means a pension fund approved for
the purposes of this Act under section 63;
―assessable income‖ means assessable income as defined in
section 8 and as ascertained in accordance with Part 5;
―assessment‖ in relation to any person—
(a) means a determination by the Comptroller—
(i) of the amount of chargeable income and the
tax chargeable thereon,
(ii) of the amount of any loss allowable as a
deduction, or
(iii) that no tax is chargeable; and
(b) includes, where the context so requires, an
additional assessment or a reduced assessment;
―body of persons‖ means any association of persons,
howsoever described, but does not include an
incorporated company or a partnership;
―business‖ means any profession, trade, venture or undertaking
and includes the provision of personal services or
technical and managerial skills and any venture or
concern in the nature of trade, but does not include any
employment;
―chargeable income‖ means chargeable income as ascertained
in accordance with Part 6;
―child‖ in relation to an individual, includes a step-child, a
child born out of wedlock or an adopted child;
―commercial building‖ means a building that is used or is
purchased, constructed, reconstructed, altered or adapted
to be used for commercial purposes including use as
offices or a warehouse or for any trade other than—
(a) a building let out as a dwelling house;
(b) a building used for the purposes of carrying on any
other qualifying business;
(c) a hotel as defined in section 26;
(Inserted by Act 15 of 2003)
―Comptroller‖ means the Comptroller of Inland Revenue;
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Revision Date: 31 Dec 2008
―company‖ means a body corporate, wherever incorporated,
but does not include a partnership or an unincorporated
body of persons;
―controlled company‖ has the meaning given to it in section
39(3);
―disposition‖—
(a) means any settlement, trust, agreement,
arrangement or gift whereby assets, including a
right to income, are transferred from one person to
another, whether beneficially or as a trustee;
(b) does not include—
(i) a transfer of assets by will or other
testamentary disposition, except to the extent
provided by section 15, or
(ii) the assignment of any income by a deed or
assignment, howsoever described;
―earned income‖ means income accruing directly from the
carrying on of a business or accruing as employment
income within the meaning of section 34;
―employment‖ means any employment in which the
relationship of employer and employee subsists or an
appointment in an office whether public or not and
whether or not that relationship subsists;
―executor‖ means the executor, administrator or other person
administering or managing the estate of a deceased
person;
―graduate‖ means a person who has successfully completed
education at a community college, a university or at any
institution providing technical, vocational or professional
education of a standard equivalent to university education.
―incapacitated person‖ means a minor, a person of unsound
mind, or a mental patient;
―management charges‖ means charges made for the provision
of –
(a) management services;
(b) personal services;
14 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(c) technical services;
―Minister‖ means the Minister to whom responsibility for the
subject of finance is assigned;
―minor‖ means an individual who has not attained the age of 18
years;
―ordinarily resident‖, in relation to an individual, means a
person who is a resident within the meaning of paragraph
(a)(i) of the definition of ―resident in Saint Lucia‖;
―permanent establishment‖—
(a) means a fixed place or premises through which the
business of a person is wholly or partly carried on;
and
(b) includes—
(i) a place of management,
(ii) a branch or an office,
(iii) a factory or workshop,
(iv) premises used as a sales outlet,
(v) a building site or construction, assembly or
installation project, only if such site or project
continues for a period of more than 6 months,
(vi) the maintenance of plan and machinery for
rental, and
(vii) a mine, quarry or any other place of extraction
or exploration of natural resources;
―person‖ includes an individual, a trust, the estate of a deceased
person, a company, a partnership and every other juridical
person;
―previous Act‖ means the Income Tax Act, 1965 as amended;
―regulations‖ means regulations made under this Act;
―representative taxpayer‖ means, in relation to—
(a) the estate of a deceased person, an incapacitated
person, a trust or a settlement, the trustee of that
person;
(b) a non-resident, any person appointed under section
22 to act as agent on his or her behalf; or
Laws of Saint Lucia Income Tax Act Cap.15.02 14A
Revision Date: 31 Dec 2006
(c) tax due and payable—
(i) by a deceased person at the date of his or her
death, the executor of the estate of that
deceased person, or
(ii) at the commencement of liquidation by a
company which is being wound up, the
liquidator of that company;
―resident in Saint Lucia‖, in relation to a year of income
means—
(a) in the case of an individual, that—
(i) his or her permanent place of abode is in Saint
Lucia and that he or she is physically present
therein for some period of time in the income
year, unless the Comptroller is satisfied that
his or her absence throughout the whole of the
income year was for the purpose of education,
medical treatment, the performance of duties
on behalf of the Government or for any other
purposes which, in the opinion of the
Comptroller, is reasonable,
[The next page is 15]
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Revision Date: 31 Dec 2008
(ii) he or she is physically present in Saint Lucia
for not less than 183 days in the year of
income, or
(iii) he or she is physically present in Saint Lucia
for some period of time in that year of income
and such period is continuous with a period of
physical presence in the year of income for
the immediately preceding or succeeding year
of income of such duration as to qualify him
or her 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 or her 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 Saint
Lucia; and
(d) in the case of a company, that such company was—
(i) incorporated in Saint Lucia, or
(ii) if incorporated outside Saint Lucia, was
managed and controlled in Saint Lucia,
and the terms ―resident‖ and ―non-resident‖ in relation to
a person, mean that such person is resident or non-
resident in Saint Lucia as the case may be;
―royalties‖ means amounts paid as consideration, however
described—
(a) for the use of, or the right to use—
(i) copyrights, artistic or scientific works,
patents, trade marks, designs, plans, secret
processes or formulae, motion picture films,
tape or films for radio or television
broadcasting, or
(ii) information concerning industrial,
commercial or scientific knowledge; or
(b) in respect of the operation of a mine, quarry or other
place of extraction of natural resources;
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Revision Date: 31 Dec 2008
―separated‖ in relation to the marital status of an individual,
means a person who is living apart from his or her spouse
under—
(a) an order of a court of competent jurisdiction; or
(b) any other circumstances where there is sufficient
evidence for the Comptroller to conclude that the
separation is permanent;
―small scale business enterprise‖ means an enterprise
incorporated during the year of income and—
(a) is wholly owned by citizens of Saint Lucia who
have not been owners of previously incorporated
businesses in Saint Lucia;
(b) employs not more than 50 persons;
(c) has a gross income which does not exceed
$1,000,000;
(d) engages in an activity on the listing of preferred
business activity as approved by the Minister of
Commerce in accordance with the provisions of any
law in respect of micro or small scale business;
(e) satisfies the provisions of any law in force in
respect of micro or small scale business;
―tax‖ means the tax charged under this Act and for the purposes
of recovery of tax includes any penalty, interest or other
charge imposed under this Act but does not include any
fine imposed by a court; and any reference to tax payable
under the laws of another country means a tax of a
substantially similar nature to the tax charged under this
Act;
―trade‖ means any trade, manufacture, business and any
adventure or concern in the nature of trade and includes
farming, fishing, market gardening, husbandry and the
occupation of land for any commercial purpose;
―trading stock‖, in relation to any business, means anything
produced, manufactured, purchased or otherwise acquired
for the purposes of manufacture, sale or exchange
including uncompleted work on hand or in progress, or
the proceeds from the disposal of which form, or will
form, part of the assessable income of such business;
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Revision Date: 31 Dec 2008
―trustee‖ means a person appointed or constituted trustee by act
of parties, by order or declaration of a court or by
operation of law and includes any person having or taking
upon himself or herself the administration or control of
any property subject to a trust;
―withholding tax‖ means any tax deducted or deductible under
sections 53(5), 63(13) or 76;
―year of income‖ and ―income year‖ mean—
(a) the period of 12 months commencing on 1 January
in each year; or
(b) in the case of a company or any unincorporated
business or partnership whose financial year does
not begin in January, its financial year is its year of
income.
(2) Any reference in this Act to ―any person employed in carrying
out the provisions of this Act‖ includes a person whose services
under agreement with the Government are provided by any
other Government or international agency to assist with the
administration of this Act.
(3) Where gains or profits are ascertainable only by reference to the
year of income and for the purpose of the charge to or
exemption from tax, apportionment of such gains or profits to
different periods of time is necessary, then such apportionment
may be made on a time basis according to the respective lengths
of those periods of time.
(4) The term ―permanent establishment‖ does not include—
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the person;
(b) the maintenance of a stock of goods or merchandise
belonging to the person solely for the purpose of storage,
display or delivery;
(c) the maintenance of a stock of goods or merchandise
belonging to the person solely for the purpose of
processing by another person;
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of
collecting information for the person;
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Revision Date: 31 Dec 2008
(e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the person, any other activity
of a preparatory or auxiliary character.
(Amended by Acts 18 of 1990, 11 of 1998, 9 of 2001 and 7 of 2006)
PART 2 ADMINISTRATION
3. COMPTROLLER OF INLAND REVENUE
The responsibility for the administration of this Act is vested in the
Comptroller of Inland Revenue.
4. DELEGATION BY COMPTROLLER
(1) The Comptroller may, in relation to any matter or class of
matter, delegate to any other person employed in carrying out
the provisions of this Act, any powers, functions or duties
conferred or imposed on the Comptroller by this Act other
than—
(a) the power of delegation conferred by this section; and
(b) the power to sanction prosecutions under section 138.
(2) Any delegation made under this section is revocable at any time
by the Comptroller and no delegation prevents the exercise of
such powers, duties or functions by the Comptroller.
5. INDEMNITY AGAINST LIABILITY FOR ACTS DONE
The Comptroller and any person employed in carrying out the
provisions of this Act shall be indemnified against any liability for
any acts done in good faith by or in the name of the Comptroller
under any duty imposed by this Act.
6. SECRECY
(1) Subject to this section, the Comptroller and every person
employed in carrying out the provisions of or having any
official duty under this Act shall regard and deal with all
documents and information relating to any person, and all
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Revision Date: 31 Dec 2008
confidential instructions in respect of the administration of this
Act which may come into his or her possession or to his or her
knowledge in the course of his or her duties, as secret.
(2) This section does not apply to the disclosure of any confidential
information—
(a) to any person authorized by –
(i) Cabinet,
(ii) the Comptroller, or
(iii) any other enactment,
to receive such information;
(Substituted by Act 7 of 2006)
(b) to any other person to whom such disclosure is necessary
for the purposes of this Act; or
(c) to any authorised officer of the Government of a country
with which an international agreement for the avoidance
of double taxation or exchange of information exists, for
the purposes of that agreement.
(3) This section does not prevent the disclosure of information of a
statistical nature, but any such information shall be supplied in a
manner that does not disclose the identity of any person in
relation to his or her income.
(4) A person appointed under or employed in carrying out the
provision of this Act and a person to whom confidential
information is disclosed under subsection (2)(a) or (2)(b) shall
make an oath or affirmation of secrecy in the manner and form
approved by the Comptroller.
(5) Any oath or affirmation under subsection (4) may be taken
before the Comptroller (who is hereby authorised to administer
such oath or affirmation) or before a magistrate, and no fee is
payable.
(6) The obligation as to secrecy imposed by this section continues
to apply in respect of any person although he or she ceases to
have any official duty under or be employed in carrying out the
provisions of this Act.
(7) A person referred to in subsection (1) is not required to produce
in any court, any return of income, assessment or notice of
assessment or to divulge or communicate any information
20 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
which comes to his or her knowledge in the performance of his
or her duties under this Act except to the extent to which it is
necessary for the purposes of this Act.
PART 3 IMPOSITION OF INCOME TAX
Division 1 — Charge to Tax
7. CHARGE TO TAX: GENERAL
(1) Subject to subsections (5) and (6), tax shall be charged for each
year of income on the chargeable income for that year of every
person.
(2) The persons chargeable to tax shall be those persons specified
in Division 2 of this Part.
(3) Subject to Part 7, the chargeable income of a person is
ascertained by deducting from the person‘s assessable income
any amounts which is allowable under Part 6.
(4) The tax payable by a person is calculated in accordance with
Part 8.
(5) Where income ascertained in accordance with Part 5, accrues
directly or indirectly to a non-resident person, from any source,
other than from the exercise of employment or the carrying on
of business through a permanent establishment, such income
shall not form part of the assessable income of such person and
the gross amount of such income is liable to withholding tax in
accordance with sections 76 and 80.
(6) Where income accrues to any person by way of a cash benefit
payable from an approved pension fund or on the surrender of a
life assurance policy, in circumstances where a separate charge
to tax is created, such income shall not form part of the
assessable income of such person and the gross amount thereof
is liable to withholding tax in accordance with sections 53(5) or
61(13) as the case may be.
(Amended by Act 18 of 1990)
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Revision Date: 31 Dec 2008
8. SCOPE OF CHARGE TO TAX
(1) The assessable income of a taxpayer is—
(a) where the taxpayer is a resident, subject to subsection (2),
all amounts ascertained in accordance with Part 5,
accrued directly or indirectly from all sources whether in
or out of Saint Lucia; and
(b) where the taxpayer is a non-resident, subject to section
7(5) all amounts ascertained in accordance with Part 5,
accrued directly or indirectly from all sources in Saint
Lucia,
which are not exempt from tax under Part 4.
(2) Where an individual is a resident but is not ordinarily resident,
his or her assessable income shall include income accrued from
sources out of Saint Lucia but only to the extent that such
income is received in Saint Lucia.
9. INCOME ACCRUED: MEANING OF
(1) Subject to this section, income shall accrue to a person for the
purposes of this Act—
(a) in the case of income from employment, when it is
earned;
(b) in the case of a business, in relation to which the
Comptroller is satisfied that a commercially recognised
system of accounting other than a cash received basis is
regularly followed, when it is credited in the books of
account of such person;
(c) in the case of a business, where, under subsection (2), the
Comptroller has accepted the preparation by that person
of his or her accounts on a cash received basis, when it is
received by him or her; or
(d) in any other case, when it becomes due and payable to
him or her.
(2) Where any person regularly prepares the accounts of his or her
business on a cash received basis the Comptroller may, on
application and in his or her discretion, accept such method of
accounting or may direct that accounts be prepared on an
22 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
accrual basis and the income accrued to such person shall be
ascertained accordingly.
(3) Subsection (2) shall not be construed to prevent the Comptroller
from directing the adoption of an accrual basis in respect of a
particular person or class of persons for any year of income by
reason only that a cash received basis had been accepted in
respect of previous years.
(4) Where an amount that would otherwise have accrued to a
person when it was received by him or her is not paid to him or
her but is reinvested, accumulated, carried to any reserve or
otherwise dealt with on his or her behalf or as he or she directs,
it shall be deemed to have accrued to him or her on the date it is
so dealt with.
(5) Income shall not cease to have accrued to any person within the
meaning of this section by reason only of the cessation of a
source of income prior to the receipt of any amount from such
source.
10. INCOME DEEMED TO HAVE ACCRUED FROM SOURCES IN SAINT LUCIA
(1) Income accrued to a person accrues from a source situated in
Saint Lucia where it accrues to that person in respect of—
(a) any employment exercised in Saint Lucia irrespective of
where payment is made or the contract of employment is
entered into;
(b) any employment exercised out of Saint Lucia—
(i) in the performance of duties on behalf of the
Government, or
(ii) as an officer or member of the crew of a ship or
aircraft engaged in international traffic, by such
person being an individual who is ordinarily
resident in Saint Lucia;
(c) interest from any person being—
(i) an individual who is ordinarily resident in Saint
Lucia, where the indebtedness—
(A) was incurred in connection with the
acquisition of, or
23Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(B) was charged against, any property situated in
or to be brought into Saint Lucia, or
(ii) any other person, whether resident or non-resident,
who has a permanent establishment in Saint Lucia
in connection with which the indebtedness on which
the interest accrued was incurred, where such
interest is borne by such permanent establishment;
(d) any property physically situate in Saint Lucia;
(e) the provision of management services, including personal
services and technical and managerial skills, in Saint
Lucia where such services are provided for the purposes
of a business carried on in Saint Lucia and the cost of
such services is borne by that business, irrespective of
where the contract for such services was entered into;
(f) a source of income which under any international
agreement made under section 60, is considered to be
situated in Saint Lucia.
(2) Where, under this Act, or under any international agreement
made under section 60, income is considered to accrue—
(a) to a person;
(b) from a source; or
(c) in a year of income,
a reference to income accrued shall be construed as including
income considered to accrue.
11. BASIS OF ASSESSMENT
(1) Subject to this section, the assessable income of a person for a
year of income is the whole of income, ascertained in
accordance with Part 5, which accrues to such person during
that year.
(2) Tax is charged for each year of income upon the chargeable
income of any person for that year.
(3) The gains or profits of a person for a year of income so far as
such gains or profits arise from the carrying on of a trade,
business, profession or vocation is—
(a) where there is an established accounting terminal date, the
gains or profits of the 12 months from the established
24 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
accounting terminal date occurring in
immediately preceding the year of income;
the year
(b) in the case of the commencement by any person of any
trade, business, profession or vocation, the gains or profits
from the date of commencement of such trade, business,
profession or vocation occurring in the year immediately
preceding the year of income or occurring in the year of
income to such date in the year of income as may be
agreed by the Comptroller which agreed date will become
the established accounting terminal date;
(c) in the event of a departure from the established
accounting terminal date, the gains or profits for such 12
month period as the Comptroller in his or her discretion
may determine in respect of the year of income in which
the departure from the established accounting terminal
date occurs and in respect of the next succeeding year of
income; the accounting terminal date resulting from the
change becomes the established accounting terminal date.
(4) Where any person ceases to carry on his or her trade, business,
profession or vocation, the gains or profits of such person
arising from his or her trade, business, profession or vocation
for the year of income in which he or she ceased to carry on his
or her trade, business, profession or vocation is the gains or
profits from the established accounting terminal date in the year
immediately preceding the year of income to the date upon
which he or she ceased his or her trade, business, profession or
vocation.
(5) Although the income of a business charged to tax under this
section may be for a period greater or less than 12 months, any
annual allowances shall be deductible for a year of income only
by reference to a 12 month period.
(6) In this section ―established accounting terminal date‖ means the
accounting date to which the accounts of any trade, business,
profession or vocation of any person are ordinarily made up and
accepted for the purposes of assessment under this Act or in the
case of any new trade, business, profession or vocation, such
date as may be agreed by the Comptroller.
Division 2 — Persons Chargeable to Tax
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Revision Date: 31 Dec 2008
12. PERSONS CHARGEABLE: GENERAL
(1) Subject to this Division, the chargeable income of any person
shall be charged to tax in the name of that person.
(2) Where, under this Division, any income which has accrued to
one person is deemed to have accrued to some other person,
such income shall be included in the assessable income of that
other person and the chargeable income, if any, ascertained
therefrom shall be charged to tax in the name of that other
person.
13. MARRIED WOMEN
Any income accrued to a married woman in the year of income to
which this Act applies shall be charged to tax in her own name.
14. MINOR CHILDREN: DISPOSITIONS TO
(1) Where, by reason of any disposition made by any disponer for
the benefit of a minor whether or not the child is related to the
disponer, any income has accrued to that child, such income
shall, during his or her minority or until the prior death of the
disponer, be deemed to have accrued to the disponer and shall
be included in his or her assessable income.
(2) Where, during a year of income, an individual ceases to be a
minor, subsection (1) shall apply only in respect of income
accrued prior to the date upon which he or she ceased to be a
minor.
15. SETTLEMENTS AND WILLS
(1) Subject to subsection (3), any income accruing to a trust, where
there is no beneficiary entitled to the immediate benefit thereof,
shall be included in the assessable income of the trust and the
chargeable income ascertained therefrom shall be charged to tax
in the name of the trustee.
(2) Subject to section 14, any income accruing to a trust, where
there is a beneficiary entitled to the immediate benefit thereof,
accrues to the beneficiary and is to be included in his or her
assessable income.
26 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(3) Where, under a trust, a beneficiary may be entitled to the
benefit of the income thereof at the discretion of the trustee, any
income so applied for his or her benefit accrues to the
beneficiary and is to be included in his or her assessable
income.
(4) Where, in any will or other testamentary disposition, a
stipulation is made to the effect that the beneficiaries therein, or
one or more of them, shall not receive any income accrued
under such will or disposition until the happening of an event,
whether fixed or contingent, any such income as would, but for
the stipulation, have accrued to the beneficiaries shall, until the
happening of that event accrues to the trust and shall be
included in the assessable income of the trust and the
chargeable income ascertained therefrom is to be charged to tax
in the name of the trustee.
(5) Where any deed of donation, settlement or other disposition
inter vivos (in this subsection referred to as ―the disposition‖)
made by any person (in this subsection referred to as ―the
disponer‖) contains a stipulation to the effect that the
beneficiaries therein, or one or more of them, shall not receive
any income accrued under the disposition until the happening of
an event, whether fixed or contingent, any such income as
would, but for the stipulation, have accrued to the beneficiaries,
until the happening of that event or the prior death of the
disponer, accrues to the disponer and is to be included in his or
her assessable income.
(6) In subsections (1), (2) and (3) ―trust‖ means a trust created—
(a) by will or other testamentary disposition; or
(b) by a deed or donation, settlement or other disposition
inter vivos.
16. REVOCABLE DISPOSITIONS
(1) Where income accrues to a person under a revocable disposition
the income accrues to the disponer and is to be charged to tax in
his or her name.
(2) For the purposes of this section, a disposition revocable where
the disponer—
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Revision Date: 31 Dec 2008
(a) has a right to reassume control, directly or indirectly, over
or has access to the property or income of the disposition;
or
(b) has power to revoke or otherwise determine the
disposition, whether immediately or in the future and
whether with or without the consent of any other person,
but only where, in the event of the exercise of such power
the disponer will or may become beneficially entitled to
the whole or any part of the property or income of the
disposition.
(3) Where part only of a disposition is capable of revocation,
subsection (1) applies only to such part of the disposition.
(4) Subsection (2) does not deem a disposition to be revocable by
reason only of a power of revocation in such disposition in
relation to the interest of any beneficiary therein where such
power of revocation is limited to arise only in the event that
such beneficiary should pre-decease the disponer.
17. DECEASED PERSONS
Any income accrued to an individual and not included in any
assessment made prior to his or her death is to be included in his or
her assessable income and the chargeable income ascertained
therefrom is to be charged to tax in the name of his or her executor in
the same amount as would have been charged if that person had not
died.
18. ESTATES OF DECEASED PERSONS
(1) Any income accruing to the estate of a deceased person before
there is a beneficiary entitled to the immediate benefit thereof is
to be included in the assessable income of the estate and the
chargeable income ascertained therefrom is to be charged to tax
in the name of the executor.
(2) Any income accruing to the estate of a deceased person on or
after the date on which there is a beneficiary entitled to the
immediate benefit thereof other than as a legatee, accrues to the
beneficiary and is to be included in his or her assessable
income.
28 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(3) Where a beneficiary of the estate of a deceased person is a
legatee any income accruing in respect of the property of which
he or she is the legatee, on or after the earlier of—
(a) the date of the handing over of the property; or
(b) the date of the completion of the administration of the
estate,
accrues such legatee and is to be included in his or her
assessable income.
(4) For the purposes of this section—
(a) a beneficiary is entitled to the immediate benefit of any
income accrued to the estate of a deceased person on or
after the date of completion of the administration of the
estate; and
(b) the date of completion of the administration of the estate
means the date upon which the whole of the debts relating
to the estate of the deceased person have been ascertained
and paid or provided for.
19. INCAPACITATED PERSONS
Subject to this Part, any income accrued to an incapacitated person is
included in his or her assessable income and the chargeable income
ascertained is charged to tax in the name of the trustee in the same
amount as would be charged if that person was incapacitated.
20. INSOLVENT PERSONS
Where a person becomes bankrupt—
(a) any income accrued to that person in his or her own right
after the period of insolvency and prior to the date his or
her insolvency ceases is included in the assessable income
of that person; and
(b) any income accrued in respect of the estate of that person
held by his or her trustee during the period of insolvency
is included in the assessable income of the estate and the
chargeable income ascertained is charged to tax in the
name of the trustee.
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Revision Date: 31 Dec 2008
21. PARTNERSHIPS
(1) A partnership shall not be charged to tax in its own name but all
income accrued to it in a year of income is to be charged on the
partners for the year of income in accordance with this section.
(2) The chargeable income of a partner for a year of income—
(a) includes an amount equal to that proportion of the
partnership assessable income for that year of income
which the amount of the net partnership profit or income
to which he or she is entitled under the partnership
agreement, ascertained under that agreement, bears to the
net partnership profit or income; or
(b) is calculated after deducting an amount equal to that
proportion of the partnership assessed loss for that year of
income which the amount of the net partnership loss for
which he or she is responsible under the partnership
agreement, ascertained under that agreement, bears to the
net partnership loss.
(3) In this section—
―partnership assessable income‖ means the assessable income
of the partnership calculated as if the partnership were a
person chargeable to tax;
―partnership assessed loss‖ means an assessed loss calculated
in the same manner as partnership assessable income.
22. NON-RESIDENT PERSONS
(1) The chargeable income of a non-resident, where it is not
charged to tax directly on him or her, is charged to tax on his or
her agent in the same amount as would have been charged on
the non-resident.
(2) For the purposes of this section ―agent‖, in relation to a non-
resident, means a person who—
(a) has the management or control of property in Saint Lucia
of such non-resident;
(b) is appointed by the non-resident to act on his or her
behalf; or
(c) carries on business with a non-resident in circumstances
to which section 23(2)(b) applies.
30 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
23. TRANSACTIONS INVOLVING LIABILITY TO TAX
(1) Where any transaction, operation or scheme (hereinafter in this
subsection referred to as ―a transaction‖) including a transaction
involving the alienation of property, which is entered into or
carried out, whether before or after the commencement of this
Act, has the effect of avoiding, reducing or postponing the
liability to tax of any person for any year of income and the
Comptroller is of the opinion that the transaction—
(a) is entered into or carried out by means or in a manner
which would not normally be employed in the entering
into or carrying out of a transaction of the nature of the
transaction in question; or
(b) creates rights or obligations which would not normally be
created between independent persons dealing at arm‘s
length under a transaction of the nature of the transaction
in question,
the Comptroller shall determine the liability to tax as if the
transaction had not been entered into or in such other manner as
he or she considers appropriate to counteract such avoidance,
reduction or postponement of liability as would otherwise be
effected by the transaction.
(2) Where a resident carries on business with a non-resident and, in
the opinion of the Comptroller, by reason of the relationship
between such persons the course of business between them has
been so arranged that the business done by the resident
produces to him or her either more or less gains or profits than
those which would be expected to arise from that business if
such relationship had not existed, the Comptroller may
determine in such manner as appears to him or her to be
reasonable—
(a) whether any additional gains or profits should be deemed
to be assessable income of the resident person; and
(b) whether any part of the gains or profits of the non-resident
person should be considered to accrue from a source in
Saint Lucia.
(3) Where a loan, including a constructive loan, is made by a
resident person to a non-resident person, either free of interest
or at a rate of interest lower than the commercial rate generally
prevailing at the time the loan was made, and the Comptroller is
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Revision Date: 31 Dec 2008
of the opinion that the loan is not one between independent
persons dealing at arm‘s length with each other, interest is
considered to accrue to the resident person for each year of
income after the loan is made at such commercial rate as the
Comptroller considers reasonable in the circumstances.
(4) In subsection (3) a constructive loan means any indebtedness to
a resident person arising from the carrying on of business
transactions between that person and a non-resident person
which remains unpaid in circumstances which in the opinion of
the Comptroller would not have operated as between
independent persons dealing with each other at arm‘s length.
24. RESPONSIBILITY OF REPRESENTATIVE TAXPAYERS
(1) A person in whose name the chargeable income of a deceased
person, the estate of a deceased person, an incapacitated person,
a non-resident or any other person is chargeable, is responsible
for doing all such things as are under this Act required to be
done by a person chargeable to tax.
(2) Where a person is liable to furnish a return of income under
section 84, whether or not chargeable to tax, the obligation
imposed by subsection (1) applies to any representative
taxpayer acting on behalf of such person.
PART 4 EXEMPT INCOME
25. EXEMPTIONS
(1) There is exempt from the tax—
(a) the official emoluments of the Governor General, Deputy
Governor General and of any Acting Governor General,
any gratuity or pension payable to a former Governor or
Governor General upon his or her retirement, any gratuity
payable to his or her legal personal representative upon
the death of a former Governor or Governor General and
any pension payable to the widow of a former Governor
or Governor General upon his or her death;
32 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(b) the official emoluments payable in respect of their offices
to—
(i) heads of diplomatic missions and consulates
accredited to Saint Lucia,
(ii) members of the staff of such missions and
consulates, except such persons who are citizens of
or ordinarily resident in Saint Lucia;
(c) the official emoluments payable by—
(i) any international organisation of which Saint Lucia
and one or more other countries are members, or
(ii) any other Government, in connection with the
provision of any technical co-operation services, to
the extent and subject to such conditions as may be
prescribed by any enactment or in any agreement or
memorandum of understanding entered into by the
Government;
(d) any war pension (including any disability pension) or
gratuity in respect of service during war;
(e) any amount accruing under a scholarship or similar
education grant to a person receiving full time education
at a school, college, university or other educational
establishment;
(f) any interest accrued on any loan charged on the public
revenue, which is declared by the Minister to be exempt;
(g) any income accrued to any individual by way of—
(i) interest on a deposit in any bank in Saint Lucia, or
(ii) discounts arising on Treasury Bills;
(h) any income accrued to a company on Treasury bills,
bonds and debentures;
(i) any amount accrued by way of gratuity on the termination
of a contract of employment, however, this exemption
does not apply—
(i) if the contract is renewed, extended or replaced by a
new contract with the same employer or associate of
that employer, or
(ii) to any part of the gratuity in excess of 25% of the
gross income of the employee for the period,
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Revision Date: 31 Dec 2008
(j) any income accrued to—
(i) an individual for his or her office, or
(ii) such an individual or his or her dependents by way
of pension in respect of his or her past services;
as a minister of religion or other person in Holy Orders in
the service of any religious body approved for this
purpose by the Minister;
(k)
(i) the first $6,850, or
(ii) the first $6,000,
of any income accruing from a source in Saint Lucia by
way of pension for past services, being payable—
(A) by the Government or an approved pension
fund;
(B) by a pension fund which is not an approved
fund or directly by an employer where, and to
the extent to which, the Comptroller is
satisfied that such pension is reasonable in
amount having regard to the length of service
to the employer, the age or state of health of
the employee and the remuneration payable
to him or her prior to his or her retirement; or
(C) earned income other than a pension, in the
case of a resident individual, who is a citizen
of Saint Lucia and has reached the age of 60
years;
(l) any pension accruing from a source outside Saint Lucia to
any retired person, who, prior to his or her retirement, was
not resident in Saint Lucia;
(m) any benefits payable under the National Insurance
Corporation Act to any person by way of—
(i) sickness benefit,
(ii) invalidity benefit,
(iii) maternity benefit,
(iv) funeral grant, or
(v) any child allowance payable as a survivor‘s benefit
or death benefit;
34 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(n) the income of any approved pension fund;
(o) the income of any local authority as defined in the Local
Authorities Act, 1916;
(p) the income of any trade union in so far as such income is
not derived from a business carried on by it;
(q) the income of any registered building society or co-
operative society;
(r) the income of any religious, charitable, or educational
institution of a public character in so far as such income is
not derived from a business carried on by it for profit,
other than a business carried on for the primary purpose
of assisting disabled persons to learn or exercise a trade or
skill;3
(s) the income of the National Insurance Fund established
under the National Insurance Corporation Act;
(t) the income of the Saint Lucia Banana Growers
Association; the Windward Islands Banana Growers
Association; and the Saint Lucia Agriculturists
Association Limited;
(u) the income of the Caribbean Development Bank, and the
Council of Legal Education;
(v) any travel, subsistence, entertainment, telephone, housing
or transport allowance paid to any member of Parliament
or any public officer in connection with the carrying out
of the duties of his or her office;
(w) the official emoluments, allowances and pensions payable
in respect of their offices to the Chief Justice and other
judges of the Eastern Caribbean Supreme Court;
(x) distributions from companies;
(y) any income accruing to any individual from fishing or
agriculture, including horticulture and the use of land for
husbandry including the keeping or breeding of livestock
or poultry or the growing of crops of fruit or vegetables.
However, this paragraph shall not be construed to set off
the losses incurred from the activities specified in this
3 Editor’s note: Incorporated Trustees of the Presentation Brothers is declared to be an Educational institution of a public character by Gazette Notice 267/1958
35Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
paragraph against income from any other source or
activity;
(z) any income earned on securities issued by member
governments of the Eastern Caribbean Central Bank;
(za) interest earned on loan to the Government of Saint Lucia
in accordance with statutory instruments 15/1997 and
25/1997 until the payment of the loan authorised under
these 2 statutory instruments;
(zb) interest earned on loan to the Saint Lucia Development
Bank and National Commercial Holding Ltd by the
Barbados Mutual Life Assurance Society and Life of
Barbados Ltd. until the payment of the loan authorised
under statutory instrument 15/1997 and 25/1997;
(zc) the income earned by way of tips by artistic,
entertainment and sports personnel, office clerks,
customer service clerks, housekeeping and restaurant
service workers and other employees in similar categories
working in restaurants and hotels but excluding managers
and heads of department. In this paragraph—
―hotel‖ includes guesthouse, inn or any commercially run
establishment which engages in the business of
providing accommodation for guests;
―tips‖ includes any amount paid by a guest as a gratuity
for services rendered by an employee of an hotel or
restaurant, and includes service charge.
(zd) the income earned by public officers as a result of the
retroactive salary increase payable for the period 1 April
1995 to 31 March 1999 until the payment of that
retroactive salary increase;
(ze) income earned by way of bonus approved to be paid to
certain categories of civil servants in the 1998/1999
Budget presentation until the payment of the sum of $2
million approved to be paid to certain categories of civil
servants in the 1998/1999 Budget;
(zf) bonds in the amount of EC$20 million issued for the
funding of the low income housing initiative of the
National Commercial Bank Mortgage Financial Company
of Saint Lucia Limited;
36 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(zg) profits earned by the National Insurance Property
Development & Management Company Ltd. on
development fees and project management fees gained
under the refurbishment of police stations project;
(zh) any income accruing from trading in securities under the
Securities Act to any citizen or resident of any member
State of the Organisation of Eastern Caribbean States or
to any company incorporated in and registered in any
member State of the Organisation of Eastern Caribbean
States;
(zi) income earned on the emolument paid to professional
staff of the Financial Centre Corporation and the
International Financial and World Investment
Corporation;
(zj) income tax chargeable on returns from investments in the
Production Section Equity Fund;
(zk) the income of consultants and staff of the Project
Coordination Unit, OECS Emergency Recovery and
Disaster Management Project;
(zl) the income of the Project Coordinator and individual
Consultants of the World Bank Technical Assistance
Water Sector Reform Project;
(zm) lump sum payment of $850 in lieu of retroactive pay for
the year April 2001 to March 2002 made in December
2003 to all public servants inclusive of those employed
after March 2002 and still employed in the Public Service
as at December of 2003;
(zn) the income earned by public officers as a result of the
retroactive salary increase payable for the periods April
2002 to March 2003 and April 2003 to December 2003;
(zo) the income arising from CWC 2007 and earned by —
(i) CWC 2007 Inc., ICC and its members, IDI, GCC and
WICB and its members and their respective advisers
not ordinarily resident in Saint Lucia;
(ii) a member of a squad;
(iii) a CWC 2007 Inc. official; or
(iv) staff of ICC, IDI or GCC.
37Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
In this paragraph —
"CWC 2007 Inc." means ICC Cricket World CupWest Indies
2007 Inc., a company incorporated in the British Virgin
Islands;
"CWC 2007 Inc. official" means the Chairman, Vice Chairman,
members of the Board, Chief Executive Officer, Financial
Controller, Secretary or Manager of CWC 2007 Inc.;
"GCC" means Global Cricket Corporation Pte Limited, a
company incorporated in Singapore as Company No.
CRN200008431R and its successors or assigns;
"ICC" means the International Cricket Council, a company
limited by guarantee and incorporated in the British
Virgin Islands as Company No. 9112;
―IDI‖ means ICC Development (International) Limited, a
company incorporated in the British Virgin Islands as
Company No. 90940;
―income‖ includes basic salary, appearance fees, endorsement
fees, prize money, and man-of-the match and man-of-the-
series awards;
―WICB‖ means the West Indies Cricket Board Inc., a company
incorporated in the British Virgin Islands as Company
No. 302180;
(zp) the income of expatriate Commissioners appointed to
review the terms and conditions of employment of
medical practitioners and nurses;
(zq) the income earned by way of back pay to non-established
and fortnightly paid workers who are affiliated with the
National Workers Union;
(zr) the income earned by way of back pay to non-established
and fortnightly paid workers who are affiliated with the
National Workers Union for the triennium April 2001 to
March 2004;
(zs) income arising from trading in securities other than by
way of a business on an exchange licensed by the Eastern
Caribbean Securities Regulatory Commission pursuant to
the Securities Act, Cap. 12.18;
(zt) contributions to the captive insurance fund established by
the Saint Lucia Electricity Services Company Limited;
38 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
zu the income earned by public officers as a result of the
retroactive salary increase payable for the period 1 April
2007 to 30 September 2008 until the payment of that
retroactive salary.
(Amended by Acts 18 of 1990, 24 of 1996, 11 of 1998 and 9 of
2001 and S.I. 78/1990, 56/1996, 26/1997, 38/1997, 102/1997,
102/1997, 34/1999, 69/2000, 141/2000, 232/2000, 98/2001,
136/2001, 12/2003, 19/2003, 59/2003, 4/2004, 60/2004,
75/2004, 82/2004, 4 of 2007, 40 of 2007,172/2007 and 100 of
2008)
(2) The exemptions specified in subsection (1) may be added to,
deleted or otherwise varied by order made by statutory
instrument by the Minister with the approval of Cabinet.
26. EXEMPTION: HOTELS
(1) Subject to this section the income accruing from an hotel shall
be exempt where the construction of such hotel or of any
extensions to the residential accommodation therein
commenced after the commencement of this Act.
(2) An exemption under subsection (1) shall not apply unless
approval of such exemption is given by Cabinet following
application in writing made to the Minister.
(3) Where approval has been given in respect of the construction of
an hotel there is exempt from tax for such period of time as may
be determined by Cabinet, but not exceeding a maximum of 15
years all income accruing to the owner or to the lessee from the
carrying on of the business of the hotel.
(4) Where any hotel ceases to be used as a hotel by the owner or
lessee thereof during the tax holiday period the exemption
provided by this section shall cease to apply from the date of
cessation of such use.
(5) Where any hotel is sold during the tax holiday period but
continues to be used as a hotel, the exemption provided by this
section continues to apply to the new owner or the lessee, as the
case may be, for the remainder of the period.
(6) Where approval has been given in respect of any extensions to
an existing hotel there is exempt from tax for such period of
time as may be determined by Cabinet, but not exceeding a
Laws of Saint Lucia Income Tax Act Cap.15.02 38A
Revision Date: 31 Dec 2008
maximum of 10 years all income attributable to such
extensions, accruing to the owner or to the lessee from the
carrying on of the business of the hotel.
(7) The income exempted under subsection (3) or (6) are
ascertained after taking into account any allowances for capital
expenditure to which the owner or the lessee would have been
entitled under Schedule 2 if such income had not been exempt
from tax.
(8) For the purpose of subsection (6) income attributable to the
extensions to an existing hotel shall be taken to be such
proportion of the total income accruing from the hotel as the
number of additional bedrooms in the extensions bears to the
total number of bedrooms in the hotel.
(9) In this section—
―hotel‖ means a building or group of buildings used to provide
services and accommodation to guests for reward,
containing—
(a) not less than 6 bedrooms;
(b) one or more kitchens in which meals may be
prepared by employees of the hotel owner or hotel
operator for the guests; and
(c) one or more dining rooms shared in common by all
the guests in which meals may be served by
employees of the hotel owner or hotel operator to
such guests.
(Amended by Act 15 of 2003)
―tax holiday period‖ means any period of exemption from tax
granted by Cabinet under this section.
27. EXEMPTION: INCOME FROM RESIDENTIAL ACCOMMODATION
(1) Subject to this section, the income accruing to any person from
the construction and sale by him or her, or on his or her behalf,
of residential accommodation in Saint Lucia shall be exempt
from tax.
(2) Exemptions under subsection (1) shall not apply unless—
38B Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(a) the construction is in an approved sub-division as certified
by the Minister of Finance and Planning;
(b) the cost of construction of such residential
accommodation does not exceed $200,000 per unit of
housing or such other sum as may be prescribed;
(c) the number of houses constructed and sold in any income
year is not less than 5;
(d) the houses are sold within a period of 10 years after
completion of construction.
(3) Any rental income accruing to the person referred to under
subsection (1) from the leasing of such residential
accommodation during a period of 10 years after completion of
construction shall be exempt from tax provided the amount of
rental does not exceed $500 per month or if higher, the
proportion that $500 bears to the total monthly rental.
(4) In ascertaining the income which is exempt under this section,
any capital allowances to which the owner would have been
entitled under Part 2 of Schedule 2 shall be taken into account
in the same manner as if the income were chargeable to tax.
(5) In ascertaining the income which is exempt under this section,
sections 37 and 38 shall apply.
(Substituted by Act 11 of 1998)
28. EXEMPTION: INTEREST FROM HOUSING MORTGAGES
(1) Subject to this section, where any person whether resident in
Saint Lucia or not, lends money to any other person by way of
mortgage in connection with the purchase, construction or
reconstruction of residential accommodation in Saint Lucia,
either for owner occupancy or for rental purposes, there is
exempt from tax any income accruing to the mortgagee 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) is a mortgage in
respect of which the rate of interest and service charge do not
exceed 11% and the exemption only applies where the
mortgage does not exceed $150,000.
Laws of Saint Lucia Income Tax Act Cap.15.02 38C
Revision Date: 31 Dec 2008
(3) Where the rate of interest and service charge or the amount of
the mortgage exceed the limits specified in subsection (2), the
income which is exempt from tax is such proportion of the total
income accruing as—
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39Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(a) the rate of 11% bears to the total interest and service
charge payable; or
(b) the sum of $150,000 bears to the total amount of the
mortgage, in the income year or where both limits are
exceeded, the lesser thereof.
(4) Where interest accrues to a resident company 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, subject to
section 31 is exempt from tax in the hands of the shareholders.
(5) The rate of interest and service charge and the mortgage limit
specified in subsection (2) may be varied by order made by
statutory instrument by the Minister.
29. EXEMPTION: INTEREST PAID ON APPROVED BORROWINGS BY MORTGAGE COMPANIES
Where a company carries on a business which consists of lending of
moneys in relation to mortgages, the interest from which is exempt
under section 28, the Minister may, by order published in the Gazette
exempt, in the hands of the debenture holders, the amount of any
interest payable by that company in respect of debenture borrowing
by it for the purpose of financing the purchase, construction or
reconstruction of houses where he or she 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.
30. COMPTROLLER MAY REQUIRE COMPANY TO KEEP SPECIAL ACCOUNT
Where an order is made under the preceding section in respect of
debenture borrowing, the company shall maintain such special
account as the Comptroller may require showing—
(a) the total borrowings; and
(b) the amount loaned by the company under mortgage the
interest from which is exempt under section 28.
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Revision Date: 31 Dec 2008
31. EXEMPTION: APPROVED ENTERPRISES FOR FISCAL INCENTIVE RELIEF
Where a company is approved as an approved enterprise for the
manufacture of an approved product under the Fiscal Incentives Act it
is exempt from tax under this Act during the currency of its tax
holiday period provided under that Act.
PART 5 ASCERTAINMENT OF ASSESSABLE INCOME
Division 1 — Gains or Profits forming Assessable Income
32. ASSESSABLE INCOME: GENERAL
(1) Subject to this Part, the assessable income of any person
includes the gains or profits from or by way of—
(a) any business;
(b) any employment;
(c) rentals and royalties;
(d) interest or discounts;
(e) premiums, commissions, fees and licence charges;
(f) annuities and other periodic receipts, including receipts by
way of alimony or maintenance; and
(g) any other gains or profits of an income nature which
accrued to that person which are not included under any
other paragraph of this subsection.
(Amended by Act 18 of 1990)
(2) Subsection (1) shall not be construed so as to bring within the
meaning of assessable income, liable to assessment under Part
10, any income which is exempt under Part 4 or any amounts
accrued to a non-resident (other than from the carrying on of a
business or the exercise of employment) which are liable to
withholding tax under section 76.
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Revision Date: 31 Dec 2008
33. BUSINESS INCOME
(1) Subject to this Act, the assessable income of any person for any
year of income, insofar as it is derived from a business, is the
gains or profits accrued from the business during that year of
income.
(2) In ascertaining the assessable income from a business the value
of any trading stock held at the beginning and end of the
income year shall be taken into account in accordance with
Schedule 1.
(3) The assessable income referred to in subsection (1) shall
include—
(a) any amount accrued under any contract of insurance
against loss of profits or loss of stock or by way of
compensation or damage for loss of profits or loss of
stock;
(b) any amount accrued by way of recovery of any bad or
doubtful debt which has been allowed as a deduction for
any previous year of income;
(c) any amount accrued by way of recovery or reimbursement
of any expenditure or loss or by way of remission or other
cessation of indebtedness by a creditor, whether in a
bankruptcy or insolvency or otherwise where such
amount has been allowed as a deduction for a previous
year of income;
(d) any amount accrued by way of subsidy for, or in relation
to, the carrying on of a business;
(e) the amount of any balancing charge, ascertained under
Schedule 2.
(4) Where a person carries on a business in and out of Saint Lucia
the amount which considered to accrue to him or her from a
source situate in Saint Lucia in respect of that business is such
sum as appears to the Comptroller to be reasonable having
regard to—
(a) the nature of the operations carried on in and out of Saint
Lucia;
(b) the turnover of the business in and out of Saint Lucia;
(c) the situation and value of the assets employed in the
business;
42 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(d) the lower of cost or market value of any trading stock
imported into or exported from Saint Lucia; and
(e) any other matters which appear to the Comptroller to be
relevant.
34. EMPLOYMENT INCOME
(1) Subject to this Act, the employment income of any person for
any year of income includes—
(a) any amount accrued by way of wages, salary, leave pay,
fee (including a director‘s fee), commission, bonus or
gratuity;
(b) any travelling, entertainment or other allowance to the
extent to which it does not represent a repayment to the
employee of moneys wholly and exclusively expended by
him or her in the performance of the duties of the
employment;
(c) the rental value of any quarters or residence provided by
the employer, but not including the official residence of
the Prime Minister or any High Commissioner or
Ambassador of Saint Lucia;
(d) the value of any other benefit or advantage received or
enjoyed by the employee in respect of his or her
employment; or
(e) any pension payable to a former employee, or the
dependent of a former employee either directly by the
employer or indirectly by the trustees of a pension fund in
respect of the employment, to the extent to which such
pension is not exempt under section 25.
(2) The employment income of any person does not include the
value of any leave passage to or from Saint Lucia granted to
any person, at intervals of not less than 2 years, where such
leave passage is in fact used but this subsection does not
exclude from assessable income—
(i) any money or other consideration received in lieu of the
entitlement to a leave passage, or
(ii) the value of any passage granted to any person at the
termination of a contract of service, except at intervals of
not less than 2 years where such person returns to Saint
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Revision Date: 31 Dec 2008
Lucia after leave to undertake employment under another
contract of service with the same employer on
substantially similar terms.
(3) Where an employment is exercised in Saint Lucia on a visit or
visits to Saint Lucia by a non-resident in the performance of
duties for a non-resident employer, and the Comptroller is
satisfied that—
(a) the visit or visits do not exceed 30 days in any income
year; and
(b) the salary of the employee is not allowable as a deduction
against the profits of a business carried on in Saint Lucia;
such income shall not be charged to tax under this Act.
(4) Subsection (3) does not exclude from assessable income, any
employment income accruing to—
(i) public entertainers, including theatre, motion picture,
radio or television artistes and musicians, or
(ii) athletes or sportspersons.
(5) For the purposes of subsection (1)(c) the rental value of any
quarters or residence provided is considered to be—
(a) where the property is not owned by the employer, the
annual rental paid therefor; or
(b) where the property is owned by the employer, such annual
value as is assessed thereon under the Land and House
Tax Act,
together with any other expenditure of a recurrent nature
including electricity, water and telephone charges and other
outgoings of a domestic nature borne by the employer, less any
amount paid as rent by the employee.
35. LOANS OR ADVANCES BY A CONTROLLED COMPANY TO A SHAREHOLDER, DIRECTOR OR HIGHER PAID EMPLOYEE
(1) Where a controlled company makes a loan or advances any
money to a shareholder therein, an associate of a shareholder
(within the meaning of section 39(3), a director or a higher paid
employee thereof, the amount of such loan or advance shall,
subject to this section, be deemed to be income accrued to the
shareholder, director or employee in the income year in which
44 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
the loan or advance was made, unless he or she satisfies the
Comptroller that—
(a) the loan or advance is repaid within one year after the end
of the income year in which it is made; and
(b) that the repayment was not made as part of a series of
loans or advances and repayments.
(2) Subsection (1) shall not apply to any loan or advance made by a
company in the ordinary course of its business where such
business includes the lending of money.
(3) Where a loan or advance is made to which subsection (1)
applies and the shareholder, associate, director or employee in a
subsequent income year repays the loan or advance either
wholly or in part, the shareholder, director or employee is
entitled to relief, in the year of income for which the repayment
is made, by way of a tax credit of so much of the tax payable
for the year of income for which the amount was considered to
have been income as is attributable to the amount repaid.
(4) In this section a loan or advance to a shareholder, director or
employee is considered to include—
(a) the amount of any payment made by the company to a
third person on his or her behalf; or
(b) the sale price of any trading stock or other property sold
by the company to him or her,
in respect of which debt the shareholder, director or employee is
debited in the books of account of the company.
(5) For the purpose of this section, an employee whose
remuneration from a company exceeds $24,000 per annum is
considered to be a higher paid employee.
36. RENTAL INCOME
The following amounts are to be charged to tax as rental income—
(a) the gross rental payable by the lessee, tenant or occupier
of any property;
(b) any premium or other consideration, however described,
payable for the right of use or occupancy of any property;
(c) the value of any improvements which under a lease
agreement, the lessee has effected to property for the
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Revision Date: 31 Dec 2008
benefit of the lessor over a period not exceeding 5 years
as the Comptroller may determine.
Division 2—Deductions allowable in ascertaining assessable income
37. DEDUCTIONS ALLOWABLE : GENERAL
(1) The assessable income of every person for each year of income
shall be ascertained after taking into account the deductions
allowable under this Division.
(2) Subject to subsection (3), in ascertaining the assessable income
of any person for any year of income from any source specified
in section 32 there shall, upon due claims and subject to such
evidence as the Comptroller may require, be allowed as a
deduction, all expenditure wholly and exclusively incurred by
that person during that year of income for the purpose of
producing his or her assessable income from that source.
(3) For the purposes of this Division where income which has
accrued to a person is considered to have accrued to, and is
included in the assessable income of, some other person, any
expenditure incurred by either person in relation to such income
is considered to have been incurred by the person to whom such
income is deemed to have accrued.
(4) Where expenditure is incurred partly for the purpose of
producing assessable income and partly for purposes for which
no deduction is allowable, subsection (2) shall not be construed
to prevent the apportionment of such expenditure in such
manner as appears to the Comptroller to be reasonable.
38. DEDUCTIONS ALLOWABLE : SPECIFIC
(1) Subject to this Division and without prejudice to section 37(2),
save to the extent that any provision of this section imposes a
restriction on a deduction otherwise allowable, the deductions
allowable in ascertaining the assessable income of any person
for any year of income shall include—
(a) any allowances to which that person is entitled under
section 40 and Schedule 2 in respect of capital
expenditure;
46 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(b) any expenditure incurred by that person during the
income year on the repair of premises, plant and
machinery used by him or her in his or her business, or
the replacement of any implement, utensil or similar
article for which no allowance is given under Schedule 2;
(c) any legal expenses incurred by that person for the income
year in respect of any claim, dispute or action at law
arising in the course, or by reason of, the ordinary
operations undertaken by him or her in the carrying on of
business;
(d) any annually assessed rate or taxes imposed on any
immovable property used by him or her for the purpose of
producing assessable income;
(e) any premiums incurred under a policy of insurance
against damage to or loss of property—
(i) where the property insured is used for the purpose
of producing assessable income, and
(ii) the policy is entered into with an insurance
company which carries on business in Saint Lucia
and is liable to include such premiums in its
assessable income;
(f) any premiums incurred under a policy of insurance
against loss of profits, however—
(i) such deduction shall not be allowed unless the
policy is entered into with an insurance company
which carries on business in Saint Lucia and is
liable to include such premiums in its assessable
income, and
(ii) where any policy against loss of profits arises under
a policy of insurance on the life of an employee,
including a director, a deduction shall only be
allowable where the Comptroller is satisfied that—
(A) any sum recoverable will constitute
assessable income under section 33;
(B) the insurance is intended to meet a loss of
profits arising from the loss of the employee‘s
services;
(C) if the policy of insurance is against the death
or permanent disablement of the employee, it
47Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(g)
(h)
(i)
(j)
(k)
(l)
(m)
is a policy providing only for a sum to be
paid in the event of the death or permanent
disablement of the employee within a
specified number of years and while in the
employment of the employer;
the amount of any debts due to that person to the extent to
which they are bad and provided they have been brought
to account in the ascertainment of his or her assessable
income for any year of income;
such amount as the Comptroller considers reasonable in
respect of any debts due to that person which he or she
considers to be doubtful of recovery and provided they
have been brought to account in the ascertainment of his
or her assessable income for any year of income;
any expenditure incurred during the year of income by
way of interest on any loan made to that person, including
interest payable on debentures, to the extent to which the
Comptroller is satisfied that the amount of such loan was
used by that person for the purpose of producing
assessable income;
any amount contributed under the National Insurance
Corporation Act by that person in respect of persons
employed in his or her business;
any amount contributed by him or her in respect of his or
her employees by way of current annual contributions to
an approved pension fund;
such amount as is specified in subsection (2) in respect of
any contribution made by way of special payment to an
approved pension fund where such payment is made—
(i) in relation to a period of service by an employee
prior to the setting up of the approved pension fund,
or
(ii) to meet any actuarially ascertained insufficiency in
the resources of the approved pension fund to meet
its obligations to his or her employees;
any expenditure incurred by that person during the
income year by way of audit fees, accountancy fees or in
respect of the preparation of a return of income for the
purposes of this Act or the previous Act;
48 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(n) any expenditure incurred by that person during the
income year by way of subscription or donation to a
professional association approved by the Comptroller
where he or she is satisfied that such body of persons is a
non-profit body established with the object of maintaining
and advancing the standards of such profession;
(o) an additional amount of 25% of the total salary paid
during the income year to each graduate employed, for a
maximum period of 3 years;
(p) all expenditure incurred as a result of incorporation costs
for the establishment of a new small scale business
enterprise;
(q) from income year 2001 up to and including income year
2003, expenses reasonably incurred by that person during
the income year in the purchasing and installation of a
new solar water heating system up to a limit of $6,500;
(r) from income year 2004, an allowance equal to 150% of
the actual expenditure incurred by a company which –
(i) promotes or sponsors a local or regional sporting
activity or event, sportsperson or team in respect of
such promotion or sponsorship up to a maximum of
$75,000; or
(ii) build, construct rehabilitate, or repair a sporting
facility up to a maximum of $250,000;
(s) from income year 2005, an additional amount of 25% of
the total salary paid during the income year to each
graduate of the National Skills Development Centre
employed with an employer who is certified by the
National Skills Development Centre, for a maximum
period of 3 years;
(t) from income year 2005, up to and including income year
2007, expenses incurred by that person during the income
year in the purchasing and installation of a new solar
water heating system up to a limit of $6,500.
(2) For the purpose of subsection (1)(p), the expenditure allowed
shall be fixed by the Minister in a notice to be published in the
Gazette.
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Revision Date: 31 Dec 2008
(3) Where a special payment is made to an approved pension fund
to which subsection (1) applies such amount shall be allowed as
follows—
(a) where the special payment does not exceed the current
annual contribution it is to be wholly allowed for the year
of income for which payment is made;
(b) where the special payment exceeds the current annual
contribution, it is to be allowed in such years of income,
not exceeding 5 in number, as in the opinion of the
Comptroller is reasonable in the circumstances;
(c) where under paragraph (b) annual deductions are
allowable over a number of years of income the first such
deduction is allowable for the year of income for which
the special payment is made.
(4) For the purposes of –
(a) subsection (l)(r) the deduction shall—
(i) apply to a sportsperson who belongs to a club
recognized by the Minister responsible for sports,
(ii) apply to a local team which is affiliated to a national
association or belongs to a club recognized by the
Minister responsible for sports, and
(iii) not be granted for the sponsorship of clubs
established by corporate bodies;
(b) paragraph (a) and subsection (l)(r)—
―club‖ means a formal structure—
(i) with a document which clearly sets out the rules,
regulations, accepted patterns of behaviour of its
members and the role of each member,
(ii) which follows a program over a sustained period of
time,
(iii) which exists not only for the fulfilment of
programmed activities but also for the social
development of its membership,
(iv) which shares similar social objectives with other
clubs on a regional level, and
(v) which demonstrates both formal and informal
relationships;
50 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
―national association‖ means a nationally, regionally or
internationally recognized grouping of clubs or
organizations with similar interests;
―sponsor‖ means one who provides funds or equipment
for a broadcast, sporting activity or event;
―sporting activities or events‖ means athletics,
basketball, bridge, amateur boxing, martial arts,
cricket, squash, woule-la-ba, hockey, cycling, darts,
dominoes, football, rugby, golf, netball, swimming,
tennis, body building, yachting and such other
activities or events as determined by the Minister
responsible for sports, after consultations with the
Minister by order published in the Gazette;
―sporting facility‖ means playing field, playing court,
pavilion and any other amenity to serve such
facility;
―sportsperson‖ means an individual engaged in sporting
activities or events;
―team‖ means an informal unit, with a captain, vice
captain and coach, to manage its activities, which
comes together usually on a seasonal basis, for the
purpose of fulfilling a particular objective or a set of
objectives.
(Amended by Act 11 of 1998, 9 of 2001 and 7 of 2006)
39. RESTRICTIONS ON DEDUCTIONS: MANAGEMENT CHARGES AND CERTAIN PAYMENTS BY CONTROLLED COMPANIES TO SHAREHOLDER
(1) Despite section 37, where a person carrying on business in Saint
Lucia incurs expenditure by way of paragraph 1(1)(a) and
1(1)(b) of Schedule 3, or by way of head office expenses being
expenditure payable—
(a) to a non-resident (such non-resident not being engaged in
a business in Saint Lucia giving rise to such management
charges); or
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(b) by a branch of a non-resident company to its head office
or to some other branch outside Saint Lucia of such
company, a deduction shall be allowed of the lesser of—
(i) the aggregate of such charges, or
(ii) 10% of the deductions (exclusive of such charges)
allowable under section 37 (excluding cost of sales)
and the provisions of section 38(1) other than
section 39(1)(a), or such higher amount as in the
opinion of the Comptroller is reasonable.
(Amended by Act 7 of 2006)
(2) Despite section 37, in ascertaining the chargeable income of a
controlled company for any year of income, the Comptroller
may disallow any amount, otherwise deductible, which is paid
or payable to a shareholder or any associate of a shareholder by
way of—
(a) employment income; or
(b) interest on a loan by such person to the company,
and which in the opinion of the Comptroller is excessive in
amount, having regard to the duties performed or the rate of
interest payable on such loan.
(3) For the purposes of subsection (2)—
(a) ―a controlled company‖ means a resident company
which is owned and controlled by not more than 5
shareholders excluding the Government and any company
which is not itself a controlled company;
(b) ―an associate of a shareholder‖ means, in relation to a
shareholder, an individual who is—
(i) the spouse or the shareholder, or
(ii) a lineal ancestor, child or other lineal descendant,
brother, sister, uncle, aunt, nephew or niece of the
shareholder or of his or her spouse;
(c) a company shall be deemed to be owned and controlled
by not more than 5 shareholders where 5 or less
individual persons and any associates of such persons
(within the meaning of paragraph (b)) beneficially own
shares carrying between them, directly or indirectly—
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(i) the right to exercise more than 1 /2 of the voting
power in that company,
(ii) the right to receive more than 1 /2 of any dividends
that might be paid by that company, and
(iii) the right to receive more than 1 /2 of any capital
distribution in the event of the winding up or of a
reduction in the share capital of that company.
(4) Despite section 37, a deduction shall be allowed in respect of
expenditure incurred by a married person by way of
employment income within the meaning of section 34 to his or
her spouse as an employee or former employee, only to the
extent to which the Comptroller is satisfied that such
expenditure is reasonable in amount, and any amount which is
not allowed as a deduction by reason of this subsection shall be
deemed not to be employment income of the spouse to whom it
was paid.
(5) Subsection (4) applies to a partnership in respect of
employment income paid or payable to the spouse of one of the
partners and, despite section 21, any amount which is not
allowed as a deduction is chargeable income of such partner.
40. CAPITAL ALLOWANCE
(1) For the purpose of ascertaining the assessable income of any
person for any year of income there is allowed as a deduction
an initial allowance of 1 /5 as well as any amount to which that
person is entitled under Schedule 2 in respect of capital
expenditure incurred by him or her.
(2) For the purposes of ascertaining the assessable income of any
person who is carrying on a small scale business enterprise,
there is granted, in the initial year of income, an investment
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allowance of 10% on the capital expenditure incurred on the
provision of plant and machinery acquired and brought into use
by that person for the purpose of producing assessable income.
(3) For the purpose of this section capital expenditure relates to
plant and machinery imported into Saint Lucia for the first time
and is funded from non-local sources.
(Substituted by Act 11 of 1998)
41. DEDUCTION FOR LOSSES
(1) Subject to subsection (4), where deductions allowable to any
person for any year of income under the provisions of this
Division other than this section, exceed the assessable income
from the source to which these deductions relate, the amount of
such excess is allowed as a deduction against income accruing
from other sources of income for that year of income except
exempt income.
(2) Subject to subsection (4), where, after the allowance of any
deduction to which the person may be entitled under subsection
(1), an excess still remains, the amount of such excess (herein
referred to as ―the assessed loss‖) is allowed as a deduction in
ascertaining the assessable income of subsequent years of
income to the extent provided in subsection (3).
(3) The deduction provided in subsection (2) shall not exceed 1 /2 of
the assessable income of the next subsequent year of income
ascertained in accordance with this Part but before the operation
of subsection (2) (in this section referred to as ―the relevant
assessable income‖) and where the assessed loss exceeds 1 /2 of
the relevant assessable income or there is no such income of
such year of income, the excess or the amount of the assessed
loss, as the case may be, is to be carried forward and deducted
in like manner in ascertaining the assessable income of the next
following 5 years of income or until the assessed loss has been
fully allowed, whichever is the earlier.
(4) Where, for any year of income during the tax holiday period of
any person whose exemption relates to income accruing in
respect of—
(a) an hotel; or
(b) an enterprise approved under the Fiscal Incentives Act,
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the deductions which would have been allowable under the
provisions of this Act other than this section, exceed any
amount which would have been assessable income if that
person had not been exempt from tax, then the amount of such
excess shall be treated as an assessed loss allowable as a
deduction in succeeding years in the manner provided in
subsection (3) but, save as provided, no other loss incurred in
relation to the production of exempt income shall be allowed as
a deduction.
(5) Despite the provisions of this section, no deduction shall be
allowed in respect of any loss arising from the carrying on of
any business where, in the opinion of the Comptroller, such
business was not carried on on a commercial basis and with a
view to the realisation of gains or profits.
(6) For the purposes of subsections (2) and (3) an assessed loss is
considered to include a loss incurred under the corresponding
provision of the previous Act, and any losses brought forward
in respect of years of income prior to 1988 shall be treated in
like manner as if they were an assessed loss for the year of
income 1988.
41A. INTERPRETATION IN RESPECT OF SECTIONS 41B TO 41J
(1) For the purposes of sections 41B to 41J—
―capital allowances‖ means the allowances specified in section
40;
―claimant company‖ means a company which utilises the
trading loss of a surrendering company;
―current loss‖ means a trading loss incurred for the current
income year;
―51% subsidiary‖ means a body corporate of which—
(a) 51% or more of the ordinary share capital of that
body corporate is beneficially owned, whether
directly or indirectly by another body corporate; and
(b) 51% or more of the voting rights are attached to its
share capital;
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―surrendering company‖ means a company which suffers a
trading loss and surrenders this loss to another company
for the purposes of group relief;
―trading loss‖ means the assessed loss referred to in section 41
but does not include capital allowances and expenses
payable to a group member and claimed as a deduction if
corresponding amounts have not been included in the
income of the group member for the income year.
(2) Group relief is relief that allows the trading loss, excluding the
current loss, of a surrendering company to be set off, by way of
relief from tax, against the profits of a claimant company where
both companies satisfy the provisions of the group test set out
in subsections (3) and (4).
(3) Group relief is available where a surrendering company and a
claimant company are members of the same group.
(4) For the purposes of subsection (3) 2 companies are regarded as
being members of the same group where—
(a) one company is a 51% subsidiary of the other company;
or
(b) both companies are 51% subsidiaries of a third company.
(5) Every company engaged in group relief must be resident in
Saint Lucia.
(Inserted by Act 15 of 2003)
41B. DETERMINATION OF SUBSIDIARY COMPANY
(1) In determining, for the purposes of group relief, whether a
company is a 51% subsidiary of another, the other company
shall be treated as not being the owner—
(a) of any share capital which it owns directly in a body
corporate if a profit on a sale of the shares would be
treated as a trading receipt of its trade;
(b) of any share capital which it owns indirectly and which is
owned by a body corporate for which a profit on the sale
of the shares would be a trading receipt; or
(c) of any share capital which it owns directly or indirectly in
a body corporate not resident in Saint Lucia.
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(2) Despite that any time a company is a 51% subsidiary of another
company the former company shall not be treated at that time as
such a subsidiary with respect to group relief unless,
additionally at that time—
(a) the parent company is beneficially entitled to not less than
51% of any profits available for distribution to equity
holders of the subsidiary company; and
(b) the parent company would be beneficially entitled to not
less than 51% of any assets of the subsidiary company
available for distribution to its equity holders on a
winding-up.
(Inserted by Act 15 of 2003)
41C. CLAIM FOR GROUP RELIEF
(1) A claim for group relief shall specify the following—
(a) the name of the claimant company;
(b) a schedule of any available trading losses claimed by the
claimant company;
(c) the name of the surrendering company;
(d) a schedule of any available trading losses relinquished by
the surrendering company; and
(e) the amount claimed in respect of the surrendering
company.
(2) A claim for group relief—
(a) shall not be allowed unless the profits of the claimant
company are first applied against any previous years‘
assessed losses of that company;
(b) shall not exceed ½ of the assessable income of the
claimant company and where the trading loss exceeds ½
of the assessable income or where there is no such income
of such year of income, the excess or the amount of the
trading loss, as the case may be, shall be carried forward
and deducted in like manner in ascertaining the assessable
income of the next following 5 years of income or until
the trading loss has been fully allowed, whichever is the
earlier;
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(c) shall require the consent of the surrendering company
which shall be submitted to the Comptroller in the form
prescribed by the Comptroller;
(d) must be made within 2 years of the date of the end of the
surrendering company‘s income year to which the claim
relates; and
(e) shall only be allowed by the Comptroller after all taxes
due and payable under any other Act under the
administration or management of the Inland Revenue
Department, have been satisfied by both the claimant
company and the surrendering company.
(3) Group relief claim shall apply only in the case of a company
that is part of a group restructuring or reorganization approved
by the Comptroller.
(4) Subject to this section, the assessed losses carried forward by
the companies taking part in the group restructuring or
reorganization shall be available for utilization for purposes of a
claim for group relief except that the assessed losses carried
forward shall expire in accordance with the provisions of
section 41(3).
(Inserted by Act 15 of 2003)
41D. COMPANIES JOINING GROUP
(1) Despite the provisions of section 41C, the assessed losses
carried forward by a company joining a group after
restructuring or reorganization shall not be available for
utilization by the companies in the existing group for purposes
of claiming group relief.
(2) Despite the provisions of section 41C, the trading losses carried
forward by the group, shall not be available for utilization by a
company joining the group after restructuring or reorganization
for a period of 2 years after joining.
(Inserted by Act 15 of 2003)
41E. RELIEF OBTAINABLE ONCE FOR THE SAME AMOUNT
Relief shall not be given more than once in respect of the same
amount, whether by giving group relief or by giving some other
54B Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
relief, in any income year, to the surrendering company, or by giving
group relief more than once. (Inserted by Act 15 of 2003)
41F. AGGREGATE OF CLAIM
(1) Subject to subsection (2), 2 or more claimant companies may
make claims relating to the same surrendering company.
(2) Despite subsection (1) where the claimant companies referred
to in subsection (1) make claims, the aggregate of the claims
shall not exceed the amount of the loss surrendered by the
surrendering company.
(Inserted by Act 15 of 2003)
41G. CAPITAL ALLOWANCES
A claimant company shall only be eligible to claim group relief where
that company, has first claimed all its capital allowances in
accordance with the provisions of section 40. (Inserted by Act 15 of
2003)
41H. TAX RECOVERY
Subject to section 90, where the Comptroller discovers that any group
relief which has been given is or has become excessive, he or she may
make an assessment to tax in the amount which ought in his or her
opinion to be charged.
(Inserted by Act 15 of 2003)
41I. EXEMPT COMPANIES
Group relief is not available to—
(a) any company established under the International Business
Companies Act or any enactment replacing it;
(b) any other company which has been granted tax concessions
under any other enactment with the exception of companies
operating under the Tourism Incentive Act.
(Inserted by Act 15 of 2003)
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41J. PROFITS AND LOSSES AND DISTRIBUTION OR CHARGE ON INCOME VIS-A-VIS GROUP RELIEF
(1) A payment for group relief—
(a) shall not be taken into account in computing profits or
losses of either company for tax purposes; and
(b) shall not for the purposes of the Income Tax Act be
regarded as a distribution or charge on income.
(2) In subsection (1) a ―payment for group relief‖ means a
payment made by the claimant company to the surrendering
company under an agreement between them as respects an
account surrendered by way of group relief, being payment not
exceeding that amount.
(Inserted by Act 15 of 2003)
41K. EXEMPTION FROM STAMP DUTY
Despite anything to the contrary in the Stamp Duty Act, any
instrument relating in any way to the assets or activities of a company
taking part in a group restructuring or reorganization approved by the
Comptroller, is exempt from the payment of stamp duty.
(Inserted by Act 15 of 2003)
42. DEDUCTIONS NOT ALLOWABLE UNDER MORE THAN ONE PROVISION
(1) No amount shall be deducted under any provision of this Act in
respect of expenditure, or claim for an allowance, which has
been or will be taken into account as a deduction or in
calculating a deduction under any other provision of this Act or
the previous Act.
(2) Where an amount qualifies for deduction under 2 or more
provisions of this Act, subsection (1) does not prevent the
person concerned claiming such of those deductions as is most
advantageous to him or her.
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43. EXPENDITURE FOR WHICH NO DEDUCTION ALLOWABLE
(1) Subject to any express provision in this Act authorising a
specified deduction, in ascertaining the assessable income of
any person for any year of income no deduction is allowed in
respect of—
(a) any expenditure to the extent to which it is not incurred
for the purpose of producing assessable income;
(b) any expenditure incurred for domestic or private purposes
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 or her of his or her trade,
business, profession or vocation,
(iii) any remuneration, or interest on capital, paid or
credited to himself or herself,
(iv) the cost price of any goods taken out of the business
for the use of the proprietor or any partner or their
families;
(c) any expenditure incurred for the purpose of producing
exempt income;
(d) any capital withdrawn or any expenditure or loss of a
capital nature;
(e) any tax imposed under this Act or any previous enactment
relating to tax imposed on income;
(f) any income tax or tax of a similar nature charged in a
country outside Saint Lucia; or
(g) any contribution made to a pension fund which has not
been approved under this Act.
(2) Notwithstanding sections 37 and 38, in ascertaining the
chargeable income of any person for any year of income, no
deduction shall be allowed in respect of any amount paid or
payable to a—
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(a) person to whom sections 77 and 78 applies; or
(b) non-resident to which section 76 applies,
unless the Comptroller is satisfied that the tax chargeable
thereon has been paid.
[Amended by Act 7 of 2006]
PART 6 ASCERTAINMENT OF CHARGEABLE INCOME : DEDUCTIONS
AND ALLOWANCES
44. CONCESSIONAL DEDUCTIONS: GENERAL
(1) In ascertaining the chargeable income for any year of income of
any person there is allowed as a deduction from his or her
assessable income, upon due claim and subject to such evidence
as the Comptroller may require, any amount to which he or she
is entitled under this Part.
(2) Where a person is not entitled to any deductions under this Part,
his or her assessable income constitutes his or her chargeable
income.
(3) The deductions allowable under this Part is allowed after any
deductions to which he or she is entitled under Division 2 of
Part 5 and in the event of there being an insufficiency of
assessable income to permit the allowance in full of any
deductions under this Part then such concessional deductions
shall be limited to the amount of the assessable income, if any,
which remains.
45. PERSONAL ALLOWANCE TO INDIVIDUALS
A resident individual shall be entitled irrespective of the nature of his
or her income, to the allowance specified in Schedule 6 for an income
year.
46. ALLOWANCE FOR SPOUSE
(1) Subject to section 13 a resident individual is entitled to an
allowance of $1,500 in respect of his or her spouse if, at any
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Revision Date: 31 Dec 2008
time during the year of income the spouse is living with him or
her or is maintained by and not separated from him or her in
circumstances in which he or she is entitled to a deduction
under section 47.
(2) The deduction allowable under this section is reduced where the
spouse has assessable income in excess of $1,500 by $1 for
each dollar of the excess.
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47. DEDUCTION FOR MAINTENANCE OR ALIMONY
(1) Subject to subsection (2), a resident individual who, in the year
of income has paid—
(a) a maintenance or separation allowance (under a deed of
separation or an order of court) to his or her spouse from
whom he or she is separated; or
(b) alimony, to a former spouse from whom he or she is
divorced,
is entitled to a deduction equal to the amount of such allowance
or alimony.
(2) The deduction allowable under subsection (1) shall not apply
unless the person receiving such allowance or alimony is
chargeable to tax thereon under this Act.
48. DEDUCTION FOR MAINTENANCE OF CHILDREN
(1) Subject to this section in ascertaining the chargeable income of
an individual who is resident in Saint Lucia and who proves to
the satisfaction of the Comptroller that he or she maintained a
child who—
(a) was born during the income year; or
(b) at the commencement of the income year has not attained
the age of 16 years or, irrespective of age, was a student
child or an invalid child,
is entitled to a deduction of $1,000.
(2) The deduction allowable under this section does not apply in
relation to any child whose income from any source during the
income year exceeds $1,000.
(3) Where 2 or more individuals contribute towards the
maintenance of a child to whom this section applies the
deduction allowable may be apportioned between the
individuals in the manner that appears to the Comptroller to be
reasonable.
(4) In this section—
―invalid child‖ means a child of the individual claiming the
deduction provided by this section who is by reason of
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Revision Date: 31 Dec 2008
permanent disability dependent upon his or her parent for
his or her maintenance.
―student child‖ means a child who, at any time during the
income year, was—
(a) receiving full time education at a school, college or
other educational institution but not including a
university or other institution providing technical or
professional education or a standard equivalent to a
university; or
(b) serving full time as an apprentice or under articles
or with a view to qualifying in a trade or profession;
49. DEDUCTION FOR EDUCATION OF CERTAIN CHILDREN
(1) Subject to this section, in ascertaining the chargeable income of
an individual who is resident in Saint Lucia and who, during the
income year, maintained a child who, during the income year—
(a) had attained the age of 10 years; and
(b) was a student child within the meaning of section 48(4),
whether in Saint Lucia or elsewhere,
is entitled to a deduction in respect of the education or training
of that child.
(2) The deduction allowable under this section is $2,000 in respect
of any one child.
(3) Where 2 or more individuals contribute towards the
maintenance of a child to whom this section applies the
deduction allowable may be apportioned between the
individuals in such manner as appears to the Comptroller to be
reasonable.
(4) Where a deduction is allowable under this section no deduction
shall be allowed in respect of the same child under section 48.
(Amended by Act 18 of 1990)
50. DEDUCTION FOR HIGHER EDUCATION
(1) Subject to this section, in ascertaining the chargeable income of
an individual who is resident in Saint Lucia and who, is a
relative of a person whom he or she maintained during the
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Revision Date: 31 Dec 2008
income year shall, if that person irrespective of age, was a
university student, whether in Saint Lucia or elsewhere, during
that income year, be entitled to a deduction in respect of
education of such university student.
(2) The deduction allowable under this section is $5,000 in respect
of any one person.
(3) Where a deduction is allowable under this section no deduction
is allowed in respect of the same person under section 48.
(4) Where 2 or more individuals contribute towards the
maintenance of a person to whom this section applies the
deduction allowable may be apportioned between the
individuals in such manner as appears to the Comptroller to be
reasonable.
(5) In this section—
―relative‖ means a parent, grandparent, brother, sister, uncle or
aunt and includes a person in loco parentis;
―university student‖ means a person receiving full time
education at a university or at any other institution
providing technical or professional education of a
standard equivalent to university education.
(Amended by Act 18 of 1990)
51. ALLOWANCE FOR HOUSEKEEPER
(1) Subject to this section, where a resident individual being a
widower or widow or unmarried, divorced or separated
maintains a relative who, during the year of income, resided
with him or her—
(a) for the purpose of having the charge and care of any child
of his or hers within the meaning of section 48; or
(b) in the capacity of housekeeper,
that individual is entitled to an allowance of $200.
(2) The deduction allowable under subsection (1) is granted only—
(a) in respect of one person for any year of income, and
(b) where no deduction is allowed to any other person in
respect of the maintenance of such person.
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(3) Where a deduction is allowable under subsection (1) no
deduction is allowed in respect of the same person under
section 52.
52. ALLOWANCE FOR DEPENDENT RELATIVE
(1) Subject to this section, where a resident individual during the
year of income maintains a dependent relative he or she is
entitled to an allowance of $350, in respect of each such
relative.
(2) The deduction allowable under this section—
(a) does not apply in relation to any child in respect of whom
a deduction is allowed under sections 48, 49, or 50; and
(b) shall be reduced, where such dependent relative has
assessable income in excess of $350, by $1 for each dollar
of the excess.
(3) Where 2 or more individuals are entitled to relief under
subsection (1) the deduction allowable may be apportioned
between such individuals in such manner as appears to the
Comptroller to be reasonable.
(4) In this section—
―dependent relative‖ means, in relation to an individual, a
person who—
(a) whether incapacitated or not is the parent or other
lineal ancestor or aunt or uncle of that individual or
of his or her spouse and is unmarried, divorced,
widowed or separated; or
(b) is incapacitated by old age or infirmity or is
unemployable by reason of old age and is the child,
brother or sister of that individual or of his or her
spouse.
53. DEDUCTION FOR CONTRIBUTIONS TO LIFE ASSURANCE, OR OTHER RETIREMENT BENEFITS
(1) Subject to this section, where in any year of income a resident
individual makes payments for the future benefit of himself or
herself, his or her spouse, children or other dependents—
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(a) as premiums for insurance on his or her life or the life of
his or her spouse or child, or contracts for a deferred
annuity on his or her life or the life of his or her spouse or
child with an insurance company registered under the
Insurance Act; or
(b) as contributions under the National Insurance Corporation
Act,
he or she is entitled to a deduction in respect of the amount of
such expenditure subject to the limits imposed by subsection
(2).
(2) The deduction allowable under this section shall not exceed the
lower of—
(a) 1 /10 of his or her assessable income; or
(b) $8,000.
(3) A deduction is not allowable under subsection (1)(a) in respect
of any premium paid under a policy of insurance effected after
1 January 1972, unless—
(a) the policy is entered into with a company registered and
carrying on business in Saint Lucia; or
(b) the policy is effected at a time when the person is not
resident in Saint Lucia.
(4) Where the deduction claimed under subsection 1(a) is in respect
of premium paid under a policy of an insurance effected after
January 1972 with a company not doing business in Saint
Lucia, the amount allowable as a deduction is 50% of the
premium paid to the company. However, the deduction is
limited to the higher of—
(a) 1 /20 of the assessable income of the individual; or
(b) $3,000.
(5) Where a policy of insurance to which this section applies is
surrendered within 10 years from the date on which it was
effected the amount of the benefits paid is not from chargeable
income but is to be separately charged to tax in the hands of the
insurer who shall—
(a) deduct as tax, 10% of such monies prior to payment of the
balance to the insuree;
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(b) pay such tax to the Comptroller, within 15 days after the
end of the month in which it was deducted; and
(c) furnish to the Comptroller, at the time such payment of
tax is made, a statement setting out—
(i) the names of all policy holders to whom payments
were made,
(ii) the amounts of such payments, and
(iii) the tax deducted.
(6) For the purposes of this section, a policy of insurance
includes—
(a) a policy providing lump sum benefits; and
(b) a policy providing for periodical benefits, upon maturity,
but in either case, a deduction under this section is only
allowable where the policy is expressed to mature not
earlier than 10 years from the date it was effected or on
death prior to maturity.
(Amended by Act 18 of 1990)
54. DEDUCTION FOR MORTGAGE INTEREST, RATES AND INSURANCE ON OWNER OCCUPIED PROPERTY
(1) A resident individual is entitled to a deduction in respect of any
amount paid during the year of income by way of—
(a) interest upon money borrowed by him or her and applied
for the acquisition or construction of or improvements to
an owner occupied dwelling house; however, the
deduction allowable for any year of income in respect of
such expenditure shall not exceed $15,000;
(b) taxes incurred in respect of an owner occupied dwelling
house;
(c) insurance premiums on an owner occupied dwelling
house; or
(d) expenses reasonably incurred in the upkeep and
maintenance of an owner occupied dwelling house.
(2) Despite subsection (1), a resident individual who—
(a) subject to paragraph (b), satisfies the Comptroller that he
or she has paid any sum to which subsection (1) applies,
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Revision Date: 31 Dec 2008
during the year of income, is entitled to the deduction
under subsection (1);
(b) has failed to pay any amount payable to which subsection
(1)(b) relates, is not entitled to the deduction to which
subsection (1)(a) relates.
(3) Where 2 or more persons are entitled to relief under this section
the deduction allowable may be apportioned between them in
the manner that appears to the Comptroller to be reasonable.
(4) In this section ―an owner occupied‖ dwelling house means a
dwelling house occupied by the owner either alone or together
with his or her family, or occupied rent-free by members of his
or her family.
(Amended by Act 9 of 2001)
55. DEDUCTION FOR GIFTS FOR CERTAIN APPROVED PURPOSES
In ascertaining the chargeable income of any person for any year of
income, where, in that year of income, such person makes a
contribution—
(a) under a deed of covenant for a period of not less than 3
years, to any religious, charitable, medical, or educational
institution or sporting body or fund of a public character,
approved by Cabinet;
(b) to the Saint Lucia National Trust,
there is allowed a deduction of the amount of such contribution.
However, the deduction in respect of such contributions shall not
exceed 25% of the assessable income of the person for that year of
income.
56. DEDUCTION FOR MEDICAL EXPENSES
(1) In ascertaining the chargeable income of an individual who is
resident in Saint Lucia there is allowed a deduction in respect of
medical expenses of the individual during the income year on
behalf of himself or herself or on behalf of a dependent in
respect of whom he or she is entitled to a deduction under
sections 45, 46, 48, 49, 50 or 51.
Except that no deduction is allowed under this subsection in
excess of $400 unless the individual produces documentary
62 Cap.15.02 Income Tax Act Laws of Saint Lucia
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evidence to the satisfaction of the Comptroller in support of a
claim for a deduction in excess of $400.
(2) In ascertaining the medical expenses for which a deduction is
allowable under this section there is to be deducted any amount
which he or she or his or her dependent is reimbursed or is
entitled to be reimbursed whether under an insurance contract
or otherwise.
(3) For the purposes of this section—
―medical expenses‖ means amounts paid—
(a) to a registered medical practitioner, a qualified
nurse or a midwife, a chemist or to a hospital or
other similar institution for services rendered,
facilities provided or medicines prescribed by a
registered medical practitioner for the treatment of
any illness or in connection with the birth of a child;
(b) to a qualified dentist for dental services rendered or
services rendered in the supply or repair of artificial
teeth or to a dental technician for such of those
services as he or she is qualified to perform;
(c) for therapeutic treatment administered on the advice
of a registered medical practitioner;
(d) in respect of an artificial limb or part thereof, an
artificial eye or a hearing aid;
(e) in respect of a medical or a surgical appliance
prescribed by a registered medical practitioner;
(f) for the testing of eyes or the prescribing of
spectacles or contact lenses by a person qualified to
perform those services and for spectacles or contact
lenses purchased as a result of such prescription;
(g) to a person for services rendered by him or her as an
attendant of a person who is blind or permanently
incapacitated by infirmity; or
(h) as premiums on an insurance contract under which
amounts are payable by the insurer in respect of
medical expenses within the meaning of paragraphs
(a) to (g) of this definition;
―insurance contract‖ means a contract between—
(a) an insurer and an individual; or
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(b) an insurer and an employer in respect of his or her
employees,
which provides for the payment of amounts in respect of
medical expenses or benefits.
57. DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE OR BUILDING SOCIETY
(1) Subject to this section, where in any year of income a resident
individual makes payments by way of subscription for shares in
any society registered under the Co-operative Societies Act or
incorporated under the Building Societies Act there is allowed a
deduction for such payments up to a limit of $5,000.
(Amended by Act 14 of 20034)
(2) Where a deduction has been allowed under this section and the
shares to which such deduction relates are disposed of within 5
years from the date of subscription therefor, the person shall
cease to be entitled to the deductions previously granted and the
Comptroller shall amend the assessment of the relevant year
accordingly.
(3) For the purposes of this section where shares are disposed of
within 5 years of the date of subscription—
(a) every individual to whom a deduction has been granted
shall inform the Comptroller of such disposal within one
month of the date of disposal; and
(b) every co-operative society and building society shall
furnish to the Comptroller at the end of each quarter a list
of such disposals showing—
(i) the name and address of the former owner,
(ii) the number of shares disposed of,
(iii) the dates of acquisition and disposal.
58. DEDUCTION FOR INTEREST ON STUDENT LOAN
Subject to this Act, a resident individual is entitled to a deduction of a
maximum of $3,000 in respect of any amount paid during the year of
4 Act 14 of 2003 applies in respect of income year 2002. See section 2 of Act 14 of 2003.
64 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
income by way of interest on money borrowed by him or her to
finance his or her tertiary education.
(Inserted by Act 12 of 1999)
59. DEDUCTIONS FOR PURCHASE OF NEW SHARES IN A RESIDENT PUBLIC COMPANY
(1) Subject to this section, where in any year of income, a resident
individual purchases new shares issued by a resident public
company there shall be allowed a deduction for such purchase
up to a limit of $5,000.
(2) Where a deduction has been allowed under this section, the
provisions of section 57(2) and (3) shall apply with the
necessary modifications.
(Inserted by Act 9 of 2001)
PART 7 SPECIAL PROVISIONS RELATING TO CERTAIN TAXPAYERS
Division 1 – Variation of Normal Bases of Taxation
60. INTERNATIONAL AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION
(1) Despite any other provisions of this Act the Minister may enter
into an agreement with the Government of any other country
with a view to—
(a) the provision of relief by way of the prevention,
mitigation or discontinuance of the levying of tax under
this Act or the income tax laws of that other country, or
otherwise for the avoidance of double taxation;
(b) determining the assessable income to be attributed to any
agency, branch or other permanent establishment in Saint
Lucia, of a resident of that other country or to any agency,
branch or other permanent establishment in that country,
of a resident of Saint Lucia;
(c) determining the assessable income to be attributed to a
resident who enters into trading arrangements with a
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Revision Date: 31 Dec 2008
resident of that other country with whom he or she is not
dealing at arm‘s length;
(d) determining the situation of the source of any assessable
income derived by a resident of Saint Lucia or that other
country; or
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65Laws of Saint Lucia Income Tax Act Cap.15.02
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(e) the rendering of reciprocal assistance to facilitate the
administration of this Act and the income tax laws of that
other country and any agreement for the avoidance of
double taxation or the exchange of information.
(2) The Minister may, at any time, amend or cancel any agreement
entered into under subsection (1).
(3) Any agreement entered into under subsection (1) or amendment
or cancellation under subsection (2) shall be published by order
in the Gazette.
61. GENERAL INSURANCE COMPANIES AND ASSOCIATIONS OF UNDERWRITERS
(1) Subject to subsection (2), the chargeable income for any year of
income of any company carrying on a business of insurance
other than life assurance (hereinafter referred to as ―general
insurance‖) is to be ascertained in accordance with Parts 5 and
6.
(2) To the balance so ascertained there is to be added a reserve for
unexpired risks outstanding at the beginning of the income year
and from the balance so ascertained there is to be deducted—
(a) a reserve for unexpired risks outstanding at the end of the
income year; and
(b) where the company is a non-resident, but subject to
section 39(1), such proportion of the expenses of the head
office as is attributable to the general insurance business
carried on in Saint Lucia.
(3) The reserve for unexpired risks at the beginning and end of the
income year, referred to in subsection (2) shall be such
percentage as is adopted by the company in relation to its
operations as a whole for such risks at such times.
(4) The chargeable income for any year of income of an association
of underwriters, within the meaning of that term as defined in
section 2 of the Insurance Act is considered to be an amount
equal to 10% of the gross premium arising in Saint Lucia during
that year of income.
(5) For the purposes of subsection (4)—
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―gross premium‖ means the aggregate of all premiums
collected by or behalf of an association of underwriters
from insured persons and includes premiums paid by an
insurer to a reinsurer or premium received by an
association of underwriters for reinsurance business.
(6) For the purpose of the charge to tax an association of
underwriters is considered to be an individual.
62. LIFE ASSURANCE COMPANIES
(1) The chargeable income for any year of income of any company
carrying on a business of life assurance is considered to be an
amount equal to 10% of the gross investment income accruing
in Saint Lucia to that company during that year of income.
(2) For the purposes of subsection (1)—
(a) ―the gross investment income accruing in Saint Lucia‖
is considered to be an amount equal to such part of the
total investment income of the company as the premiums
paid in Saint Lucia bear to the total premiums paid;
(b) ―the total investment income‖ means the aggregate of
the investment income accruing in Saint Lucia and
elsewhere including income which would in the hands of
any other person be exempt;
(c) a deduction or tax credit shall not be given against the
gross investment income accruing in Saint Lucia
(ascertained under paragraph (a)) in respect of any
investment income accruing in Saint Lucia which would
in the hands of any other person be exempt under section
25;
(d) a deduction or tax credit shall not be given against the
gross investment income accruing in Saint Lucia
(ascertained under paragraph (a)) in respect of tax on
premium tax levied in Saint Lucia which would in the
hands of any other person be exempt under section 25.
(3) In this section ―investment income‖ means the income
accruing to a company from the investment of premium moneys
paid to the company in respect of ordinary life assurance
(including non-cancellable group life assurance), industrial life
assurance and general annuity life insurance.
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63. APPROVED PENSION FUNDS
(1) For the purposes of this Act, the Comptroller may approve a
fund established for the provision of retirement benefits for
employees and their dependents as an approved pension fund in
accordance with this section.
(2) The primary object of an approved pension fund is the
provision of benefits by way of a pension—
(a) to its members upon retirement;
(b) to the spouse or child of a member upon his or her death,
but any such fund may also make provision for other benefits
not inconsistent with this object.
(3) The Comptroller shall not approve a pension fund where—
(a) subject to subsections (5) and (8), the benefit provided on
retirement or death is a lump sum;
(b) where eligibility for membership in respect of members in
permanent employment is not available to employees
generally or to a class of employees generally; or
(c) the fund is not established or constituted in Saint Lucia,
except as provided in section 64.
(4) The Comptroller shall not approve a pension fund unless
satisfied that it provides—
(a) for a pension to be payable—
(i) on retirement of the member at his or her retirement
date, which shall not be prior to his or her attaining
50 years of age,
(ii) on retirement of the member prior to his or her
retirement date where he or she retires prematurely
as a result of mental or physical infirmity, or
(iii) on death of the member while still in employment,
except where alternative provision is made for a
death benefit to be payable in accordance with
subsection (5);
(b) that any pension provided is payable in equal amounts
(whether annually or at lesser periodic intervals) to—
(i) the member for his or her life,
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(ii) the spouse of a deceased member, until his or her
death or remarriage or for a guaranteed term of
years,
(iii) any child of the member until the child attains an
age of not less than 16 years;
(c) that the maximum pension payable to a member does not
exceed 70% of the maximum salary earned by him or her
during any 12 month period of membership;
(d) that the maximum pension payable to the spouse and
children of a deceased member does not exceed 75% of
the pension payable to the member at his or her death, or
where death occurred prior to his or her retirement would
have been payable to him or her had he or she retired on
the date of his or her death;
(e) that contributions by a member cease upon his or her
retirement, death or withdrawal from the fund;
(f) that the annual contribution by the employer in relation to
every calendar year is not less than the total contribution
paid by all the members in relation to that year, except
where the Comptroller is satisfied upon certification by an
actuary that a lesser contribution is necessary to maintain
the solvency of the fund;
(g) that no pension payable thereunder is capable of being
surrendered, commuted or assigned either wholly or in
part, except to the extent permitted by subsection (8);
(h) that no benefit is payable to or in respect of a member
prior to his or her retirement or death, except to the extent
permitted by subsections (11) or (12);
(i) for the constitution of the fund by a trust under which the
property of the fund is irrevocably vested in—
(i) not less than 3 persons, where the trustees are
individuals, or
(ii) a trust corporation.
(5) A pension fund may provide that, in lieu of widow‘s pension
being payable in the event of the death of a member prior to
retirement, a death benefit be payable equal to the aggregate of
the joint contributions of the member and the employer together
with compound interest thereon up to the date of his or her
death.
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Revision Date: 31 Dec 2008
(6) Where under subsection (5) death benefits are payable in the
event of the death of a member prior to his or her retirement, he
or she may elect that such benefits be payable to his or her
estate or any nominated beneficiary.
(7) A pension fund may provide for contributions to be made only
by the employer, but no such fund shall be approved which
provides for contributions to be made only by the members.
(8) A pension fund may provide for the commutation of pension
benefits to the following extent—
(a) where the annual amount payable does not exceed $1,200,
the full amount of the pension may be commuted;
(b) in any other case, the greater of $1,200 or 25% of the
pension may be commuted.
(9) Where any pension benefits are commuted, the trustees of an
approved pension fund shall notify the comptroller of any
commutation.
(10) The trustees of an approved pension fund shall not invest, lend
or use the assets of the fund in any investment which is not
authorised by law or by the instrument creating the fund.
(11) Despite subsection (4)(c) and (4)(d) (which provide maximum
limits in relation to pension entitlements) a pension fund may
provide for increases in pensions to be payable to existing
pensioners by reason of increased cost of living.
(12) A pension fund may provide for withdrawal from membership
prior to resignation or death, but in any such case the rules of
the fund shall provide that the maximum benefits to be paid to
the member shall not exceed—
(a) where membership of the employee does not exceed 5
years, a cash payment equal to, or a paid up deferred
pension determined by reference to, the employee‘s own
contributions together with compound interest thereon up
to date of withdrawal;
(b) where membership of the employee exceeds 5 years a
paid up deferred pension determined by reference to the
aggregate of the joint contributions of the member and the
employer together with compound interest thereon up to
the date of withdrawal,
70 Cap.15.02 Income Tax Act Laws of Saint Lucia
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or alternatively may provide for the transfer of such benefits to
another approved pension fund.
(13) Despite subsection (12)(b) the rules of a pension fund may
provide for the payment of a cash sum in lieu of a paid up
deferred pension in the following circumstances—
(a) where the member is a married woman or an unmarried
woman who is about to marry;
(b) where the member intends, upon withdrawal, to leave
Saint Lucia permanently; or
(c) where, in the opinion of the Comptroller, other special
circumstances exist.
(14) Where cash benefits are payable to a member under subsection
(12) or (13) upon withdrawal from a pension fund such moneys
shall not form part of the chargeable income of the member but
shall be separately charged to tax in the hands of the trustees
who shall deduct, as tax, 10% of the moneys prior to payment
of the balance to the member.
(15) The tax deducted by the trustees under subsection (14) shall be
paid to the Comptroller within 15 days after the end of the
month in which it was deducted and shall be accompanied by a
statement setting out the names of all members to whom
payments have been made, the amounts of such payments and
the tax deducted therefrom.
(16) Where an approved pension fund is vested in—
(a) individuals, at least one trustee is to be a representative of
the employees, selected by them;
(b) a trust corporation, a management committee is to be
established comprising not less than 3 individuals, at least
one of whom shall be a representative of the employees,
selected by them.
(17) An employer shall not be a trustee of any pension fund
established under this section, but nothing herein is to be
constructed as preventing an employer from appointing a
representative either as a trustee or a member of the
management committee as the case may be.
(18) Despite subsection (1), where a fund or scheme has been
approved for the purposes of section 14 of the previous Act
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Revision Date: 31 Dec 2008
prior to the commencement of this Act, such fund or scheme is
considered to have been approved under this section.
64. DEDUCTIONS DEPENDENT ON PLACE WHERE FUND ESTABLISHED
(1) Where any pension fund has been approved by the Comptroller
under the provisions of the preceding section, or deemed to be
approved for purposes of section 14 of the previous Act as
provided by subsection (18) of the preceding section the
deduction allowable is as follows—
(a) where the pension fund is constituted or established in
Saint Lucia, the whole of the contribution in respect of
year of income 1988 and thereafter;
(b) where the pension fund is not constituted or established in
Saint Lucia and participation in such fund commenced
before year 1988, 50% of the contribution in respect of
year of income 1988 and thereafter;
(c) where the fund is not established or constituted in Saint
Lucia and participation commences in the year of income
1988 or after, no deduction is allowed.
(2) In this section and the preceding section—
―contribution‖ means the payment made to the pension fund
by either the member or the employer;
―employer‖ in the case of incorporated companies, includes a
group of companies;
―member‖ means any person employed in the service of
another at a weekly, monthly or other periodic
remuneration, but does not include a director of an
incorporated company who is not actively engaged in the
day to day management of the company;
―retirement date‖ means the date upon which an employee
reaches an age at which in accordance with the customary
practice of his or her employer, he or she may optionally,
or must compulsorily, retire but not being an age less than
50 years.
(Amended by Act 9 of 2001)
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65. INTERPRETATION OF THIS PART
In this Part, the expression—
(a) ―annuitant‖ means an individual to whom, under an
annuity contract, any annuity for life is agreed to be paid
or provided;
(b) ―annuity contract‖ means a contract between an
individual and a person authorised to carry on in Saint
Lucia the business of granting annuities on human life
under the terms of which an annuity for life is agreed to
be paid or provided;
(c) ―individual‖ means an employee or person who is in
receipt of income derived from a business carried on by
him or her as an individual, or in the case of a partnership,
as a partner personally acting therein;
(d) ―maturity‖ means the date fixed under an annuity
contract for the commencement of any annuity, the
payment of which is provided for by the contract;
(e) ―premium‖ means any periodic amount paid or payable
as consideration under an annuity contract; and
(f) ―retirement age‖ has the same meaning as given in
section 63(4)(a)(i) of the principal Act.
(Inserted by Act 12 of 1999)
66. APPLICATIONS FOR REGISTRATION
Application for the registration of an annuity contract as a registered
retirement plan shall be made to the Comptroller in writing by one of
the parties to the contract and shall be accompanied by a copy of the
contract and such other information as the Comptroller may require.
(Inserted by Act 12 of 1999)
67. CONDITIONS SUBJECT TO WHICH REGISTRATION MAY BE GRANTED
Registration of an annuity contract as a registered retirement plan
shall not be granted unless it is shown to the satisfaction of the
Comptroller that—
(a) the premiums under the annuity contract are to be paid by
the annuitant; and
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(b) subject to section 69, the annuity contract does not—
(i) provide for the payment during the life of the
annuitant of any sum, other than a premium, except
sums payable by way of annuity to the annuitant or
to a widow or widower of the annuitant,
(ii) provide for the annuity payable to the annuitant to
commence before retirement or maturity,
(iii) provide for the payment by the persons carrying on
the business of granting annuities of any other sums
except sums payable by way of annuity to the
annuitant‘s widow or widower and any sums which,
in the event of no annuity becoming payable either
to the annuitants or to the annuitant‘s legal
representatives by way of return of premiums or of
reasonable interest on such premiums or of bonuses
out of profits,
(iv) provide for the annuity, if any, payable to the
widow or widower of the annuitant to be of a
greater annual amount than that paid or payable to
the annuitant, or
(v) provide for the payment of an annuity otherwise
than for the life of the annuitant or of the widow or
widower of the annuitant; and
(c) the annuitant contract includes a provision stipulating that
no annuity payable under it shall be capable, either in whole
or in part, of surrender, commutation or assignment.
(Inserted by Act 12 of 1999)
68. PERMITTED PROVISIONS IN ANNUITY CONTRACTS
The Comptroller may register an annuity contract as a registered
retirement plan, which otherwise satisfies the conditions of section
68, although the annuity contract—
(a) provides for the payment, after the annuitant‘s death, of
an annuity to a dependant who is not the widow or
widower of the annuitant;
(b) provides for the payment to the annuitant of an annuity
commencing before retirement or maturity if the annuity
is payable on his or her becoming incapable, through
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infirmity of mind or body, of carrying on his or her own
profession, vocation, trade or business of a similar nature
for which he or she is trained or fitted;
(c) provides for the continuation of the payment of the
annuity to any person for a term certain, not exceeding 10
years, despite his or her death within that term, or for the
termination or suspension on marriage or remarriage or in
other circumstances, of the payment to any person of the
annuity; or
(d) in the case of an annuity which is to continue for a term
certain, provides for the annuity to be assignable by will, or
in the event of the death of any person to whom such
annuity is payable, to be assignable by the legal
representatives of such person in the distribution of his or
her estate so as to give effect to a testamentary disposition,
or to the rights of any person entitled on intestacy, or to its
appropriation to a legacy or to a share or interest in the
estate.
(Inserted by Act 12 of 1999)
69. REGISTRATION
(1) The Comptroller may register as a registered retirement plan
any annuity contract that complies with the conditions of this
Part.
(2) The Comptroller shall, as soon as practicable, give to the
applicant notice of his or her registration of the annuity contract
or his or her refusal to register the annuity contract and where
he or she registers the annuity contract the notice shall specify
the date from which it is registered.
(Inserted by Act 12 of 1999)
70. CHANGE IN ANNUITY CONTRACTS
If an alteration is made to an annuity contract after the date of
application for registration of the contract, the annuitant shall in
writing notify the Comptroller of the alteration, and in default of such
notification any registration granted, unless the Comptroller otherwise
orders, is considered to have been withdrawn as from the date from
which the alteration had effect. (Inserted by Act 12 of 1999)
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71. WITHDRAWAL OF REGISTRATION
(1) The Comptroller may, at any time, withdraw his or her
registration of an annuity contract which, in his or her opinion,
no longer complies with the conditions set out in this Part.
(2) The Comptroller shall, as soon as practicable, give to the parties
to the annuity contract, notice of such withdrawal and the date
from which it is to take effect.
(Inserted by Act 12 of 1999)
72. COMPTROLLER TO BE NOTIFIED OF PAYMENTS UNDER ANNUITY CONTRACT AND TO BE PROVIDED WITH RETURNS
(1) A person who grants an annuity under an annuity contract shall
notify the Comptroller of all payments made under the contract.
(2) A person who grants an annuity under an annuity contract, shall
render the returns required to be rendered by employers under
Schedule 2 and deduct income tax in accordance with Schedule
2 as if the person was an employer of the person to whom the
annuity payment is made.
(Inserted by Act 12 of 1999)
73. ALLOWABLE DEDUCTIONS
Where the annuity contract has been registered by the Comptroller as
a registered plan under section 70, the deduction allowed shall be an
amount of the premium up to a maximum amount of $8,000.
(Inserted by Act 12 of 1999, amended by Act 9 of 2001 and
substituted by Act 14 of 20035)
74. DEDUCTIONS FOR PAYMENTS TO A RHOS PLAN
(1) In this section—
―Registered Home Ownership Savings Plan‖ or ―RHOS
Plan‖ means a savings plan over a period of at least 5
years to be used wholly for the acquisition or construction
of an owner occupied dwelling house;
5 Act 14 of 2003 applies in respect of income year 2002. See section 3 of Act 14 of 2003.
76 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
―owner occupied dwelling house‖ has the same meaning as in
section 54.
(2) Subject to this section, where, in any year of income a resident
individual, by way of savings, makes payments under a
Registered Home Ownership Plan in any financial institution,
any society registered under the Cooperative Societies Act or in
any institution incorporated under the Building Societies Act
there is allowed a deduction for such payments up to a
maximum of $6,000.
(3) Where a deduction is allowed under this section and any
amounts to which such deduction relates are withdrawn within
the minimum period of 5 years, these amounts are to be
included as income in the year of withdrawal.
(4) To qualify for the deduction under subsection (2), the resident
individual must not have previously owned a home in Saint
Lucia.
(Inserted by Act 12 of 1999)
75. TAX CREDIT IN RESPECT OF FOREIGN CURRENCY FROM INCOME YEAR 2001 ONWARDS
(1) Where from income year 2001 and subsequent income years a
person carrying on business in Saint Lucia derives assessable
income from qualifying professional services and the
Comptroller is satisfied that an amount of foreign currency
earnings has been transferred to the credit of that person within
the income year or within such later time as the Comptroller in
his or her discretion may allow—
(a) by the transfer of foreign currency to Saint Lucia through
the Saint Lucia banking system;
(b) by payment outside Saint Lucia in foreign currency in an
account held in a bank outside Saint Lucia;
[The next page is page 77]
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(c) by payment in Saint Lucia in E.C. Currency from funds
held in Saint Lucia which would be legally remittable
from Saint Lucia,
in computing the tax payable for that income year, there shall
be set off against the tax payable, a foreign currency tax credit,
calculated in the manner specified in Schedule 8.
(2) For the purposes of this section—
(a) ―foreign currency earnings‖ means the gross amount of
foreign currency earnings received from fees, premiums,
rewards or payments from work performed in respect of
qualifying professional service;
(b) ―qualifying professional services‖ are as specified in
paragraphs 3 and 4 of Schedule 8.
(2) The Minister may by order amend, vary or revoke the Schedule.
(Inserted by Act 9 of 2001)
Division 2 — Withholding Tax on Payments to Non-Residents and
Deduction of Tax by Employers, by Companies and from Payments to
Contractors
76. DEDUCTION OF TAX FROM PAYMENTS MADE TO NON- RESIDENT
(1) Where a—
(a) person makes payment to a non-resident; or
(b) branch of a non-resident company makes payments to its
head office or to some other branch or associate outside
Saint Lucia,
tax shall be deducted from such payments in accordance with
and in the manner specified in Schedule 3 and the person or
branch shall carry out such other obligations as are imposed by
that Schedule. (Amended by Act 7 of 2006)
(2) For the purposes of this section, a person including a
partnership, to whom any payment is made to which this section
applies is presumed, unless the contrary is proved, to be a non-
resident if such payment is made to an address outside Saint
Lucia.
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(3) This section does not prevent the Comptroller from directing
the deduction of a lesser amount than that provided in Schedule
3 where he or she 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 60 exists which
provides for a lower rate of withholding tax than that provided
in Schedule 3.
(4) This section and paragraph 1 of Schedule 3 shall not be
construed so as to bring within the charge to withholding tax,
any payments of income which is exempt from tax under Part 4.
77. DEDUCTION OF TAX BY EMPLOYERS
(1) Every employer who pays remuneration to his or her
employees, shall deduct tax from it in accordance with and in
the manner specified in Schedule 4 and shall carry out such
other obligations as are imposed by that Schedule.
(2) In this section ―employer‖ and ―remuneration‖ shall have the
meaning given to them in Schedule 4.
78. DEDUCTION OF TAX FROM PAYMENTS TO CONTRACTORS
(1) Where any person makes any payment, either directly or
indirectly through a financial institution, to a contractor, for the
supply of labour or for the hiring of equipment, that person or
that financial institution shall, subject to subsection (3), deduct
tax from the gross amount of such payment at the rate of 10%.
(2) Any contractor may apply to the Comptroller for an exemption
from compliance with this section, which may be granted where
the Comptroller is satisfied that receipts of such form of income
have been regularly disclosed in the returns of income of such
person and any tax thereon has been paid or secured to the
satisfaction of the Comptroller.
(3) Production of such evidence of exemption by the contractor to a
person, or financial institution, making any such payment shall
be sufficient authority for the payer to make payment of the
gross amount without deductions of tax under subsection (1).
(4) In the case of contractors in operation for less than one year, the
Comptroller may request a deposit representing an advance
payment of the tax payable under subsection (1) and calculated
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in accordance with information made available to him or her by
the contractor.
(5) In this section—
―contractor‖ means any person who is a resident and who is
providing or supplying independent personal services for
reward, other than as an employee, but does not include
any person providing services as or by way of—
(a) accountant, auditor or tax consultant;
(b) business or management consultant;
(c) lawyer;
(d) doctor, dentist, pharmacist or nurse;
(e) civil or mechanical engineer;
(f) funeral undertaking services.
(Amended by Acts 18 of 1990, 11 of 1998 and 9 of 2001)
79. INDEMNIFICATION FOR TAX PAID TO COMPTROLLER
Where any person liable to deduct tax under this Act accounts to the
Comptroller for it, he or she is acquitted and discharged of so much
money as is represented by the tax so deducted and accounted for as
if such sum had actually been paid to the person entitled.
PART 8 ASCERTAINMENT OF TAX PAYABLE
80. RATES OF TAX
(1) Tax shall be charged for each year of income on the chargeable
income for every person at the rates specified in Schedule 5.
(2) Withholding tax shall be charged—
(a) in respect of cash benefits payable to a member on
withdrawal from an approved pension fund at the rate
specified in section 63(15); or on the surrender of a life
insurance policy at the rate specified in section 53(5); and
(b) in respect of any other payments to non-residents at the
rates specified in Schedule 3.
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81. CREDIT FOR TAX DEDUCTED OR PAID
Where any tax is—
(a) deducted under section 77 from employment income
accrued to any person;
(b) deducted under section 78 from a payment to any
contractor; or
(c) paid in advance of a notice of assessment under section
113 or otherwise,
the tax so deducted shall be set off against the tax charged
under section 80(1) for the year of income in relation to which
such income accrued.
82. CREDIT FOR TAX PAID OUTSIDE SAINT LUCIA
(1) Where an agreement which has effect under section 60 provides
that tax payable under the laws of the country with which such
agreement has been made is allowed as a credit against tax
charged in Saint Lucia, credit for such tax is given in the
manner provided in such agreement and is to be set off against
the tax charged under this Act.
(2) Where income accrues to a resident and is charged to tax under
the laws of a country outside Saint Lucia—
(a) with which country there is no agreement under section
60; or
(b) with which country there is an agreement under section
60 but is income to which such agreement does not relate,
and such income is charged to tax under this Act, credit for any
tax payable under the laws of the other country in which such
income was charged to tax is calculated in the manner provided
in section 83, and is set off against the tax charged under this
Act.
(3) Where any assessment is made to give effect to the provisions
of this section, it is subject to the limits as to time provided by
section 102.
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83. CALCULATION OF TAX CREDIT FOR FOREIGN TAX
(1) The credit to be set off in respect of tax payable in another
country on the income referred to in section 82(2) is the lesser
of—
(a) the tax payable in the other country on the amount; or
(b) the tax charged under this Act, on the amount.
(2) Where liability to tax in Saint Lucia arises in respect of income
which is received in this country, for the purpose of calculating
the tax charged under this Act, the amount of the assessable
income charged to tax in the other country shall be taken to be
the aggregate of the amount remitted to this country and the
amount of tax payable thereon in the other country.
(3) In this section—
―the tax payable in the other country‖ means the amount
payable, either directly or by deduction, for which the
resident person was personally liable and actually paid in
that other country; and
―the tax charged under this Act‖ in relation to any year of
income means that proportion of such tax which the
assessable income charged to tax in the other country
bears to the total assessable income for that year of
income, but where the proportion is greater than the tax
actually paid the tax charged shall be limited to the
amount actually paid.
PART 9 RETURNS AND NOTICES
84. RETURNS OF INCOME: GENERAL
(1) Subject to section 96, every person liable to furnish a return of
income in respect of any year of either personally or in a
representative capacity shall furnish a return in such form as
may be approved by the Comptroller within 3 months after the
year of income and such return shall—
(a) be signed by him or her or by an agent authorised to sign
on his or her behalf;
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(b) contain a calculation of the chargeable income, if any,
disclosed therein and of the tax payable thereon; and
(c) contain an address for service of notices.
(2) For the purposes of this section ―every person liable to furnish a
return of income‖ includes—
(a) every person liable to pay tax under this Act;
(b) every partnership;
(c) every person who for that year or any previous year of
income has made a loss in respect of which he or she may
be entitled to claim a deduction for the year of income or
any subsequent year of income;
(d) subject to subsection (5), every person who derives any
income from any source specified in section 32
irrespective of the amount of that income; and
(e) every person who derives any income which would be
charged to tax under this Act save for the provisions of
sections 26 to 30 or any other enactment which has
exempted that income from the charge to tax for a limited
period of time.
(3) The Comptroller shall give general notice in such manner as he
or she considers fit of the obligations imposed by this section
and shall in any such notice specify the place at which return
forms may be obtained.
(4) Despite subsection (3) the Comptroller may cause forms to be
delivered by hand or by post to any person, but failure to do so,
or the non-receipt by any person of a return form does not
relieve any person liable to furnish a return of income from his
or her obligation to comply with subsection (1).
(5) Despite subsection (2)—
(a) a resident individual whose income accrues from sources
other than a business and whose income from which does
not exceed the sums specified as allowances in Schedule
6 during a year of income; and
(b) a non-resident person, whose income accrued from
sources situated in Saint Lucia consists only of income to
which the provisions of section 76 apply,
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are relieved of the obligation of furnishing a return of income
under subsection (1).
85. RETURNS OF INCOME: CESSATION OF INCOME DURING ANY YEAR OF INCOME
Where it appears to the Comptroller that—
(a) a person may leave Saint Lucia during any year of income
or shortly after its expiry and that the absence from Saint
Lucia of such person is unlikely to be temporary only;
(b) a person has ceased to carry on business during any year
of income; or
(c) in the case of any other person, it is expedient to do so,
the Comptroller may, subject to section 121, at any time serve
upon such person a notice in writing requiring him or her to
furnish within such time as may be specified in the notice, not
being less than 7 days from the date of service of such notice, a
return of income for any year of income.
86. RETURNS OF INCOME: WHERE NO RETURN FURNISHED
(1) Where it appears to the Comptroller that any person is or may
be liable to furnish a return of income for any year of income
and has not done so, the Comptroller may, subject to section
121, by notice in writing, require such person to furnish a return
of income within such time as may be specified in the notice,
not being less than 7 days from the date of service of such
notice.
(2) This section shall not be construed as extending the time limits
provided by section 84 for the furnishing of any return of
income.
87. FURTHER RETURN OR INFORMATION, PRODUCTION OF BOOKS AND GIVING OF EVIDENCE TO COMPTROLLER
(1) For the purposes of the administration or the enforcement of
this Act, including the obtaining of full information in respect
of the income of any person who is or may be liable to tax the
Comptroller may, by notice in writing, require that person or
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any other person whom the Comptroller reasonably believes is
capable of so doing—
(a) to furnish to the Comptroller at such time as may be
specified in such notice such further return of income,
statement of assets and liabilities or other information as
may be required by him or her;
(b) to produce, at such time and place as may be specified in
such notice, for examination by the Comptroller or for
retention by him or her for such period as may be
reasonable for their examination, any accounts, books of
account, statement of assets and liabilities or other
documents which the Comptroller may consider necessary
for such purpose and, if any such information is not
available in the English Language, to produce at the
expense of the person who is or may be liable to tax a
translation in English prepared and certified by an
approved translator;
(c) to attend, at such time and place as may be specified in
such notice, for the purpose of being examined by the
Comptroller in respect of assessable or chargeable income
of himself or herself or any other person or any
transaction or matters appearing to the Comptroller to be
relevant thereto.
(2) Without prejudice to the generality of subsection (1), the
Comptroller may require any bank—
(a) to furnish to him or her details of any banking account or
other assets which may be held on behalf of any person,
or to furnish a copy of bank statements of any such
banking account;
(b) to permit the Comptroller or any officer not being below
the rank of a senior tax inspector authorised by him or her
to inspect the records of the bank with respect to the
banking account of any person,
or may require the attendance of any officer of a bank before
him or her to give evidence respecting any bank account or
other assets which may be held by the bank on behalf of any
person.
(3) Subject to such modifications and adaptations as may be
necessary the provisions of subsection (1) shall extend to the
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supply of information, the production of documents and the
giving of evidence to the Comptroller in relation to—
(a) the payment of income by any person to a non-resident, to
which Schedule 3 applies;
(b) the payment of remuneration by an employer to his or her
employees, to which Schedule 4 applies,
the deduction of tax therefrom and the accounting for any tax so
deducted.
(4) Where any books of account or other documents are produced
for the purposes of this section the Comptroller may make
copies of such books or documents or may retain them where
such course of action appears to him or her to be necessary for
the purposes of any prosecution or the substantiation of any
assessment.
88. EXAMINATION OF BUSINESS RECORDS
(1) The Comptroller may carry out an examination of the income
affairs of the business of any person liable to pay tax but subject
to the limit as to time specified in section 102.
(2) For the purposes of subsection (1), the Comptroller or any
officer not being below the rank of a Senior Officer authorised
by him or her may at all reasonable times, and subject to prior
notice, enter into any premises where any business is carried on
or the records or books of account of such business are kept,
and—
(a) examine such records or books of account and examine
any documents which relate to income accruing from such
business;
(b) inspect any trading stock of the business and any assets of
the business in respect of which allowances or deductions
have been or may be claimed under this Act;
(c) require the owner of the business, or any employee or
agent to give him or her such reasonable assistance in
connection with the examination and inspection as may be
necessary and to answer orally or in writing any questions
relating thereto;
(d) open or cause to be opened any article in which he or she
considers any money or documents may be contained.
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(3) Where, during the course of any examination or inspection, it
appears to the Comptroller or the officer not below the rank of a
senior officer that there may not have been a correct disclosure
of assessable income or allowable deductions he or she may
take possession of any books of account or other documents for
further examination at the office of the Comptroller and after
such examination may retain or make copies of or take extracts
from such books or documents for the purposes of any
prosecution or the substantiation of any assessment.
(4) For the purposes of this section "document" includes
microfilm.
(Amended by Act 7 of 2006)
89. POWERS OF ENTRY
(1) Admission to any premises shall not be demanded unless 24
hours‘ notice of the intended entry has been given to the owner
or occupier.
(2) If it is shown to the satisfaction of a magistrate on sworn
information in writing—
(a) that admission to any premises was refused, or that refusal
is apprehended, or that the giving of notice would defeat
the object of the entry; and
(b) that there is reasonable ground for entry into the premises
for the purposes of this Act,
the magistrate may by warrant under his or her hand authorise
the Comptroller or any authorised officer in writing by him or
her to enter the premises, if need be by force. Where it is shown
to the satisfaction of the magistrate that the giving of notice
would defeat the object of the entry, the provisions of this
section shall apply despite anything to the contrary in the
preceding subsection.
(3) An authorised officer entering any premises by virtue of this
section, or of a warrant issued thereunder, may take with him or
her such other persons as may be necessary.
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(4) Every warrant granted under this section shall continue in force
until the purpose for which the entry is necessary has been
satisfied.
(5) Every person who hinders or molests or interferes with any
person doing anything that he or she is authorised to do or
prevents or attempts to prevent any person from doing any such
thing and any person who unless he or she is unable to do so
fails or refuses to do anything he or she is required by or under
this or the preceding section to do commits an offence and is
liable on summary conviction to a fine not exceeding $1,500 or
to imprisonment for 2 years or to both such fine and
imprisonment.
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90. MAINTENANCE OF PROPER RECORDS OF TRANSACTIONS, METHODS OF ACCOUNTING AND PRESERVATION OF BOOKS OF ACCOUNT AND RECORDS
(1) Every person carrying on any business shall keep, in the
English language, such records or books of accounts as are
necessary to reflect the true and full nature of the transactions of
the business regard being had to the nature of the activities
concerned and the scale on which they are carried on.
(2) Where the Comptroller is of the opinion that records or books
of account are not being kept in accordance with subsection (1),
or where no records or books of account are being kept, by any
person carrying on business then in addition to any proceedings
which may be taken under section 140, the Comptroller may
direct such person to keep such records or books of account as
he or she may specify.
(3) The records or books of account required by this section shall
be kept at the place of business of the person carrying on
business unless the Comptroller approves of them being kept at
some other place.
(4) Subject to subsections (5) and (6), every person to whom this
section applies shall preserve all books of account and other
records which are essential to the explanation of any entry in
such books of account of that business for a period of 6 years
after the end of the income year to which such books of account
or records relate.
(5) The Comptroller may, by notice in writing, require any person
to retain such records as are referred to in subsection (4) for
such further period of time as he or she deems necessary for
their proper examination.
(6) Where—
(a) a person dies;
(b) a company has gone into liquidation;
(c) a trust or body of persons has been terminated; or
(d) in any other case where he or she is satisfied that it is
reasonable to do so,
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the Comptroller may, on application, approve of the disposal of
any books of account or other records within such lesser period
than 6 years as he or she thinks fit.
(7) The Comptroller may, subject to such conditions and in respect
of such books of account or other records as he or she may
specify, authorise the retention of a micro film copy of any
books of accounts or other records in lieu of the original books
or records.
(8) For the purposes of this section the books of account and other
records required to be preserved shall be deemed to include the
record required to be kept under Schedule 3 or 4.
91. SUBMISSION OF ACCOUNTS WITH RETURN OF INCOME AND CERTIFICATE RELATING TO PREPARATION OF ACCOUNTS
(1) Where any person carries on business in any year of income his
or her return of income for such year shall be accompanied by a
copy of the final accounts of the business together with a
reconciliation of the income shown in the accounts with the
chargeable income disclosed in the return in relation to the
business.
(2) Where the accounts referred to in subsection (1) are audited by
a professionally qualified auditor, he or she shall provide on the
face of the accounts a certificate giving his or her name, address
and occupation and stating—
(a) the extent of the examination made of the books of
account and of the documents from which such books of
account were prepared; and
(b) whether or not, as far as he or she was able to ascertain
from such examination, the entries in those books of
account disclosed the true nature of every transaction,
receipt, accrual, payment and debit.
(3) Where the accounts referred to in subsection (1) have been
prepared by a person other than the person carrying on the
business and have not been audited by a professionally qualified
auditor, that other person shall provide on the face of the
accounts a certificate giving his or her name, address and
occupation and stating whether he or she has made any
examination, and if so, the extent of the examination made, of
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the books of account and of documents from which such books
of account were prepared.
92. PRINCIPAL OFFICER OF COMPANY
(1) Every company carrying on business in Saint Lucia shall at all
times be represented for the purposes of this Act by a principal
officer residing in Saint Lucia and duly appointed by the
company or its authorised agent or attorney.
(2) Every company shall appoint a principal officer and an address
for service of notices—
(a) if it is carrying on business at the commencement of this
Act, within 2 months after such commencement; or
(b) in the case of a company which begins to carry on
business in Saint Lucia after the commencement of this
Act, within one month after the commencement of
business,
and shall notify the Comptroller of such appointment and
address within the periods specified.
(3) Every change of principal officer or of the address for service of
notices on the company shall be notified to the Comptroller by
the company within 15 days of such change occurring.
(4) The principal officer shall be answerable for the doing of all
such things as are required under this Act to be done by the
company of which he or she is the representative and in case of
default he or she is liable to the same penalties.
(5) Everything done by the principal officer, which he or she is
required to do in his or her representative capacity, is
considered to have been done by the company and any notice
given to the principal officer is considered to be given to the
company.
(6) The absence of or failure to appoint a principal officer does not
excuse a company from the necessity of complying with any of
the provisions of this Act and the company shall be subject to
and liable to comply with its provisions as if there were no
requirement to appoint a principal officer.
(7) Every notice, process or proceeding which under this Act may
be given to, served on or taken against any company may be
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given to, served on or taken against the principal officer, and if
at any time there is no principal officer, then any such notice,
process or proceeding may be given to, served on or taken
against any officer or person acting in the management of the
business of the company or as agent for the company and such
person has the same liability in respect of that notice, process or
proceeding as the company or principal officer would have had
if it had been given to, served on or taken against the company
or principal officer.
(8) In the event of any company being placed in liquidation the
liquidator is required to exercise all the functions and assume
all the responsibilities of a principal officer under this Act
during the continuance of the liquidation, and any person
previously appointed as principal officer of the company shall
cease to be principal officer at such time.
93. PRECEDENT PARTNER OF PARTNERSHIP
(1) Every partnership carrying on business in Saint Lucia shall at
all times be represented by a resident individual who shall be—
(a) the precedent partner; or
(b) if no acting partner is resident in Saint Lucia, the agent of
the partnership in Saint Lucia.
(2) The precedent partner shall be the person who, being an acting
partner resident in Saint Lucia—
(a) is first named in the partnership agreement;
(b) if there is no partnership agreement, is specified by name
or initial singly or with precedence to the other partners in
the usual name of the partnership,
or, in any case where neither paragraph (a) or (b) is applicable,
such other partner as is specified by the partnership.
(3) Every partnership shall notify the Comptroller of the name of
the precedent partner, or, if there is no acting partner resident in
Saint Lucia shall appoint and notify the Comptroller of the
name of its agent in Saint Lucia—
(a) if it is carrying on business at the commencement of this
Act, within 2 months after such commencement; or
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(b) if it begins to carry on business after the commencement
of this Act, within one month after the commencement of
business.
(4) Every partnership shall within the period specified in subsection
(3) appoint an address for service of notice.
(5) Every change of precedent partner or agent of the partnership or
of address for service of notices shall be notified to the
Comptroller within 15 days of such change.
(6) The precedent partner or agent, as the case may be, shall be
answerable for the doing of all such things as are required under
this Act to be done by the partnership of which he or she is the
representative and in case of default he or she is liable to the
same penalties.
(7) Everything done by the precedent partner or the agent, as the
case may be, which he or she is required to do in his or her
representative capacity is considered to have been done by the
partnership, and any notice given to or request made upon the
precedent partner or the agent is considered to have been given
to or made upon the partnership.
94. RETURNS DEEMED TO BE FURNISHED BY DUE AUTHORITY AND IN FULL KNOWLEDGE OF CONTENTS
Every return, statement or form purporting to be furnished under this
Act by or on behalf of any person shall for all purposes of this Act be
deemed to have been furnished by that person or with his or her
authority, as the case may be, unless the contrary is proved, and any
person signing such return, statement or form shall be deemed to be
cognisant of all matters contained therein.
95. RETURNS: METHOD OF FURNISHING
Any return required to be furnished under this Act shall be delivered
by hand or post to the address specified in the relevant form.
96. RETURNS: EXTENSIONS OF TIME FOR FURNISHING
(1) Where, under this Act, any return is required to be furnished by
any person within a specified period the Comptroller may, on
application by such person in writing, by notice in writing
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served on such person, extend the period within which such
return is to be furnished.
(2) The granting of the extension of time under subsection (1) does
not affect the due date for payment of tax under section 114.
(Inserted by Act 9 of 2001)
PART 10 ASSESSMENT OF TAX
97. ASSESSMENTS
(1) Subject to section 102, the Comptroller—
(a) shall make an assessment of the chargeable income of and
the tax payable by every person chargeable with tax; and
(b) may make an assessment of any person where there is no
chargeable income but there is an entitlement to a refund
of tax.
(2) Where a person furnishes a return of income, the Comptroller
may accept such return and make an assessment in accordance
with it.
(3) Where—
(a) a person fails to furnish a return of income; or
(b) the Comptroller is not satisfied that the return furnished
by any person is true and correct,
he or she may make an assessment to the best of his or her
judgement.
98. ADDITIONAL ASSESSMENT
(1) Subject to section 102, where in relation to an assessment made
on any person for any year of income, the Comptroller is of the
opinion that—
(a) the tax charged is less than the amount which should have
been charged;
(b) any assessed loss is greater than the amount at which it
should have been assessed; or
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(c) a refund was made in excess of the amount which should
be refunded,
he or she shall make an additional assessment accordingly.
(2) Where, on the determination of an appeal made under Part 11,
the appeal commissioners or any subsequent appellate tribunal
increase an assessment, the Comptroller shall increase the
assessment accordingly, without limit as to time.
99. TRANSACTIONS DESIGNED TO AVOID LIABILITY TO TAX
(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 or she may, if he or
she determines it to be just and reasonable, direct that such
adjustments shall be made as respects liability to tax as he or
she 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.
However, this subsection does not apply to any transaction the
main purpose or one of the main purposes for which was to
effect 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 with any tax, or
would not be chargeable to the same extent;
(b) to the charging of a greater amount of tax than would be
chargeable but for the adjustments; and
(c) payment of dividends at such intervals as would appear to
be payment of a salary.
100. REDUCED ASSESSMENTS
(1) Subject to this section, in relation to an assessment made on any
person for any year of income the Comptroller is satisfied upon
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a claim made within 6 years after the end of that year of income
that there is a mistake in the assessment apparent from the face
of the return, the assessment or other records, as a result of
which—
(a) the tax charged is greater than the amount which should
be charged;
(b) any assessed loss is less than the amount at which it
should be assessed; or
(c) a refund is made which is less than the amount which
should have been refunded, the Comptroller shall make a
reduced assessment accordingly.
(2) Where, on the determination of an appeal made under Part 11,
the appeal commissioners or any subsequent appellate tribunal
order the reduction of an assessment, the Comptroller shall
reduce the assessment accordingly, without limit as to time.
(3) Where, for any year of income a person who has furnished a
return of income for that year and has been assessed under
sections 97 or 98 notifies the Comptroller in writing within 6
years after the end of that year of income that by reason of some
error or mistake of fact in such return the assessment was
excessive, the Comptroller after taking into account all relevant
circumstances and subject to subsection (4), may reduce the
assessment to provide such relief as appears to him or her to be
fair and reasonable.
(4) No relief shall be given under subsection (3) if the assessment
was properly made in accordance with the practice generally
prevailing at the time the return of income was made.
101. DETERMINATION OF ASSESSED LOSS
(1) Where, in relation to any year of income, the amount, as
determined by the Comptroller by which the deductions
allowable to any person under Division 2 of Part 5 exceed the
assessable income against which such deductions may be
allowed the Comptroller shall make a determination of such
excess (referred to in this Act as ―the assessed loss‖).
(2) The determination of the assessed loss of any person under
subsection (1) shall constitute the making of an assessment by
the Comptroller and shall be notified in writing to the person
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assessed and the provisions of this Act other than sections 103
and 104 shall apply as if such determination were the
determination of the amount of the assessable income of such
person for such year of income.
102. TIME LIMITS FOR ASSESSMENTS
(1) Subject to this section, an assessment may be made in relation
to any person at any time prior to the expiry of 6 years after the
end of the year of income to which it relates.
(2) Where a return of income is furnished after the end of the year
of income, an assessment may be made at any time prior to the
expiry of 6 years after the end of the year during which it is
furnished.
(3) Subject to subsection (4), where no return of income is
furnished in relation to a year of income, an assessment may be
made at any time before the expiration of 6 years after the year
of income to which it relates.
(4) Where, due to any fraud or wilful default—
(a) no return of income is furnished in relation to a year of
income; or
(b) an incorrect return of income has been furnished in
relation to a year of income,
an assessment in relation to such year may be made at any time.
(5) Where a person is deceased, despite the provisions of
subsections (1), (2), (3) and (4), no assessment shall be made at
any time after the expiry of 4 years from the end of the year in
which such person died.
(3) The provisions of subsection (4) are without prejudice to the
right of appeal of a tax payer under this Act.
(Amended by Act 9 of 2001)
103. NOTICE OF ASSESSMENT
(1) Subject to subsection (2), a notice of assessment in respect of
every person chargeable with tax shall be made and issued to
such person in such form as may be approved by the
Comptroller.
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(2) The Comptroller shall not be required to issue a notice of
assessment to any person where—
(a) no liability to tax arises and no tax has to be repaid;
(b) liability to tax arises but the tax payable does not exceed
$5,
unless the person makes a request for the issue of a notice of
assessment.
(3) In this section, ―notice of assessment‖ includes a notice in
respect of an additional assessment and a reduced assessment.
104. RECORD OF ASSESSMENT
The Comptroller shall maintain, in such manner as he or she thinks
fit, a record of all assessments made in respect of each year of
income.
105. FINALITY OF ASSESSMENT
(1) Subject to section 100, where, in relation to an assessment—
(a) no valid notice of objection is given under section 106;
(b) subsequent to the determination of an objection, no valid
notice of appeal is given under section 109; or
(c) an appeal is determined and there is no right of further
appeal,
such assessment is final and conclusive.
(2) Subsection (1) does not prevent the Comptroller from making
an additional assessment within such time limits as are
permitted by section 102 for any year of income which does not
involve re-opening any matter which has been determined on
appeal for such year.
(3) Despite subsections (1) and (2) where any fraud or wilful
default has been committed by or on behalf of any person in
relation to his or her liability to tax for any year of income, the
Comptroller may make an additional assessment for such year
even though it may involve re-opening a matter which has been
determined on appeal, but only in respect of a matter upon
which no finding of fact was in dispute.
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PART 11 OBJECTIONS AND APPEALS
106. OBJECTION TO ASSESSMENT
(1) Any person who is aggrieved by an assessment or a
determination by the Comptroller made on him or her may, by
notice in writing to the Comptroller within 30 days after the
date of service of the notice of assessment or determination, or
within such further time as the Comptroller may for good cause
allow, object to the assessment or determination.
(2) Where the assessment is—
(a) an additional assessment; or
(b) a reduced assessment which in part imposes a fresh
liability,
the person assessed shall have no further right of objection than
he or she would have had if that assessment had not been made
except to the extent to which that assessment has imposed a
fresh liability on him or her.
(3) An objection shall specify particulars of the grounds on which it
is made.
(4) In this section ―aggrieved by an assessment or a determination‖
means aggrieved by—
(a) the inclusion in an assessment of an amount as part of the
assessable income;
(b) the disallowance in an assessment of an amount claimed
as a deduction in ascertaining the chargeable income;
(c) the determination by the Comptroller of the amount of an
assessed loss;
(d) the amount of tax set off under sections 81, 82 or 113; or
(e) the determination by the Comptroller of any matter
affecting a person‘s liability to tax in circumstances where
such determination has not involved the making of an
assessment.
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107. DECISION BY COMPTROLLER ON OBJECTION
(1) The Comptroller shall consider any valid objection made under
section 106 and may either disallow it or allow it either wholly
or in part and shall, by notice in writing, inform the objector of
his or her decision.
(2) If a decision of the Comptroller in determining an objection
requires the reduction of or an increase in, an assessment, the
Comptroller shall issue a notice of the reduction or increase in
the assessment to the person assessed, together with the notice
of his or her decision or as soon as is practicable.
108. APPEAL COMMISSIONERS
(1) For the purposes of this Part, there is hereby established a
tribunal of appeal commissioners constituted and regulated in
accordance with this section.
(2) The appeal commissioners shall comprise such persons as may
be appointed by the Cabinet.
(3) Cabinet shall appoint one of the Commissioners to be
Chairperson and another to be Deputy Chairperson and any
meeting of the appeal commissioners shall comprise the
Chairperson and 2 other members.
However, in the absence of or inability of the Chairperson to act
a meeting of the appeal commissioners shall comprise the
Deputy Chairperson and 2 other members.
(4) Every decision of the appeal commissioners shall be given
under the signature of the Chairperson presiding at the meeting.
(5) The Cabinet shall appoint a Secretary to the appeal
commissioners and any notice or correspondence, other than
decisions of the commissioners, may be issued and signed by
the Secretary.
(6) At any hearing by the appeal commissioners, in the event of a
division of opinion, the decision of the majority shall prevail.
(7) The appeal commissioners have—
(a) the power to summon to attend at the hearing of an appeal
any person who in its opinion is or might be able to give
evidence respecting the appeal;
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(b) power, where any person is so summoned, to examine
him or her on oath or otherwise;
(c) power to require any person to produce any books or
documents which are in his or her custody or under his or
her control and which the appeal commissioners may
consider necessary for the purpose of the appeal;
(d) all the powers of a court with regard to the enforcement of
attendance of witnesses, hearing evidence on oath and
punishment for contempt;
(e) power to postpone or adjourn the hearing of an appeal
where the appeal commissioners are satisfied that, for any
reasonable cause, either party to the appeal is prevented
from attending on the date fixed for such hearing; and
(f) power to determine the procedure to be followed in an
appeal.
109. APPEAL FROM DECISION BY COMPTROLLER
(1) Any person (hereinafter referred to as ―the appellant‖) who is
aggrieved by a decision of the Comptroller may, by notice of
appeal, appeal to the appeal commissioners.
(2) A notice of appeal, a copy of which shall be lodged with the
Comptroller, shall be made in writing and shall be lodged with
the Secretary to the appeal commissioners within 30 days of the
date of service of—
(a) the Comptroller‘s decision on the objection; or
(b) the Comptroller‘s determination in relation to any other
matter from which an appeal may be made,
or within such further time as the appeal commissioners may
for good cause allow.
(3) In this section ―aggrieved by a decision of the Comptroller‖
means aggrieved by a decision of the Comptroller upon an
objection against—
(a) the inclusion in an assessment of an amount as part of the
assessable income;
(b) the disallowance in an assessment of an amount claimed
as a deduction in ascertaining the chargeable income;
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(c) the determination by the Comptroller of the amount of an
assessed loss;
(d) the amount of tax set off under sections 81, 82 or 113;
(e) the disallowance by the Comptroller of a claim for relief
under section 100; or
(f) any determination by the Comptroller of any matter
affecting a person‘s liability to tax in circumstances not
involving the making of an assessment.
110. HEARING BY APPEAL COMMISSIONER
(1) Upon every hearing of an appeal, the appeal commissioners
may confirm, increase or order the reduction of any assessment
or make such other order as they deem fit.
(2) On any appeal to which this section relates both the appellant
and the Comptroller shall bear their own costs except where the
appeal commissioners otherwise direct.
(3) On any appeal the burden of proof shall lie upon the appellant.
(4) At least 30 days before the date fixed for the hearing of an
appeal, the Secretary to the appeal commissioners shall, by
notice in writing, advise the appellant and the Comptroller of
the date on, and the place at which the appeal has been set down
for hearing.
(5) At every hearing by the appeal commissioners the appellant and
the Comptroller is entitled to appear in person or by a
representative.
(6) The hearing of an appeal by the appeal commissioners shall not
be public unless the Chairperson of the appeal commissioners
so directs on application by the appellant and in any case where
such a direction is made the obligation as to secrecy imposed by
section 6 ceases to apply.
(7) The Chairperson of the appeal commissioners may authorise the
publication of the decision on any appeal but the publication
shall be in such manner as not to disclose the identity of the
appellant.
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111. RIGHT OF FURTHER APPEAL
(1) The Comptroller or the appellant may within 30 days appeal to
the High Court from any decision of the appeal commissioners
which involves a question of law, including a question of mixed
fact and law.
(2) The Comptroller or the appellant may within 30 days appeal to
the Court of Appeal from any decision of the High Court (being
a decision of the High Court on an appeal from the appeal
commissioners) which involves a question of law, including a
question of mixed fact and law.
(3) On any further appeal to which this section relates the High
Court or the Court of Appeal, as the case may be—
(a) may confirm, increase or order the reduction of any
assessment;
(b) may make such other order as it deems fit; and
(c) may make such order as to costs as it deems fit.
112. PAYMENT OF TAX SUSPENDED BY OBJECTION OR APPEAL
(1) The obligation to pay—
(a) any tax chargeable under an assessment;
(b) any penalty imposed in an assessment for failure to lodge
a return or for failure to lodge a correct return; or
(c) any penalty or interest imposed for late payment of any
assessed tax,
shall be suspended by reason of any notice of objection or
appeal having been given against an assessment, pending
determination of the objection or appeal.
(2) The Comptroller may enforce payment of that portion of the tax
which is not in dispute.
(3) Despite the provisions of subsection (1), the Comptroller may,
in his or her discretion, require the taxpayer to pay an amount
not exceeding 50% of the tax in dispute pending the
determination of the appeal.
(4) If the taxpayer‘s appeal is allowed by the Commissioners, the
amount paid under subsection (3) shall be refunded by the
Comptroller to the taxpayer.
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(Amended by Act 18 of 1990)
PART 12 PAYMENT, RECOVERY AND REFUND OF TAX
113. ADVANCE PAYMENT OF TAX
(1) This section shall apply to—
(a) every resident company;
(b) every other resident person, except an individual whose
only source of income is from employment or by way of
dividends or both such sources;
(c) every non-resident person carrying on business in Saint
Lucia, except a non-resident person providing
independent personal services in respect of which there is
a liability to withholding tax.
(2) Subject to this section, every person to whom this section
applies shall in respect of his or her liability to tax for any year
of income make payment towards such tax in the manner
provided by this section.
(3) Subject to this section, every person shall pay to the
Comptroller on or before 25 March, 25 June and 25 September
respectively, in each year of income, an amount equal to 1 /3 of
the tax estimated by him or her at the rates set out in Schedule 5
on his or her estimated chargeable income for the year and, on
or before 31 March in the following year, or where, in the case
of a company, its financial year does not commence in the
month of January, within 3 months after the end of its financial
year, the remainder of the tax as estimated by him or her.
(4) For the purposes of subsection (3) the estimated chargeable
income of any person for a year of income is taken to be the
chargeable income as disclosed in his or her return, if any, of
total income for the preceding year of income.
(5) Where the estimated chargeable income of any person for the
year of income as provided for by subsection (4) is, in the
opinion of such person, likely to be less than the chargeable
income of the preceding year, on an application by such person
for the purpose, the Comptroller may revise the estimated
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chargeable income of that person and the amount of tax
chargeable thereon, and the provisions of subsection (1) shall
apply accordingly.
(6) In the case of a person other than a company, who is in receipt
of income from—
(a) employment or dividends or both; and
(b) another source or sources,
the instalments payable shall take into account any deductions
of tax which have been made under Schedule 4 in relation to
employment income.
(7) Any instalments of tax paid under this section in respect of a
year of income shall be set off against the tax charged under
section 80(1) for such year.
(8) Despite section 129(3), the Comptroller may apply any
overpayment of tax, against instalments which are due to be paid
in accordance with this section.
(Amended by Acts 18 of 1990, 7 of 1994, 8 of 1996 and 11 of 1998)
114. WHEN TAX IS DUE AND PAYABLE
(1) Subject to this Part, and particularly to section 113, any tax
charged by a notice of assessment is due and payable—
(a) by 30 September in the year of income, or
(b) within 30 days of the date of service of the notice of
assessment, whichever is the later.
(2) In the case of emolument income any additional tax due and
payable as calculated under the provisions of section 84 is to be
paid at time of filing the return provided for in that section.
Except that where any further tax is charged by way of any
notice of assessment the provisions of subsection (1) above
apply.
(3) On application in writing by the person chargeable, the
Comptroller may in any case grant in writing such extension of
time for payment or permit payments to be made by such
instalments and within such time as he or she considers the
circumstances warrant, and in such case the tax is due and
payable accordingly, but nothing in this subsection is to be
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construed to extend the due date specified in subsection (1) in
respect of any interest payable under section 115.
(3) Where, under subsections (1) and (2), any tax is permitted to be
paid by instalments and there is default in payment of any
instalment, the whole of the balance of tax outstanding shall
become due and payable.
(Amended by Act 9 of 2001)
115. INTEREST ON UNPAID TAX
(1) Any tax, being the whole or part of an instalment of tax due and
payable by any person under section 113, not paid by the date
upon which such instalment or part thereof becomes due and
payable shall bear interest at the rate of 11/4% per year above
the prevailing prime rate of interest or such other rate as may be
prescribed by the Minister by Order made by statutory
instrument for the period during which it remains unpaid.
(2) Any tax, being the remainder of any tax charged on any person
under section 114 not paid by the due date shall bear interest at
the rate of 1% per year above the prevailing prime rate of
interest or such other rate as may be prescribed by the Minister
by Order made by statutory instrument for the period during
which it remains unpaid.
(Substituted by Act 11 of 2007)
116. WHEN TAX DEDUCTED FROM REMUNERATION, PAYMENTS TO CONTRACTORS OR PAYMENTS TO NON-RESIDENTS IS DUE AND PAYABLE
Any tax deducted or deductible—
(a) from the remuneration paid to an employee under section
77;
(b) from payments to contractors under section 78; or
(c) from the payment of any income to a non-resident to
which section 76 applies,
is due and payable within 15 days after the end of the month during
which that tax was deducted or deductible.
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117. INTEREST ON UNPAID TAX DEDUCTIONS
(1) Any tax or part thereof deducted or deductible under sections
53, 63, 76, 77, or 78 and not paid by the time specified in those
sections or in section 116 bear interest at the rate of 1% per year
above the prevailing prime rate of interest or such other rate as
may be prescribed by the Minister by Order made by statutory
instrument for the period during which it remains unpaid.
(2) Any interest imposed on any person under subsection (1) shall
be a debt by that person and shall not be recoverable by him or
her from the person in respect of whom the tax was deducted or
should have been deducted.
(Amended by Act 18 of 1990 and 11 of 2007)
118. RECOVERY OF TAX BY COURT ACTION
(1) Tax shall, when it becomes due and payable, be a debt due to
the Government and payable to the Comptroller.
(2) Any tax unpaid may be sued for and recovered by the
Comptroller in any court of competent jurisdiction.
(3) In any proceedings for the recovery of tax it shall not be
competent for the defendant to enter a defence that the tax
charged is excessive.
(4) In this section, tax includes—
(a) tax payable under sections 113 and 114; and
(b) tax deducted or deductible under sections 53(5), 63(14),
76, 77, or 78.
119. RECOVERY OF TAX BY DISTRAINT
(1) If upon demand made by the Comptroller a person neglects or
refuses to pay any tax or any portion of it that is payable, the
Comptroller by warrant under his or her hand, in the form given
in Schedule 7, may authorise an officer of the rank of senior
executive officer or above hereinafter referred to as an
―authorised person‖ to distrain upon the goods and chattels of
that person.
(2) For the purpose of levying any such distress, the ―authorised
person‖ may break open, in the day-time, any house or
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premises, calling to his or her assistance any constable. Every
such constable shall, when so required, aid and assist the
―authorised person‖ in the execution of the warrant and in
levying the distress in the house or premises.
(3) A distress levied by the authorised person shall be kept for any
period not exceeding 30 days, at the costs and charges of the
person neglecting or refusing to pay.
(4) If the person from whom such tax is recoverable does not pay
the sum due, together with the costs and charges, within the said
30 days, the goods and chattels distrained upon shall be sold by
public auction by the authorised person or any person deputed
by him or her for payment of the sum due and all costs and
charges. The costs and charges of taking, keeping and selling
the distress shall be retained by the authorised person or any
person deputed by him or her, and any surplus arising from the
distress, after the deduction of the costs and charges and of the
sum due, shall be restored to the owner of the goods and
chattels distrained.
(5) Every sale under subsection (4) shall be held at such time and
place as the Comptroller shall direct and notice of such sale
shall be published in the Gazette.
(6) In this section ―constable‖ includes any member of the police
service and any member of the special reserve, a special
constable or a rural constable appointed under the Police Act.
120. OBSTRUCTION OF OFFICERS
A person commits an offence who, by himself or herself or by any
person in his or her employ obstructs, molests or hinders—
(a) an authorised person or any person employed in relation
to any duty of tax in the execution of his or her duty, or of
any of the powers or authorities by law given to the
authorised person or any other person; or
(b) any person acting in the aid of an authorised person or
any person so employed.
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121. RECOVERY OF TAX AS PRIVILEGED DEBT BY REGISTRATION AS JUDGEMENT DEBT
(1) Where any tax having become due and payable by any person
under section 113 or 114 remains unpaid after the day on or
before or by which it should have been paid such tax constitutes
a privileged debt due to the Government carrying a privilege
over all property whether movable or immovable, ranking
immediately after law costs and in priority to all other
privileged claims, charges or debts against such person.
(2) Such tax and any amount of penalty due under section 134 is
considered to be a judgement debt due by that person and
payable to the Comptroller and execution for the recovery
thereof together with interest at the rate of 1% per month or part
thereof and costs may be issued by the Comptroller under a
certificate prepared by him or her containing particulars of—
(a) the date upon which the tax become due and payable;
(b) the amount of tax, penalty and interest.
(3) The Comptroller may register the certificate referred to in
subsection (2) in the Land Registry or the Registry of Deeds
and Mortgages as if it were a judgement; and upon satisfaction
thereof he or she shall issue a further certificate certifying
payment which upon registration by him or her shall have the
effect of discharging the registered judgement.
(4) A fee shall not be charged for the registration of a certificate of
debt or certificate of payment to which this section applies.
122. RECOVERY OF MONEYS FROM PERSONS LEAVING SAINT LUCIA
(1) Where the Comptroller has reason to believe that any person
may leave Saint Lucia owing moneys under this Act, the
Comptroller may, by notice in writing served on that person,
require that he or she pay the amount owing or give security to
the satisfaction of the Comptroller for the payment of the
amount, within the time specified in the notice.
(2) If any person fails to pay any money owing or give satisfactory
security as required under subsection (1), an exit certificate
shall not be issued to such person under the subsidiary
legislation in force in relation to income tax exit certificates.
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123. RECOVERY OF TAX FROM ASSETS OF CERTAIN DISPOSITIONS
(1) So much of any tax due and payable by a disponer as is
attributable to income accrued under a disposition, but charged
to tax in the name of the disponer under sections 14, 15(5) or
16, may be recovered from the assets of the disposition.
(2) For the purposes of subsection (1), the tax attributable to
income considered to have accrued to a disponer under sections
14, 15(5) or 16, means the amount by which the tax charged
under section 80 has been increased by the inclusion of such
income in the assessable income of the disponer.
(3) Where income is considered to have accrued to the disponer
under 2 or more dispositions the amount ascertained under
subsection (2) is to be apportioned between those dispositions
in such proportions as the chargeable income of each such
disposition bears to the total chargeable income of all such
dispositions.
124. RECOVERY OF TAX FROM REPRESENTATIVE TAXPAYER
(1) Where any individual dies, then in respect of any tax payable
under an assessment—
(a) made upon him or her prior to and remaining unpaid at
his or her death;
(b) made upon his or her executor under section 17 in respect
of income accrued to his or her death; or
(c) made upon his or her executor under section 18 in respect
of income accrued after death to the estate of the deceased
person,
the amount of tax unpaid by that person in his or her lifetime or
payable under an assessment made on his or her executor is a
debt due and payable out of the estate of the deceased person.
(2) Where a company is being wound up, then in respect of any tax
payable under an assessment—
(a) made upon the company, prior to and remaining unpaid at
the commencement of the liquidation;
(b) made upon the liquidator in respect of income accrued
prior to commencement of the liquidation; or
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(c) made upon the liquidator in respect of income accrued
during the winding up of the company, the amount of tax
unpaid by the company or payable by the liquidator is a
debt due and payable out of the assets of the company.
(3) Where any person is chargeable to tax under section 15(1) as
trustee of a trust to the income of which there is no beneficiary
immediately entitled, then any tax payable by the trustee is due
and payable out of the assets of the trust.
(4) Where any person is chargeable to tax under sections 19 or 20
as trustee for an incapacitated or an insolvent person, any tax
payable by the trustee is due and payable out of the assets of
that person.
(5) Where any person is chargeable to tax under section 22 as agent
for a non-resident, any tax payable is due and payable out of the
assets in Saint Lucia of the non-resident.
125. RIGHT OF REPRESENTATIVE TAX PAYER TO INDEMNITY
Every person who, as a representative taxpayer, pays any tax is
entitled to recover the amount paid from the person on whose behalf
it was paid or to retain out of any moneys that may be in his or her
possession, or may come to him or her, in his or her representative
capacity, an amount equal to the amount paid.
126. PERSONAL LIABILITY OF REPRESENTATIVE TAXPAYERS
(1) Every representative taxpayer is personally liable for any tax
payable by him or her in his or her representative capacity if,
while it remains unpaid—
(a) he or she alienates, charges or disposes of any income in
respect of which the tax is charged; or
(b) he or she disposes of or parts with any assets or money
which is in his or her possession or comes to him or her
after the date on which the tax is due and payable,
if the tax could legally have been paid out of such income,
assets or money.
(2) Every trustee, curator, liquidator, tutor or executor, is
personally liable for the payment of any tax if, before
distributing any assets under his or her control to the persons
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entitled thereto, he or she fails to obtain from the Comptroller a
certificate showing that all tax which may be recovered from
such assets has been paid.
127. RECOVERY OF TAX FROM PERSONS HOLDING MONEY FOR ANOTHER PERSON
(1) For the purposes of recovery of any tax due and payable by any
person, the Comptroller may, by notice in writing, declare any
other person—
(a) from whom any money is due or may become due to the
first mentioned person;
(b) who holds or may subsequently hold money for or on
account of the first mentioned person;
(c) who holds money on account of some other person for
payment to the first mentioned person; or
(d) who has authority from some other person to pay money
to the first mentioned person,
to be the agent of that person and to pay to the Comptroller
within 15 days of the date of service of the notice, or if on such
date no money is due or held to which this subsection applies,
within 15 days of the date on which money becomes due or is
held in any of the circumstances referred to in this subsection,
the amount specified in the notice or, if the money due or held
is less than the amount specified, the whole amount of the
money due or held.
(2) The payment of any money to the Comptroller by any person
under subsection (1) shall to the extent of such payment
constitute the discharge of the original liability of that person to
the person from whom tax was due and payable to the
Comptroller.
(3) Where any person, declared to be an agent under subsection (1),
fails to make any payment within the time specified in a notice
under that subsection, the provisions of this Act shall apply as if
each amount were tax due and payable by the person declared
to be an agent on the date by which he or she was required to
make such payment to the Comptroller.
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128. PRIORITY OF TAX DEBT UPON BANKRUPTCY OR LIQUIDATION
Despite anything contained in any other enactment—
(a) the trustee in bankruptcy of an individual; or
(b) the liquidator of a company which is being wound up,
shall apply the assets of the bankrupt individual or the company, as
the case may be, in payment of tax due under this Act or under the
previous Act (whether assessed before or after the date of bankruptcy
or commencement of winding up) as a privileged debt in priority over
all debts of that individual or company, except law costs and any
wages which constitute a privileged debt under the Protection of
Wages Act.
129. REFUND OF TAX OVERPAID
(1) Where the Comptroller is satisfied that any person has paid tax
for any year of income, by deduction or otherwise in excess of
the amount finally determined to be payable under this Act for
such year of income, that person shall subject to section 100, be
entitled to have the amount of the excess refunded.
(2) Despite subsection (1), where any tax is due and payable and
unpaid in respect of any other year of income or any tax,
interest or penalty is due and payable and unpaid under any
other Act under the administration or management of the Inland
Revenue Department the Comptroller, instead of refunding the
amount of the excess, may apply such excess towards such
other unpaid tax and shall notify the person accordingly.
(3) Subject to section 113(8) any refund of tax due and payable
under subsection (1) which is not paid 6 months after the date
of assessment shall bear interest at the rate of 4% per year for
the additional period during which it remains unpaid.
(2) Subsection (3) shall apply to income tax returns filed with the
Comptroller of Inland Revenue for the income year 1998 and
succeeding income years.
(Acts 11 of 1998 and 9 of 2001)
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130. REMISSION OF TAX
(1) The Cabinet may exempt or remit wholly or in part any tax
payable by any person where it is satisfied that it is just and
necessary to do so.
(2) Any decision made under subsection (1) is final and not subject
to appeal.
(3) The Comptroller may remit any amount of tax unpaid by any
person in respect of any year of income, whether before or after
the commencement of this Act, where he or she is satisfied—
(a) that such tax is irrecoverable by operation of law;
(b) that the cost of collection of such tax would exceed the
amount outstanding; or
(c) the amount of such tax does not exceed $500, or such
higher amount as may be specified in Regulations made
by the Minister.
(4) In this section ―tax‖ includes amounts of interest or penalty.
(5) In exercising his or her powers under subsection (3)(a), the
Comptroller shall consult with the Minister.
(Amended by Act 9 of 2001)
PART 13 OFFENCES
Division 1 – Civil Penalties
131. PENALTIES: GENERAL
(1) The penalties imposed by this Division of this Part shall be in
addition to any right to institute criminal proceedings against
any person for an offence under this Act, and any fine payable
on conviction for an offence is in addition to the penalties
provided herein.
(2) The penalties imposed by this Division of this Part are in
addition to any interest payable under section 115 or 117 of this
Act. (Inserted by Act 9 of 2001)
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(3) For the purposes of this Division, where under this Act, tax is
expressed to be due and payable on or before, or by, a specified
date the due date is considered to be such specified date.
132. PENALTIES: FAILURE TO FURNISH RETURN OF INCOME
Where any person, who is liable to furnish a return of income for any
year of income, fails to do so within the prescribed time or any
extended time allowed under section 96, he or she is liable to a
penalty not exceeding 5% of the amount of tax charged for that year
of income.
133. PENALTIES: FAILURE TO FURNISH CORRECT RETURN OF INCOME
(1) Where any person fails to furnish a correct return of income for
any year of income by reason of—
(a) his or her failure to disclose any assessable income
accrued to him or her from any source;
(b) the deduction or set off by him or her of any amount
which is not allowable as a deduction or set off;
(c) the claim by him or her of an expenditure or loss of an
amount which was not expended or lost; or
(d) his or her failure to disclose any fact, the disclosure of
which would result in an increase in his or her liability to
tax,
he or she is liable to a penalty in accordance with subsections
(2) or (3).
(2) Where the incorrectness of the return of income or the
information was attributable to—
(a) neglect or carelessness, he or she is liable to a penalty not
exceeding the amount of tax which would have been lost
if he or she had been assessed on the basis of the incorrect
return or information furnished by him or her; or
(b) fraud or wilful default, he or she is liable to a penalty not
exceeding twice the amount of tax which would have
been lost if he or she had been assessed on the basis of the
incorrect return or information furnished by him or her.
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(3) If, for any year of income, determination of the chargeable
income of any person results in an assessed loss, and the
amount of such loss is less than it would have been if it had
been calculated on the basis of the return of income or
information furnished by him or her by reason of any of the
circumstances specified in subsection (1) and such incorrectness
of the return or information was due to neglect, carelessness,
fraud or wilful default, he or she is liable to a penalty not
exceeding 10% of the difference between those amounts.
134. PENALTIES: FAILURE TO PAY TAX BY DUE DATE
(1) Where any person fails to pay tax, being the whole or part of—
(a) an instalment of tax due and payable under section 113; or
(b) the remainder of any tax charged under section 114,
by the due date he or she is liable to a penalty of 10% of the
amount of such tax.
(2) The penalty imposed by this section is in addition to any
interest payable under section 115.
135. PENALTIES: FAILURE TO DEDUCT TAX OR ACCOUNT FOR TAX DEDUCTED
(1) Where any person who is required by this Act to deduct tax
from the income of, or payments to some other person under
sections 53(5), 63(14), 76, 77, or 78, fails to deduct such tax or
to account to the Comptroller for any tax so deducted, he or she
is liable to a penalty of 10% of the tax which should have been
deducted or for which he or she has failed to account.
(2) The penalty imposed by this section is in addition to any
interest payable under section 117 and any personal liability
which might exist in relation to such tax.
136. PENALTIES: FAILURE TO COMPLY WITH NOTICE TO GIVE INFORMATION, PRODUCE DOCUMENTS OR GIVE EVIDENCE TO COMPTROLLER
Where any person fails within the specified time to comply with a
notice issued under section 87(1) requiring him or her to—
(a) furnish returns or information under paragraph (a);
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(b) produce books of account or documents under paragraph
(b); or
(c) attend the Comptroller for examination under paragraph
(c),
of that section, whether in relation to himself or herself or any other
person he or she is liable to a penalty not exceeding $500.
137. NOTICE OF INTENTION TO IMPOSE PENALTY TO BE GIVEN
Where any penalty is contemplated under section 136, prior to its
imposition, the Comptroller shall notify the person concerned—
(a) as to the nature of the breach of the Act which has
occurred; and
(b) as to the amount of penalty which it is proposed to
impose,
and shall afford that person the opportunity of being heard thereon
within such period as may be specified in the notice.
Division 2 – Criminal Proceedings
138. SANCTION FOR PROSECUTION
(1) Subject to the powers of the Director of Public Prosecutions
under section 85 of the Constitution criminal proceedings in
respect of any offence under this Act shall not be commenced
except with the sanction of the Comptroller.
(2) Criminal proceedings under this Act shall be commenced in the
name of the Comptroller.
139. OFFENCES: BREACH OF SECRECY
Any person appointed under or employed in carrying out the
provisions of this Act who, in contravention of the oath or declaration
of secrecy made by him or her under section 6—
(a) discloses to any unauthorised person any document,
information or confidential instruction which has come
into his or her possession or to his or her knowledge in
the course of his or her duties; or
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(b) permits any unauthorised person to have access to any
records in the possession or custody of the Comptroller,
commits an offence and is liable summarily to a fine of $1,000 or to
imprisonment for one year.
140. OFFENCES: FAILURE TO COMPLY WITH REQUIREMENTS OF THE ACT
(1) Any person who—
(a) fails or neglects to furnish to the Comptroller any return
or document as and when required under this Act;
(b) fails to comply with the requirements of any notice in
writing served on him or her under this Act;
(c) refuses or neglects to answer truly and fully any questions
put to him or her or to supply any information required
from him or her in relation to his or her assessable income
or the assessable income of any other person;
(d) fails to keep a proper record of his or her transactions or
to preserve any books of account or documents as
required under section 90;
(e) fails to disclose in any return of income made by him or
her any assessable income accrued to him or her or any
material facts which should have been disclosed;
(f) signs any return or document rendered to the Comptroller
without reasonable grounds for believing that return or
document or any part thereof to be correct; or
(g) obstructs or hinders any person appointed or employed
under this Act in the discharge of his or her duties,
commits an offence and is liable summarily to a fine of $1,000
or to imprisonment for one year.
(2) Every person who, having been convicted under subsection (1)
of failing to do anything required to be done by him or her
under this Act, fails within any further period specified by the
Comptroller in a notice served on him or her, to comply with
the requirements of that notice, commits a further offence and is
liable summarily for each day during which the offence
continues to a fine of $50 or to imprisonment for one month.
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141. OFFENCES: INTENT TO EVADE LIABILITY TO TAX
(1) Any person who, wilfully and with intent to evade assessment
or liability to tax—
(a) makes, causes or allows to be made any incorrect
statement in any return lodged under this Act;
(b) signs any document or any return lodged under this Act
having reason to believe the contents of such document or
return or any part thereof to be incorrect;
(c) gives any incorrect answer, verbally or in writing, to any
request for information made by the Comptroller;
(d) prepares or maintains any incorrect books of account or
other records or falsifies any books of account or other
records;
(e) authorises the preparation or maintenance of any incorrect
books of account or other records; or
(f) makes use of or authorises the use of any fraud whatever,
commits an offence and is liable summarily to a fine of $2,000
or to imprisonment for 2 years.
(2) In any proceedings under this section, if it is proved that any
incorrect statement or entry is wilfully made in any return,
document, answer, books of account or other records by any
person, he or she shall be presumed, until the contrary is
proved, to have made, caused or allowed to be made that
incorrect statement or entry with intent to evade assessment or
liability to tax.
142. OFFENCES: DEDUCTION OF WITHHOLDING TAX AND TAX FROM PAYMENTS TO CONTRACTORS
Any person who—
(a) fails to deduct withholding tax from a payment—
(i) to a non-resident, to which section 76 and Schedule
3 apply,
(ii) to any person, to which sections 53(5) or 63(14)
apply;
(b) fails to deduct tax from a payment to a contractor, to
which section 78 applies; or
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(c) within the prescribed time, fails to pay to the Comptroller
any amount deducted in accordance with the provisions
referred to in paragraphs (a) and (b),
commits an offence and is liable on summary conviction to a fine of
$1,000 or to imprisonment for one year.
143. OFFENCES: BY EMPLOYERS OR EMPLOYEES
(1) Any person who—
(a) being an employer—
(i) within the prescribed time, fails to register as an
employer, or to notify any change of address or to
notify that he or she has ceased to be an employer,
(ii) within the prescribed time, fails to deduct any
amount of tax from remuneration paid to an
employee,
(iii) within the prescribed time, fails to pay to the
Comptroller any amount of tax deducted from
remuneration paid to an employee,
(iv) fails to comply with any direction issued by the
Comptroller under Schedule 4,
(v) fails to maintain a record of remuneration paid to
his or her employees and tax deducted therefrom,
(vi) within the prescribed time, fails to deliver to any
employee a certificate of tax deducted from
remuneration,
(vii) within the prescribed time, fails to furnish to the
Comptroller an annual return of tax deductions and
remittances; or
(b) being an employee, within the prescribed time, fails to
lodge the further declaration required by paragraph
3(5)(b) of Schedule 4 upon ceasing to be entitled to any of
the deductions or allowances claimed by him or her in a
declaration previously furnished by him or her in respect
of that year of income,
commits an offence and is liable on summary conviction to a fine of
$1,000 or to imprisonment for one year.
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144. OFFENCES: EVASION OF TAX IN RELATION TO DEDUCTION OF TAX BY EMPLOYER
(1) Any person who wilfully with intent to evade assessment or
liability to tax—
(a) furnishes to his or her employer or to the Comptroller an
incorrect declaration of personal particulars or other
information in relation to any matter affecting the amount
of tax to be deducted from his or her remuneration;
(b) issues, uses or causes to be issued or used any certificate
of remuneration and tax deducted which is incorrect;
(c) alters any certificate of remuneration and tax deducted
issued by any other person;
(d) pretends to be the employee named in any such certificate
or in any other way to his or her own advantage or benefit
obtains credit with respect to or payment of the whole or
any part of any amount of tax deducted from
remuneration received by any other person; or
(e) not being an employer and without being authorised by
any person who is an employer, issues or causes to be
issued any document purporting to be a certificate of
remuneration and tax deducted,
commits an offence and is liable on summary conviction to a
fine of $2,000 or to imprisonment for 2 years.
(2) In any proceedings under this section, if it is proved that any
incorrect statement or entry is wilfully made in any return,
document, answer, books of account or other records by any
person, he or she shall be presumed, until the contrary is
proved, to have made, caused or allowed to be made that
incorrect statement or entry with intent to evade assessment or
liability to tax.
(3) In this section the words ―employer‖, ―remuneration‖ and
―employee‖ shall have the meaning given to them in Schedule
4.
145. AIDING OR ABETTING AN OFFENCE
(1) Where any person—
(a) wilfully makes or furnishes on behalf of another person;
or
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(b) aids or abets another person to make or deliver,
an incorrect return, document, statement or any incorrect
information relating to any matter affecting the tax liability of
that other person, the first mentioned person commits an
offence and is liable to a fine of $1,000 or to imprisonment for
one year.
(2) Where any person wilfully and with intent to assist any other
person to evade assessment or liability to tax does any of the
matters referred to in section 141 or 144, he or she commits an
offence and is liable on summary conviction to a fine of $2,000
or to imprisonment for 2 years.
(3) In any proceedings under subsection (2), if is proved that any
incorrect statement or entry is wilfully made in any return,
document, answer, books of account or other records by such
person, he or she is presumed, until the contrary is proved, to
have made such incorrect statement or entry with intent to assist
such other person to evade assessment or liability to tax.
146. MITIGATION OF PENALTIES AND COMPOUNDING OF OFFENCES
(1) Where any person commits a breach of the provisions of this
Act for which a penalty is provided under Division 1 of this
Part, then in relation to such breach, the Comptroller may
mitigate any penalty either wholly or in part.
(2) Subject to the powers of the Director of Public Prosecutions
under section 85 of the Constitution, where any person commits
an offence against this Act for which criminal proceedings may
be taken under Division 2 of this Part, then in relation to such
offence, the Comptroller may, at any time prior to the
commencement of the hearing by any court of such
proceedings, compound the offence and order the person to pay
such sum of money as the Comptroller may think fit but not
exceeding the maximum amount specified in Division 2 for
such offence.
(3) The Comptroller shall not exercise his or her power to
compound under subsection (2) unless the person who has
committed the offence requests the Comptroller in writing to so
deal with the offence.
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(4) Where the Comptroller compounds any offence under this
section and makes an order accordingly—
(a) the order shall be made in writing and there shall be
attached to it the request made under subsection (3);
(b) the order shall specify the offence committed, the amount
ordered to be paid and the date on which payment is to be
made;
(c) a copy of the order shall be given to the Director of Public
Prosecutions and to the person who committed the
offence, and the latter person shall not be liable to any
criminal proceedings in respect of the offence;
(d) the order shall be final and not subject to any appeal;
(e) the amount ordered to be paid shall be recoverable as if it
were tax due and payable.
147. TIME LIMITS FOR PROCEEDINGS TO BE TAKEN
(1) Where the offence alleged involved the doing of any act,
proceedings under this Division may be commenced within 3
years after the discovery of the act.
(2) Where the offence alleged involved the failure to do any act,
proceedings under this Division may be commenced within 3
years after the date of such failure.
(3) Where the offence alleged involved the non-disclosure or
incorrect disclosure by any person of any income or
information relating to that person‘s liability to tax,
Proceedings under this Division may be commenced within 3
years after his or her correct liability to tax has become final in
respect of the year of income to which the offence relates.
PART 14 MISCELLANEOUS
148. FORMS OF NOTICES AND RETURNS
(1) Subject to this Act, the Comptroller may approve the form of
any notice, return of income or other return required for the
purposes of this Act, and where any form has been so approved
such form of notice or return shall be used for such purposes.
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(2) Any notice given by the Comptroller under this Act may be
signed by the Comptroller or any officer not being below the
rank of a senior tax inspector authorised by him or her in that
behalf and any notice purporting to be signed on behalf of the
Comptroller shall, unless the contrary is proved, be presumed to
have been signed by an officer so authorised.
(3) Every form, notice or other document issued, served or given
by the Comptroller under this Act is sufficiently authenticated if
the name or title of the Comptroller or the name or title of the
officer authorised in that behalf, is printed, stamped or written
thereon.
149. SERVICE OF NOTICES OR DOCUMENTS
(1) Where, under this Act, any notice or other document is required
or authorised to be served on or given to any person by the
Comptroller, such notice or other document is sufficiently
served—
(a) in the case of a person other than a company, a body of
persons or a partnership if—
(i) personally served on him or her,
(ii) left at his or her address for service of notices, or
(iii) sent by post to such address for service of notices;
(b) in the case of a company if—
(i) personally served on the principal officer of the
company,
(ii) left at or sent by post to the company‘s address
appointed under section 92 for service of notices
under this Act, or
(iii) where no address for service of notices has been
appointed, left at or sent by post to any office or
place of business of the company;
(c) in the case of a partnership if—
(i) personally served on the precedent partner or agent
of the partnership,
(ii) left at or sent by post to the partnership‘s address
appointed under section 93 for service of notices
under this Act, or
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(iii) where no address for service of notices has been
appointed, left at or sent by post to any office or
place of business of the partnership;
(d) in the case of a body of persons if left at or sent by post to
the address for service of notices of that body.
(2) Where any notice is served on any person—
(a) requiring the personal attendance of that person before the
Comptroller, under section 87; or
(b) appointing that person the agent of some other person for
the payment of tax, under section 127,
the provisions of subsection (1) relating to service by post shall
be construed as service by registered post.
(3) Any notice served by post in accordance with this section is
considered to be served, in the case of—
(a) a person resident in Saint Lucia, 7 days; and
(b) a non-resident, 30 days,
after the date upon which such notice was posted.
150. CHANGE OF ADDRESS FOR SERVICE OF NOTICE
(1) Every person who has given an address for service of notices,
whether in a return of income or otherwise and who
subsequently changes such address shall, within one month
after such change, notify the Comptroller in writing of his or
her new address for service of notices.
(2) The address for service of notice last given to the Comptroller
by any person shall, for all purposes of the Act, be his or her
address for service of notices.
(3) Where no address for service of notices has been given, or
where the Comptroller‘s records disclose that any person has
changed his or her address and has failed to notify the
Comptroller of such change, then the address of such person as
described in any record in the Comptroller‘s possession is a
sufficient address for service of notices.
(4) In any criminal proceedings which may be taken for failure to
furnish a return of income against any person liable to furnish
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such a return it shall be no defence by such person that he or
she has not received from the Comptroller—
(a) a form for the return of income; or
(b) any notice calling upon him or her to furnish such return.
(5) In any criminal proceedings which may be taken against any
person for failure to comply with any other request or notice by
the Comptroller it shall be no defence by such person (who has
failed to notify the Comptroller of a change of address) that he
or she has used a different address in any correspondence with
or application to the Comptroller after such change of address
has occurred.
151. REGULATIONS
The Minister may make regulations for the better carrying out of the
purposes of this Act and, without prejudice to the generality of the
foregoing, such regulations may provide for—
(a) the collection of tax by instalments or by means of
deductions made from emoluments or other income;
(b) the conditions under which persons chargeable to tax may
leave or may be prevented from leaving Saint Lucia and
for the issue of exit certificates showing that tax has been
paid or that satisfactory arrangements have been made;
(c) the payment of tax by companies by such instalments and
at such times as may be prescribed;
(d) the periods during which companies are required to
submit returns;
(e) matters which are required or permitted to be prescribed;
(f) the imposition by a court of summary jurisdiction of—
(i) a fine not exceeding $500, or
(ii) a term of imprisonment not exceeding 3 months,
for any breach of the regulations;
(g) appeals to the appeal commissioners against decisions of
the Comptroller made under the regulations; and
(h) any other matters or things whether similar or not to those
above mentioned in respect of which it may be expedient
to make regulations for the purposes of this Act.
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152. AMENDMENT OF SCHEDULES AND RATES SPECIFIED IN THE ACT
(1) Subject to subsection (2) the Minister may by order made by
statutory instrument published in the Gazette—
(a) amend the Schedules;
(b) increase, delete, reduce, vary or make changes to the rates
of tax specified in Schedule 5 and Schedule 6 or in any
other provision of the Act; or
(c) vary any sum or figure in any provision of the Act.
(2) An order made under subsection (1) is subject to negative
resolution of Parliament.
153. SAVING
(1) The regulations made under the previous Act, remain in force
until revoked by regulations made under this Act.
(2) The repeal of the previous Act does not affect any liability to
tax or any obligation arising in respect of any year of income or
assessment prior to the commencement of this Act for which
purpose the previous Act and subsidiary legislation, subject to
subsections (3) and (4) continue in force.
(3) Where any objection or appeal is made or is still undetermined
in relation to any matter arising under the previous Act, the
provisions of Part 11 apply.
(4) In relation to the recovery of any tax, penalty or interest
becoming due and payable under the previous Act the
provisions of sections 121 to 130 apply.
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SCHEDULE 1
(Section 33)
VALUE OF TRADING STOCK
1. VALUE OF TRADING STOCK TO BE INCLUDED IN RETURN OF INCOME
Every person carrying on business shall include in his or her return of
income for each year of income the value of all trading stock held and
not disposed of (hereinafter referred to as ―the value of trading stock
held‖) at the beginning and end of that year of income.
2. VALUE OF TRADING STOCK AT BEGINNING OF INCOME YEAR
The value of trading stock held by any person at the beginning of any
income year is considered to be—
(a) where he or she carried on the business on the last day of
the previous income year, the value of trading stock held
on that date; or
(b) where he or she commenced business during the year of
income, the cost price to him or her of any trading stock
acquired prior to the commencement of the business.
3. VALUE OF TRADING STOCK AT END OF INCOME YEAR
The value of trading stock held by any person at the end of any
income year is considered to be the cost price to him or her unless the
Comptroller is satisfied that the estimated realisable value of such
stock to such person is less than cost.
4. VALUE OF TRADING STOCK ON CESSATION OF BUSINESS
Where any person ceases to carry on business but does not dispose of
his or her trading stock at the time of cessation, such trading stock
shall be brought to account at its estimated realisable value to him or
her.
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5. COST PRICE OF TRADING STOCK
For the purposes of this Schedule but subject to paragraph 6, the cost
price of any trading stock is—
(a) the cost incurred in acquiring such trading stock; and
(b) any further costs incurred in getting such trading stock
into its then existing condition or location.
6. DEEMED VALUE OF CERTAIN TRADING STOCK
Where any trading stock has been acquired or disposed of by of any
person—
(a) for consideration which cannot be valued;
(b) not in the ordinary course of business; or
(c) otherwise than by way of a transaction at arm‘s length,
such trading stock is considered to be acquired or disposed of at an
amount equal to the price which, in the opinion of the Comptroller,
was the current market price of such stock on the date of such
acquisition or disposal.
7. ADJUSTMENTS TO BE MADE WHERE TRADING STOCK INCORRECTLY VALUED
Where, for any year of income, the Comptroller is of the opinion that
the value of trading stock held does not comply with the basis of
valuation specified in this Schedule, the value of trading stock held—
(a) at the beginning of the income year shall remain
unaltered; and
(b) at the end of that income year shall be adjusted to comply
with paragraph 3.
128 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
SCHEDULE 26
(Sections 26, 27, 33, 38 and 40)
CAPITAL ALLOWANCES
PART 1 BUILDINGS
1. ANNUAL ALLOWANCES
(1) In ascertaining the assessable income of any person for any year
of income from the carrying on by that person or by a lessee
from that person of any qualifying business (within the meaning
of paragraph 3), there shall be deducted in respect of any
building used for the purposes of such qualifying business
carried on by that person or lessee an annual allowance of—
(a) an amount equal to 5% of the written down value of the
building, not being a commercial building, at the end of
the immediately preceding income year;
(b) in case of a commercial building, an amount equal to
2.5% of the written down value of the building at the end
of the immediately preceding income year.
(Substituted by Act 15 of 2003)
(2) For the purposes of this paragraph the written down value of a
building at the end of a year of income means—
(a) in the case of the first year of income in which the
building is used, the cost of such building less the annual
allowance allowed in respect of such building for that
year of income; and
(b) in the case of subsequent years in which the building is
used, the written down value at the end of the income year
for the immediately preceding year of income less the
amount of the annual allowance on such building for the
year of income.
(3) Where a building commences to be used for the first time in a
year of income the written down value for that year of income
for the purposes of this paragraph shall be—
6 Amendments to Schedule 2 by Act 15 of 2003 takes effect in respect of income year
2002. See section 5(2) of Act 15 of 2003.
129Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(a) where the building is a newly erected or purchased
building, the cost of erection or purchase thereof;
(b) where the building is an existing building which has been
used for purposes other than the carrying on of a
qualifying business, the cost thereof less notional
allowances calculated in accordance with subparagraph
(1) in respect of each year during which the building has
been owned.
(4) Where a building was in use for the purposes of a qualifying
business on the last day of the year of income 1988, the written
down value ascertained in accordance with the provisions of the
previous Act apply.
(5) Where a building in respect of which deductions have been
allowed under this paragraph ceases to be used for the purposes
of a qualifying business for one or more years of income but
subsequently commences to be used for such purposes or is
disposed of, notional annual allowances calculated in
accordance with subparagraph (1) shall be calculated for each
year during which the building was not used for business
purposes in order to ascertain—
(a) the written down value of the building in relation to
subsequent years of income; or
(b) the adjusted cost of the building for the purposes of
paragraph 2.
2. DISPOSAL OF BUILDING
(1) Where allowances have been granted to any person for previous
years of income, whether before or after the coming into
operation of this Act, in respect of a building and that building
is disposed of in any year of income, a balancing allowance or a
balancing charge shall be made as provided in this paragraph.
(2) Where the cost, or the adjusted cost of a building exceeds the
aggregate of—
(a) the allowances granted for previous years of income; and
(b) the disposal value;
the amount of such excess (referred to in this Act as ―a
balancing allowance‖) shall be allowed as a deduction for the
year of income in which the building is disposed.
130 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(3) Where the disposal value of a building exceeds the difference
between—
(a) the cost, or the adjusted cost, of such building; and
(b) the allowances granted for previous years of income,
the amount of such excess (referred to in this Act as ―a
balancing charge‖) shall be included in the assessable income of
the person disposing of the building for the year of income in
which the building is disposed.
(4) For the purposes of this Part, the adjusted cost of a building
means the cost of erection or purchase thereof less the amount
of any notional allowances under paragraph 1(3) or 1(5), in
respect of any year of income during which the building was
used other than for qualifying business purposes.
(5) Where a person has been granted allowances in respect of a
building, and such person ceases to carry on business prior to
the disposal of such building, for the purposes of this paragraph
he or she shall be subject to the provisions of this paragraph in
the event of the subsequent disposal of the building.
3. MEANING OF BUILDING
(1) For the purposes of this Part, a building means a building used
for the purposes of carrying on any qualifying business, and
includes a building provided by way of welfare facilities for
employees but does not include a building used for residential
purposes. (Substituted by Act 15 of 2003)
(2) Where part only of a building is used for the purposes of a
qualifying business, and the capital expenditure on that part of
the building which is not so used—
(a) does not exceed 11% of the total capital expenditure the
whole of the building is considered to be used for the
purposes of a qualifying business;
(b) exceeds 11% but does not exceed 75% of the total capital
expenditure, then the portion of such expenditure
qualifying for deduction under this Part is such proportion
of such expenditure as the part of the building so used for
the purposes of a qualifying business bears to the entire
building;
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Revision Date: 31 Dec 2008
(c) exceeds 75%, then the entire building is considered not to
be used for the purposes of a qualifying business.
(3) For the purposes of this Part a ―qualifying business‖ means—
(a) a business carried on in a commercial building, mill,
factory or similar premises for the manufacture of goods
or materials or their subjection to any industrial
process;(Substituted by Act 15 of 2003)
(b) the operation of a dock or a water or electricity
undertaking;
(c) the extraction of natural resources by mining or drilling;
(d) the catching or taking of fish including shell fish; or
(e) a business of agriculture, including horticulture and the
use of land for the purposes of husbandry including the
keeping or breeding of livestock and poultry or the
growing of crops of fruits or vegetables.
(f) a commercial undertaking or trade, except an undertaking
or trade determined to be an approved Tourism project as
defined by the Tourism Incentive Act, or any enactment
replacing it. (Inserted by Act 15 of 2003)
PART 2 PLANT AND MACHINERY
1. ANNUAL ALLOWANCES
(1) In ascertaining the chargeable income of any person for any
year of income there shall be deducted an annual allowance in
respect of expenditure incurred, whether before or after the
commencement of this Act, on the provision of plant and
machinery acquired and brought into use by that person for the
purpose of producing assessable income.
(2) The deduction allowable shall, subject to subparagraph (3), be
an amount equal to the following percentages of—
(a) the cost of the plant and machinery, in the case of the year
of income in which the plant and machinery was first
brought into use; and
(b) the written down value of the plant and machinery at the
end of the income year for the immediately preceding
132 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
year of income in the case of subsequent years of
income—
(i) Agricultural plant and machinery—
(A) electrical, including meters 15%
(B) spraying equipment 15%
(C) other 10%
(ii) Aerated beverage plant—
(A) Electrical 15%
(B) Steam 10%
(iii) Aircraft, parts and equipment 33 1/3%
(iv) Bakery plant and machinery 15%
(v) Bicycles 25%
(vi) Block and brick manufacturing plant and
machinery 15%
(vii) Cigarette manufacturing machinery 15%
(viii) Cinematograph—
(A) Machinery (projectors) 20%
(B) Electrical appliances including
fans and public address systems 15%
(C) Seating 15%
(ix) Clothing Trade—
(A) Steam boilers, engines and similar
plant and machinery 10%
(B) General Machinery including
sewing machines 15%
(C) Electrical plant and machinery 15%
(x) Copra crushing and refining plant 15%
(xi) Cranes and hoists 15%
(xii) Diesel engines and motors 15%
(xiii) Electricity undertakings—
(A) Generating plant 15%
(B) Mains 10%
(C) Other equipment water turbines
and transformers 10%
(xiv) Electrical lifts 15%
(xv) Engineering workshops—
(A) Electrical equipment 15%
(B) Heavy plant 10%
Laws of Saint Lucia Income Tax Act Cap.15.02 133
Revision Date: 31 Dec 2008
(C) Lathes and milling machines 15%
(D) Welding plant, tools and
instruments 15%
(xvi) Furniture Workshops—
(A) Electrical equipment 15%
(B) Other 15%
(xvii) Furniture 15%
(xviii) Garages—
Gasoline and Kerosene tanks and
pumps 10%
(xix) Gas—
(A) Gas holders or containers 10%
(B) Other plant 10%
(xx) Ice manufacture and Cold stores—
(A) Electrical plant and insulation 15%
(B) Refrigeration machinery,
compressors, condensers, tanks,
etc. 15%
(C) Steam and gas engines 10%
(xxi) Laundry and dry cleaning—
(A) Steam boilers, engines and similar
plant and machinery 10%
(B) General machinery 15%
(C) Electrical plant and machinery 15%
(xxii) Motor cars, lorries, omnibuses, vans,
jeeps, tractors, trucks, land rovers 25%
(xxiii) Motor cycles 25%
(xxiv) Neon signs 15%
(xxv) Office appliances: Accounting, adding,
calculating, cash registers and
duplicating and copying machines,
typewriters 15%
(xxvi) Oil tanks and pumps 10%
(xxvii) Photographic equipment 15%
(xxviii) Printing—
(A) Plant and machinery 10%
(B) Type 15%
(C) Computer hardware 25%
134 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(D) Computer software 33 1/3%
(xxix) Pumps—
(A) Electric 15%
(B) Other 10%
(xxx) Radio equipment—
(A) Amplifiers and receivers 15%
(B) Lines and speakers 10%
(xxxi) Refrigeration, deep freeze and
refrigeration cabinets 15%
(xxxii) Rum plant and breweries: Boilers,
pumps, stills and vats 10%
(xxxiii) Stoves 15%
(xxxiv) Scales 10%
(xxxv) Shipping: Launches, lighters, canoes and
sail boats 15%
(xxxvi) Traction and hauling equipment 25%
(xxxvii) Trailers 15%
(xxxviii) Timber merchants—
(A) Saw milling machinery and
electrical motors 15%
(B) Steam engines and boilers 10%
(xxxix) Waterworks: Appliances and apparatus
used for storage, purification,
conveyance, measurement or regulation
of water 10%
(xl) Plant and machinery not elsewhere
specified 15%
(3) Where the Comptroller is satisfied that by reason of the use of
plant and machinery on multiple shift work or in other
circumstances of abnormal wear and tear, he or she may
authorise the deduction of such higher rate of allowance than is
provided by subparagraph (2) as appears to him or her to be
reasonable in the circumstances.
(4) For the purposes of this paragraph the written down value of
any plant and machinery at the end of the year of income
means—
135Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(a) in the case of the first year of income in which the plant
and machinery is acquired, the cost of such assets less the
annual allowance, allowed in respect of such assets for
that year of income;
(b) in the case of subsequent years the written down value at
the end of the income year for the immediately preceding
year of income less the annual allowance allowed in
respect of such assets for that year of income.
(5) Where expenditure had been incurred prior to the
commencement of this Act, the written down value at the end of
year of income 1987 ascertained in accordance with the
previous Act shall apply for the purposes of subparagraph
(4)(b).
2. DISPOSAL OF PLANT AND MACHINERY
(1) Where allowances have been granted to any person for previous
years of income, whether before or after the coming into
operation of this Act, in respect of plant and machinery and any
such asset is disposed of in any year of income, a balancing
allowance or a balancing charge shall be made as provided in
this paragraph.
(2) Where the cost of the asset exceeds the aggregate of—
(a) the allowances granted for previous years of income; and
(b) the disposal value,
the amount of such excess (referred to in this Act as ―a
balancing allowance‖) shall be allowed as a deduction for the
year of income in which the asset is disposed of.
(3) Where the disposal value of the asset exceeds the difference
between—
(a) the cost of the asset; and
(b) the allowances granted for previous years of income,
the amount of such excess (referred to in this Act as ―a
balancing charge‖) is to be taken into account in ascertaining
the assessable income of the person disposing of the asset for
the year of income in which the asset is disposed of.
(4) Where a person has been granted allowances in respect of any
plant and machinery and such person ceases to carry on
136 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
business prior to the disposal of such asset, for the purposes of
this paragraph he or she shall be subject to the provisions of this
paragraph in the event of the subsequent disposal of such plant
and machinery.
3. REPLACEMENT PROPERTY
(1) Where but for this paragraph the amount of any balancing
charge would be taken into account in ascertaining the
assessable income of any person for a year of income, that
person may elect, by notice in writing given to the Comptroller
when furnishing his or her return of income for that year and
that in lieu of the balancing charge being so taken into account
it may be deducted, subject to subparagraphs (2) and (3), from
expenditure incurred on any plant and machinery (hereinafter
referred to as ―the replacement property‖) acquired by him or
her during the year of income to replace the plant and
machinery disposed of.
(2) Where an election is made under this paragraph the expenditure
incurred on the replacement property is to be reduced by the
amount of the balancing charge referred to in subparagraph (1)
for the purpose of determining the written down value of the
replacement property and the annual allowances applicable, but
nothing herein affects the calculation of any balancing
allowance or balancing charge by reference to the full amount
of the expenditure incurred and the reduction of balancing
charge made by subparagraph (1) in the event of the subsequent
disposal of the replacement property.
(3) Where an election is made under this paragraph in relation to
the disposal of an asset giving rise to a balancing charge which
exceeds the cost of the replacement property—
(a) no annual allowance shall be granted in respect of the
replacement property; and
(b) the amount of the excess shall be included in the
assessable income of the person disposing of the asset for
the year of income in which the asset is disposed.
137Laws of Saint Lucia Income Tax Act Cap.15.02
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PART 3 AGRICULTURAL EXPENDITURE
1. DEDUCTION ALLOWED
Subject to this Part, where any person who is not exempt from tax
under section 25 in respect of income from agriculture incurs capital
expenditure on any agricultural works there is to be allowed as a
deduction for the year of income for which the expenditure was
incurred and in the next succeeding 4 years of income an amount
equal to 1 /5 of such expenditure.
2. CERTIFICATE TO BE FURNISHED
The deduction provided by this Part shall not be given until the
person claiming such deduction furnishes to the Comptroller a
certificate signed by the Director of Agricultural Services stating
that—
(a) the agricultural works for which the deduction is claimed
have been carried out; and
(b) the expenditure incurred is fair and reasonable.
3. DEDUCTION ALLOWABLE ON DISPOSAL
Where any person, who has incurred capital expenditure to which this
Part relates, disposes of such property prior to the grant of the full
amount of the allowances to which he or she would have been entitled
had the disposal not taken place he or she ceases to be entitled to any
further deduction and the balance is allowed to the person who
acquires the property.
4. APPORTIONMENT OF DEDUCTION
For the purposes of paragraph 3, where a property is disposed of on a
date other than the end of an income year or where part only of a
property is disposed of, the Comptroller may apportion the deduction
allowable as between the parties in such manner as appears to him or
her to be reasonable.
138 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
5. MEANING OF CAPITAL EXPENDITURE ON AGRICULTURAL WORKS
In this Part ―capital expenditure on agricultural works‖ means
expenditure incurred in respect of the clearing, draining or planting of
land for agricultural purposes, soil conservation works, the provision
of drains, wells, boreholes or dipping tanks and the cutting of new
roads to areas of production.
PART 4 INTERPRETATION
1. DEFINITIONS
In Parts 1 and 2 of this Schedule—
―allowances granted‖ in relation to previous years of income
means the sum of the annual allowances granted under
this Schedule or the corresponding provision of the
previous Act and any initial allowances granted under the
previous Act;
―disposal‖ in relation to any assets means the scrapping, loss or
destruction, sale, exchange, compulsory acquisition or gift
of such asset;
―disposal value‖ means, in relation to—
(a) the scrapping of an asset, the scrap value thereof;
(b) the loss or destruction of an asset, any amount
received for the remains thereof together with any
amount accrued as compensation or indemnity for
such loss or destruction;
(c) the disposal of an asset, by way of—
(i) sale, the net proceeds of sale,
(ii) exchange, the market value of any asset
acquired through such exchange adjusted to
take account of any monetary consideration
made,
(iii) compulsory acquisition, the amount for which
it was so acquired,
(iv) gift, the market value thereof,
139Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
but in any case where the amount accrued or the market
value exceeds the cost, the disposal value is limited to the
cost price, or in the case of a building the adjusted cost
price, if applicable;
―expenditure incurred‖ by any person does not include such
part of any expenditure incurred as is reimbursed to that
person by way of subsidy or grant by the Government or
some other person unless such subsidy or grant has
formed part of his or her assessable income.
2. APPLICATION OF SCHEDULE TO HIRE PURCHASE TRANSACTIONS
Where, under a hire purchase agreement or similar transaction, the
use and enjoyment of an asset is obtained by a person to whom this
Schedule applies for a period of time at the end of which the property
in the asset will or may pass for no consideration or a nominal
consideration, he or she is considered to have—
(a) acquired the asset at the time the agreement or transaction
was entered into; and
(b) incurred expenditure thereon of an amount equal to the
total amounts, excluding interest, payable under the
agreement or transaction at the time referred to in
subparagraph (a).
3. APPORTIONMENT OF CONSIDERATION WHERE ASSETS SOLD FOR CONSOLIDATED AMOUNT
Where any property, in respect of which allowances are granted under
this Schedule or the previous Act is disposed of together with other
assets for a total consideration—
(a) which does not allocate separate prices for the separate
items; or
(b) which allocates either a nominal consideration to some
assets, or such consideration as, in the opinion of the
Comptroller does not represent the true market value of
those assets,
he or she may apportion the total consideration among the several
assets in such manner as to arrive at a true market value of those
assets in respect of which allowances have been granted and such
140 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
value shall be taken to be the disposal value of such assets for the
purposes of this Schedule.
4. DISPOSAL OF ASSETS IN CERTAIN TRANSACTIONS: VALUE TO BE ADOPTED
(1) Where any assets in respect of which allowances have been
granted under this Schedule or the previous Act or both, are
disposed of by the owner to a purchaser other than by way of a
transaction at arm‘s length, subject to subparagraph (2) the
assets are considered to have been disposed of at market value
and such value shall apply both to the vendor and the purchaser.
(2) Where—
(a) under the amalgamation, reconstruction or merger of a
company with another company and the transfer of assets
to that other company; or
(b) the transfer of assets from an individual to a company or
to a relative,
there is a substantial identity between the former owner and the
new owner, the assets in relation to both, are considered to have
been disposed of at their written down value.
(3) For the purposes of subparagraph (2) there is a substantial
identity between the former owner and the new owner—
(a) in the case to which subparagraph (2)(a) applies, where at
the end of the year of income in which the assets were
transferred, shares in the company acquiring the assets,
carrying—
(i) the right to exercise not less than 51% of the voting
power in the company,
(ii) the right to receive not less than 51% of any
dividends that might be paid by the company, or
(iii) the right to receive not less than 51% of any capital
distribution in the event of a winding up or of a
reduction in the share capital of the company, were
beneficially held by persons or relatives of such
persons who at the time the assets were transferred
beneficially held in the disposing company shares
carrying rights of those kinds;
(Amended by Act 15 of 2003)
141Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
(b) in a case to which subparagraph (2)(b) applies, where at
the end of the year of income in which the assets were
transferred, in the case of a transfer to a company, shares
carrying rights of the kind specified in subparagraph (a)
were beneficially held by the vendor or relatives of the
vendor.
(4) In subparagraphs (2) and (3) ―a relative‖ in relation to any
person means—
(a) the spouse of that person; or
(b) a lineal ancestor, child or other lineal descendant, brother,
sister, uncle, aunt, nephew or niece of that person or of his
or her spouse.
[The next page is page 143]
143Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
SCHEDULE 3
(Sections 76, 80, 87, 90 and 142)
DEDUCTION OF TAX FROM PAYMENT TO NON-RESIDENTS
1. APPLICATION
(1) This Schedule applies to every person who makes any payment
by way of—
(a) royalty;
(b) management charges;
(c) commission or fee, not being in respect of an employment
to which section 77 applies;
(d) the distribution of income of a trust being income of the
kind specified in subparagraphs (a) to (c);
(e) premiums including insurance premiums but excluding
re-insurance;
(f) any other payments of an income nature and excludes the
following payments:
(i) dividends,
(ii) interest or discounts,
(iii) lease, premium or licence,
(iv) annuities or other periodic payments such as
payments by way of alimony or maintenance,
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 Saint Lucia.
(2) This Schedule also applies to any payment to a non-resident
person in respect of the independent personal services
performed in Saint Lucia other than by way of carrying on a
business in Saint Lucia through a permanent establishment in
Saint Lucia.
(3) Where the accounts of a business are maintained on an accrual
basis, and during a year of income any amount of the kind
specified in subparagraph (1) is charged as an expense but
payment is not made, tax shall be deducted and accounted for to
144 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
the Comptroller as if payment had been made on the last day of
such income 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.
2. DEDUCTION TO BE MADE BY PERSON MAKING PAYMENT
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. However—
(a) where 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 and account
for the tax required to be deducted under this Schedule;
(b) where income which accrues to a non-resident is payable
to a bank or other agent on his or her behalf, then for the
purposes of collection, such bank or agent shall deduct
and account for the tax required to be deducted under this
Schedule;
(c) where income which accrues to a non-resident is payable
by another non-resident then, for the purpose of collection
of the tax imposed by this section, the Comptroller may
issue an assessment directly on the non-resident to whom
the income accrues and the general provisions of Part 12
relating to the recovery of tax shall apply;
(d) where income accrues to a non-resident in respect of
rental of residential accommodation provided in Saint
Lucia the provisions of Parts 5 and 6 apply and in that
case the tax payable shall be at the rate provided in
Schedule 5.
3. RATE OF TAX TO BE DEDUCTED
Subject to section 60, and paragraph 2 the rate of tax to be deducted
on any payment of the kind specified in paragraph 1, is 25% of every
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Revision Date: 31 Dec 2008
dollar of such payment and is the final liability in respect of such
income.
4. CERTIFICATE AND RECORD OF PAYMENTS MADE AND TAX DEDUCTED
(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 payment made to each non-resident; and
(c) the tax deducted therefrom,
and such record shall be kept available for examination by the
Comptroller as and when required for any period not exceeding
6 years.
5. RETURNS OF DEDUCTION AND REMITTANCES OF TAX
(1) Every person shall, when making any payment under section
116, 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 deductions of tax.
(2) Every person to whom this Schedule applies, shall in respect of
each calendar year, within 2 months after the end of such year
or within such further time as the Comptroller may allow,
furnish to the Comptroller a return in such form as he or she
may approve showing the total of tax deducted by that person
during such year and the total payments of such tax which have
been made to the Comptroller.
(3) In the event of there being any deficiency between the total
amount of tax deducted in any year and the total payments of
such tax made to the Comptroller, that person shall be required
to account to the Comptroller for such deficiency.
146 Cap.15.02 Income Tax Act Laws of Saint Lucia
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6. PERSONAL LIABILITY WHERE FAILURE TO DEDUCT TAX
(1) Where any person fails to deduct any tax under this Schedule he
or she shall, in addition to any penalty for which he or she may
be liable, be personally liable to pay to the Comptroller within
the time specified in section 116 the amount which he or she
has failed to deduct.
(2) Where any person pays to the Comptroller the amount of tax
which he or she 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 is 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 or she has failed to deduct, the Comptroller may
absolve such person from his or her liability under
subparagraph (1).
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SCHEDULE 4
(Sections 77, 86, 90, 113, 143 and 144)
DEDUCTION OF TAX BY EMPLOYERS
1. REGISTRATION OF EMPLOYERS
(1) Every person who pays or becomes liable to pay remuneration
to any employee shall register as an employer with the
Comptroller.
(2) Every person who was an employer at the commencement of
this Act, but was not registered as an employer under the
Income Tax (Employment) Rules, 1965 shall register with the
Comptroller in the prescribed form within 30 days after the
commencement of this Act and every person who becomes an
employer after the commencement of this Act shall so register
within 30 days after the end of the month in which he or she
becomes an employer.
(3) Every employer who changes his or her business address or
ceases to be an employer shall notify the Comptroller
accordingly within 30 days of such change of address or of his
or her ceasing to be an employer, as the case may be.
2. DEDUCTION OF TAX
(1) Every employer shall, unless the Comptroller otherwise directs,
deduct tax in accordance with this Schedule.
(2) Subject to this paragraph and paragraph 5 the amount of tax to
be deducted is determined in accordance with tax deduction
tables prescribed by the Comptroller under paragraph 4(2) and
taking into account the concessional deductions claimed by the
employee in the declaration lodged by him or her under
paragraph 3.
(3) Where, during any calendar year an employee receives income
from more than one source of employment at the same time, the
amount of tax to be deducted is such amount as is directed by
the Comptroller.
(4) Where, during any calendar year, an employee—
148 Cap.15.02 Income Tax Act Laws of Saint Lucia
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(a) is a non-resident individual; or
(b) being a resident individual, fails to lodge a declaration as
required by paragraph 3,
the amount of tax to be deducted is determined in accordance
with tax deduction tables prescribed by the Comptroller under
paragraph 4.
3. DECLARATION BY EMPLOYEES
(1) Subject to this paragraph, every employee chargeable to tax, to
whom any remuneration accrues from employment after the
commencement of this Act, shall furnish a declaration in the
prescribed form to the person specified in subparagraphs (2) or
(3).
(2) Where such remuneration is received from one employer only,
such declaration shall be furnished to the employer, who shall
take the particulars shown on such declaration into account in
deducting tax under paragraph 2.
(3) Where such remuneration is received by that employee from
more than one employer such declaration shall be furnished to
the Comptroller who shall direct the respective employers as to
the amount of tax to be deducted by them.
(4) A declaration under this paragraph shall not be furnished by any
employee who is a non-resident.
(5) A declaration under this paragraph shall be furnished—
(a) where an employment commences, within 14 days of
such commencement; and
(b) where the employee ceased to be entitled to the personal
allowances or other deductions or allowances claimed in a
declaration already furnished by him or her in respect of
that year, within 7 days of such change of circumstance.
(6) A declaration under this paragraph may be furnished at any
time during the year where there is any change of circumstances
whereby an employee becomes entitled to an increase in the
concessional deductions or other deductions or allowances
claimed in a declaration already furnished by him or her.
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4. TAX DEDUCTION TABLES
(1) The Comptroller shall prescribe tax deduction tables
(hereinafter in this Schedule referred to as ―the tables‖) which
come into force on the date of commencement of this Act.
(2) The tax to be deducted in accordance with the tables prescribed
under this paragraph shall take into account—
(a) the rates of tax payable under section 80;
(b) the concessional deductions allowable under sections 45,
46, 48, 49, 50, 51, 52 and 53; and
(c) such other deductions or allowances as the Comptroller
may deem appropriate.
(3) The tables shall include a table prescribing the tax to be
deducted in the case of a non-resident employee and an
employee who has failed to furnish a declaration under
paragraph 3.
(4) The tables shall specify the manner of calculation of the tax to
be deducted from any payments of remuneration by way of—
(a) annual or other bonuses;
(b) overtime; and
(c) other payments of an abnormal nature.
(5) In the event of any variation of the rates of tax payable or the
concessional deductions allowable in relation to any year of
income to which this Act applies, the Comptroller shall
prescribe new tables to take into account such variation and
shall, by notice published in the Gazette, specify the date upon
which such tables come into force.
5. VARIATIONS FROM TAX DEDUCTION TABLES
(1) Every employer shall, at the written request of any employee,
deduct from his or her remuneration an amount of tax greater
than that required to be deducted under the tables.
(2) Where, in relation to any year of income any employee is of the
opinion that the amount of tax required to be deducted by his or
her employer under the tables will be substantially greater than
the amount of tax which is likely to be charged for that year of
income, he or she may apply in the prescribed form to the
Comptroller for the issue of a direction and, if the Comptroller
150 Cap.15.02 Income Tax Act Laws of Saint Lucia
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is satisfied that it would be reasonable to do so, he or she may
direct the employer by notice in writing to deduct either no tax
or such amount as appears to the Comptroller to be appropriate
to the circumstances of that employee, and the employer shall
comply with that direction.
(3) A request by an employee under subparagraph (1) or a direction
by the Comptroller under subparagraph (2) may be withdrawn
at any time by notice in writing given to the employer and upon
receipt of any such notice the employer shall deduct tax in
accordance with the tables.
(4) Any request under subparagraph (1), direction under
subparagraph (2) or notice of withdrawal under subparagraph
(3) shall be complied with by the employer on and after the pay
day next succeeding a period of 7 days following the receipt by
him or her of such request, direction or notice.
6. PAYMENT TO OR RECOVERY BY COMPTROLLER
Any tax deducted under this Schedule—
(a) is due and payable within the time specified in section
116; and
(b) when it becomes due and payable, is a debt due to
Government and, if unpaid, is liable to the penalty
specified in section 135 and to interest at the rate
specified in section 117 and may be recovered in the
manner provided in sections 118, 119, or 121.
7. PAYMENT OR REMUNERATION FREE OF TAX
(1) Any agreement between an employer and an employee whereby
the employer agrees to pay, as remuneration to the employee,
an amount expressed to be free of tax, is considered an
agreement providing for payment to the employee of such an
amount of remuneration as, after deduction of tax would leave
an amount equal to the remuneration paid.
(2) In any case to which subparagraph (1) applies—
(a) the employer is liable to pay to the Comptroller an
amount equal to the difference between the remuneration
considered to be paid and the amount of remuneration
paid;
151Laws of Saint Lucia Income Tax Act Cap.15.02
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(b) the amount is considered to be tax to be deducted under
this Schedule; and
(c) the employee is considered to have received as income
from employment the amount considered to have been
paid by the employer.
8. CERTIFICATE OF REMUNERATION AND TAX DEDUCTED
(1) Every employer who deducts any tax under this Schedule in any
calendar year shall within the time and in relation to the period
specified in subparagraph (2), furnish to every employee to
whom remuneration has been paid, a certificate in the
prescribed form the contents of which shall include—
(a) the total remuneration accrued to that employee; and
(b) the total of the amounts of tax deducted from such
remuneration.
(2) The certificate referred to in subparagraph (1) shall specify the
period of employment to which it relates and shall be furnished
to the employee or former employee—
(a) where the employer has not ceased to be an employer in
relation to that employee at the end of the calendar year,
within one month after the end of that calendar year;
(b) where the employer has ceased to be an employer in
relation to that employee but has continued to be an
employer in relation to other employees, on the date of
cessation of the employment of that person; or
(c) where the employer has ceased to be an employer in
relation to all employees, within one month after the date
on which he or she ceased to be an employer.
(3) Any employee who has not received a certificate within the
time specified in subparagraph (2) shall apply to the employer
for such certificate to be furnished and in the event of such
certificate not being furnished within a further period of 15 days
he or she shall notify the Comptroller of such failure by the
employer to furnish the certificate.
(4) Every employee, when furnishing his or her return of income
for any year of income, shall attach to such return the certificate
furnished to him or her under this paragraph.
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(5) The certificate to be furnished under this paragraph by an
employer to an employee may be delivered—
(a) by hand to such employee or his or her authorised agent;
(b) by registered letter addressed to that employee at his or
her usual or last known postal address; or
(c) where the chargeable income of that employee is not
chargeable to tax in his or her name, by hand or registered
letter addressed to the person chargeable.
However, in the event of inability to deliver a certificate in the
manner provided by this subparagraph the employer shall retain
such certificate and forward it to the Comptroller with the
return required under paragraph 12.
(6) In addition to the annual certificate referred to in subparagraph
(1), on every occasion during the calendar year upon which a
payment of remuneration is made to an employee from which
tax is deducted under this Schedule the employer shall furnish
to him or her particulars of the total remuneration payable for
the pay period and of the amount of tax deducted therefrom.
9. PERSONAL LIABILITY OF EMPLOYER AND EMPLOYEE
(1) Where, in any calendar year, an employer fails to deduct any
tax under paragraph 2, he or she, in addition to any penalty for
which he or she may be liable, is personally liable to pay to the
Comptroller within the time specified in section 116 the amount
which he or she has failed to deduct.
(2) Where an employer pays to the Comptroller the amount of tax
which he or she failed to deduct, such amount is considered to
have been deducted under this Schedule.
(3) The employer shall be entitled to recover from the employee
any amount paid to the Comptroller under subparagraph (2).
(4) Where, in relation to any payment of remuneration an employer
has failed to deduct tax under paragraph 2, but the Comptroller
is satisfied that tax deducted under this Schedule from earlier or
later payments of remuneration is sufficient to meet the amount
of tax which he or she has failed to deduct, the Comptroller
may absolve the employer from his or her liability under
subparagraph (1).
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(5) Where the Comptroller is of the opinion that any amount of tax
which has been set off under section 81 under a certificate
under paragraph 8 has not been deducted by the employer, the
employer and the employee is jointly and severally liable to pay
to the Comptroller the amount which has been so set off and
such amount is recoverable under this Act.
However, where the Comptroller is satisfied that the employee
alone was responsible for the incorrect amount being shown on
his or her certificate under paragraph 8, the employer is
absolved from liability under this subparagraph.
(6) Where it is proved to the satisfaction of the Comptroller that
any amount of tax is deducted from the remuneration of any
employee, although the employer has failed to pay such amount
to the Comptroller, no action shall be taken by the Comptroller
for the recovery thereof from that employee.
10. EMPLOYER TO KEEP RECORDS
Every employer shall, in respect of each of his or her employees,
maintain a record showing in relation to each calendar year, the
amounts of—
(a) remuneration accrued to that employee; and
(b) tax deducted from such remuneration,
and such record shall be kept available for examination by the
Comptroller as and when required.
11. EMPLOYER’S MONTHLY RETURN OF TAX DEDUCTIONS AND REMITTANCES
Every employer shall, when making any payment under section 116
furnish a return showing the amount of tax deducted and remitted.
12. EMPLOYER’S MONTHLY RETURN OF TAX DEDUCTIONS AND REMITTANCES
(1) Every employer shall, in respect of each calendar year—
(a) within one month after the end of that year; or
(b) where he or she ceases to be an employer during that
year, within 15 days after such cessation,
154 Cap.15.02 Income Tax Act Laws of Saint Lucia
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or within such further time as the Comptroller may allow,
furnish to the Comptroller a return showing the total amount of
tax deducted by him or her in respect of all of his or her
employees during that year and the total payments of such tax
made to the Comptroller.
(2) In the event of there being any deficiency between the total
amount of tax deducted and the total payments of such tax
made to the Comptroller, the employer shall be required to
account to the Comptroller for such deficiency.
(3) The return referred to in subparagraph (1) shall be accompanied
by a copy of all certificates issued under paragraph 8.
13. DUTIES AND LIABILITIES OF REPRESENTATIVE EMPLOYERS
(1) Every representative employer, in relation to any remuneration
paid by him or her in his or her representative capacity to any
employee shall be subject to the same duties and liabilities
under this Schedule as if such remuneration had been paid by
him or her in his or her personal capacity.
(2) Any tax which should be deducted by a representative employer
under this Schedule, any penalty due by him or her under
section 135, any interest due by him or her under section 117 or
fine imposed under section 143 or 144 on him or her shall be
recoverable from him or her but to the extent only of any assets
of the person whom he or she represents which may be in his or
her possession or may come to him or her while acting in his or
her representative capacity.
(3) The executor of the estate of any deceased employer or the
trustee of the estate of any bankrupt employer shall fulfil such
obligations of that employer under this Schedule as were not
fulfilled at the time of his or her death or bankruptcy.
14. LIABILITY TO DEDUCT TAX NOT ABATED BY OTHER RIGHTS OR OBLIGATIONS
The liability of an employer to deduct tax under this Schedule shall
not be abated or extinguished by reason of—
(a) the fact that the employer has a right or is, otherwise than
in terms of any law, under an obligation to deduct any
other amount from the employee‘s remuneration and such
155Laws of Saint Lucia Income Tax Act Cap.15.02
Revision Date: 31 Dec 2008
right or obligation, despite anything to the contrary
contained in any other law, is considered to refer only to
the balance of remuneration remaining after tax has been
deducted; and
(b) the provisions of any law which may provide that the
amount of remuneration shall not be reduced or be
subjected to attachment.
15. DEFINITIONS
In this Schedule—
―employee‖ means any person who, in respect of an
employment, as defined in section 2, receives
remuneration from an employer, and includes any person
to whom remuneration accrues—
(a) as a director of a company;
(b) from a former employer or the trustee of a pension
fund, as a consequence of a former employment; or
(c) as a dependent of a deceased person where such
remuneration accrued to that dependent as a
consequence of the former employment of that
deceased person;
―employer‖ means any person who pays remuneration to an
employee, and includes—
(a) the Government of Saint Lucia;
(b) a representative employer; and
(c) the trustee of any pension fund;
―remuneration‖ means any amount accrued to an employee by
way of employment income within the meaning of section
34, and includes any advance payments of remuneration;
―representative employer‖ means—
(a) in the case of a company, the principal officer or,
where such company is in liquidation, the
liquidator;
(b) in the case of a partnership, the precedent partner;
(c) where the employer is the Government, a local
authority, a corporation or other authority
156 Cap.15.02 Income Tax Act Laws of Saint Lucia
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established by statute or a body corporate or
unincorporate (not being a company or partnership),
the person responsible for paying remuneration on
behalf of such employer;
(d) in the case of an employer in respect of whose
chargeable income a representative taxpayer is
chargeable to tax, the representative taxpayer; or
(e) in the case of a non-resident employer, the agent
having responsibility to pay remuneration on behalf
of such employer,
but this definition shall not be construed as relieving any
employer from any duty or liability imposed upon him or
her by this Schedule.
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Revision Date: 31 Dec 2008
SCHEDULE 5
RATE OF TAX
(Section 80)
1. On the chargeable income of every individual, unincorporated body
of persons or trustee—
Income Year Rate of Tax
1988 On the first $6,000 and under............................... 10%
On the next $6,000 viz. 6,001–12,000 ................. 20%
On the next $5,000 viz. 12,001–17,000 ............... 30%
On the remainder.................................................. 40%
1989 On the first $8,000 and under............................... 10%
On the next $7,000 viz. 8,001–15,000 ................. 15%
On the next $5,000 viz. 15,001–20,000 ............... 25%
On the remainder. ................................................ 30%
1990 On the first $10,000 and under. ........................... 10%
On the next $10,000 viz. 10,001–20,000 ............. 15%
On the next $10,000 viz. 20,001–30,000 ............. 20%
On the remainder.................................................. 30%
2. On the chargeable income, on every dollar thereof, of—
(a) companies existing before the commencement of this Act—
(i) for the income year 1988–40%
(ii) for the income year 1989–35%
(iii) for the income year 1990–33%
(iv) for income year 2003-33%
(v) for income year 2004-32%
(vi) for income year 2005 and subsequent income years-
30%
(aa) The rates specified in items (iv), (v) and (vi) are applicable to
companies who prior to income year 2003—
(i) have no arrears of income or any other tax administered by
the Inland Revenue Department; and
(ii) have complied with the requirements of any enactment
administered by the Inland Revenue Department.
158 Cap.15.02 Income Tax Act Laws of Saint Lucia
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(ab) Despite subparagraph (aa), a company which complies with the
provisions of subparagraph (aa) subsequent to income year 2003,
shall only be entitled to the prevailing reduced rates for the
income year in which the company complies and for subsequent
income years.
(b) 10% with effect from income year 2001 and for subsequent
income years up to income year 2005.
(Amended by Act 9 of 2001and S.I.64/2003)
3. On the chargeable income of every individual, unincorporated body
of persons or trustee until the payment of the retroactive salary increase for
people in the public service for the period April, 1994 to December, 1995–
GRADE ANNUAL INCOME TAX RATE
1–2 $11,580 and below 0%
3–9 $11,581 – $28,380 5%
10–18 $28,381 and above 10%
(Inserted by S.I. 86/1995)
SCHEDULE 6
(Section 45)
PERSONAL ALLOWANCE TO INDIVIDUALS
Income Year
1988 $ 6,000
1989 8,000
1990 10,000
2001 12,000 effective 1 June 2001
2002 14,000
2003 16,000
(Amended by Act 9 of 2001)
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SCHEDULE 7
DISTRESS WARRANT
(Section 119)
SAINT LUCIA
IN THE MATTER OF THE INCOME TAX ACT
IN THE MATTER OF ARREARS OF INCOME TAX
WARRANT TO EXECUTE DISTRESS FOR ARREARS OF TAX
To...............................................................................................................
WHEREAS it has been made to appear to me .............................................
Comptroller of Inland Revenue that................................................................
is (are) in arrears of income tax in the sum
of....................................................
AND WHEREAS that sum has been duly demanded from...........................
.........................................................................................................................
AND WHEREAS such tax has not been paid and remains unpaid as at the
day of
NOW THEREFORE by virtue of the power vested in me as Comptroller by
section 107 of the Income Tax Act I do hereby authorise you to collect and
recover the several amounts—
.........................................................................................................................
.........................................................................................................................
respectively due for tax, and for the recovery thereof I further authorise
you, with the assistance of any Constable which assistance the Constable is
hereby authorised to give, to distrain upon the goods and chattels
of......................................................................................................................
.........................................................................................................................
and to keep such goods and chattels for a period not exceeding 30 days at
the premises where execution was levied or such other place as you may
consider appropriate and if within the said 30 days after the making of the
distress the said sums and also the costs and charges of and incidental to the
taking and keeping of such distress, on the goods and chattels and other
distrainable things of.....................................................................................
or of any part thereof charged with such tax are not paid, to sell such goods
and chattels by public auction for payment of the above-mentioned tax
160 Cap.15.02 Income Tax Act Laws of Saint Lucia
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together with the costs of levy or of such distress.
AND for the purpose of levying such distress you are authorised, if
necessary, with such assistance as aforesaid, to break open any building in
the day time.
Given under my hand at this day of
................................................................
Comptroller of Inland Revenue
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Revision Date: 31 Dec 2008
SCHEDULE 8
(Section 75)
1. Foreign currency tax credit would be allowed against profits for
agents registered under the Registered Agent and Trustee Licensing
Act as follows—
100% for the first 4 years
75% for the next 3 years
50% for the next 3 years
2. Where a person derives income from the provision of professional
services to the International Financial Services sector as listed in
paragraph 4, and also derives income from other services, the person
is entitled to a foreign tax credit only in respect of income earned in
the provision of professional services to the International Financial
Services sector. The foreign tax credit is calculated as follows—
Profits from Foreign currency Tax Relief
Up to 30% ......................................... 35%
31% but under 50%........................... 55%
51% but under 70%........................... 75%
71% but under 100%......................... 95%
for a period of 10 years.
For the purposes of calculation, profits from foreign currency
earnings declared by the domestic organizations, shall be deemed to
be profits arrived at by the formula—
where
(a) ―FCE‖ represents the foreign currency earnings transferred to
the credit of that person within the relevant income year;
(b) ―P‖ represents the net profits from all sources;
(c) ―TE‖ represents the total gross earnings from all sources.
The profits would be taxed by using the normal tax rates specified in
Schedule 5.
3. The qualifying professional services provided by companies licensed
under the Registered Agent and Trustee Licensing Act are the
following—
(a) Application Preparation
162 Cap.15.02 Income Tax Act Laws of Saint Lucia
Revision Date: 31 Dec 2008
(b) Incorporation
(c) Provision of Office facilities
(d) Directorships
(e) Company Secretaries
(f) Actuarial Services
4. The qualifying professional services provided by persons to whom
paragraph 2 relates are the following—
(a) Administrative\Management Services
(b) Insurance Management
(c) Mutual Fund Services
(d) Audit\Accounting Services.
(Inserted by Act 9 of 2001)
Laws of Saint Lucia Income Tax (Evasion of Tax Payment) Cap.15.02 163
(Prevention) Rules
Revision Date: 31 Dec 2008
INCOME TAX (EVASION OF TAX PAYMENT)
(PREVENTION) RULES – SECTION 151
(Statutory Instruments 18/1971, 19/1977, 38/1993 and 32/1998)
Commencement [26 June 1971]
1. SHORT TITLE
These Rules may be cited as the Income Tax (Evasion of Tax
Payment) (Prevention) Rules.7
2. EXIT CERTIFICATES
(1) Subject to the provisions of rule 3 a person shall not leave
or attempt to leave the State unless the person so leaving or
attempting to leave has in his or her possession an exit
certificate in the Form A contained in the Schedule duly
signed by or on behalf of the Comptroller certifying that he
or she—
(a) does not owe any income tax; or
(b) has made satisfactory arrangements for the payment
of any income tax payable by him or her.
(2) Subject to the provisions of rule 3 a person shall not issue
or cause to be issued to any other person any ticket
entitling such other person to leave the State unless such
other person has in his or her possession an exit certificate
as in the last preceding subrule mentioned.
(3) A person shall not—
(a) accept or cause to be accepted as a passenger or
otherwise any other person to whom this rule
applies; or
(b) arrange or cause to be arranged any transportation
for any person to whom this rule applies to leave the
State,
7 Editor’s note: These rules are made under the Income Tax Act, 1965. This Act was
repealed and replaced by the Income Tax Act. However, these rules continue in
force under section 153.
164 Cap.15.02 Income Tax (Evasion of Tax Payment) Laws of Saint Lucia
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unless such other person produces or causes to be
produced to the first-named person a valid certificate
issued to such other person by or on behalf of the
Comptroller.
(4) Every person to whom this rule applies when about to
leave the State, shall, if required so to do by any
immigration officer, surrender to such immigration officer
a valid exit certificate issued to him or her by or on behalf
of the Comptroller.
(5) An exit certificate shall be valid for such period as might
be stated therein and not thereafter.
(6) The following fees shall be payable in respect of every
certificate issued under this rule.
A Single Exit Certificate $
(i) individual with no tax liability 5
(ii) pensioners with no other source of 5
income
(iii) all other individuals 10
B For each Exit Certificate valid for 3 months 40
C For each Exit Certificate valid for 6 months 60
D For each Exit Certificate valid for 12 months 120
(Substituted by S.I. 38/1993)
3. PERSONS EXEMPTED FROM OPERATION OF RULE 2
(1) Rule 2 shall not apply to—
(a) any person of the age of 16 years or under;
(b) any person of the age of 25 years or under, who is a
whole time student at a secondary school, college or
university;
(c) any married woman living with her husband, the
latter being resident in the State;
(d) the Governor General, his or her spouse and children
under 21 years of age;
(e)
Laws of Saint Lucia Income Tax (Evasion of Tax Payment) Cap.15.02 165
(Prevention) Rules
Revision Date: 31 Dec 2008
(i) members of the House of Assembly,
(ii) public officers of the State when travelling on
Government business;
(f) any member of the military, naval or air forces of
Her Majesty or of any foreign State;
(g) any person in the diplomatic or consular service of
Her Majesty or foreign state unless any such person
is also engaged in any business or other employment
in the State;
(h) any high official, his or her spouse and children
under 21 years of age and any other official of any
organisation in respect of which a declaration has
been made by order of the Minister under and for the
purpose of the International Organisations and
Overseas Countries (Immunities and Privileges) Act
and any representative of any other Government as
defined in any such order;
(i) any person temporarily resident in the State; for the
purposes of this paragraph a person is temporarily
resident in the State whose total period of residence
in any one year does not exceed 6 months;
(j) any trafficker or other person who by reason of the
nature of his or her occupation or employment the
Comptroller deems it expedient to exempt, and who
holds a certificate of exemption issued by the
Comptroller; and
(k) ministers of religion, their spouses and children
under 16 years of age;
(l) any citizen or permanent resident of Saint Lucia.
(Amended by S.I. 32/1998)
(2) The certificate of exemption under this rule shall be in the
Form B in the Schedule.
4. IMMIGRATION OFFICER TO GRANT PERMISSION TO LEAVE
(1) Despite anything to the contrary in these Rules if an
immigration officer is satisfied, on application made to
166 Cap.15.02 Income Tax (Evasion of Tax Payment) Laws of Saint Lucia
(Prevention) Rules
Revision Date: 31 Dec 2008
him or her by any person, that circumstances have arisen in
which it is impracticable for such person before leaving the
State to apply to the Comptroller for an exit certificate or a
certificate of exemption then—
(a) if such person satisfies the immigration officer that
he or she has paid all income tax then due and owing
by him or her on his or her own behalf or on behalf
of some other person or has made satisfactory
arrangements for the payment thereof; or
(b) if such person or any other person on his or her
behalf enters into a bond in the Form D of the
Schedule, with such surety or sureties, if any, as an
immigration officer shall require in the sum of
$1,000 for the payment by such person of any
income, tax due and owing by him or her; or
(c) if such person satisfies the immigration officer that
he or she is exempted from complying with the
provisions of rule 2,
such immigration officer shall issue to such person a
certificate in the Form C in the Schedule (in these rules
referred to as a ―special certificate of exemption‖); and
every person holding a valid special certificate of
exemption is exempt from complying with the provisions
of rule 2.
(2) An immigration officer who issues a special certificate of
exemption shall, without delay, forward a copy of such
certificate together with the relevant bond, if any, to the
Comptroller.
(3) A special certificate of exemption shall be valid for such
period from the date of its issue as may be stated therein
and not thereafter.
(4) Any person who has obtained from an immigration officer
a special certificate of exemption under subrule (1) shall,
when about to leave the State, if required so to do by any
immigration officer, surrender such certificate to such
immigration officer.
(5) If an individual, upon his or her arrival in the State,
satisfies an immigration officer that he or she is visiting the
Laws of Saint Lucia Income Tax (Evasion of Tax Payment) Cap.15.02 167
(Prevention) Rules
Revision Date: 31 Dec 2008
State for a temporary purpose (not with a view to deriving
or earning income in the State) for a period not exceeding
30 days, the immigration officer shall mark the passport or
other travel document issued in the name of that individual
with an official stamp mark bearing the date of such arrival
and the letters ―E.W.T.C.‖ (denoting Exit Without Tax
Certificate) and during the period of 30 days commencing
on that date, whenever necessary for the purpose of these
Rules in lieu of producing a tax certificate, that individual
may produce his or her passport or other travel document
so marked.
5. POWER OF COMPTROLLER TO FORBID SALE OF TICKET
Despite anything to the contrary a person shall not issue or cause
to be issued to any other person any ticket entitling such other
person to leave the State and shall not arrange for any
transportation for such other person to leave the State if a written
request is issued by or on behalf of the Comptroller to such first
named person prohibiting the issue of a ticket to such other
person.
However, the provisions of this rule cease to have effect on the
receipt by such first named person of a subsequent written
request issued by or on behalf of the said Comptroller
withdrawing such prohibition.
6. RIGHT OF APPEAL
Any person aggrieved by—
(a) the refusal of the Comptroller to grant to such person
an exit certificate or a certificate of exemption under
these rules; or
(b) the request of the Comptroller prohibiting the issue
of a ticket to such person, or the refusal of the
Comptroller to issue a request withdrawing any such
prohibition,
may appeal to the Minister whose decision thereon is final.
168 Cap.15.02 Income Tax (Evasion of Tax Payment) Laws of Saint Lucia
(Prevention) Rules
Revision Date: 31 Dec 2008
7. POWER OF POLICE TO PREVENT DEPARTURE OF PERSONS
It is lawful for any police officer who has reasonable grounds to
suspect that any person is attempting to leave the State in breach
of the provisions of rules 2, 3 or 4 to order such person to
disembark from or not to embark on any ship or aircraft, and to
arrest such person without a warrant if he or she disobeys any
such order.
8. PENALTY
If any person contravenes or fails to comply with any provisions
of these Rules, he or she commits an offence and is liable on
summary conviction to a penalty not exceeding $1000.
(Amended by S.I. 19/1997)
FORM A (Rule 2)
Income Tax Act
EXIT CERTIFICATE
(to be presented to shipping or air transport lines and to be surrendered on
demand to an immigration officer at the place of departure).
................................................. 20 ...............
Applicant .........................................................
Address .........................................................
Occupation .................................................
This is to certify that the above person
*(i) does not owe any income tax, or
(ii) has made satisfactory arrangements for the payment of any
income tax payable by him or her, and that the Comptroller has
no objection to a ticket being issued to the above person to
leave the State.
...........................................................
Comptroller.
Laws of Saint Lucia Income Tax (Evasion of Tax Payment) Cap.15.02 169
(Prevention) Rules
Revision Date: 31 Dec 2008
* Delete what is not applicable.
FORM B (Rule 3)
Income Tax Act
CERTIFICATE OF EXEMPTION
(to be presented to shipping or air transport lines and to be surrendered on
demand to an immigration officer at the place of departure).
.................................................... 20 .............
Applicant .....................................................
Address ................................................
Occupation .........................................
*This is to certify that the above person is exempt from producing an exit
certificate on the grounds that such person is ...........................................
and that the Comptroller has no objection to a ticket being issued to the
above person to leave the State.
...........................................................
Comptroller.
*Insert what is applicable.
FORM C (Rule 4)
Income Tax Act
SPECIAL CERTIFICATE OF EXEMPTION
(to be presented to shipping or air transport lines and to be surrendered on
demand to an immigration officer at the place of departure).
This certificate is issued to .......................................................................
(Full name and occupation)
of .....................................................................................................................
being holder of .............................................. Passport No ............................
(Nationality and No. of Passport)
170 Cap.15.02 Income Tax (Evasion of Tax Payment) Laws of Saint Lucia
(Prevention) Rules
Revision Date: 31 Dec 2008
This is to certify that the said .............................................................. is
exempted from producing an exit certificate—
*(a) paid all income tax now due and owing by him or her;
*(b) make satisfactory arrangements for the payment of any income tax
now due and owing by him or her;
*(c) entered into a Bond in the sum of ............................................. with
one or more sureties.
Issued this .................................... day of ....................................... 20 ..........
.................................................................
Immigration Officer.
*(a), (b) or (c) to be deleted as appropriate.
N.B.—This certificate is valid for a period of 2 clear days from the
date of its issue and not thereafter.
FORM D
Income Tax Act
BOND
SAINT LUCIA.
KNOW ALL MEN BY THESE PRESENTS THAT I ........................................
of .................................................., and I (We) ...........................................
of ................................................................, and .........................................
of .................................. in the State of Saint Lucia (hereinafter referred to
as the surety or sureties) are held and firmly bound unto the Comptroller of
Inland Revenue of the said State in the sum of $.......................... to be paid
to the said Comptroller, for which payment to be well and truly made we
bind ourselves and each one of us, our and each of our heirs, executors and
administrators jointly and severally by these presents.
Dated this ................................. day of ..................................... 20...........
WHEREAS ........................................ is desirous of leaving the State and
has not satisfied an immigration officer that he or she has paid the income
tax now due and owing by him or her, or that he or she has made
satisfactory arrangements for the payment of such income tax.
AND WHEREAS the said surety or sureties, desire to enable the said
................................. to leave the State.
NOW, THEREFORE, the condition of the above-written bond are as
Laws of Saint Lucia Income Tax (Evasion of Tax Payment) Cap.15.02 171
(Prevention) Rules
Revision Date: 31 Dec 2008
follows—
(a) if the said ................................ returns to the State within 6 months
of the date of this Bond; or
(b) pays or makes arrangements for the payment of the income tax due
and owing by him or her on the day of his or her departure from the
State, then the above-written bond is void, but otherwise the same
remains in full force and virtue.
Signed ...................................................
of ..........................................................
Signed ...................................................
(Surety)
of ..........................................................
Signed ...................................................
(Surety)
of ..........................................................
Before me
............................................................
Immigration Officer.
173Laws of Saint Lucia Income Tax (Exemptions) Proclamations Cap.15.02
Revision Date: 31 Dec 2008
INCOME TAX (EXEMPTIONS) PROCLAMATIONS-
SECTION 258
(Statutory Instruments 5/1924 and 93/1941)
It is hereby declared that the interest payable on all loans
charged on the Public Revenue of Saint Lucia or on the revenue
of any local authority to persons not resident in Saint Lucia is
exempted from income tax as from 1 January 1924.
It is hereby declared that the interest payable on any Saint Lucia
Savings Certificates issued by the Government of Saint Lucia is
exempted from income tax.
8 Editor’s note: This Proclamation was continued under the Income Tax Act, 1965. That
Act was repealed and replaced by the Income Tax Act. However, the Proclamation
continues in force under section 153.
175Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
INCOME TAX (DOUBLE TAXATION RELIEF) (UNITED
KINGDOM) ORDER – SECTION 609
(Statutory Instruments 33/1949, 33/1951 and 25/1968)
Commencement
[Paragraph 6(3) of Schedule: 7 September 1968]
[Paragraphs 13(1) and 13(2) of Schedule: 1 January 1968 Remainder:
28 May 1949]
1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(United Kingdom) Order.
2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in the Arrangement set out
in the Schedule to this Order were made with the
Government of the United Kingdom with a view to
affording relief from double taxation in relation to income
tax or profits tax and taxes of a similar character imposed
by the laws of the United Kingdom; and
(b) that it is expedient that those arrangements have effect.
SCHEDULE
ARRANGEMENT BETWEEN HIS MAJESTY‘S GOVERNMENT AND
THE GOVERNMENT OF SAINT LUCIA FOR THE AVOIDANCE OF
DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
1.
9 Editor’s note: This Order was continued under the Income Tax Act, 1965. That Act was
repealed and replaced by the Income Tax Act. However, the Order continues in force
under section 153.
176 Cap.15.02 Income Tax (Double Taxation Relief) Laws of Saint Lucia
(United Kingdom) Order
Revision Date: 31 Dec 2008
(1) The taxes which are the 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 Saint Lucia:
The Income tax (hereinafter referred to as ―Saint
Lucia tax‖).
(2) This Arrangement shall also apply to any other taxes of a
substantially similar character imposed in the United
Kingdom or Saint Lucia after this Arrangement has come
into force.
2.
(1) In this Arrangement, unless the context otherwise
requires—
(a) The term ―United Kingdom‖ means Great Britain
and Northern Ireland, excluding the Channel Islands
and the Isle of Man.
(b) (Repealed by S.I. 25/1968)
(c) The terms ―one of the territories‖ and ―the other
territory‖ mean the United Kingdom or Saint Lucia,
as the context requires.
(d) The term ―tax‖ means United Kingdom tax or Saint
Lucia tax, as the context requires.
(e) The term ―person‖ includes any body of persons,
corporate or not corporate.
(f) The term ―company‖ includes any body corporate.
(g) The terms ―resident of the United Kingdom‖ and
―resident of Saint Lucia‖ mean respectively any
person who is resident in the United Kingdom for
the purposes of United Kingdom tax and not
resident in Saint Lucia for the purposes of Saint
Lucia tax and any person who is resident in Saint
Lucia for the purposes of Saint Lucia 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
177Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
(h)
(i)
(j)
(k)
business is managed and controlled in the United
Kingdom and as resident in Saint Lucia if its
business is managed and controlled in Saint Lucia.
The terms ―resident of one of the territories‖ and
―resident of the other territory‖ mean a person who
is a resident of the United Kingdom or a person who
is a resident of Saint Lucia, as the context requires.
The terms ―United Kingdom enterprise‖ and ―Saint
Lucia 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 Saint Lucia; and the terms
―enterprise of one of the territories‖ and ―enterprise
of the other territory‖ mean a United Kingdom
enterprise or a Saint Lucia enterprise, as the context
requires.
The term ―industrial or commercial profits‖
includes rentals in respect of cinematograph films.
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
178 Cap.15.02 Income Tax (Double Taxation Relief) Laws of Saint Lucia
(United Kingdom) Order
Revision Date: 31 Dec 2008
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.
(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 Saint Lucia, 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, Saint Lucia,
relating to the taxes which are the subject of this
Arrangement.
3.
(1) The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to Saint Lucia tax unless
the enterprise is engaged in trade or business in Saint
Lucia through a permanent establishment situated therein.
If it is so engaged, tax may be imposed on those profits by
Saint Lucia but only on so much of them as is attributable
to that permanent establishment.
(2) The industrial or commercial profits of a Saint Lucia
enterprise shall not be subject to the 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
179Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
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.
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
2 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
180 Cap.15.02 Income Tax (Double Taxation Relief) Laws of Saint Lucia
(United Kingdom) Order
Revision Date: 31 Dec 2008
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 12 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% 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.I.25/1968)
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
181Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
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 Saint Lucia tax on profits or
remuneration in respect of personal (including
professional) services performed within Saint Lucia in
any year of assessment if—
(a) he is present within Saint Lucia 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.
182 Cap.15.02 Income Tax (Double Taxation Relief)
(United Kingdom) Order
Laws of Saint Lucia
Revision Date: 31 Dec 2008
(2) An individual who is a resident of Saint Lucia 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
person resident in Saint Lucia, and
on behalf of a
(c) the profits
Lucia tax.
or remuneration are subject to Saint
(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.
10.
(1) Any pension (other than a pension paid by the
Government of Saint Lucia for services rendered to it in
the discharge of governmental functions) and any annuity,
derived from sources within Saint Lucia by an individual
who is a resident of the United Kingdom and subject to
United Kingdom tax in respect thereof, shall be exempt
from Saint Lucia tax.
(2) Any pension (other than a pension paid by the
Government of the United Kingdom for services rendered
to it in the discharge of governmental functions) and any
annuity, derived from sources within the United Kingdom
by an individual who is a resident of Saint Lucia and
subject to Saint Lucia tax in respect thereof, shall be
exempt from United Kingdom tax.
(3) The term ―annuity‖ means a stated sum payable
periodically at stated times, during life or during a
specified or ascertainable period of time, under an
obligation to make the payments in consideration of
money paid.
11. The remuneration derived by a professor or teacher who is
ordinarily resident in one of the territories, for teaching, during
183Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
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 or tax payable in a territory outside
the United Kingdom (which shall not effect the general
principle hereof)—
(a) Saint Lucia tax payable under the laws of Saint
Lucia and in accordance with this Arrangement,
whether directly or by deduction, on profits or
income from sources within Saint Lucia shall be
allowed as a credit against any United Kingdom tax
computed by reference to the same profits or
income by reference to which Saint Lucia 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 Saint Lucia
pays a dividend to a company resident in the United
Kingdom which controls directly or indirectly at
least 10% of the voting power in the first-mentioned
company, the credit shall take into account (in
addition to any Saint Lucia tax for which credit may
be allowed under (a) of this subparagraph) the Saint
Lucia tax payable by that first-mentioned company
in respect of the profits out of which such dividend
is paid.
(2) Subject to the provisions of the law of Saint Lucia
regarding the allowance as a credit against Saint Lucia tax
184 Cap.15.02 Income Tax (Double Taxation Relief) Laws of Saint Lucia
(United Kingdom) Order
Revision Date: 31 Dec 2008
of tax payable in a territory outside Saint Lucia (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 of by deduction, on
profits or income from sources within the United
Kingdom shall be allowed as a credit against any
Saint Lucia tax computed by reference to which the
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
Saint Lucia which controls directly or indirectly at
least 10% 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
subparagraph) 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 Colonial 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, 1949, then—
(a) in the case of a person resident in Saint Lucia, the
Colonial income tax shall, for the purposes of
185Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
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 section 50 of the Saint
Lucia Income Tax Act, 1948, shall apply for the
purposes of the allowance of relief from the Saint
Lucia tax.
(Amended by S.I. 25/1968)
14.
(1) The taxation authorities of the United Kingdom and Saint
Lucia shall exchange such information (being information
available under their respective taxation laws) as is
necessary for carrying out the provisions of this
Arrangement or for the prevention of fraud or the
administration of statutory provisions against legal
avoidance in relation to the taxes which are the subject of
this Arrangement. Any information so exchanged shall be
treated as secret and shall not be disclosed to any persons
other than those concerned with the assessment and
collection of the taxes which are the subject of this
Arrangement. No information shall be exchanged which
would disclose any trade secret or trade process.
(2) As used in this paragraph, the term ―taxation authorities‖
means the Commissioners of Inland Revenue or their
authorised representative in the case of the United
Kingdom and the Commissioners of Income Tax or their
authorised representative in the case of Saint Lucia.
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 Saint Lucia as are necessary to give the
Arrangement the force of law in the United Kingdom and Saint
Lucia respectively, and shall thereupon have effect—
(a) In the United Kingdom:
as respects income tax, for any year of assessment
beginning on or after 6 April 1949; as respects surtax, for
any year of assessment beginning on or after 6 April
186 Cap.15.02 Income Tax (Double Taxation Relief) Laws of Saint Lucia
(United Kingdom) Order
Revision Date: 31 Dec 2008
1948; and as respects profits tax, in respect of the
following profits—
(i) profits arising in any chargeable accounting period
beginning on or after the 1 April 1949;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is, or but for the present
Arrangement would be, chargeable for any year of
assessment beginning on or after 6 April 1949;
(b) In Saint Lucia:
as respects income tax for the year of assessment
beginning on 1 January 1949, and subsequent years.
16. This Arrangement shall continue in effect indefinitely but either
of the Governments may, on or before 30 June in any calendar
year after the year 1950, 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 April in the calendar year
next following that in which the notice is given; and as
respects surtax, for any year of assessment beginning on
or after the 6th April in the calendar year in which the
notice is given; and as respects profits tax, in respect of
the following profits—
(i) profits arising in any chargeable accounting period
beginning on or after 1 April in the calendar year
next following that in which the notice is given;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date.
(iii) profits not so arising or attributable by reference to
which income tax is chargeable for any year of
assessment beginning on or after 6 April in that next
following calendar year;
187Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (United Kingdom) Order
Revision Date: 31 Dec 2008
(b) In Saint Lucia:
as respects income tax for any year of assessment
beginning on or after 1 January in the calendar year next
following that in which such notice is given.
189Laws of Saint Lucia Income Tax (Double Taxation Relief) Cap.15.02 (Sweden) Order
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INCOME TAX (DOUBLE TAXATION RELIEF)
(SWEDEN) ORDER – SECTION 60
(Statutory Instrument 50/1954)
Commencement [31 December 1954]
WHEREAS it is provided by section 52(1) of the Income Tax Act
194710, that if the Governor General by order declares that
arrangements specified in the order were made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to income tax
despite anything in any enactment;
AND WHEREAS by a Convention dated 30 March 1949 between
His Majesty in respect of the United Kingdom and His Majesty
the King of Sweden, arrangements were made among other
things for the avoidance of double taxation;
AND WHEREAS provision is made in the said Convention for the
extension by means of an exchange of notes between the High
Contracting Parties of the said Convention, subject to such
modifications and conditions (including conditions as to
termination) as may be specified in the exchange of notes, to
any territory, for whose foreign relations the United Kingdom is
responsible, which imposes taxes substantially similar in
character to those which are the subject of the said Convention;
AND WHEREAS by a notification dated 18 December 1953 the
said Convention with certain modifications was applied to Saint
Lucia.
1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(Sweden) Order.
10 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in Schedule 1 to this
Order, as modified by the provisions of Schedule 2 to this
Order have been made with the Government of Sweden;
(b) that it is expedient that those arrangements have effect.
SCHEDULE 1
(Section 2)
CONVENTION BETWEEN HIS MAJESTY IN RESPECT OF THE
UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
AND HIS MAJESTY THE KING OF SWEDEN FOR THE AVOIDANCE
OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO TAXES ON INCOME.
London, 30th March, 1949
His Majesty The King of Great Britain, Ireland and the British
Dominions beyond the Seas and His Majesty the King of
Sweden,
Desiring to conclude a Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
Have appointed for that purpose as their Plenipotentiaries:
His Majesty the King of Great Britain, Ireland and the British
Dominions beyond the Seas:
For the United Kingdom of Great Britain and Northern Ireland:
Sir William Strang, K.C.B., K.C.M.G., M.B.E., Permanent
Under-Secretary of State for Foreign Affairs:
His Majesty the King of Sweden:
His Excellency Monsieur Bo Gunnar Richardson, Hagglof, His
Majesty‘s Ambassador Extraordinary and Plenipotentiary in
London:
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Who, having exhibited their respective full powers, found in
good and due form, have agreed as follows:—
ARTICLE I
1. The taxes which are the subject of the present Convention are—
(a) In Sweden:
The State income tax (including coupon tax) and the tax
on the undistributed profits of companies
(Ersattningsskatt), and, for the purposes of Articles XXII,
paragraph (3), and XXIII to XXV inclusive, the State
capital tax (hereinafter referred to as ―Swedish tax‖).
(b) In the United Kingdom of Great Britain and Northern
Ireland:
The income tax (including surtax) and the profits tax
(hereinafter referred to as ―United Kingdom tax‖).
2. The present Convention shall also apply to any other taxes of a
substantially similar character imposed in the United Kingdom
or Sweden subsequently to the date of signature of the present
Convention.
ARTICLE II
1. In the present Convention, unless the context otherwise
requires—
(a) the term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man;
(b) the terms ―one of the territories‖ and ―the other territory‖
mean the United Kingdom or Sweden, as the context
requires;
(c) the term ―tax‖ means United Kingdom tax or Swedish tax,
as the context requires;
(d) the term ―person‖ includes any body of persons, corporate
or not corporate;
(e) the term ―company‖ means any body corporate;
(f) the terms ―resident of the United Kingdom‖ and ―resident
of Sweden‖ mean respectively any person who is resident
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in the United Kingdom for the purposes of United
Kingdom tax and not resident in Sweden for the purposes
of Swedish tax and any person who is resident in Sweden
for the purposes of Swedish tax and not resident in the
United Kingdom for the purposes of United Kingdom tax;
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 Sweden if it is
incorporated under the laws of Sweden and its business is
not managed and controlled in the United Kingdom, or if
it is not so incorporated but its business is managed and
controlled in Sweden;
(g) the terms ―resident of one of the territories‖ and ―resident
of the other territory‖ mean a person who is a resident of
the United Kingdom or a person who is a resident of
Sweden, as the context requires;
(h) the terms ―United Kingdom enterprise‖ and ―Swedish
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
Sweden, and the terms ―enterprise of one of the
territories‖ and ―enterprise of the other territory‖ mean a
United Kingdom enterprise or a Swedish enterprise, as the
context requires;
(i) the term ―industrial or commercial profits‖ includes rents
or royalties in respect of cinematograph films;
(j) the term ―permanent establishment,‖ when used with
respect to an enterprise of one of the territories, means a
branch, management, factory, or other fixed place of
business, a mine, quarry or any other place of natural
resources subject to exploitation. It also includes a place
where building construction is carried on by contract for a
period of at least one year, but does not include an agency
unless the agent has, and habitually exercises, a general
authority to negotiate and conclude contracts on behalf of
the enterprise or has a stock of merchandise from which
he regularly fills orders on its behalf. In this connection
(i) an enterprise of one of the territories shall not be
deemed to have a permanent establishment in the
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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,
(ii) 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,
(iii) 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 carries on a
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.
2. Where under this Convention 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 Convention in the first-
mentioned territory shall apply only to the amount so remitted
or received.
3. In the application of the provisions of the present Convention of
the High Contracting Parties any term not otherwise defined
shall, unless the context otherwise requires, have the meaning
which it has under the laws in force in the territory of that Party
relating to the taxes which are the subject of the present
Convention.
ARTICLE III
1. The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to Swedish tax unless the
enterprise carries on a trade or business in Sweden through a
permanent establishment situated therein. If it carries on a trade
or business as aforesaid, tax may be imposed on those profits by
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Sweden, but only on so much of them as is attributable to that
permanent establishment.
2. The industrial or commercial profits of a Swedish enterprise
shall not be subject to United Kingdom tax unless the enterprise
carries on a trade or business in the United Kingdom through a
permanent establishment situated therein. If it carries on a trade
or business as aforesaid, 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 carries on a 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 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. Where an enterprise of one of the territories derives profits,
under contracts concluded in that territory, from sales of goods
or merchandise stocked in a warehouse in the other territory for
convenience of delivery and not for purposes of display, those
profits shall not be attributed to a permanent establishment of
the enterprise in that other territory.
5. No portion of any profits arising to 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
goods or merchandise within that other territory by the
enterprise.
ARTICLE IV
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;
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and in either case, conditions are made or imposed between the
2 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.
ARTICLE V
1. The industrial and commercial profits of a Swedish enterprise
shall, so long as undistributed profits of United Kingdom
enterprises are effectively charged to United Kingdom profits
tax at a lower rate than distributed profits of such enterprises, be
charged to United Kingdom profits tax only at that lower rate.
2 Where a company which is a resident of Sweden controls,
directly or indirectly, not less than 50%. of the entire voting
power of a company which is a resident of the United Kingdom,
distributions by the latter company to the former company shall
be left out of account in computing United Kingdom profits tax
effectively chargeable on the latter company at the rate
appropriate to distributed profits.
ARTICLE VI
Notwithstanding the provisions of Articles III, IV, and V,
profits which a resident of one of the territories derives from
operating ships or aircraft shall be exempt from tax in the other
territory.
ARTICLE VII
1.
(a) Dividends paid by a company which is a resident of the
United Kingdom to a resident of Sweden, who is subject
to tax in Sweden in respect thereof and does not carry on
a trade or business in the United Kingdom through a
permanent establishment situated therein, shall be exempt
from United Kingdom surtax.
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(b) The Swedish coupon tax on dividends paid by a company
which is a resident of Sweden to a resident of the United
Kingdom, who is subject to tax in the United Kingdom in
respect thereof and does not carry on a trade or business
in Sweden through a permanent establishment situated
therein, shall not exceed 5%.
Provided that where the resident of the United Kingdom is a
company which controls, directly or indirectly, not less than
50%. of the entire voting power of the company paying the
dividends, the dividends shall be exempt from coupon tax.
2. Where a company which is a resident of one of the territories
derives profits or income from sources within the other
territory, there shall not be imposed in that other territory 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
undistributed profits tax on undistributed profits of the
company, whether or not those dividends or undistributed
profits represent, in whole or in part, profits or income so
derived.
ARTICLE VIII
1. Any interest 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 does not carry on a trade or
business in the first-mentioned territory through a permanent
establishment situated therein, shall be exempt from tax in that
first-mentioned territory.
2. In this Article, the term ―interest‖ includes interest on bonds,
securities, notes, debentures or any other form of indebtedness.
3. Where any interest exceeds a fair and reasonable consideration
in respect of the indebtedness for which it is paid, the
exemption provided by the present Article shall apply only to so
much of the interest as represents such fair and reasonable
consideration.
ARTICLE IX
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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 does not carry on a trade or
business in the first-mentioned territory through a permanent
establishment situated therein, shall be exempt from tax in that
first-mentioned territory.
2. In this Article, 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
any royalty or other amount paid in respect of the operation of a
mine or quarry or of any other extraction of natural resources.
3. Where any royalty exceeds a fair and reasonable consideration
in respect of the rights for which it is paid, the exemption
provided by the present Article shall apply only to so much of
the royalty as represents such fair and reasonable consideration.
4. Any capital sum derived from sources within one of the
territories from the sale of patent rights by a resident of the
other territory who does not carry on a trade or business in the
first-mentioned territory through a permanent establishment
situated therein, shall be exempt from tax in that first-
mentioned territory.
ARTICLE X
1. Income of whatever nature derived from real property within
the territory of the United Kingdom (other than income from
mortgages or bonds secured by real property) by a resident of
Sweden who is subject to tax in the United Kingdom in respect
thereof shall be exempt from tax in Sweden.
2. Any royalty or other amount paid in respect of the operation of
a mine or quarry or of any other extraction of natural resources
within the territory of the United Kingdom to a resident of
Sweden who is subject to tax in the United Kingdom in respect
thereof, shall be exempt from tax in Sweden.
3. Swedish tax payable in respect of income of the kind referred to
in the preceding paragraphs, derived from sources within
Sweden by a resident of the United Kingdom who is liable to
tax in the United Kingdom in respect thereof, shall in
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accordance with Article XIX be allowed as a credit against the
United Kingdom tax payable in respect of that income.
ARTICLE XI
1. Where under the provisions of this Convention a resident of the
United Kingdom is exempt or entitled to relief from Swedish
tax, similar exemption or relief shall be applied to the undivided
estates of deceased persons in so far as one or more of the
beneficiaries is a resident of the United Kingdom.
2. Swedish tax on the undivided estate of a deceased person shall,
in so far as the income accrues to a beneficiary who is resident
in the United Kingdom, be allowed as a credit under Article
XIX.
ARTICLE XII
A resident of one of the territories who does not carry on a trade
or business in the other territory
establishment situated therein shall be
territory from any tax on gains from
exchange of capital assets.
ARTICLE XIII
through a permanent
exempt in that other
the sale, transfer, or
1. Remuneration or pensions paid by, or out of funds created by,
one of the High Contracting Parties to any individual in respect
of services rendered to that Party in the discharge of
governmental functions shall be exempt from tax in the territory
of the other High Contracting Party, unless the individual is a
national of that other Party without being also a national of the
first-mentioned Party.
2. The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the High Contracting Parties for
purposes of profit.
ARTICLE XIV
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1. An individual who is a resident of the United Kingdom shall be
exempt from Swedish tax on profits or remuneration in respect
of personal (including professional) services performed within
Sweden in any year of assessment if—
(a) he is present within Sweden 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 resident of
the United Kingdom, and
(c) the profits of remuneration are subject to United Kingdom
tax.
2. An individual who is a resident of Sweden 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 resident of
Sweden, and
(c) the profits or remuneration are subject to Swedish tax.
3. The provisions of this Article shall not apply to the profits or
remuneration of public entertainers such as theatre, motion
picture or radio artists, musicians and athletes.
ARTICLE XV
1. Any pension (other than a pension of the kind referred to in
paragraph 1 of Article XIII) and any annuity, derived from
sources within Sweden by an individual who is a resident of the
United Kingdom and subject to United Kingdom tax in respect
thereof, shall be exempt from Swedish tax.
2. Any pension (other than a pension of the kind referred to in
paragraph 1 of Article XIII) and any annuity, derived from
sources within the United Kingdom by an individual who is a
resident of Sweden and subject to Swedish tax in respect
thereof, shall be exempt from the United Kingdom tax.
3. The term ―annuity‖ means a stated sum payable periodically at
stated times, during life or during a specified or ascertainable
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period of time, under an obligation to make the payments in
return for adequate and full consideration in money or money‘s
worth.
ARTICLE XVI
A professor or teacher from one of the territories, who receives
remuneration for teaching, during a period of temporary
residence not exceeding 2 years, at a university, college or other
establishment for further education in the other territory, shall
be exempt from tax in that other territory in respect of that
remuneration.
ARTICLE XVII
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.
ARTICLE XVIII
1. Individuals who are residents of Sweden shall be entitled to the
same personal allowances, reliefs and reductions for the
purposes of United Kingdom tax as British subjects not resident
in the United Kingdom.
Individuals who are residents of the United Kingdom shall be
entitled to the same personal allowances, reliefs and reductions
for the purposes of Swedish tax as those to which Swedish
nationals not resident in Sweden may be entitled.
ARTICLE XIX
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,
Swedish tax payable under the laws of Sweden and in
accordance with this Convention, whether directly or by
deduction, in respect of income from sources within Sweden
shall be allowed as a credit against any United Kingdom tax
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payable in respect of that income. Where such income is an
ordinary dividend paid by a company which is a resident of
Sweden the credit shall take into account (in addition to any
Swedish tax appropriate to the dividend) the Swedish tax
payable by the company in respect of its profits; and, where it is
a dividend paid on participating preference shares and
representing both a dividend at the fixed rate to which the
shares are entitled and an additional participation in profits, the
Swedish tax so payable by the Company shall likewise be taken
into account in so far as the dividend exceeds that fixed rate.
2. Income from sources within the United Kingdom which under
the laws of the United Kingdom and in accordance with this
Convention is subject to tax in the United Kingdom either
directly or by deduction shall be exempt from Swedish tax:
Provided that where such income is a dividend paid by a
company being a resident of the United Kingdom to a person
resident in Sweden, not being a company, whether or not he is
also resident in the United Kingdom, Swedish tax may be
charged on the amount of the dividend after deduction of
United Kingdom income tax, but the amount of Swedish tax
chargeable shall be reduced by a sum equal to 20%. of the
amount of the dividend so charged.
3. Where income is derived from sources outside both the United
Kingdom and Sweden by a person who is resident in the United
Kingdom for the purposes of United Kingdom tax and also
resident in Sweden for the purposes of Swedish tax, the income
may be taxed in both countries (subject to any Convention
which may exist between either of the High Contracting Parties
and the territory or territories from which the income is
derived), but the Swedish tax on that income shall be limited to
tax on the proportion of such income represented by the
proportion which such person‘s income from sources in Sweden
bears to the sum of his income from sources in Sweden and of
his income from sources in the United Kingdom, and the United
Kingdom tax on that income shall be reduced by a credit, in
accordance with paragraph 1 of this Article, for the Swedish tax
on the proportion of that income so computed.
4. The special tax payable in Sweden by public entertainers such
as theatre and radio artists, musicians and athletes
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(bevillningsavgift för vissa offentliga f‖restallningar) shall be
regarded, for the purposes of this Article, as Swedish tax.
5. For the purposes of this Article, 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.
6. That graduated rate of Swedish tax to be imposed on residents
of Sweden may be calculated as though income exempted under
this Convention were included in the amount of the total
income.
ARTICLE XX
1. The taxation authorities of the High Contracting Parties shall
exchange such information (being information which is at their
disposal under their respective taxation laws in the normal
course of administration) as is necessary for carrying out the
provisions of the present Convention or for the prevention of
fraud or for the administration of statutory provisions against
legal avoidance in relation to the taxes which are the subject of
the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any person other
than those concerned with the assessment and collection of the
taxes which are the subject of the present Convention. No
information as aforesaid shall be exchanged which would
disclose any trade, business, industrial or professional secret or
trade process.
2. As used in these Articles, the term ―taxation authorities‖ means,
in the case of the United Kingdom, the Commissioners of
Inland Revenue; in the case of Sweden, the Finance Ministry;
and, in the case of any territory to which the present Convention
is extended under Article XXIII, the competent authority for the
administration in such territory of the taxes to which the present
Convention applies.
ARTICLE XXI
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The following agreements between the United Kingdom and
Sweden shall not have effect for any period for which the
present Convention has effect, that is to say—
(a) the agreement dated 19th December, 1924 (1) for the
reciprocal exemption from income tax in certain cases of
profits accruing from the business of shipping;
(b) the agreement dated 6th July, 1931, (2) for the reciprocal
exemption from taxes in certain cases of profits arising
through agencies.
ARTICLE XXII
1. The nationals of one of the High Contracting Parties shall not
be subjected in the territory of the other High Contracting Party
to any taxation or any requirements connected therewith which
is other, higher, or more burdensome than the taxation and
connected requirements for which the nationals of the latter
Party are or may be subjected.
2. The enterprises of one of the territories shall not be subject in
the other territory, in respect of profits attributable to their
permanent establishments in that other territory, to any taxation
which is other, higher or more burdensome than the taxation to
which the enterprises of that other territory are or may be
suspected in respect of the like profits.
3. An individual or company being a resident of one of the
territories shall not be subject to any tax on capital in the other
territory which is other, higher or more burdensome than the tax
on capital to which an individual or, as the case may be, a
company, being a resident of that other territory is or may be
subjected.
4. Nothing in paragraph 1 or paragraph 2 of this Article shall be
construed as obliging one of the High Contracting Parties to
grant to nationals of the other High Contracting Party who are
not resident in the territory of the former Party the same
personal allowances, reliefs and reductions for tax purposes as
are granted to his own nationals.
5. In this Article the term ―nationals‖ means—
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(a) in relation to Sweden, all Swedish subjects and all legal
persons, partnerships and associations deriving their
status as such from the law in force in Sweden;
(b) in relation to the United Kingdom, all British subjects and
British-protected persons residing in the United Kingdom
or any British territory to which the present Convention
applies by reason of extension made under Article XXIII
and all legal persons, partnerships and associations
deriving their status as such from the law in force in any
British territory to which the present Convention applies.
6. In this Article the term ―taxation‖ means taxes of every kind
and description levied on behalf of any authority whatsoever.
ARTICLE XXIII
1. The present Convention may be extended, either in its entirety
or with modifications, to any territory for whose foreign
relations the United Kingdom is responsible and which imposes
taxes substantially similar in character to those which are the
subject of the present Convention, and any such extension shall
take effect from such date and subject to such modifications and
conditions (including conditions as to termination) as may be
specified and agreed between the High Contracting Parties in
notes to be exchanged for this purpose.
2. The termination in respect of Sweden or the United Kingdom of
the present Convention under Article XXV shall, unless
otherwise expressly agreed by both High Contracting Parties,
terminate the application of the present Convention to any
territory to which the Convention has been extended under this
Article.
ARTICLE XXIV
1. The present Convention shall be ratified by the High
Contracting Parties. Ratification by His Majesty the King of
Sweden shall be subject to the consent of the Riksdag.
2. The instruments of ratification shall be exchanged at Stockholm
as soon as possible.
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3. Upon exchange of ratifications the present Convention shall
have effect—
(a) In Sweden:
as respects tax on income which is assessed in or after the
calendar year beginning on 1st January, 1950, being
income for which preliminary tax is payable during the
period 1st March, 1949, to 28th February, 1950; or any
succeeding period;
as respects coupon tax payable on or after 1st January
1949;
as respects capital tax which is assessed in or after the
calendar year beginning on 1st January, 1950.
(b) In the United Kingdom:
as respects income tax for any year of assessment
beginning on or after 6th April, 1949;
as respects surtax for any year of assessment beginning on
or after 6th April, 1948; and
as respects profits tax in respect of the following
profits:—
(i) profits arising in any chargeable accounting period
beginning on or after 1st April, 1949;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is, or but for the present
Convention would be chargeable for any year of
assessment beginning on or after 6th April, 1949.
ARTICLE XXV
The present Convention shall continue in effect indefinitely but
either of the High Contracting Parties may, on or before 30th
June in any calendar year not earlier than the year 1953, give to
the other High Contracting Party, through diplomatic channels,
written notice of termination and, in such event, the present
Convention shall cease to be effective—
(a) In Sweden:
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as respects tax on income for which preliminary tax is
payable after the last day of February in the calendar year
next following that in which the notice is given;
as respects coupon tax payable on or after 1st January in
the calendar year next following that in which the notice
is given.
as respects capital tax assessed in or after the second
calendar year following that in which the notice is given.
(b) In the United Kingdom:
as respects income tax for any year of assessment
beginning on or after 6th April in the calendar year next
following that in which the notice is given;
as respects surtax for any year of assessment beginning on
or after 6th April in the calendar year in which the notice
is given; and
as respects profits tax in respect of the following
profits:—
(i) profits arising in any chargeable accounting period
beginning on or after 1st April in the calendar year
next following that in which the notice is given;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is chargeable for any year of
assessment beginning on or after 6th April in the
next following calendar year.
In witness whereof the above-mentioned plenipotentiaries have
signed the present Convention and have affixed thereto their
seals.
Done at London, in duplicate, in the English and Swedish
languages, both texts being equally authentic, on the thirtieth
day of March, one thousand nine hundred and forty-nine.
(L.S.) WILLIAM STRANG
(L.S.) GUNNAR HAGGLOF.
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SCHEDULE 2
(Section 2)
1. APPLICATION
(1) The provisions of the Convention incorporated in Schedule 1 to
this Order shall apply as modified below—
(a) as if the contracting parties were Saint Lucia and the
Government of Sweden; and as if the tax concerned in the
case of Saint Lucia were income tax;
(b) as if references to the date of signature were references to
18 December 1953.
(2) The extension
(a) has effect in Saint Lucia as respects tax for the year of
assessment beginning in the calendar year next following
the date of this Order and for subsequent years of
assessment; and
(b) has effect in Sweden—
as respects Swedish tax on income for which preliminary
tax is payable after the last day of February in the
calendar year next following the date of this Order;
as respects Swedish coupon tax payable on or after 1
January in the calendar year next following the date of
this Order;
as respects Swedish capital tax assessed in or after the
second calendar year next following that date.
(3) The extension continues in effect indefinitely but may be
terminated as respects Saint Lucia by written notice of
termination given on or before 30 June in any calendar year by
either of the High Contracting Parties to the Convention to the
other High Contracting Party through the diplomatic channel
and in such event the extension—
(a) ceases to have effect in Saint Lucia as respects tax for the
year of assessment beginning in the calendar year next
following the date of such notice and for subsequent years
of assessment; and
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(b) ceases to have effect in Sweden as respects Swedish tax
on income for which preliminary tax is payable after the
last day of February in the calendar year next following
that in which the notice is given, as respects Swedish
coupon tax payable on or after 1 January in the calendar
year next following that in which the notice is given, and
as respects Swedish capital tax assessed in or after the
second calendar year next following that in which the
notice is given.
2. MODIFICATIONS
(1) In article VII(1) of the Convention the words ―exempt from
United Kingdom Surtax‖ shall be understood for the purposes
of this extension as though they read ―is not liable to tax in the
territory at a rate in excess of the rate applicable to a company‖.
(2) Article VIII is considered to be deleted.
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INCOME TAX (DOUBLE TAXATION RELIEF)
(CANADA) ORDER – SECTION 60
(Statutory Instrument 19/1953)
Commencement [4 April 1953]
WHEREAS it is provided by section 52(1) of the Income Tax
Act, 194711 that if the Governor General by order declares that
arrangements specified in the order have been made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to income tax
despite anything in any enactment;
AND WHEREAS by an Agreement dated 5 June 1946, between
the Government of the United Kingdom and the Government of
Canada, arrangements were made, among other things, for the
avoidance of double taxation;
AND WHEREAS provision is made in the said Agreement for the
application by means of a notification of extension given to the
other Government by either of the said Governments of the said
Agreement to all or any of its colonies, overseas territories,
protectorates or territories in respect of which it exercises a
mandate or trusteeship, that impose taxes substantially similar
in character to those that are the subject of the said Agreement:
AND WHEREAS by a notification dated 9 May 1952, the said
Agreement was applied to Saint Lucia.
1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(Canada) Order.
11 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in the Schedule to this
Order subsist between the Government of Saint Lucia and
the Government of Canada in manner provided by Article
XV of the Schedule to this Order;
(b) that it is expedient that those arrangements have effect
subject to modification of Article VI(3) of the Agreement
contained in the Schedule to this Order substituting for
the words ―shall be exempt from United Kingdom surtax‖
of the words ―is not liable to tax in Saint Lucia at a rate in
excess of the rate applicable to a company‖.
SCHEDULE
(Section 2)
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED
KINGDOM AND THE GOVERNMENT OF CANADA FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of Canada, desiring to
conclude an agreement for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income,
have agreed as follows—
ARTICLE I
(1) The taxes which are the subject of the present Agreement are—
(a) In Canada:
The income taxes, including surtaxes and excess profits
tax imposed by Canada (hereinafter referred to as
―Canadian tax‖).
(b) In the United Kingdom:
The income tax (including surtax), the excess profits tax
and the national defence contribution (hereinafter referred
to as ―United Kingdom tax‖).
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(2) The present Agreement shall also apply to any other taxes of a
substantially similar character imposed by either Contracting
Government subsequently to the date of signature of the present
Agreement or by the Government of any territory to which the
present Agreement is extended under Article XV.
ARTICLE II
(1) In the present Agreement, unless the context otherwise
requires—
(a) The term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man.
(b) The terms ―one of the territories‖ and ―the other territory‖
mean the United Kingdom or Canada, as the context
requires.
(c) The term ―tax‖ means United Kingdom tax or Canadian
tax, as the context requires.
(d) The term ―person‖ includes any body of persons,
corporate or not corporate.
(e) The term ―company‖ includes any body corporate.
(f) The terms ―resident of the United Kingdom‖ and
―resident of Canada‖ mean respectively any person who is
resident in the United Kingdom for the purposes of
United Kingdom tax and not resident in Canada for the
purposes of Canadian tax and any person who is resident
in Canada for the purposes of Canadian 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
Canada if its business is managed and controlled in
Canada.
(g) The terms ―resident of one of the territories‖ and ―resident
of the other territory‖ mean a person who is a resident of
the United Kingdom or a person who is a resident of
Canada, as the context requires.
(h) The terms ―United Kingdom enterprise‖ and ―Canadian
enterprise‖ mean respectively an industrial or commercial
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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
Canada; and the terms ―enterprise of one of the
territories‖ and ―enterprise of the other territory‖ mean a
United Kingdom enterprise or a Canadian enterprise, as
the context requires.
(i) The term ―permanent establishment‖ when used with
respect to an enterprise of one of the territories, means a
branch 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.
(2) The term ―industrial or commercial profits‖, as used in the
present Agreement, does not include income in the form of
dividends, interest, rents or royalties, management charges, or
remuneration for labour or personal services.
(3) In the application of the provisions of the present Agreement by
one of the Contracting Governments any term not otherwise
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defined shall, unless the context otherwise requires, have the
meaning which it has under the laws of that Contracting
Government relating to the taxes which are the subject of the
present Agreement.
ARTICLE III
(1) The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to a Canadian tax unless the
enterprise is engaged in trade or business in Canada through a
permanent establishment situated therein. If it so engaged, tax
may be imposed on those profits by Canada, but only on so
much of them as is attributable to that permanent establishment.
(2) The industrial or commercial profits of a Canadian 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; Provided that nothing in this paragraph shall
affect any provisions of the law of the United Kingdom
regarding the imposition of excess profits tax and national
defence contribution in the case of inter-connected companies.
(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 such
permanent establishment the industrial or commercial profits
which it might be expected to derive 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
deemed to arise in the other territory by reason of the mere
purchase of the goods or merchandise within that other
territory.
(5) 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
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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.
ARTICLE IV
Where—
(a) an enterprise of one of the territories 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
2 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.
ARTICLE V
Notwithstanding the provisions of Articles III and IV, profits
which a resident of one of the territories derives from operating
ships or aircraft shall be exempt from tax in the other territory.
ARTICLE VI
(1) The rate of Canadian tax on income (other than earned income)
derived from sources within Canada by a resident of the United
Kingdom who is subject to United Kingdom tax in respect
thereof and not engaged in trade or business in Canada through
a permanent establishment situated therein, shall not exceed
15%.
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(2) Notwithstanding the provisions of the foregoing paragraph,
dividends paid to a company which is a resident of the United
Kingdom by a Canadian company, all of whose shares (less
directors‘ qualifying shares) which have under all
circumstances full voting rights are beneficially owned by the
former company, shall be exempt from Canadian Tax.
Provided that exemption shall not be allowed if ordinarily more
than one-quarter of the gross income of the Canadian company
is derived from interest and dividends other than interest and
dividends from any wholly-owned subsidiary company.
(3) Income (other than earned income) derived from sources within
the United Kingdom by an individual who is a resident of
Canada, subject to Canadian tax in respect of the income, and
not engaged in trade or business in the United Kingdom through
a permanent establishment situated therein, shall be exempt
from United Kingdom surtax.
ARTICLE VII
Copyright royalties and other like payments made in respect of
the production or reproduction of any literary, dramatic,
musical or artistic work (but not including rents or royalties in
respect of motion picture films) and derived from sources
within one of the territories by a resident of the other territory
who is liable 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 tax in that first-mentioned territory.
ARTICLE VIII
(1) Remuneration (other than pensions) paid by one of the
Contracting Governments to any individual for services
rendered to that Contracting Government in the discharge of
governmental functions shall be exempt from tax in the territory
of the other Contracting Government if the individual is not
ordinarily resident in that territory or is ordinarily resident in
that territory solely for the purpose of rendering those services.
(2) Any pension paid by one of the Contracting Governments to
any individual for services rendered to that Contracting
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Government in the discharge of governmental functions shall be
exempt from tax in the territory of the Contracting Government,
if immediately prior to the cessation of those services the
remuneration therefor was exempt from tax in that territory,
whether under paragraph (1) of this Article or otherwise, or
would have been exempt under that paragraph if the present
Agreement had been in force at the time when the remuneration
was paid.
(3) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the Contracting Governments
for purposes of profit.
ARTICLE IX
(1) An individual who is a resident of the United Kingdom shall be
exempt from Canadian tax on profits or remuneration in respect
of personal (including professional) services performed within
Canada in any taxation year if—
(a) he is present within Canada 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 Canada 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 Canada, and
(c) the profits or remuneration are subject to Canadian tax.
(3) The provisions of this Article shall not apply to the profits or
remuneration of public entertainers such as stage, motion
picture or radio artists, musicians and athletes.
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ARTICLE X
(1) Any pension (other than a pension paid by the Government of
Canada for services rendered to it in the discharge of
governmental functions) and any annuity, derived from sources
within Canada by an individual who is a resident of the United
Kingdom and subject to United Kingdom tax in respect thereof,
shall be exempt from Canadian tax.
(2) Any pension (other than a pension paid by the Government of
the United Kingdom for services rendered to it in the discharge
of governmental functions) and any annuity, derived from
sources within the United Kingdom by an individual who is a
resident of Canada and subject to Canadian tax in respect
thereof, shall be exempt from United Kingdom tax.
(3) The term ―annuity‖ means a stated sum payable periodically at
stated times, during life or during a specified or ascertainable
period of time, under an obligation to make the payments in
consideration of money paid.
ARTICLE XI.
A professor or teacher from one of the territories who receives
remuneration 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 in respect of that
remuneration.
ARTICLE XII
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.
ARTICLE XIII
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(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,
Canadian tax payable in respect of income from sources within
Canada shall be allowed as a credit against any United
Kingdom tax payable in respect of that income. Where such
income is an ordinary dividend paid by a Canadian debtor, the
credit shall take into account (in addition to any Canadian
income tax chargeable directly or by deduction in respect of the
dividend) the Canadian income tax payable in respect of its
profits by the company paying the dividend, and where it is a
dividend paid on participating preference shares and
representing both a dividend at a fixed rate to which the shares
are entitled and an additional participation in profits, the
Canadian income tax so payable by the company shall likewise
be taken into account in so far as the dividend exceeds that
fixed rate.
(2) For the purposes of the foregoing paragraph and of the
aforesaid provisions of the law of the United Kingdom, so much
of the tax chargeable under the law of Canada relating to excess
profits tax as is chargeable otherwise than by reference to
excess profits shall be treated as income tax and not as excess
profits tax.
(3) Subject to the provisions of the law of Canada regarding the
deduction from tax payable in Canada of tax paid in a territory
outside Canada, United Kingdom tax payable in respect of
income from sources within the United Kingdom shall be
deducted from any Canadian tax payable in respect of that
income. Where such income is an ordinary dividend paid by a
company resident in the United Kingdom, the deduction shall
take into account (in addition to any United Kingdom income
tax appropriate to the dividend) the United Kingdom national
defence contribution payable by the company in respect of its
profits, and where it is a dividend paid on participating
preference shares and representing both a dividend at the fixed
rate to which the shares are entitled and an additional
participation in profits, the national defence contributions so
payable by the company shall likewise be taken into account in
so far as the dividend exceeds that fixed rate.
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(4) For the purposes of this Article, 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.
ARTICLE XIV
(1) The taxation authorities of the Contracting Governments shall
exchange such information (being information available under
the respective taxation laws of the Contracting Governments) as
is necessary for carrying out the provisions of the present
Agreement or for the prevention of fraud or the administration
of statutory provisions against legal avoidance in relation to the
taxes which are the subject of the present Agreement. Any
information so exchanged shall be treated as secret and shall not
be disclosed to any persons other than those concerned with the
assessment and collection of the taxes which are the subject of
the present Agreement. No information shall be exchanged
which would disclose any trade secret or trade process.
(2) The taxation authorities of the Contracting Governments may
consult together as may be necessary for the purpose of
carrying out the provisions of the present Agreement and, in
particular, the provisions of Articles III and IV.
(3) As used in this Article, the term ―taxation authorities‖ means, in
the case of Canada, the Minister of National Revenue or his
authorised representative; in the case of the United Kingdom,
the Commissioners of Inland Revenue or their authorised
representative; and, in the case of any territory to which the
present Agreement is extended under Article XV, the competent
authority for the administration in such territory of the taxes to
which the present Agreement applies.
ARTICLE XV
(1) Either of the Contracting Governments may, on the coming into
force of the present Agreement or at any time thereafter while it
continues in force, by a written notification of extension given
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to the other Contracting Government, declare its desire that the
operation of the present Agreement shall extend, subject to such
modification as may be necessary, to all or any of its colonies,
overseas territories, protectorates, or territories in respect of
which it exercises a mandate or trusteeship, which impose taxes
substantially similar in character to those which are the subject
of the present Agreement. The present Agreement shall, subject
to such modifications (if any) as may be specified in the
notification, apply to the territory or territories named in such
notification on the date or dates specified in the notification (not
being less than 60 days from the date of the notification) or, if
no date is specified in respect of any such territory, on the
sixtieth day after the date of the notification, unless prior to the
date on which the Agreement would otherwise become
applicable to a particular territory, the Contracting Government
to whom notification is given shall have informed the other
Contracting Government in writing that it does not accept the
notification as to that territory. In the absence of such extension,
the present Agreement shall not apply to any such territory.
(2) At any time after the expiration of one year from the entry into
force of an extension under paragraph (1) of this Article, either
of the Contracting Governments may, by written notice of
termination given to the other Contracting Government,
terminate the application of the present Agreement to any
territory to which it has been extended under paragraph (1), and
in that event the present Agreement shall cease to apply, 6
months after the date of the notice, to the territory or territories
named therein, but without affecting its continued application to
Canada, the United Kingdom or to any other territory to which
it has been extended under paragraph (1) hereof.
(3) In the application of the present Agreement in relation to any
territory to which it is extended by notification by the United
Kingdom or Canada, references to the ―United Kingdom‖ or, as
the case may be, ―Canada‖ shall be construed as references to
that territory.
(4) The termination in respect of Canada or the United Kingdom of
the present Agreement under Article XVIII shall, unless
otherwise expressly agreed by both Contracting Governments,
terminate the application of the present Agreement to any
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territory to which the Agreement has been extended by Canada
or the United Kingdom.
(5) The provisions of the preceding paragraphs of this Article shall
apply to the Channel Islands and the Isle of Man as if they were
colonies of the United Kingdom.
ARTICLE XVI
The present Agreement shall come into force on the date on
which the last of all such things shall have been done in the
United Kingdom and Canada as are necessary to give the
Agreement the force of law in the United Kingdom and Canada
respectively, and shall thereupon have effect—
(a) in Canada as respects income taxes, including surtaxes,
for the taxation year 1946 and subsequent years, and as
respects excess profits tax for any fiscal period beginning
on or after the first day of January, 1946, and for the
unexpired portion of any fiscal period current at that date;
(b) in the United Kingdom, as respects income tax for the
year of assessment beginning on the 6th day of April,
1946, and subsequent years; as respects surtax for the year
of assessment beginning on the 6th day of April, 1945,
and subsequent years; and as respects excess profits tax
and national defence contribution for any chargeable
accounting period beginning on or after the first day of
January, 1946, and for unexpired portion of any
chargeable accounting period current at that date.
ARTICLE XVII
The present Agreement shall be deemed to have superseded the
Agreements made on the 8th day of May, 1930, and the 3rd day
of October, 1935, between the Government of the United
Kingdom and the Government of Canada for reciprocal
exemption from income tax in certain cases of profits accruing
from the business of shipping and profits or gains accruing
through an agency respectively, and those Agreements shall
cease to have effect—
(a) in Canada, for the taxation year 1946 and subsequent
years;
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(b) in the United Kingdom, as respects income tax for the
year of assessment beginning on the 6th day of April,
1946, and subsequent years, and as respects surtax for the
year of assessment beginning on the 6th day of April,
1945, and subsequent years.
ARTICLE XVIII
(1) The present Agreement shall continue in effect indefinitely but
either of the Contracting Governments may, on or before the
30th day of June in any calendar year after the year 1947, give
notice of termination to the other Contracting Government and,
in such event, the present Agreement shall cease to be
effective—
(a) in Canada, as respects income taxes, including surtaxes,
for any taxation year ending in or after the calendar year
next following that in which such notice is given, and as
respects excess profits tax for any fiscal 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 fiscal period current at that
date;
(b) 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 excess profits tax or national defence
contribution 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.
(2) The termination of the present Agreement shall not have the
effect of reviving any agreement or arrangement abrogated by
the present Agreement or by agreements previously concluded
between the Contracting Governments.
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IN WITNESS thereof the undersigned, duly authorised thereto,
have signed the present Agreement and have affixed thereto
their seals.
Done at London, in duplicate, on the fifth day of June, one
thousand nine hundred and forty-six.
For the Government of the United Kingdom:
[L.S.]
Hugh Dalton.
For the Government of Canada:
[L.S.]
W. L. Mackenzie King.
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INCOME TAX (DOUBLE TAXATION RELIEF)
(DENMARK) ORDER – SECTION 60
(Statutory Instrument appearing in volume 7, page 1106 of the 1957 Revision of the
Laws of Saint Lucia)
WHEREAS it is provided by section 52(1) of the Income Tax
Act, 194712 that if the Governor General by order declares that
arrangements specified in the order were made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to income tax
despite anything in any enactment;
AND WHEREAS by a Convention dated 27 March 1950, between
the Government of the United Kingdom and the Government of
Denmark arrangements were made among other things for the
avoidance of double taxation;
AND WHEREAS provision is made in the said Convention for the
extension by means of an exchange of notes between the High
Contracting Parties of the said Convention, subject to such
modifications and conditions (including conditions as to
termination) as may be specified in the exchange of notes, to
any territory, for whose international relations the United
Kingdom is responsible, which imposes taxes substantially
similar in character to those which are the subject of the said
Convention;
AND WHEREAS by an Exchange of Notes dated respectively 18
November and 22 December 1954 the said Convention with
certain modifications was applied to Saint Lucia.
12 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(Denmark) Order.
2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in Schedule 1 to this
Order, as modified by the provisions of Schedule 2 to this
Order, have been made with the Government of Denmark;
(b) that it is expedient that those arrangements have effect.
SCHEDULE 1
(Section 2)
CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED
KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE
GOVERNMENT OF THE KINGDOM OF DENMARK FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the Kingdom of
Denmark,
Desiring to conclude a Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
Have appointed for that purpose as their Plenipotentiaries:
The Government of the United Kingdom of Great Britain and
Northern Ireland:
The Right Honourable Ernest Bevin, M.P., Principal Secretary
of State for Foreign Affairs;
The Government of the Kingdom of Denmark:
His Excellency Count Eduard Reventlow; Ambassador Extra-
ordinary and Plenipotentiary of Denmark in London;
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Who, having exhibited their respective full powers, found in
good and due form, have agreed as follows—
ARTICLE I
1. The taxes which are the subject of the present Convention are:
(a) In Denmark: The national income tax (including the
extraordinary company tax) (hereinafter referred to as
―Danish tax‖).
(b) In the United Kingdom of Great Britain and Northern
Ireland: The income tax (including surtax) and the profits
tax (hereinafter referred to as ―United Kingdom tax‖).
2. The present Convention shall also apply to any other taxes of a
substantially similar character imposed in Denmark or the
United Kingdom subsequently to the date of signature of the
present Convention.
ARTICLE II
1. In the present Convention, unless ‗the context otherwise
requires:
(a) The term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man;
(b) The term ―Denmark‖ means the Kingdom of Denmark,
excluding the Faroe Islands and Greenland;
(c) The terms ―one of the territories‖ and ―the other territory‖
mean the United Kingdom of Denmark, as the context
requires;
(d) The term ―tax‖ means United Kingdom tax or Danish tax,
as the context requires;
(e) The term ―person‖ includes any body of persons,
corporate or not corporate;
(f) The term ―company‖ means any body corporate;
(g) The terms ―resident of the United Kingdom‖ and
―resident of Denmark‖ mean respectively any person who
is resident in the United Kingdom for the purposes of
United Kingdom tax and not resident in Denmark for the
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purposes of Danish tax, and any person who is resident in
Denmark for the purposes of Danish tax and not resident
in the United Kingdom for the purpose of United
Kingdom tax; 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
Denmark if its business is managed and controlled in
Denmark;
(h) The terms ―resident of one of the territories‖ and ―resident
of the other territory‖ mean a person who is a resident of
the United Kingdom or a person who is a resident of
Denmark, as the context requires;
(i) The terms ―United Kingdom enterprise‖ and ―Danish
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
Denmark, and the terms ―enterprise of one of the
territories‖ and ―enterprise of the other territory‖ mean a
United Kingdom enterprise or a Danish enterprise, as the
context requires;
(j) The term ―industrial or commercial profits‖ includes rents
or royalties 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, factory, 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. In this connection—
(i) 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 bono fide
broker or general commission agent acting in the
ordinary course of his business as such;
(ii) The fact that an enterprise of one of the territories
maintains in the other territory a fixed place of
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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;
(iii) 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 carries on a
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.
2. Where under this Convention 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 only to the amount
thereof which is remitted to or received in that other territory,
the exemption to be allowed under this Convention in the first-
mentioned territory shall apply only to the amount so remitted
or received.
3. In the application of the provisions of the present Convention
by one of the High Contracting Parties any term not otherwise
defined shall, unless the context otherwise requires, have the
meaning which it has under the laws in force in the territory of
that Party relating to the taxes which are the subject of the
present Convention.
ARTICLE III
1. The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to Danish tax unless the
enterprise carries on a trade or business in Denmark through a
permanent establishment situated therein. If it carries on a trade
or business as aforesaid, tax may be imposed on those profits by
Denmark, but only on so much of them as is attributable to that
permanent establishment.
2. The industrial or commercial profits of a Danish enterprise shall
not be subject to United Kingdom tax unless the enterprise
carries on a trade or business in the United Kingdom through a
permanent establishment situated therein. If it carries on a trade
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or business as aforesaid, 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 carries on a 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 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. Where an enterprise of one of the territories derives profits,
under contracts concluded in that territory, from sales of goods
or merchandise stocked in a warehouse in the other territory for
convenience of delivery and not for purposes of display, those
profits shall not be attributed to a permanent establishment of
the enterprise in that other territory, notwithstanding that the
offers of purchase have been obtained by an agent in that other
territory and transmitted by him to the enterprise for
acceptance.
5. No portion of any profits arising to an enterprise of one of the
territories shall be attributable to a permanent establishment
situated in the other territory by reason of the mere purchase of
goods or merchandise within that other territory by the
enterprise.
ARTICLE IV
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 in either case, conditions are made or imposed between the
2 enterprises, in their commercial or financial relations, which
differ from those which would be made between independent
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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.
ARTICLE V
1. The industrial and commercial profits of a company which is a
resident of Denmark shall, so long as undistributed profits of
United Kingdom enterprises are effectively charged to United
Kingdom Profits Tax at a lower rate than distributed profits of
such enterprises, be charged to United Kingdom Profits Tax
only at that lower rate.
2. Where a company which is a resident of Denmark controls,
directly or indirectly, not less than 50%, of the entire voting
power of a company which is a resident of the United Kingdom,
distributions by the latter company to the former company shall
be left out of account in computing United Kingdom Profits
Tax effectively chargeable on the latter company at the rate
appropriate to distributed profits.
3. If the industrial and commercial profits of a company which is a
resident of the United Kingdom become chargeable to a form of
Danish tax under which, in the case of companies which are
residents of Denmark, the undistributed or undistributable
income is charged to tax at a lower rate than the distributed or
distributable income of such companies, these industrial and
commercial profits shall be charged to Danish tax only at the
lower rate.
4. Where a company which is a resident of the United Kingdom
beneficially owns not less than 50%, of the entire ordinary
share capital of a company which is a resident of Denmark,
distributed or distributable income payable by the latter
company to the former company shall be left out of account in
computing the liability of the latter company to Danish tax at
any higher rate appropriate to distributed or distributable
income, and this shall apply, in particular, in computing the
liability of the latter company to that part of the Danish
extraordinary tax on companies known as Udbytterate.
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ARTICLE VI
1. Notwithstanding the provisions of Articles III, IV and V, profits
which a resident of one of the territories derives from operating
ships or aircraft shall be exempt from tax in the other territory.
2. The Agreement dated 18th December, 1924, between the
United Kingdom and Denmark for the reciprocal exemption
from Income Tax in certain cases of profits accruing from the
business of shipping shall not have effect for any year or period
for which the present Convention has effect.
ARTICLE VII
1.
(a) Dividends paid by a company which is a resident of the
United Kingdom to a resident of Denmark, who is subject
to tax in Denmark in respect thereof and does not carry on
a trade or business in the United Kingdom through a
permanent establishment situated therein, shall be exempt
from United Kingdom surtax.
(b) Dividends paid by a company which is a resident of
Denmark to a resident of the United Kingdom, who is
subject to tax in the United Kingdom in respect thereof
and does not carry on a trade or business in Denmark
through a permanent establishment situated therein, shall
not be chargeable to tax in addition to the tax on the
profits out of which the dividends are paid at a rate
exceeding 5%.: Provided that where the resident of the
United Kingdom is a company which beneficially owns
not less than 50%, of the entire ordinary share capital of
the company paying the dividends, the dividends shall be
exempt from any such tax on dividends.
2. Where a company which is a resident of one of the territories
derives profits or income from sources within the other
territory, there shall not be imposed in that other territory 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
undistributed profits tax on undistributed profits of the
company, whether or not those dividends or undistributed
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profits represent, in whole or in part, profits or income so
derived.
ARTICLE VIII
1. Any interest or 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 does not carry
on a 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 in respect of interest paid by a company which is a
resident of one of the territories to a company which is a
resident of the other territory where the latter company controls,
either directly or indirectly, more than 50%, of the entire voting
power of the former company.
2. In this Article—
(a) The term ―interest‖ includes interest on bonds, securities,
notes, debentures or on any other form of indebtedness;
(b) 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 any royalty or other amount paid in respect of the
operation of a mine or quarry or of any other extraction of
natural resources.
3. Where any interest or royalty exceeds a fair and reasonable
consideration in respect of the indebtedness or rights for which
it is paid, the exemption provided by the present Article shall
apply only to so much of the interest or royalty as represents
such fair and reasonable consideration.
4. Any capital sum derived from one of the territories from the
sale of patent rights by a resident of the other territory who does
not carry on a trade or business in the first-mentioned territory
through a permanent establishment situated therein, shall be
exempt from tax in that first-mentioned territory.
ARTICLE IX
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Income of whatever nature derived from real property within
one of the territories (except interest on mortgages secured on
real property) shall be chargeable to tax in accordance with the
laws of that territory. Where the said income is also chargeable
to tax in the other territory, credit for the tax payable in the
first-mentioned territory shall be given against the tax payable
on that income in the other territory in accordance with Article
XVII.
ARTICLE X
A resident of one of the territories who does not carry on a trade
or business in the other territory through a permanent
establishment situated therein shall be exempt in that other
territory from any tax on gains from the sale, transfer, or
exchange of capital assets.
ARTICLE XI
1. Remuneration, including pensions, paid by, or out of funds
created by, one of the High Contracting Parties to any
individual in respect of services rendered to that Party in
discharge of governmental functions shall be exempt from tax
in the territory of the other High Contracting Party, unless the
individual is a national of that other Party without being also a
national of the first-mentioned Party.
2. The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the High Contracting Parties for
purposes of profit.
ARTICLE XII
1. An individual who is a resident of the United Kingdom shall be
exempt from Danish tax on profits or remuneration in respect of
personal (including professional) services performed within
Denmark in any year of assessment if—
(a) he is present within Denmark for a period or periods not
exceeding in the aggregate 183 days during that year, and
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(b) the services are performed for or on behalf of a resident of
the United Kingdom, and
(c) the profits or remuneration are subject to United Kingdom
tax.
2. An individual who is a resident of Denmark 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 resident of
Denmark, and
(c) the profits or remuneration are subject to Danish tax.
3. The provisions of this Article shall not apply to the profits or
remuneration of public entertainers such as theatre, motion
picture or radio artists, musicians and athletes.
ARTICLE XIII
1. Any pension (other than a pension of the kind referred to in
paragraph 1 of Article XI) and any annuity, derived from
sources within Denmark by an individual who is a resident of
the United Kingdom and subject to United Kingdom tax in
respect thereof, shall be exempt from Danish tax.
2. Any pension (other than a pension of the kind referred to in
paragraph 1 of Article XI) and any annuity, derived from
sources within the United Kingdom by an individual who is a
resident of Denmark and subject to Danish tax in respect
thereof, shall be exempt from United Kingdom tax.
3. The term ―annuity‖ means a stated sum payable periodically at
stated times, during life or during a specified or ascertainable
period of time, under an obligation to make the payments in
return for adequate and full consideration in money or money‘s
worth.
ARTICLE XIV
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A professor or teacher from one of the territories, who receives
remuneration 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 in respect of that
remuneration.
ARTICLE XV
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.
ARTICLE XVI
1. Individuals who are residents of Denmark shall be entitled to
the same personal allowances, reliefs and reductions for the
purposes of United Kingdom income tax as British subjects not
resident in the United Kingdom.
2. Individuals who are residents of the United Kingdom shall be
entitled to the same personal allowances and reliefs for the
purposes of Danish tax as Danish nationals not resident in
Denmark.
ARTICLE XVII
1. The laws of the High Contracting Parties shall continue to
govern the taxation of income arising in either of the territories
except where express provision to the contrary is made in this
Convention. Where income is subject to tax in both territories,
relief from double taxation shall be given in accordance with
the following paragraphs.
2. 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,
Danish tax, payable whether directly or by deduction, in respect
of income from sources within Denmark shall be allowed as a
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credit against the United Kingdom tax payable in respect of that
income. Where such income is an ordinary dividend paid by a
company resident in Denmark, the credit shall take into account
(in addition to any Danish tax appropriate to the dividend) the
Danish tax payable by the company in respect of its profits;
and, where it is a dividend paid on participating preference
shares and representing both a dividend at the fixed rate to
which the shares are entitled and an additional participation in
profits, the Danish tax so payable by the company shall
likewise be taken into account in so far as the dividend exceeds
that fixed rate.
3. United Kingdom tax payable, whether directly or by deduction,
in respect of income from sources within the United Kingdom
shall be allowed as a deduction from Danish tax payable in
respect of that income. Provided that the amount of deduction
shall not exceed the proportion of the Danish tax which such
income chargeable to Danish tax bears to the total income
chargeable to Danish tax. For the purposes of this paragraph
only, the expression ―Danish tax‖ shall include the Danish
inter-municipal income tax.
4. In the case of a person who is resident in the United Kingdom
for the purposes of United Kingdom tax and is also resident in
Denmark for the purposes of Danish tax, the provisions of
paragraph 2 of this Article shall apply in relation to income
which that person derives from sources within Denmark, and
the provisions of paragraph 3 of this Article shall apply in
relating to income which he derives from sources within the
United Kingdom. If such person derives income from sources
outside both the United Kingdom and Denmark, tax may be
imposed on that income in both the territories (subject to the
laws in force in the territories and to any Convention which
may exist between either of the High Contracting Parties and
the territory from which the Income is derived). A credit shall
be allowed in accordance with paragraph 2 of this Article
against any United Kingdom tax payable in respect of that
income, equal to that proportion of the United Kingdom tax or
the Danish tax on that income, whichever is the less, which
such person‘s income from sources within the United Kingdom
bears to the sum of his income from sources within the United
Kingdom and his income from sources within Denmark; and a
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deduction shall be allowed in accordance with paragraph 3 of
this Article against any Danish tax payable in respect of that
income equal to that proportion of the United Kingdom tax or
the Danish tax on that income, whichever is the less, which
such person‘s income from sources within Denmark bears to
the sum of his income from sources within the United Kingdom
and his income from sources within Denmark.
5. For the purposes of this Article, 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.
ARTICLE XVIII
1. The taxation authorities of the High Contracting Parties shall
exchange such information (being information which is at their
disposal under their respective taxation laws in the normal
course of administration) as is necessary for carrying out the
provisions of the present Convention or for the prevention of
fraud or for the administration of statutory provisions against
legal avoidance in relation to the taxes which are the subject of
the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any persons other
than those concerned with the assessment and collection of
taxes which are the subject of the present Convention. No
information as aforesaid shall be exchanged which would
disclose any trade, business, industrial or professional secret or
trade process.
2. As used in this Article, the term ―taxation authorities‖ means, in
the case of the United Kingdom, the Commissioners of Inland
Revenue or their authorised representatives; in the case of
Denmark, the Director General of Taxation or his authorised
representative; and, in the case of any territory to which the
present Convention is extended under Article XX, the
competent authority for the administration in such territory of
the taxes to which the present Convention applies.
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ARTICLE XIX
1. The nationals of one of the High Contracting Parties shall not
be subjected in the territory of the other High Contracting Party
to any taxation or any requirement connected therewith which
is other, higher, or more burdensome than the taxation and
connected requirements to which the nationals of the latter
Party are or may be subjected.
2. The enterprises of one of the territories, whether carried on by a
company, a body of persons or by individuals alone or in
partnership, shall not be subjected in the other territory, in
respect of profits or capital attributable to their permanent
establishments in that other territory, to any taxation which is
other, higher or more burdensome than the taxation to which
the enterprises of that other territory similarly carried on are or
may be subjected in respect of the like profits or capital.
3. The income, profits and capital of an enterprise of one of the
territories, the capital of which is wholly or partly owned or
controlled, directly or indirectly, by a resident or residents of
the other territory shall not be subjected in the first-mentioned
territory to any taxation which is other, higher or more
burdensome than the taxation to which other enterprises of that
first-mentioned territory are or may be subjected in respect of
the like income, profits and capital.
4. Nothing in paragraph 1 or paragraph 2 of this Article shall be
construed as obliging one of the High Contracting Parties to
grant to nationals of the other High Contracting Party who are
not resident in the territory of the former Party the same
personal allowances, reliefs and reductions for tax purposes as
are granted to his own nationals.
5. In this Article the term ―nationals‖ means—
(a) in relation to Denmark, all Danish citizens and all legal
persons, partnerships, associations and other entities
deriving their status as such from the law in force in
Denmark or in any Danish territory to which the present
Convention applies by reason of extension made under
Article XX;
(b) in relation to the United Kingdom, all British subjects and
British-protected persons residing in the United Kingdom
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or any British territory to which the present Convention
applies by reason of extension made under Article XX,
and all legal persons, partnerships, associations and other
entities deriving their status as such from the law in force
in any British territory to which the present Convention
applies.
6. In this Article the term ―taxation‖ means taxes of every kind
and description levied on behalf of any authority whatsoever.
ARTICLE XX
1. The present Convention may be extended, either in its entirety
or with modifications, to any territory of one of the High
Contracting Parties to which this Article applies and which
imposes taxes substantially similar in character to those which
are the subject of the present Convention, and any such
extension shall take effect from such date and subject to such
modifications and conditions (including conditions as to
termination) as may be specified and agreed between the High
Contracting Parties in notes to be exchanged for this purpose.
2. The termination in respect of Denmark or the United Kingdom
of the present Convention under Article XXII shall, unless
otherwise expressly agreed by both High Contracting Parties,
terminate the application of the present Convention to any
territory to which the Convention has been extended under this
Article.
3. The territories to which this Article applies are—
(a) in relation to the United Kingdom: any territory other,
than the United Kingdom for whose international
relations the United Kingdom is responsible;
(b) in relation to Denmark: any territory other than Denmark
for whose international relations Denmark is responsible.
ARTICLE XXI
1. The present Convention shall be ratified and the instruments of
ratification shall be exchanged at London as soon as possible.
2. Upon exchange of ratifications the present Convention shall
have effect—
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(a) In the United Kingdom:
as respects income tax for any year of assessment
beginning on or after the 6th April, 1949;
as respect surtax for any year of assessment beginning on
or after the 6th April, 1948; and
as respects profits tax in respect of the following profits—
(i) profits arising in any chargeable accounting period
beginning on or after the 1st April, 1949;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is, or but for the present
Convention would be, chargeable for any year of
assessment beginning on or after the 6th April,
1949.
(b) In Denmark:
as respects Danish tax for any taxation year beginning on
or after the 1st April, 1949.
ARTICLE XXII
The present Convention shall continue in effect indefinitely but
either of the High Contracting Parties may, on or before the
30th June in any calendar year not earlier than the year 1953,
give to the other High Contracting Party, through diplomatic
channels, written notice of termination and, in such event the
present Convention 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 April in the calendar year
next following that in which the notice is given; and
as respects surtax for any year of assessment beginning on
or after the 6th April in the calendar year in which the
notice is given; and
as respects profits tax in respect of the following
profits:—
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(i) profits arising in any chargeable accounting period
beginning on or after the 1st April in the calendar
year next following that in which the notice is
given;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is chargeable for any year of
assessment beginning on or after the 6th April in the
next following calendar year.
(b) In Denmark:
as respects Danish tax for any taxation year beginning on
or after the 1st April in the calendar year next following
that in which the notice is given.
In witness whereof the above-mentioned Plenipotentiaries have
signed the present Convention and have affixed thereto their
seals.
Done at London in duplicate, in the English and Danish
languages, both texts being equally authentic, on the twenty-
seventh day of March, one thousand nine hundred and fifty.
(L.S.) ERNEST BEVIN.
(L.S.) E. REVENTLOW.
SCHEDULE 2
(Section 2)
1. APPLICATION
(1) The provisions of the Convention incorporated in Schedule 1 to
this Order apply as modified below—
(a) as if the contracting parties were Saint Lucia and the
Government of Denmark;
(b) as if the tax concerned in the case of Saint Lucia were
income tax;
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(c) as if the taxes concerned in the case of Denmark included
the Defence tax;
(d) as if references to the date of signature were references to
22 December 1954;
(e) as if references to the 6th day of April were references to
1 January 1954.
(2) The extension shall have effect in Saint Lucia as respect tax for
the year of assessment 1954 (or 1954/55) and for subsequent
years of assessment, (and will have effect in Denmark as
respects Danish tax for any taxation year beginning on or after
1 April 1954).
(3) The extension shall continue in effect indefinitely but may be
terminated as respects Saint Lucia by written notice of
termination given on or before 30 June in any calendar year not
earlier than the year 1957 by either of the High Contracting
Parties to the Convention to the other High Contracting Party
through the diplomatic channel and in such event the extension
shall cease to have effect in Saint Lucia as respects tax for the
year of assessment beginning in the calendar year next
following the date of such notice and for subsequent years of
assessment and will cease to have effect in Denmark as respects
Danish tax for any taxation year beginning on or after 1 April in
the calendar year next following that in which the notice is
given.
2. MODIFICATIONS
(1) In Article VII(1) of the Convention the words ―exempt from
United Kingdom surtax‖ shall be understood for the purposes of
this extension as though they read ―is not liable to tax in the
territory at a rate in excess of the rate applicable to a company‖.
(2) In Articles VIII and IX all references to interest shall be
deemed to be deleted.
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INCOME TAX (DOUBLE TAXATION RELIEF)
(NORWAY) ORDER – SECTION 60
(Statutory Instrument appearing in volume 7, page 1119 of the 1957 Revision of the
Laws of Saint Lucia)
WHEREAS it is provided by section 52 of the Income Tax Act,
194713 that if the Governor General by order declares that
arrangements specified in the Order were made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to Income Tax
despite anything in any enactment;
AND WHEREAS by a Convention dated the 2nd day of May,
1951 between the Government of the United Kingdom and the
Government of Norway, arrangements were made among other
things for the avoidance of Double Taxation;
AND WHEREAS provision is made in the said Convention for the
extension by means of an exchange of notes between the
Contracting Parties of the said Convention, subject to such
modifications and conditions (including conditions as to
termination) as may be specified in the exchange of notes, to
any territory, for whose international relations the United
Kingdom is responsible, which imposes taxes substantially
similar in character to those which are the subject of the said
Convention;
AND WHEREAS by an Exchange of Notes dated 18 May 1955,
the said Convention with certain modifications was applied to
Saint Lucia.
NOW, THEREFORE, it is hereby ordered and declared by His
Excellency the Governor General as follows—
13 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(Norway) Order.
2. DECLARATION
It is hereby declared—
(a) That the arrangements specified in Schedule 1 to this
Order, as modified by the provisions of Schedule 2 to this
Order, have been made with the Government of Norway.
(b) That it is expedient that those arrangements should have
effect.
SCHEDULE 1
(Section 2)
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED
KINGDOM AND THE NORWEGIAN GOVERNMENT FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of Norway,
Desiring to conclude a Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income.
Have agreed as follows—
ARTICLE I
(1) The taxes which are the subject of the present Convention are—
(a) In Norway:
The national income tax, including the national defence
tax on income, the communal income tax, the old age
pension tax, the war pension tax, and the seamen‘s tax,
and, for the purposes of Article XIX, the national property
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tax, including the national defence tax on property
(hereinafter referred to as ―Norwegian tax‖);
(b) In the United Kingdom of Great Britain and Northern
Ireland:
The income tax (including surtax) and the profits tax
(hereinafter referred to as ―United Kingdom tax‖).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed in Norway or the United
Kingdom subsequently to the date of signature of the present
Convention.
ARTICLE II
(1) In the present Convention, unless the context otherwise
requires—
(a) The term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man;
(b) The term ―Norway‖ means the Kingdom of Norway,
excluding Spitsbergen and Bear Island and Jan Mayen
and the Norwegian dependencies outside Europe;
(c) The terms ―one of the territories‖ and ―the other territory‖
mean the United Kingdom or Norway, as the context
requires;
(d) The term ―tax‖ means United Kingdom tax or Norwegian
tax, as the context requires;
(e) The term ―person‖ includes any body of persons,
corporate or not corporate;
(f) The term ―company‖ means any body corporate;
(g) The terms ―resident of the United Kingdom‖ and
―resident of Norway‖ mean respectively any person who
is resident in the United Kingdom for the purposes of
United Kingdom tax and not resident in Norway for the
purposes of Norwegian tax, and any person who is
resident in Norway for the purposes of Norwegian tax and
not resident in the United Kingdom for the purposes of
United Kingdom tax; a company shall be regarded as
resident in the United Kingdom if its business is managed
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and controlled in the United Kingdom and as resident in
Norway, if its business is managed and controlled in
Norway;
(h) The terms ―resident of one of the territories‖ and ―resident
of the other territory‖ mean a person who is a resident of
the United Kingdom or a person who is a resident of
Norway, as the context requires;
(i) The terms ―United Kingdom enterprise‖ and ―Norwegian
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
Norway, and the terms ―enterprise of one of the
territories‖ and ―enterprise of the other territory‖ mean a
United Kingdom enterprise or a Norwegian enterprise, as
the context requires;
(j) The term ―industrial or commercial profits‖ includes rents
or royalties 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, factory, 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. In this connection—
(i) 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.
(ii) 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.
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(iii) 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 carries on a
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.
(2) Where under the present Convention 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 Convention in
the first-mentioned territory shall apply only to the amount so
remitted or received.
(3) In the application of the provisions of the present Convention
by one of the Contracting Parties any term not otherwise
defined shall, unless the context otherwise requires, have the
meaning which it has under the laws in force in the territory of
that Party relating to the taxes which are the subject of the
present Convention.
ARTICLE III
(1) The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to Norwegian tax unless the
enterprise carries on a trade or business in Norway through a
permanent establishment situated therein. If it carries on a trade
or business as aforesaid, tax may be imposed on those profits by
Norway, but only on so much of them as is attributable to that
permanent establishment.
(2) The industrial or commercial profits of a Norwegian enterprise
shall not be subject to United Kingdom tax unless the enterprise
carries on a trade or business in the United Kingdom through a
permanent establishment situated therein. If it carries on a trade
or business as aforesaid, 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.
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(3) Where an enterprise of one of the territories carries on a 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 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) Where an enterprise of one of the territories derives profits,
under contracts concluded in that territory, from sales of goods
or merchandise stocked in a warehouse in the other territory for
convenience of delivery and not for purposes of display, those
profits shall not be attributed to a permanent establishment of
the enterprise in that other territory, notwithstanding that the
offers of purchase have been obtained by an agent in that other
territory and transmitted by him to the enterprise for
acceptance.
(5) No portion of any profits arising to 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
goods or merchandise within that other territory by the
enterprise.
ARTICLE IV
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, in either case, conditions are made or imposed between the
2 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
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of those conditions have not so accrued may be included in the
profits of that enterprise and taxed accordingly.
ARTICLE V
Notwithstanding the provisions of Articles III and IV, profits
which a resident of one of the territories derives from operating
ships or aircraft shall be exempt from tax in the other territory.
ARTICLE VI
(1)
(a) Dividends paid by a company which is a resident of the
United Kingdom to a resident of Norway, who is subject
to tax in Norway in respect thereof and does not carry on
a trade or business in the United Kingdom through a
permanent establishment situated therein, shall be exempt
from United Kingdom surtax.
(b) Norwegian tax on dividends paid by a company which is
a resident of Norway to a resident of the United Kingdom,
who is subject to tax in the United Kingdom in respect
thereof and does not carry on trade or business in Norway
through a permanent establishment situated therein, shall
not exceed 5%.
Provided that, where the resident of the United Kingdom
is a company which controls, directly or indirectly, not
less than 50% of the entire voting power of the company
paying the dividends, the dividends shall be exempt from
Norwegian tax.
(2) Where a company which is a resident of one of the territories
derives profits or income from sources within the other
territory, there shall not be imposed in that other territory 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, whether or not those dividends or undistributed
profits represent, in whole or in part, profits or income so
derived.
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ARTICLE VII
(1) Any interest or 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 does not carry
on a trade or business in the first-mentioned territory through a
permanent establishment situated therein, shall be exempt from
tax in that first-mentioned territory.
(2) In this Article—
(a) The term ―interest‖ includes interest on bonds, securities,
notes, debentures or on any other form of indebtedness;
(b) 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 any royalty or other amount paid in respect of the
operation of a mine or quarry or of any other extraction of
natural resources.
(3) Where any interest or royalty exceeds a fair and reasonable
consideration in respect of the indebtedness or rights for which
it is paid, the exemption provided by the present Article shall
apply only to so much of the interest or royalty as represents
such fair and reasonable consideration.
(4) Any capital sum derived from sources within one of the
territories from the sale of patent rights by a resident of the
other territory, who does not carry on a trade or business in the
first-mentioned territory through a permanent establishment
situated therein, shall be exempt from tax in that first-
mentioned territory.
ARTICLE VIII
(1) Where under the provisions of the present Convention a
resident of the United Kingdom is exempt or entitled to relief
from Norwegian tax, similar exemption or relief shall be
applied to the undivided estates of deceased persons in so far as
one or more of the beneficiaries is a resident of the United
Kingdom.
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(2) Norwegian tax on the undivided estate of a deceased person
shall, in so far as the income accrues to a beneficiary who is
resident in the United Kingdom, be allowed as a credit under
Article XVI.
ARTICLE IX
(1) Remuneration, including pensions, paid by, or out of funds
created by, one of the Contracting Parties to any individual in
respect of services rendered to that Party in the discharge of
governmental functions shall be exempt from tax in the territory
of the other Contracting Party, unless the individual is a
national of that other Party without being also a national of the
first-mentioned Party.
(2) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the Contracting Parties for
purposes of profit.
ARTICLE X
(1) An individual who is a resident of the United Kingdom shall be
exempt from Norwegian tax on profits or remuneration in
respect of personal (including professional) services performed
within Norway in any year of assessment if—
(a) he is present within Norway 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 resident of
the United Kingdom, and
(c) the profits or remuneration are subject to United Kingdom
tax.
(2) An individual who is a resident of Norway 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
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(b) the services are performed for or on behalf of a resident of
Norway, and
(c) the profits or remuneration are subject to Norwegian tax.
(3) The provisions of this Article shall not apply to the profits or
remuneration of public entertainers such, as theatre, motion
picture or radio artistes, musicians and athletes.
ARTICLE XI
A resident of one of the territories shall be exempt from tax in
the other territory in respect of remuneration for services
performed on ships or aircraft operating outside the other
territory.
ARTICLE XII
(1) Any pension (other than a pension of the kind referred to in
paragraph (1) of Article IX) and any annuity, derived from
sources within Norway by an individual who is a resident of the
United Kingdom and subject to United Kingdom tax in respect
thereof, shall be exempt from Norwegian tax.
(2) Any pension (other than a pension of the kind referred to in
paragraph (1) of Article IX) and any annuity, derived from
sources within the United Kingdom by an individual who is a
resident of Norway and subject to Norwegian tax in respect
thereof, shall be exempt from United Kingdom tax.
(3) The term ―annuity‖ means a stated sum payable periodically at
stated times, during life or during a specified or ascertainable
period of time, under an obligation to make the payments in
return for adequate and full consideration in money or money‘s
worth.
ARTICLE XIII
A professor or teacher from one of the territories, who receives
remuneration 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
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exempt from tax in that other territory in respect of that
remuneration.
ARTICLE XIV
A student or 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 from abroad for the purposes of his maintenance,
education or training.
ARTICLE XV
(1) Individuals who are residents of Norway shall be entitled to the
same personal allowances, reliefs and reductions for the
purposes of United Kingdom tax as British subjects not resident
in the United Kingdom.
(2) Individuals who are residents of the United Kingdom shall be
entitled to the same personal allowances, reliefs and reductions
for the purposes of Norwegian tax as Norwegian nationals not
resident in Norway.
ARTICLE XVI
(1) Subject to the provisions of the laws of the United Kingdom
regarding the allowance as a credit against United Kingdom tax
of tax payable in a territory outside the United Kingdom,
Norwegian tax payable, whether directly or by deduction, in
respect of income from sources within Norway shall be allowed
as a credit against any United Kingdom tax payable in respect
of that income.
Where such income is an ordinary dividend paid by a company
resident in Norway the credit shall take into account (in
addition to any Norwegian tax appropriate to the dividend) the
Norwegian tax payable by the company in respect of its profits;
and, where it is a dividend paid on participating preference
shares and representing both a dividend at the fixed rate to
which the shares are entitled and an additional participation in
profits, the Norwegian tax so payable by the company shall
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likewise be taken into account in so far as the dividend exceeds
that fixed rate.
Provided that for the purposes of this paragraph of this Article,
the credit to be allowed for Norwegian communal income tax
shall not exceed one-half of the said communal income tax.
(2) Where United Kingdom tax is payable, whether directly or by
deduction, in respect of income from sources within the United
Kingdom, and that income is chargeable also to Norwegian tax,
the Norwegian tax payable by the person entitled to such
income on his total income chargeable to Norwegian tax shall
be reduced by an amount which bears the same proportion to
that Norwegian tax as the income from sources within the
United Kingdom bears to the said total income. Provided that
the Norwegian Ministry of Finance and Customs may decide
that the deduction shall not exceed the amount of the United
Kingdom tax.
Where such income is an ordinary dividend paid by a company
resident in the United Kingdom, the deduction, in the event that
it is restricted to the amount of the United Kingdom tax, shall
take into account (in addition to the United Kingdom tax
appropriate to the dividend) the United Kingdom profits tax
payable by the company in respect of its profits; and, where it is
a dividend paid on participating preference shares and
representing both a dividend at a fixed rate to which the shares
are entitled and an additional participation in profits, the profits
tax so payable by the company shall likewise be taken into
account in so far as the dividend exceeds that fixed rate.
(3) Where income is derived from sources outside both the United
Kingdom and Norway by a person who is resident in the United
Kingdom for the purposes of United Kingdom tax and also
resident in Norway for the purposes of Norwegian tax the
income may be taxed in both countries (subject to any
Convention which may exist between either of the Contracting
Parties and the territory or territories from which the income is
derived). A credit shall be allowed in accordance with
paragraph (1) of this Article against any United Kingdom tax
payable in respect of that income, equal to that proportion of the
United Kingdom tax or the Norwegian tax, which ever is the
less, which such person‘s income from sources within the
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United Kingdom bears to the sum of his income from sources
within the United Kingdom and his income from sources within
Norway; and a deduction shall be allowed in accordance with
paragraph (2) of this Article against any Norwegian tax payable
in respect of that income equal to that proportion of the United
Kingdom tax or the Norwegian tax, whichever is the less, which
such person‘s income from sources within Norway bears to the
sum of his income from sources within the United Kingdom
and his income from sources within Norway.
(4) For the purposes of this Article, 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, except that the remuneration of a director of a
company shall be deemed to be income from sources within the
territory in which the company is resident, 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.
ARTICLE XVII
(1) The taxation authorities of the Contracting Parties shall
exchange such information (being information which is at their
disposal under their respective taxation laws in the normal
course of administration) as is necessary for carrying out the
provisions of the present Convention or for the prevention of
fraud or for the administration of statutory provisions against
legal avoidance in relation to the taxes which are the subject of
the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any persons other
than persons (including a Court) concerned with the assessment,
determination and collection of the taxes which are the subject
of the present Convention. No information as aforesaid shall be
exchanged which would disclose any trade, business, industrial
or professional secret or trade process.
As used in this Article, the term ―taxation authorities‖ means, in
the case of the United Kingdom, the Commissioners of Inland
Revenue or their authorised representative; in the case of
Norway, the Ministry of Finance and Customs: and, in the case
of any territory to which the present Convention is extended
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under Article XX, the competent authority for the
administration in such territory of the taxes to which the present
Convention applies.
ARTICLE XVIII
The Agreement of 18th December, 1924, between Great Britain
and Norway for the reciprocal exemption from income tax in
certain cases of profits accruing from the business of shipping,
and the Agreement of 21st December, 1938 between the United
Kingdom and Norway for the reciprocal exemption from taxes
in certain cases of profits arising through agencies, shall not
have effect—
(a) in Norway, for any period for which
Convention has effect in that country;
the present
(b) in the United Kingdom, in relation to any tax for any
period for which the present Convention has effect as
respects that tax.
ARTICLE XIX
(1) The nationals of one of the Contracting Parties shall not be
subjected in the territory of the other Contracting Party to any
taxation or any requirement connected therewith which is other,
higher or more burdensome than the taxation and connected
requirements to which the nationals of the latter Party are or
may be subjected.
(2) The enterprises of one of the territories shall not be subjected in
the other territory, in respect of profits or capital attributable to
their permanent establishments in that other territory, to any
taxation which is other, higher or more burdensome than the
taxation to which the enterprises of that other territory are or
may be subjected in respect of the like profits or capital.
(3) The income, profits and capital of an enterprise of one of the
territories, the capital of which is wholly or partly owned or
controlled, directly or indirectly by a resident or residents of the
other territory shall not be subjected in the first-mentioned
territory to any taxation which is other, higher or more
burdensome than the taxation to which other enterprises of that
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first-mentioned territory are or may be subjected in respect of
the like income, profits and capital.
(4) Nothing in paragraph (1) or paragraph (2) of this Article shall
be construed as obliging one of the Contracting Parties to grant
to nationals of the other Contracting Party who are not resident
in the territory of the former Party the same personal
allowances, reliefs and reductions for tax purposes as are
granted to its own nationals.
(5) In this Article the term ―nationals‖ means—
(a) in relation to Norway, all Norwegian citizens and all
juridical persons domiciled in Norway;
(b) in relation to the United Kingdom all British subjects and
British protected persons residing in the United Kingdom
or any British territory to which the present Convention
applies by reason of extension made under Article XX,
and all legal persons, partnerships and associations
deriving their status as such from the law in force in any
British territory to which the present Convention applies.
(6) In this Article the term ―taxation‖ means taxes of every kind
and description levied on behalf of any authority whatsoever.
ARTICLE XX
(1) The present Convention may be extended, either in its entirety
or with modifications, to any territory for whose international
relations the United Kingdom is responsible and which imposes
taxes substantially similar in character to those which are the
subject of the present Convention, and any such extension shall
take effect from such date and subject to such modifications and
conditions (including conditions as to termination) as may be
specified and agreed between the Contracting Parties in notes to
be exchanged for this purpose.
(2) The termination in respect of Norway or the United Kingdom of
the present Convention under Article XXII shall, unless
otherwise expressly agreed by both Contracting Parties,
terminate the application of the present Convention to any
territory to which the Convention has been extended under this
Article.
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(3) The territories to which this Article applies are:
(a) in relation to the United Kingdom: any territory other than
the United Kingdom for whose international relations the
United Kingdom is responsible;
(b) in relation to Denmark: any territory other than Denmark
for whose international relations Denmark is responsible.
ARTICLE XXI
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Oslo as soon as possible.
(2) The present Convention shall enter into force upon the
exchange of ratifications and the foregoing provisions thereof
shall have effect—
(a) In the United Kingdom:
as respects income tax for any year of assessment
beginning on or after 6th April, 1950;
as respects surtax for any year of assessment beginning on
or after 6th April, 1949; and
as respects profits tax in respect of the following
profits:—
(i) profits arising in any chargeable accounting period
beginning on or after 1st April, 1950;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date;
(iii) profits not so arising or attributable by reference to
which income tax is, or but for the present
convention would be, chargeable for any year of
assessment beginning on or after 6th April, 1950;
(b) In Norway:
for the taxable years beginning on or after 1st January,
1950.
ARTICLE XXII
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The present Convention shall continue in force indefinitely but
either of the Contracting Parties may, on or before 30th June in
any calendar year not earlier than the year 1954, give to the
other Contracting Party, through diplomatic channels, written
notice of termination, provided that such notice of termination
may be given in any year before 1954 if there should be any
important change in the laws of the other Contracting Party
affecting the application of Article XVI. In such event, the
present Convention shall cease to be effective—
(a) In the United Kingdom:
as respects income tax, for any year of assessment
beginning on or after 6th April in the calendar year next
following that in which the notice is given:
as respects surtax, for any year of assessment beginning
on or after 6th April in the calendar year in which the
notice is given; and as respects profits tax, in respect of
the following profits—
(i) profits arising in any chargeable accounting period
beginning on or after 1st April in the calendar year
next following that in which the notice is given;
(ii) profits attributable to so much of any chargeable
accounting period falling partly before and partly
after that date as falls after that date:
(iii) profits not so arising or attributable by reference to
which income tax is chargeable for any year of
assessment beginning on or after 6th April in the
next following calendar year;
(b) In Norway:
for the taxable years beginning on or after 1st January in
the calendar year next following that in which the notice
is given.
IN WITNESS WHEREOF the undersigned, being duly authorised
by their respective Governments, have signed the present
Convention and have affixed thereto their seals.
Done at London, in duplicate, in the English and Norwegian
languages, both texts being equally authoritative, on the 2nd
day of May, 1951.
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(L.S.) HERBERT MORRISON,
(L.S.) P. PREBENSEN.
SCHEDULE 2
(Section 2)
1. APPLICATION
(a) The provisions of the Convention incorporated in Schedule 1 to
this Order shall apply as modified below—
(i) as if the Contracting Parties were Saint Lucia and the
Government of Norway; and as if the tax concerned in the
case of Saint Lucia were Income Tax;
(ii) as if references to the date of signature were references to
the 18th day of May, 1955.
(b) The extension shall have effect in Saint Lucia as respects tax for
the year of assessment 1955 and for subsequent years of
assessment, and will have effect in Norway – as respects
Norwegian tax for taxable years beginning on or after 1st
January, 1954.
(c) The extension shall continue in effect indefinitely but may be
terminated as respects Saint Lucia by written notice of
termination given on or before the 30th June in any calendar
year not earlier than the year 1957 by either of the Contracting
Parties to the Convention to the other Contracting Party through
the diplomatic channel and in such event the extension shall
cease to have effect in Saint Lucia as respects tax for the year of
assessment beginning in the calendar year next following the
date of such notice and for subsequent years of assessment, and
will cease to have effect in Norway as respects Norwegian tax
for the taxable years beginning on or after 1st January in the
calendar year in which the notice is given.
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2. MODIFICATIONS
(a) In article VI(1) of the Convention the words ―shall be exempt
from United Kingdom surtax‖ shall be understood for the
purposes of this extension as though they read ―is not liable to
tax in the territory at a rate in excess of the rate applicable to a
company‖.
(b)
(i) In Article VII all references to interest is considered to be
deleted; and
(i) in paragraph 2 of Article XVI references to income
(except in the phrase ―total income‖) is considered not to
include interest.
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INCOME TAX (DOUBLE TAXATION RELIEF) (U.S.A.)
ORDER – SECTION 60
(Statutory Instrument 42/1958)
Commencement [27 December 1958]
WHEREAS it is provided by section 52(1) of the Income Tax
Act, 194714 that if the Governor General by Order declares that
arrangements specified in the Order were made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the Laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to income tax
despite anything in any enactment;
AND WHEREAS by a Convention dated 16 April 1945 and a
protocol thereto dated 6 June 1946 and a further protocol
thereto dated 25 May 1954 and a further protocol thereto dated
19 August 1957 between the Government of the United
Kingdom and the Government of the United States,
arrangements were made among other things for the avoidance
of double taxation;
AND WHEREAS provision is made in the said Convention as
amended by the said protocols for the application by means of a
notification of extension given by either of the said
Governments to the other Government and acceptance thereof
by the other Government of the said Convention as amended,
subject to such modifications, if any, as may be specified in the
notification, to all or any of its Colonies, overseas territories,
protectorates or territories in respect of which it exercise a
mandate or trusteeship, which impose taxes substantially
similar in character to those which are the subject of the said
Convention.
14 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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AND WHEREAS by acceptance of a notification dated 3
December 1958 the said Convention as amended, with certain
modifications, was applied to Saint Lucia;
1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(U.S.A.) Order.
2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in Schedule 1 to this
Order, as modified by the provisions of Schedule 2 to this
Order, have been made with the Government of the
United States of America;
(b) that it is expedient that those arrangements should have
effect.
SCHEDULE 1
(Section 2)
PART 1 CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND
THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the United States of
America,
Desiring to conclude a Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
Have appointed for that purpose as their Plenipotentiaries:
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The Government of the United Kingdom of Great Britain and
Northern Ireland:
The Right Honourable the Earl of Halifax, K.G., Ambassador
Extraordinary in Washington; and
The Government of the United States of America:
Mr. Edward R. Stettinius, Jr., Secretary of State;
Who, having exhibited their respective full powers, found in
good and due form, have agreed as follows—
ARTICLE 1
(1) The taxes which are the subject of the present Convention are—
(a) In the United States of America:
The Federal income taxes, including surtaxes and excess
profits taxes (hereinafter referred to as United States tax).
(b) In the United Kingdom of Great Britain and Northern
Ireland;
The income tax (including surtax), the excess profits tax
and the national defence contribution (hereinafter referred
to as United Kingdom tax).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed by either Contracting
Party subsequently to the date of signature of the present
Convention or by the Government of any territory to which the
present Convention is extended under Article XXII.
ARTICLE II
(1) In the present Convention, unless the context otherwise
requires—
(a) The term ―United States‖ means the United States of
America, and when used in a geographical sense means
the States, the Territories of Alaska and of Hawaii, and
the District of Columbia.
(b) The term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man.
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(c) The terms ―territory of one of the Contracting Parties‖
and ―territory of the other Contracting Party‖ mean the
United States or the United Kingdom as the context
requires.
(d) The term ―United States corporation‖ means a
corporation, association or other like entity created or
organised in or under the laws of the United States.
(e) The term ―United Kingdom corporation‖ means any kind
of juridical person created under the laws of the United
Kingdom.
(f) The terms ―corporation of one Contracting Party‖ and
―corporation of the other Contracting Party‖ mean a
United States corporation, or a United Kingdom
corporation as the context requires.
(g) The term ―resident of the United Kingdom‖ means any
person (other than a citizen of the United States or a
United States corporation) who is resident in the United
Kingdom for the purposes of United Kingdom tax and not
resident in the United States for the purposes of United
States tax. A corporation is to be regarded as resident in
the United Kingdom if its business is managed and
controlled in the United Kingdom.
(h) The term ―resident of the United States‖ means any
individual who is resident in the United States for the
purposes of United States tax and not resident in the
United Kingdom for the purposes of United Kingdom tax,
and any United States corporation and any partnership
created or organised in or under the laws of the United
States, being a corporation or partnership which is not
resident in the United Kingdom for the purposes of
United Kingdom tax.
(1) The term ―United Kingdom enterprise‖ means an
industrial or commercial enterprise or undertaking carried
on by a resident of the United Kingdom.
(j) The term ―United States enterprise‖ means an industrial
or commercial enterprise or undertaking carried on by a
resident of the United States.
(k) The terms ―enterprise of one of the Contracting Parties‖
and ―enterprise of the other Contracting Party‖ mean a
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United States enterprise or a United Kingdom enterprise,
as the context requires.
(l) The term ―permanent establishment‖ when used with
respect to an enterprise of one of the Contracting Parties
means a branch, management, factory 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 Contracting Parties shall not be deemed to have a
permanent establishment in the territory of the other
Contracting Party merely because it carries on business
dealings in the territory of such other Contracting Party
through a bona fide commission agent, broker or
custodian acting in the ordinary course of his business as
such. The fact that an enterprise of one of the Contracting
Parties maintains in the territory of the other Contracting
Party a fixed place of business exclusively for the
purchase of goods or merchandise shall not of itself
constitute such fixed place of business a permanent
establishment of such enterprise. The fact that a
corporation of one Contracting Party has a subsidiary
corporation which is a corporation of the other
Contracting Party or which is engaged in trade or business
in the territory of such other Contracting Party (whether
through a permanent establishment or otherwise) shall not
of itself constitute that subsidiary corporation a permanent
establishment of its parent corporation.
(2) For the purposes of Articles VI, VII, VIII, IX and XIV a
resident of the United Kingdom shall not be deemed to be
engaged in trade or business in the United States in any taxable
year unless such resident has a permanent establishment
situated therein in such taxable year. The same principle shall
be applied, mutatis mutandis, by the United Kingdom in the
case of a resident of the United States.
(3) In the application of the provisions of the present Convention
by one of the Contracting Parties any term not otherwise
defined shall, unless the context otherwise requires, have the
meaning which it has under the laws of that Contracting Party
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relating to the
Convention.
taxes which are the subject of the present
ARTICLE III
(1) A United Kingdom enterprise shall not be subject to United
States tax in respect of its industrial or commercial profits
unless it is engaged in trade or business in the United States
through a permanent establishment situated therein. If it is so
engaged, United States tax may be imposed upon the entire
income of such enterprise from sources within the United
States.
(2) A United States enterprise shall not be subject to United
Kingdom tax in respect of its industrial or commercial profits
unless it is engaged in trade or business in the United Kingdom
through a permanent establishment situated therein. If it is so
engaged, United Kingdom tax may be imposed upon the entire
income of such enterprise from sources within the United
Kingdom : Provided that nothing in this paragraph shall affect
any provisions of the law of the United Kingdom regarding the
imposition of United Kingdom excess profits tax and national
defence contribution in the case of inter-connected companies.
(3) Where an enterprise of one of the Contracting Parties is
engaged in trade or business in the territory of the other
Contracting Party through a permanent establishment situated
therein, there shall be attributed to such permanent
establishment the industrial or commercial profits which it
might be expected to derive 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, and the
profits so attributed shall, subject to the law of such other
Contracting Party, be deemed to be income from sources within
the territory of such other Contracting Party.
(4) In determining the industrial or commercial profits from
sources within the territory of one of the Contracting Parties of
an enterprise of the other Contracting Party, no profits shall be
deemed to arise from the mere purchase of goods or
merchandise within the territory of the former Contracting Party
by such enterprise.
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ARTICLE IV
Where an enterprise of one of the Contracting Parties, by reason
of its participation in the management, control or capital of an
enterprise of the other Contracting Party, makes with or
imposes on the latter, in their commercial or financial relations,
conditions different from those which would be made with an
independent enterprise, 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.
ARTICLE V
(1) Notwithstanding the provisions of Articles III and IV of the
present Convention, profits which an individual (other than a
citizen of the United States) resident in the United Kingdom or
a United Kingdom corporation derives from operating ships
documented or aircraft registered under the laws of the United
Kingdom, shall be exempt from United States tax.
(2) Notwithstanding the provisions of Articles III and IV of the
present Convention, profits which a citizen of the United States
not resident in the United Kingdom or a United States
corporation derives from operating ships documented or aircraft
registered under the laws of the United States, shall be exempt
from United Kingdom tax.
(3) This Article shall be deemed to have superseded, on and after
the first day of January, 1945, as to United States tax, and on
and after the 6th day of April, 1945, as to United Kingdom tax,
the arrangements relating to reciprocal exemption of shipping
profits from income tax effected between the Government of
the United States and the Government of the United Kingdom
by exchange of Notes dated August 11, 1924, November 18,
1924, November 26, 1924, January 15, 1925, February 13,
1925, and March 16, 1925, which shall accordingly cease to
have effect.
ARTICLE VI
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(1) The rate of United States tax on dividends derived from a
United States corporation by a resident of the United Kingdom
who is subject to United Kingdom tax on such dividends and
not engaged in trade or business in the United States shall not
exceed 15%.: Provided that such rate of tax shall not exceed
5%, if such resident is a corporation controlling, directly or
indirectly, at least 95%, of the entire voting power in the
corporation paying the dividend, and not more than 25%, of the
gross income of such paying corporation is derived from
interest and dividends, other than interest and dividends
received from its own subsidiary corporations. Such reduction
of the rate to 5%, shall not apply if the relationship of the 2
corporations has been arranged or is maintained primarily with
the intention of securing such reduced rate.
(2) Dividends derived from sources within the United Kingdom by
an individual who is (a) a resident of the United States, (b)
subject to United States tax with respect to such dividends and
(c) not engaged in trade or business in the United Kingdom,
shall be exempt from United Kingdom surtax.
(3) Either of the contracting Parties may terminate this Article by
giving written notice of termination to the other Contracting
Party, through diplomatic channels, on or before the thirtieth
day of June in any year after the year 1945, and in such event
paragraph (1) hereof shall cease to be effective as to United
States tax on and after the first day of January, and paragraph
(2) hereof shall cease to be effective as to United Kingdom tax
on and after the 6th day of April, in the year next following that
in which such notice was given.
ARTICLE VII
(1) Interest (on bonds, securities, notes, debentures, or on any other
form of indebtedness) derived from sources within the United
States by a resident of the United Kingdom who is subject to
United Kingdom tax on such interest and not engaged in trade
or business in the United States, shall be exempt from United
States tax ; but such exemption shall not apply to such interest
paid by a United States corporation to a corporation resident in
the United Kingdom controlling, directly or indirectly, more
than 50%, of the entire voting power in the paying corporation.
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(2) Interest (on bonds, securities, notes, debentures, or on any other
form of indebtedness) derived from sources within the United
Kingdom by a resident of the United States who is subject to
United States tax on such interest and not engaged in trade or
business in the United Kingdom, shall be exempt from United
Kingdom tax ; but such exemption shall not apply to such
interest paid by a corporation resident in the United Kingdom to
a United States corporation controlling, directly or indirectly,
more than 50%, of the entire voting power in the paying
corporation.
ARTICLE VIII
(1) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs,
secret processes and formulae, trade marks, and other like
property, and derived from sources within the United States by
a resident of the United Kingdom who is subject to United
Kingdom tax on such royalties or other amounts and not
engaged in trade or business in the United States, shall be
exempt from United States tax.
(2) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs,
secret processes and formulae, trade-marks and other like
property, and derived from sources within the United Kingdom
by a resident of the United States who is subject to United
States tax on such royalties or other amounts and not engaged in
trade or business in the United Kingdom, shall be exempted
from United Kingdom tax.
(3) For the purposes of this Article the term ―royalties‖ shall be
deemed to include rentals in respect of motion picture films.
ARTICLE IX
(1) The rate of United States tax on royalties in respect of the
operation of mines or quarries or of other extraction of natural
resources, and on rentals from real property or from an interest
in such property, derived from sources within the United States
by a resident of the United Kingdom who is subject to United
Kingdom tax with respect to such royalties or rentals and not
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engaged in trade or business in the United States, shall not
exceed 15%. : Provided that any such resident may elect for any
taxable year to be subject to United States tax as if such resident
were engaged in trade or business in the United States.
(2) Royalties in respect of the operation of mines or quarries of
other extraction of natural resources, and rentals from real
property or from an interest in such property, derived from
sources within the United Kingdom by an individual who is (a)
a resident of the United States, (b) subject to United States tax
with respect to such royalties and rentals, and (c) not engaged in
trade or business in the United Kingdom, shall be exempt from
United Kingdom surtax.
ARTICLE X
(1) Any salary, wage, similar remuneration, or pension, paid by the
Government of the United States to an individual (other than a
British subject who is not also a citizen of the United States) in
respect of services rendered to the United States in the
discharge of governmental functions, shall be exempt from
United Kingdom tax.
(2) Any salary, wage, similar remuneration, or pension, paid by the
Government of the United Kingdom to an individual (other than
a citizen of the United States who is not also a British subject)
in respect of services rendered to the United Kingdom in the
discharge of governmental functions, shall be exempt from
United States tax.
(3) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the Contracting Parties for
purposes of profit.
ARTICLE XI
(1) An individual who is a resident of the United Kingdom shall be
exempt from United States tax upon compensation for personal
(including professional) services performed during the taxable
year within the United States if (a) he is present within the
United States for a period or periods not exceeding in the
aggregate 183 days during such taxable year, and (b) such
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services are performed for or on behalf of a person resident in
the United Kingdom.
(2) An individual who is a resident of the United States shall be
exempt from United Kingdom tax upon profits, emoluments or
other 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) such services are performed
for or on behalf of a person resident in the United States.
(3) The provisions of this Article shall not apply to the
compensation, profits, emoluments or other remuneration of
public entertainers such as stage, motion picture or radio artists,
musicians and athletes.
ARTICLE XII
(1) Any pension (other than a pension to which Article X applies),
and any life annuity, derived from sources within the United
States by an individual who is a resident of the United Kingdom
shall be exempt from United States tax.
(2) Any pension (other than a pension to which Article X applies),
and any life annuity, derived from sources within the United
Kingdom by an individual who is a resident of the United States
shall be exempt from United Kingdom tax.
(3) The term ―life annuity‖ means a stated sum payable periodically
at stated times, during life or during a specified or ascertainable
period of time, under an obligation to make the payments in
consideration of money paid.
ARTICLE XIII
(1) Subject to section 131 of the United States Internal Revenue
Code as in effect on the first day of January, 1945, United
Kingdom tax shall be allowed as a credit against United States
tax. For this purpose, the recipient of a dividend paid by a
corporation which is a resident of the United Kingdom shall be
deemed to have paid the United Kingdom income tax
appropriate to such dividend if such recipient elects to include
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in his gross income for the purposes of United States tax the
amount of such United Kingdom income tax.
(2) Subject to such provisions (which shall not affect the general
principle hereof) as may be enacted in the United Kingdom,
United States tax payable in respect of income from sources
within the United States shall be allowed as a credit against any
United Kingdom tax payable in respect of that income. Where
such income is an ordinary dividend paid by a United States
corporation, such credit shall take into account (in addition to
any United States income tax deducted from or imposed on
such dividend) the United States income tax imposed on such
corporation in respect of its profits, and where it is a dividend
paid on participating preference shares and representing both a
dividend at the fixed rate to which the shares are entitled and an
additional participation in profits, such tax on profits shall
likewise be taken into account in so far as the dividend exceeds
such fixed rate.
(3) For the purposes of this Article, compensation, profits,
emoluments and other remuneration for personal (including
professional) services shall be deemed to be income from
sources within the territory of the Contracting Party where such
services are performed.
ARTICLE XIV
A resident of the United Kingdom not engaged in trade or
business in the United States shall be exempt from United
States tax on gains from the sale or exchange of capital assets.
ARTICLE XV
Dividends and interest paid on or after the first day of January,
1945, by a United Kingdom corporation shall be exempt from
United States tax except where the recipient is a citizen of or a
resident of the United States or a United States corporation.
ARTICLE XVI
A United Kingdom corporation shall be exempt from United
States tax on its accumulated or undistributed earnings, profits,
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income or surplus, if individuals who are residents of the United
Kingdom control, directly or indirectly, throughout the last half
of the taxable year, more than 50%, of the entire voting power
in such corporation.
ARTICLE XVII
(1) The United States income tax liability for any taxable year
beginning prior to the 1st January, 1936, of any individual
(other than a citizen of the United States) resident in the United
Kingdom, or of any United Kingdom corporation, remaining
unpaid on the date of signature of the present Convention, may
be adjusted on a basis satisfactory to the United States
Commissioner of Internal Revenue: Provided that the amount to
be paid in settlement of such liability shall not exceed the
amount of the liability which would have been determined if—
(a) the United States Revenue Act of 1936 (except in the case
of a United Kingdom corporation in which more than
50%, of the entire voting power was controlled, directly
or indirectly, throughout the latter half of the taxable year,
by citizens or residents of the United States), and
(b) Articles XV and XVI of the present Convention,
had been in effect for such year. If the taxpayer was not, within
the meaning of such Revenue Act, engaged in trade or business
in the United States and had no office or place of business
therein during the taxable year, the amount of interest and
penalties shall not exceed 50%, of the amount of the tax with
respect to which such interest and penalties have been
computed.
(2) The United States income tax unpaid on the date of signature of
the present Convention for any taxable year beginning after the
31 December 1935, and prior to 1 January 1945, in the case of
an individual (other than a citizen of the United States) resident
of the United Kingdom, or in the case of any United Kingdom
corporation shall be determined as if the provisions of Articles
XV and XVI of the present Convention had been in effect for
such taxable year.
(3) The provisions of paragraph (1) of this Article shall not apply—
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(a) unless the taxpayer files with the Commissioner of
Internal Revenue on or before 31 December 1947, a
request that such tax liability be so adjusted and furnishes
such information as the Commissioner may require; or
(b) in any case in which the Commissioner is satisfied that
any deficiency in tax is due to fraud with intent to evade
the tax.
ARTICLE XVIII
A professor or teacher from the territory of one of the
Contracting Parties who visits the territory of the other
Contracting Party for the purpose of teaching, for a period not
exceeding 2 years, at a university, college, school or other
educational institution in the territory of such other Contracting
Party shall be exempted by such other Contracting Party from
tax on his remuneration for such teaching for such period.
ARTICLE XIX
A student or business apprentice from the territory of one of the
Contracting Parties who is receiving full-time education or
training in the territory of the other Contracting Party shall be
exempted by such other Contracting Party from tax on
payments made to him by persons within the territory of the
former Contracting Party for the purposes of his maintenance,
education or training.
ARTICLE XX
(1) The taxation authorities of the Contracting Parties shall
exchange such information (being information available under
the respective taxation laws of the Contracting Parties) as is
necessary for carrying out the provisions of the present
Convention or for the prevention of fraud or the administration
of statutory provisions against legal avoidance in relation to the
taxes which are the subject of the present Convention. Any
information so exchanged shall be treated as secret and shall not
be disclosed to any person other than those concerned with the
assessment and collection of the taxes which are the subject of
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the present Convention. No information shall be exchanged
which would disclose any trade secret or trade process.
(2) As used in this Article, the term ―taxation authorities‖ means, in
the case of the United States, the Commissioner of Internal
Revenue or his authorised representative; in the case of the
United Kingdom, the Commissioners of Inland Revenue or their
authorised representative ; and, in the case of any territory to
which the present Convention is extended under Article XXII,
the competent authority for the administration in such territory
of the taxes to which the present Convention applies.
ARTICLE XXI
(1) The nationals of one of the Contracting Parties shall not, while
resident in the territory of the other Contracting Party, be
subjected therein to other or more burdensome taxes than are
the nationals of such other Contracting Party, resident in its
territory.
(2) The term ―nationals‖ as used in this Article means—
(a) In relation to the United Kingdom, all British subjects and
British protected persons, from the United Kingdom or
any territory with respect to which the present Convention
is applicable by reason of extension made by the United
Kingdom under Article XXII; and
(b) In relation to the United States, United States citizens, and
all persons under the protection of the United States, from
the United States or any territory to which the present
Convention is applicable by reason of extension made by
the United States under Article XXII;
and includes all legal persons, partnerships and associations
deriving their status as such from, or created or organised
under, the laws in force in any territory of the Contracting
Parties to which the present Convention applies.
(3) In this Article the word ―taxes‖ means taxes of every kind or
description, whether national, federal, state, provincial or
municipal.
ARTICLE XXII
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(1) Either of the Contracting Parties may, at the time of exchange
of instruments of ratification or thereafter while the present
Convention continues in force, by a written notification of
extension given to the other Contracting Party through
diplomatic channels, declare its desire that the operation of the
present Convention shall extend to all or any of its Colonies,
overseas territories, protectorates, or territories in respect of
which it exercises a mandate, which impose taxes substantially
similar in character to those which are the subject of the present
Convention. The present Convention shall apply to the territory
or territories named in such notification on the date or dates
specified in the notification (not being less than 60 days from
the date of the notification) or, if no date is specified in respect
of any such territory, on the sixtieth day after the date of such
notification, unless, prior to the date on which the Convention
would otherwise become applicable to a particular territory, the
Contracting Party to whom notification is given shall have
informed the other Contracting Party in writing through
diplomatic channels that it does not accept such notification as
to that territory. In the absence of such extension, the present
Convention shall not apply to any such territory.
(2) At any time after the expiration of one year from the entry into
force of an extension under paragraph (1) of this Article, either
of the Contracting Parties may, by written notice of termination
given to the other Contracting Party through diplomatic
channels, terminate the application of the present Convention to
any territory to which it has been extended under paragraph (1),
and in such event the present Convention shall cease to apply, 6
months after the date of such notice, to the territory or
territories named therein, but without affecting its continued
application to the United States, the United Kingdom or to any
other territory to which it has been extended under paragraph
(1) hereof.
(3) In the application of the present Convention in relation to any
territory to which it is extended by notification by the United
Kingdom or the United States references to the ―United
Kingdom‖ or, as the case may be, the ―United States‖ shall be
construed as references to that territory.
(4) The termination in respect of the United States or the United
Kingdom of the present Convention under Article XXIV or of
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Article VI shall, unless otherwise expressly agreed by both
Contracting Parties, terminate the application of the present
Convention or, as the case may be, that Article to any territory
to which the Convention has been extended by the United
States or the United Kingdom.
(5) The provisions of the preceding paragraphs of this Article shall
apply to the channel Islands and the Isle of Man as if they were
colonies of the United Kingdom.
ARTICLE XXIII
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Washington as soon as
possible.
(2) Upon exchange of ratifications, the present Convention shall
have effect—
(a) as respects United States tax, for the taxable years
beginning on or after the first day of January, 1945;
(b)
(i) as respects United Kingdom income tax, for the year
of assessment beginning on the 6th day of April,
1945, and subsequent years;
(ii) as respects United Kingdom surtax, for the year of
assessment beginning on the 6th day of April, 1944,
and subsequent years; and
(iii) as respects United Kingdom excess profits tax and
national defence contribution, for any chargeable
accounting period beginning on or after the first day
of April, 1945, and for the unexpired portion of any
chargeable accounting period current at that date.
ARTICLE XXIV
(1) The present Convention shall continue in effect indefinitely but
either of the Contracting Parties may, on or before the 30th day
of June in any year after the year 1946, give to the other
Contracting Party, through diplomatic channels, notice of
termination and, in such event, the present Convention shall
cease to be effective—
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(a) as respects United States tax for the taxable years
beginning on or after the first day of January in the year
next following that in which such notice is given;
(b)
(i) as respects United Kingdom income tax, for any
year of assessment beginning on or after the 6th day
of April in the year next following that in which
such notice is given;
(ii) as respects United Kingdom surtax, for any year of
assessment beginning on or after the 6th day of
April in the year in which such notice is given; and
(iii) as respects United Kingdom excess profits tax and
national defence contribution, for any chargeable
accounting period beginning on or after the first day
of April in the year next following that in which
such notice is given and for the unexpired portion of
any chargeable accounting period current at that
date.
(2) The termination of the present Convention or of any Article
thereof shall not have the effect of reviving any treaty or
arrangement abrogated by the present Convention or by treaties
previously concluded between the Contracting Parties.
In witness whereof the above-mentioned Plenipotentiaries have
signed the present Convention and have affixed thereto their
seals.
Done at Washington, in duplicate, on the sixteenth day of April,
one thousand nine hundred and forty-five.
For the Government of the United Kingdom of Great Britain
and Northern Ireland :
(L.S.) HALIFAX.
For the Government of the United States of America :
(L.S.) E. R. STETTINIUS, Jr.
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PART 2 PROTOCOL
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the United States of
America,
Desiring to conclude a supplementary Protocol modifying in
certain respects the Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income which was signed at Washington on April
16th, 1945,
Have agreed as follows :
ARTICLE 1
Paragraph (3) of Article XI of the Convention of April 16th,
1945, for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income shall be deemed
to be deleted and of no effect.
ARTICLE II
This Protocol, which shall be regarded as an integral part of the
said Convention, shall be ratified and the instruments of
ratification thereof shall be exchanged at Washington.
IN WITNESS WHEREOF the undersigned Plenipotentiaries,
being authorized thereto by their respective Governments, have
signed this Protocol and have affixed thereto their seals.
DONE at Washington, in duplicate, this sixth day of June,
1946.
FOR THE GOVERNMENT OF THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND:
JOHN BALFOUR,
His Majesty‘s
Envoy Extraordinary and Minister Plenipotentiary
in Washington.
FOR THE GOVERNMENT OF THE UNITED STATES OF
AMERICA:
JAMES F. BYRNES,
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Secretary of State of the United
States of America,
SUPPLEMENTARY PROTOCOL AMENDING THE
CONVENTION FOR THE AVOIDANCE OF DOUBLE
TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO TAXES ON INCOME,
SIGNED AT WASHINGTON ON THE 16TH APRIL, 1945,
AS MODIFIED BY THE SUPPLEMENTARY PROTOCOL,
SIGNED AT WASHINGTON ON THE 6TH JUNE, 1946.
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the United States of
America,
Desiring to conclude a further supplementary Protocol
amending the Convention for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to
Taxes on Income, signed at Washington on the 16th April,
1945, as modified by the Supplementary Protocol, signed at
Washington on the 6th June, 1946,
Have agreed as follows :
ARTICLE 1
Paragraph (1) of Article XXII of the Convention of the 16th
April, 1945, for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income is
hereby amended to read as follows :
―(1) Either of the Contracting Parties may, at any time while the
present Convention continues in force, by a written notification
given to the other Contracting Party through the diplomatic
channel, declare its desire that the operation of the present
Convention, either in whole or in part or with such
modifications as may be found necessary for special application
in a particular case, shall extend to all or any of its territories for
whose international relations it is responsible, which impose
taxes substantially similar in character to those which are the
subject of the present Convention. When the other Contracting
Party has, by a written communication through the diplomatic
channel, signified to the first Contracting Party that such
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notification is accepted in respect of such territory or territories,
the present Convention, in whole or in part or with such
modifications as may be found necessary for special application
in a particular case, as specified in the notification, shall apply
to the territory or territories named in the notification on and
after the date or dates specified therein. None of the provisions
of the present Convention shall apply to any such territory in
the absence of such acceptance in respect of that territory.‖
ARTICLE II
This supplementary Protocol, which shall be regarded as an
integral part of the said Convention, shall be ratified and the
instruments of ratification thereof shall be exchanged in
London.
IN WITNESS WHEREOF the undersigned, being authorized
thereto by their respective Governments, have signed this
supplementary Protocol and have affixed thereto their seals.
DONE in duplicate at Washington this twenty-fifth day of May,
1954.
FOR THE GOVERNMENT OF THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND :
Roger Makins,
Her Majesty‘s
Ambassador Extraordinary and Plenipotentiary
at Washington.
FOR THE GOVERNMENT OF THE UNITED STATES OF
AMERICA :
John Foster Dulles,
Secretary of State of the
United States of America.
SUPPLEMENTARY PROTOCOL BETWEEN THE UNITED
KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND AND THE UNITED STATES OF AMERICA
AMENDING THE CONVENTION FOR THE AVOIDANCE
OF DOUBLE TAXATION AND THE PREVENTION OF
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FISCAL EVASION WITH RESPECT TO TAXES ON
INCOME, SIGNED AT WASHINGTON ON THE 16TH
APRIL 1945, AS MODIFIED BY THE SUPPLEMENTARY
PROTOCOL SIGNED AT WASHINGTON ON THE 6TH
JUNE 1946 AND BY THE SUPPLEMENTARY PROTOCOL
SIGNED AT WASHINGTON ON THE 25TH MAY 1954.
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the United States of
America,
Desiring to conclude a further supplementary Protocol
amending the Convention for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to
Taxes on Income, signed at Washington on the 16th April 1945,
as modified by the supplementary Protocol signed at
Washington on the 6th June 1946 and by the supplementary
Protocol signed at Washington on the 25th May 1954,
Have agreed as follows :
ARTICLE 1
Paragraphs (1) and (2) of Article VIII of the Convention of the
16th April 1945 for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to taxes on income
are hereby amended to read as follows :
―(1) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs,
secret processes and formulae, trade marks and other like
property, and derived from sources within the United States by
a resident of the United Kingdom who is subject to United
Kingdom tax on such royalties or other amounts shall be
exempt from United States tax (a) if such resident is not
engaged in trade or business in the United States through a
permanent establishment situated therein or (b) if such resident
is so engaged, the royalties or other amounts are not directly
associated with the business carried on through that permanent
establishment.
(2) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs,
secret processes and formulae, trade marks, and other like
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property, and derived from sources within the United Kingdom
by a resident of the United States who is subject to United
States tax on such royalties or other amounts shall be exempt
from United Kingdom tax (a) if such resident is not engaged in
trade or business in the United Kingdom through a permanent
establishment situated therein or (b) if such resident is so
engaged, the royalties or other amounts are not directly
associated with the business carried on through that permanent
establishment.‖
ARTICLE II
Paragraph (1) of Article XIII of the said Convention is hereby
amended to read as follows :
―(1) Subject to Sections 901 to 905 of the United States Internal
Revenue Code as in effect on the 1st day of January 1956,
United Kingdom tax shall be allowed as a credit against United
States tax. For this purpose
(a) the recipient of a dividend paid by a corporation which is
a resident of the United Kingdom shall be deemed to have
paid the United Kingdom tax appropriate to such
dividend, and
(b) the recipient of any royalty or other amount coming
within the scope of Article VIII of the present Convention
shall be deemed to have paid any United Kingdom tax
legally deducted from the royalty or other amount by the
person by or through whom any payment thereof is made,
if the recipient of the dividend or royalty or other amount, as the
case may be, elects to include in his gross income for the
purposes of United States tax the amount of such United
Kingdom income tax.‖
ARTICLE III
(1) This supplementary Protocol shall be ratified and the
instruments of ratification shall be exchanged at London as
soon as possible.
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(2) This supplementary Protocol shall enter into force upon the
exchange of instruments of ratification and shall thereupon have
effect—
(a) In the United Kingdom:
(1) as respects income tax and surtax for any year of
assessment beginning on or after the 6th April 1956;
(ii) as respects profits tax for any chargeable accounting
period beginning on or after the 1st April 1956, and
for the unexpired portion of any chargeable
accounting period current at that date.
(b) In the United States:
As respects taxable years beginning on or after the 1st January
1956.
IN WITNESS WHEREOF the undersigned, being authorised
thereto by their respective Governments, have signed this
supplementary Protocol and have affixed thereto their seals.
DONE in duplicate at Washington this nineteenth day of August,
1957.
For the Government of the United Kingdom of Great Britain
and Northern Ireland:
(L.S.) HAROLD CACCIA.
For the Government of the United States of America:
(L.S.) JOHN FOSTER DULLES.
SCHEDULE 2
(Section 2)
1. APPLICATION
(a) The provisions of the Convention and Protocols incorporated in
Schedule 1 to this Order shall apply as modified below—
(1) as if the contracting parties were Saint Lucia and the
Government of the United States; and as if the tax
concerned in the case of Saint Lucia were Income Tax;
(ii) as if references to the date of signature were references to
the 3rd day of December, 1958;
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(iii) as if references to the 6th day of April were references to
the 1st day of January.
(b) The extension shall have effect in Saint Lucia as respects tax for
the year of assessment next following that in which the last of
those measures shall have been taken in the United States and
Saint Lucia necessary to give the extension the force of law in
the United States and Saint Lucia and for subsequent years of
assessment and will have effect in the United States as respects
United States tax for the taxable year beginning on or after the
1st day of January in that next following calendar year.
2. MODIFICATIONS
(a) In Article VI(2) the words ―exempt from United Kingdom
Surtax‖ shall be understood for the purposes of this extension as
though they read ―is not liable to any tax in the territory other
than tax imposed with respect to the profits or earnings of the
corporation out of which such dividends are paid‖.
(b) In Article IX(2) the words ―shall be exempt from United
Kingdom surtax‖ shall be understood for the purposes of this
extension as though they read ―is not liable to tax in the
territory at a rate in excess of the rate applicable to a company‖.
(c) Articles VII, XIV and XVI shall be deemed to be deleted.
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INCOME TAX (DOUBLE TAXATION RELIEF)
(SWITZERLAND) ORDER – SECTION 60
(Statutory Instrument 16/1965)
Commencement [28 August 1965]
WHEREAS it is provided by section 52(1) of the Income Tax
Act, 194715 that if the Governor General by Order declares that
arrangements specified in the Order have been made with the
Government of any territory outside Saint Lucia with a view to
affording relief from double taxation in relation to income tax
and any tax of a similar character imposed by the laws of that
territory and that it is expedient that those arrangements have
effect, the arrangements have effect in relation to income tax
despite anything in any enactment;
AND WHEREAS by a Convention dated 30 September 1954
between the Government of the United Kingdom and Northern
Ireland and the Swiss Federal Council, arrangements were made
among other things for the avoidance of double taxation;
AND WHEREAS provision is made in the said Convention for the
extension by means of an exchange of notes between the High
Contracting Parties of the said Convention, subject to such
modifications and conditions (including conditions as to
termination) as may be specified in the exchange of notes, to
any territory, for whose foreign relations the United Kingdom is
responsible, which imposes taxes substantially similar in
character to those which are the subject of the said Convention;
AND WHEREAS by a notification dated 1 January 1961 the said
Convention with certain modifications was applied to Saint
Lucia.
1. SHORT TITLE
This Order may be cited as the Income Tax (Double Taxation Relief)
(Switzerland) Order.
15 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. This Order was continued in force by the
1965 Act and section 153 of the Income Tax Act.
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2. DECLARATION
It is hereby declared—
(a) that the arrangements specified in Schedule 1 to this
Order as modified by the provisions of Schedule 2 to this
Order have been made with the Swiss Federal Council;
(b) that it is expedient that those arrangements should have
effect.
SCHEDULE 1
(Section 2)
CONVENTION BETWEEN THE UNITED KINGDOM OF GREAT
BRITAIN AND NORTHERN IRELAND AND THE SWISS
CONFEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION
WITH RESPECT TO TAXES ON INCOME.
The Government of the United Kingdom of Great Britain and
Northern Ireland and the Swiss Federal Council.
Desiring to conclude a Convention for the avoidance of double
taxation with respect to taxes on income.
Have appointed for that purpose as their respective
Plenipotentiaries:
The Government of the United Kingdom of Great Britain and
Northern Ireland:
Alfred Douglas Dodds-Parker, Esquire, Parliamentary
Under-Secretary of State for Foreign Affairs;
The Swiss Federal Council;
Monsieur Erwin Bernath, Swiss Charge d‘Affaires ad
interim in London;
Who, having communicated to one another their full powers,
found in good and due form, have agreed as follows:
ARTICLE 1
(1) The taxes which are the subject of the present Convention are—
(a) In the United Kingdom:
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The income tax (including surtax), the profits tax and the
excess profits levy (hereinafter referred to as ―United
Kingdom tax‖);
(b) In Switzerland:
The federal, cantonal and communal taxes on income
(total income, earned income, income from capital,
industrial and commercial profits, &c.), but not including
the Federal coupon tax except where expressly mentioned
(hereinafter referred to as ―Swiss tax‖).
(2) The present Convention shall also apply to any other taxes of a
substantially similar character imposed in the United Kingdom
or Switzerland subsequently to the date of signature of the
present Convention.
ARTICLE II
(1) In the present Convention, unless the context otherwise
requires—
(a) The term ―United Kingdom‖ means Great Britain and
Northern Ireland, excluding the Channel Islands and the
Isle of Man;
(b) The term ―Switzerland‖ means the Swiss Confederation.
(c) The terms ―one of the territories‖ and ―the other territory‖
mean the United Kingdom or Switzerland, as the context
requires;
(d) The term ―tax‖ means United Kingdom tax or Swiss tax,
as the context requires;
(e) The term ―person‖ includes any individual, company,
unincorporated body of persons and any other entity with
or without juridical personality;
(f) The term ―company‖ means in relation to the United
Kingdom any body corporate, and in relation to
Switzerland any entity with juridical personality;
(g) The term ―resident of the United Kingdom‖ means:
(i) any company or partnership whose business is
managed and controlled in the United Kingdom;
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(ii) any other person who is resident in the United
Kingdom for the purposes of United Kingdom tax
and not resident (by reason of domicile or sojourn)
in Switzerland for the purposes of Swiss tax;
(h) The term ―resident of Switzerland‖ means—
(i) any company or partnership (―société simple,‖
―société‚ en nom collectif‖ or ―société‚ en
commandite‖) created or organised under Swiss
law, if its business is not managed and controlled in
the United Kingdom;
(ii) any other person who is resident (by reason of
domicile or sojourn) in Switzerland for the purposes
of Swiss tax and not resident in the United
Kingdom for the purposes of United Kingdom tax;
(i) The terms ―resident of one of the territories‖ and ―resident
of the other territory‖ mean a resident of the United
Kingdom or a resident of Switzerland, as the context
requires;
(j) the terms ―United Kingdom enterprise‖ and ―Swiss
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
Switzerland, and the terms ―enterprise of one of the
territories‖ and ―enterprise of the other territory‖ mean a
United Kingdom enterprise or a Swiss enterprise, as the
context requires;
(k) The term ―permanent establishment‖ means a branch,
management, office, factory, workshop or other fixed
place of business, and a farm, mine, quarry or other place
of natural resources subject to exploitation. It also
includes a place where building construction is carried on
by contract for a period of at least one year, but does not
include an agency unless the agent has and habitually
exercises a general authority to negotiate and conclude
contracts on behalf of an enterprise of one of the
territories. In this connexion—
(i) An enterprise of one of the territories shall not be
deemed to have a permanent establishment in the
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other territory merely because it carries on business
dealings in that other territory through a bona fide
broker, general commission agent or other
independent agent acting in the ordinary course of
his business as such;
(ii) 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;
(iii) The fact that an enterprise 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 the enterprise of the
former territory;
(l) The term ―industrial or commercial profits‖ includes
manufacturing, mercantile, mining, farming, financial and
insurance profits, and rents and royalties in respect of
cinematograph films, but does not include income in the
form of dividends, interest or royalties (other than
cinematograph royalties) except any such income which,
under the laws of one of the territories and in accordance
with Article III of the present Convention, is attributable
to a permanent establishment situated therein;
(m) The term ―competent authority‖ means, in the case of the
United Kingdom, the Commissioners of Inland Revenue
or their authorised representative; in the case of
Switzerland, the Director of the Federal Tax
Administration or his authorised representative; and in the
case of any territory to which the present Convention is
extended under Article XXI, the competent authority for
the administration in such territory of the taxes to which
the Convention applies.
(2) Where the present Convention provides that income from a
source within Switzerland shall be exempt from, or entitled to a
reduced rate of, tax in Switzerland if (with or without other
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conditions) it is subject to tax in the United Kingdom, and
under the law in force in the United Kingdom the said income is
subject to tax by reference to the amount thereof which is
remitted to or received in the United Kingdom and not by
reference to the full amount thereof, then the exemption or
reduction in rate to be allowed under the Convention in
Switzerland shall apply only to so much of the income as is
remitted to or received in the United Kingdom.
(3) Where under any provision of the present Convention a
partnership is entitled to exemption from United Kingdom tax
as a resident of Switzerland on any income, such a provision
shall not be construed as restricting the right of the United
Kingdom to charge any member of the partnership, being a
person who is resident in the United Kingdom for the purposes
of United Kingdom tax (whether or not he is also resident in
Switzerland for the purposes of Swiss tax), to tax on his share
of the income of the partnership; but any such income shall be
deemed for the purposes of Article XV to be income from
sources within Switzerland.
(4) Where under any provision of the present Convention an estate
of a deceased person is entitled to exemption from United
Kingdom tax as a resident of Switzerland on any income, such a
provision shall not be construed as requiring the United
Kingdom to grant exemption from United Kingdom tax in
respect of such part of such income as goes to any heir of such
estate who is not resident in Switzerland for the purposes of
Swiss tax and whose share of such income is not subject to
Swiss tax either in his hands or in the hands of the estate.
(5) In the application of the provisions of the present Convention
by either Contracting Party any term not otherwise defined
shall, unless the context otherwise requires, have the meaning
which it has under the laws in force in the territory of that Party
relating to the taxes which are the subject of the Convention.
ARTICLE III
(1) The industrial or commercial profits of a United Kingdom
enterprise shall not be subject to Swiss tax unless the enterprise
is engaged in trade or business in Switzerland through a
permanent establishment situated therein. If it is so engaged, tax
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may be imposed on those profits by Switzerland, but only on so
much of them as is attributable to that permanent establishment.
(2) The industrial or commercial profits of a Swiss 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 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) Where an enterprise of one of the territories derives profits,
under contracts concluded in that territory, from sales of goods
or merchandise stocked in a warehouse in the other territory,
those profits shall not be attributed to a permanent
establishment of the enterprise in that other territory,
notwithstanding that the offers of purchase have been obtained
by an agent in that other territory and transmitted by him to the
enterprise for acceptance.
(5) No portion of any profits arising to 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
goods or merchandise within that other territory by the
enterprise.
(6) In the determination of the industrial or commercial profits of a
permanent establishment there shall be allowed as deductions
all expenses which are reasonably applicable to the permanent
establishment, including executive and general administrative
expenses so applicable, whether incurred in the territory in
which the permanent establishment is situated or elsewhere.
ARTICLE IV
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Where—
(a) an enterprise of one of the territories participates directly
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, in either case, conditions are made or imposed between the
2 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.
ARTICLE V
Notwithstanding the provisions of Articles III and IV, profits
which a resident of one of the territories derives from operating
ships or aircraft, including profits of that resident from the sale
of tickets for passages by such ships or aircraft, shall be exempt
from tax in the other territory.
ARTICLE VI
(1) Dividends (other than dividends which, under the laws of the
United Kingdom and in accordance with Article III of this
Convention, are attributable to a permanent establishment
situated in the United Kingdom) paid by a company which is a
resident of the United Kingdom to a resident of Switzerland
who is subject to Swiss tax in respect thereof shall be exempt
from United Kingdom surtax.
(2) The industrial and commercial profits of a Swiss enterprise
engaged in trade or business through a permanent establishment
in the United Kingdom shall, so long as undistributed profits of
United Kingdom enterprises are effectively charged to United
Kingdom profits tax at a lower rate than distributed profits of
such enterprises, be charged to United Kingdom profits tax only
at that lower rate.
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(3) Where not less than 50% of the entire voting power of a
company which is a resident of the United Kingdom is
controlled, directly or indirectly, by a company which is a
resident of Switzerland, the distributions by the former
company to the latter company, and to any other company
which is a resident of Switzerland and which beneficially owns
not less than 10%. of the entire share capital of the company
paying the dividends, shall be left out of account in computing
United Kingdom profits tax effectively chargeable on that
company at the rate appropriate to distributed profits.
(4)
(a) The Swiss anticipatory tax may be charged in respect of
dividends paid by any company created under Swiss law
to a resident of the United Kingdom, but, in the case of
any such resident who is subject to United Kingdom tax
in respect thereof, the rate of anticipatory tax shall be
reduced in accordance with the following provisions of
this paragraph (unless the dividends are, under the laws of
Switzerland and in accordance with Article III of this
Convention, attributable to a permanent establishment
situated in Switzerland).
(b) If that resident is an individual whose effective rate of
United Kingdom tax does not exceed 5%., the
anticipatory tax shall not be charged.
(c) If that resident is an individual whose effective rate of
United Kingdom tax exceeds 5%., the anticipatory tax
shall be charged only at the rate which, when added to the
rate of Federal coupon tax, equals that effective rate.
(d) If that resident is a company which controls, directly or
indirectly not less than 95% of the entire voting power of
the company paying the dividends, the anticipatory tax
shall be reduced by an amount equal to 20% of the
dividend.
(e) If that resident is a company which controls, directly or
indirectly less than 95% but not less than 50%. of the
entire voting power of the company paying the dividends,
the anticipatory tax shall be reduced by an amount equal
to 10%. of the dividend.
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(f) If that resident is a company which beneficially owns not
less than 10%. of the entire share capital of the company
paying the dividends, and that provisions of either
subparagraph (d) or subparagraph (e) of this paragraph
apply to some part of the dividends paid by the latter
company, the anticipatory tax shall be reduced by an
amount equal to 10%. of the dividend.
(5) If at any time distributed profits of companies become
chargeable to United Kingdom profits tax at a rate other than
20%. above the rate at which undistributed profits are
effectively chargeable to that tax, the competent authorities of
the 2 Contracting Parties may consult together in order to
determine whether it is necessary for this reason to amend
subparagraphs (d), (e) and (f) of the preceding paragraph. After
such consultation has taken place either of the Contracting
Parties may give to the other Contracting Party through the
diplomatic channel written notice of termination of the
provisions of paragraph (3) and of subparagraphs (d), (e) and (f)
of paragraph (4) of this Article, and, in such event, those
provisions shall cease to be effective from the date on which the
relevant change in the rates of United Kingdom profits tax took
effect.
(6) Subject to the provisions of subparagraph (a) of paragraph (4)
of this Article, where a company which is a resident of one of
the territories derives profits or income from sources within the
other territory, there shall not be imposed in that other territory
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, whether or not those dividends or undistributed
profits represent, in whole or in part, profits or income so
derived.
ARTICLE VII
(1) Any interest or 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, shall be exempt
from tax in that first territory.
(2) In this Article—
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(a) The term ―interest‖ means interest on bonds, securities,
notes, debentures or on any other form of indebtedness
(including mortgages or bonds secured on real property);
(b) The term ―royalty‖ means any royalty or other amount
paid as consideration for the right to use any copyright,
artistic or scientific work, patent, model, design, secret
process or formula, trademark, or other like property or
right (including rentals and like payments for the use of
industrial or commercial machinery or plant or scientific
apparatus), but does not include any royalty or other
amount paid in respect of the operation of mines, quarries
or other natural resources.
(3) Any capital sum derived from sources within one of the
territories from the sale of property or rights mentioned in
subparagraph (b) of paragraph (2) of this Article by a resident
of the other territory shall be exempt from tax in the first
territory.
(4) Where there is a special relationship between debtor and
creditor or both debtor and creditor have a special relationship
with a third person or persons, and in consequence the amount
paid is greater than would have been agreed upon if debtor and
creditor had been at arm‘s length, the exemption provided by
this Article shall not apply to the excess.
(5) Any interest or royalty exempted from United Kingdom tax by
this Article shall be allowed as a deduction for profits tax and
excess profits levy purposes from the profits or income of the
person paying the interest or royalty, whatever the relationship
between that person and the person receiving the interest or
royalty may be.
(6) The exemptions from tax in one of the territories provided for in
this Article shall not apply to interest, royalties or capital sums
which, under the laws of that territory and in accordance with
Article III of this Convention, are attributable to a permanent
establishment situated therein.
ARTICLE VIII
(1) A resident of one of the territories shall be exempt in the other
territory from any tax on gains from the sale, transfer or
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exchange of capital assets (other than gains which, under the
laws of that other territory and in accordance with Article III of
this Convention, are attributable to a permanent establishment
situated therein).
(2) In this Article the term ―capital assets‖ means
property, whether corporeal or incorporeal.
any movable
ARTICLE IX
(1) Income derived from real property situated in one of the
territories by a resident of the other territory shall be subject to
tax in accordance with the laws of the first-mentioned territory.
Where the income is also subject to tax in the other territory,
relief from double taxation shall be given in accordance with
the provisions of Article XV.
(2) In this Article, the term ―income from real property‖ means
income of whatever nature derived from real property,
including gains derived from the sale or exchange of such
property, and it also includes royalties in respect of the
operation of mines, quarries or other natural resources. It does
not however include interest from mortgages or bonds secured
on such property.
ARTICLE X
(1) Remuneration, including pensions, paid by, or out of funds
created by, the Government of the United Kingdom to an
individual in respect of services rendered to that Government in
the discharge of governmental functions shall be exempt from
Swiss tax: provided that the exemption shall not apply to
remuneration, other than a pension, paid to a Swiss citizen who
is not also a British subject.
(2) Remuneration, including pensions, paid by, or out of funds
created by, the Swiss Confederation or by any Swiss canton to
an individual in respect of services rendered to Switzerland in
the discharge of governmental functions shall be exempt from
United Kingdom tax: provided that the exemption shall not
apply to remuneration, other than a pension, paid to a British
subject who is not also a Swiss citizen.
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(3) The provisions of paragraphs (1) and (2) of this Article shall not
apply to payments in respect of services rendered in connection
with any trade or business carried on by either Contracting
Party or by any Swiss canton for purposes of profit.
(4) The provisions of this Convention shall not be construed as
denying or affecting in any manner the right of diplomatic and
consular officers to other or additional exemptions now enjoyed
or which may hereafter be granted to them.
ARTICLE XI
(1) An individual who is a resident of the United Kingdom shall be
exempt from Swiss tax on profits or remuneration in respect of
personal (including professional) services performed within
Switzerland in any year of assessment if—
(a) he is present within Switzerland for a period or periods
not exceeding in the aggregate 183 days during that year,
and
(b)
(i) in the case of a directorship or employment, the
services are performed for or on behalf of a resident
of the United Kingdom;
(ii) in other cases, he has no office or other fixed place
of business in Switzerland, and
(c) the profits or remuneration are subject to United Kingdom
tax.
(2) An individual who is a resident of Switzerland 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)
(i) in the case of a directorship or employment, the
services are performed for or on behalf of a resident
of Switzerland;
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(ii) in other cases, he has no office or other fixed place
of business in the United Kingdom; and
(c) the profits or remuneration are subject to Swiss tax.
(3) The provisions of this Article shall not apply to the profits or
remuneration of public entertainers such as stage, motion
picture, radio or television artists, musicians and athletes.
ARTICLE XII
(1) Any pension (other than a pension of the kind referred to in
Article X) and any annuity, derived from sources within one of
the territories by an individual who is a resident of the other
territory and subject to tax in that other territory in respect
thereof, shall be exempt from tax in the first territory.
(2) In this Article—
(a) The term ―pension‖ means periodic payments made in
consideration of past services or by way of compensation
for injuries received;
(b) The term ―annuity‖ means a stated sum payable
periodically at stated times, during life or during a
specified or ascertainable period of time, under an
obligation to make the payments in return for adequate
and full consideration in money or money‘s worth.
ARTICLE XIII
(1) A professor or teacher from one of the territories, who receives
remuneration 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 in respect of that
remuneration.
(2) 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 outside that other territory
for the purposes of his maintenance, education or training.
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ARTICLE XIV
(1) Individuals who are residents of Switzerland shall be entitled to
the same personal allowances, reliefs and reductions for the
purposes of United Kingdom tax as British subjects not resident
in the United Kingdom.
(2) Individuals who are residents of the United Kingdom shall be
entitled to the same personal allowances, reliefs and reductions
for the purposes of Swiss tax as Swiss nationals resident in the
United Kingdom.
ARTICLE XV
(1) The laws of the Contracting Parties shall continue to govern the
taxation of income arising in either of the territories, except
where express provision to the contrary is made in the present
Convention. Where income is subject to tax in both territories,
relief from double taxation shall be given in accordance with
the following paragraphs of this Article.
(2) 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, Swiss
tax payable, whether directly or by deduction in respect of
income from sources within Switzerland shall be allowed as a
credit against the United Kingdom tax payable in respect of that
income. Where such income is a dividend paid by a company
which is a resident of Switzerland to a company which controls,
directly or indirectly, not less than 50%, of the if entire voting
power of the former company, the credit shall take into account
(in addition to any Swiss tax appropriate to the dividend) the
Swiss tax payable by the former company in respect of its
profits. For the purpose of this paragraph, the term ―Swiss tax‖
shall include the Federal coupon tax, but shall not include the
communal taxes.
(3) Income (other than dividends) from sources within the United
Kingdom which under the laws of the United Kingdom and in
accordance with this Convention is subject to tax in the United
Kingdom either directly or by deduction shall be exempt from
Swiss tax.
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(4) In the case of a person (other than a company or partnership)
who is resident in the United Kingdom for the purposes of
United Kingdom tax an also resident (by reason of domicile or
sojourn) in Switzerland for the purposes of Swiss tax, the
provisions of paragraph (2) of this Article shall apply in relation
to income which that person derives from sources within
Switzerland, and the provisions of paragraph (3) of this Article
shall apply in relation to income which that person derives from
sources within the United Kingdom. If such person derives
income from sources outside both the United Kingdom and
Switzerland, tax may be imposed on that income in both the
territories (subject to the laws in force in the territories and to
any Convention which may exist between either of the
Contracting Parties and the territory from which the income is
derived) but the Swiss tax on so much of that income as is 1
subjected to tax in both the territories shall be limited to /2 of
the tax on such income, and the United Kingdom tax on that
income shall be reduced by a credit, in accordance with
paragraph (2) of this Article, for the Swiss tax so computed.
(5) For the purposes of this Article, 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, except that the remuneration of a director of a
company shall be deemed to be income from sources within the
territory in which the company is resident, 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.
ARTICLE XVI
(1) Where it is provided in this Convention that relief from tax in
respect of any kind of income shall be allowed in the territory
from which such income is derived, that provision shall not be
construed as requiring that income to be paid without deduction
of tax at source at the full rate. Where tax has been deducted at
source from such income the taxation authorities of the territory
in which relief from tax is required to be given shall, when the
taxpayer in receipt of the income shows to their satisfaction and
within the time limits prescribed in that territory that he is
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entitled to the relief, arrange for the appropriate repayment of
tax.
(2) Where any income is exempted from tax by any provision of
this Convention, it may nevertheless be taken into account in
computing the tax on other income or in determining the rate of
such tax.
(3) For the purpose of calculating the reliefs due under Articles VI
and XIV, the income of a partnership shall be regarded as that
of its individual members.
ARTICLE XVII
(1) The provisions of the present Convention shall not be construed
as restricting in any manner any exemption, deduction, credit or
other allowance now or hereafter accorded by the laws in force
in the territory of one of the Contracting Parties in the
determination of the tax imposed in such territory.
(2) The provisions of the present Convention shall not be construed
as derogating from any right or privilege conferred upon
taxpapers by the Agreement of the 17th October, 1931, between
the Government of the United Kingdom and the Swiss Federal
Council for reciprocal exemption from taxation on profits or
gains arising through an agency.
ARTICLE XVIII
(1) The nationals of one Contracting Party shall not be subjected in
the territory of the other Contracting Party to any taxation on
any requirement connected therewith which is either, higher or
more burdensome than the taxation and connected requirements
to which the nationals of the latter Party are or may be
subjected in similar circumstances.
(2) The enterprises of one of the territories, whether carried on by a
company, a body of persons or by individuals alone or in
partnership, shall not be subjected in the other territory, in
respect of income, profits or capital attributable to their
permanent establishments in that other territory, to any taxation
which is other, higher or more burdensome than the taxation to
which the enterprises of that other territory similarly carried on
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are or may be subjected in respect of the like income, profits or
capital.
(3) The income, profits, and capital of an enterprise of one of the
territories, the capital of which is wholly or partly owned or
controlled, directly or indirectly, by a resident or residents of
the other territory, shall not be subjected in the first territory to
any taxation which is other, higher or more burdensome than
the taxation to which other like enterprises of that first territory
are or may be subjected in similar circumstances in respect of
the like income, profits and capital.
(4) Nothing in paragraph (1) or paragraph (2) of this Article shall
be construed as obliging one Contracting Party to grant
nationals of the other Contracting Party who are not resident in
the territory of the former Party the same personal allowance,
reliefs and reductions for tax purposes as are granted to its own
nationals.
(5) In this Article the term ―nationals‖ means—
(a) in relation to Switzerland, all Swiss citizens wherever
residing and all entities with or without juridical
personality created under Swiss laws;
(b) in relation to the United Kingdom, all British subjects and
British protected persons—
(i) residing in the United Kingdom or any territory to
which the present Convention is extended under
Article XXI, or
(ii) deriving their status as such from connection with
the United Kingdom or any territory to which the
present Convention is extended under Article XXI,
and all legal persons, partnerships, associations and
other entities deriving their status as such from the
law in force in the United Kingdom or any territory
to which the Convention is extended under Article
XXI.
(6) In this Article the term ―taxation‖ means taxes of every kind
and description levied on behalf of any authority whatsoever.
ARTICLE XIX
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(1) Where a taxpayer shows to the satisfaction of the competent
authority of the Contracting Party of which he is a national or in
whose territory he a resident that he has not received the
treatment in the other territory to which he is entitled under any
provision of this Convention, that competent authority shall
consult with the competent authority of the other Party with a
view to the avoidance of the double taxation in question.
(2) The competent authorities of the 2 Contracting Parties may
communicate with each other directly for the purpose of giving
effect to the provisions of this Convention (and in particular the
provisions of Articles III and IV) and for resolving any
difficulty or doubt as to the application or interpretation of the
Convention.
ARTICLE XX
(1) The competent authorities of the Contracting Parties shall
exchange such information (being information which is at their
disposal under their respective taxation laws in the normal
course of administration) as is necessary for carrying out the
provisions of the present Convention in relation to the taxes
which are the subject of the Convention. Any information so
exchanged shall be treated as secret and shall not be disclosed
to any persons other than those concerned with the assessment
and collection of the taxes which are the subject of the
Convention. No information as aforesaid shall be exchanged
which would disclose any trade, business, industrial or
professional secret or trade process.
(2) In no case shall the provisions of this Article be construed as
imposing upon either of the Contracting Parties the obligation
to carry out administrative measures at variance with the
regulations and practice of either Contracting Party or which
would be contrary to its sovereignty, security or public policy or
to supply particulars which are not procurable under its own
legislation or that of the Party making application.
ARTICLE XXI
(1) The present Convention may be extended, either in its entirety
or with modifications, to any territory for whose international
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relations the United Kingdom is responsible and which imposes
taxes substantially similar in character to those which are the
subject of the Convention, and any such extension shall take
effect from such date and subject to such modifications and
conditions (including conditions as to termination) as may be
specified and agreed between the Contracting Parties in notes to
be exchanged for this purpose.
(2) The termination in respect of the United Kingdom or
Switzerland of the present Convention under Article XXIV
shall, unless otherwise expressly agreed by the Contracting
Parties, terminate the application of the Convention to any
territory to which it has been extended under this Article.
ARTICLE XXII
(1) The present Convention shall be ratified and the instruments of
ratification shall be exchanged at Berne as soon as possible.
(2) The present Convention
exchange of ratifications.
shall enter into force upon the
ARTICLE XXIII
(1) Upon the entry into force of the present Convention in
accordance with Article XXII, the provisions of the Convention
shall have effect—
(a) In the United Kingdom—
as respects income tax (including surtax) for any year of
assessment beginning on or after the 6th April, 1953; as
respects profits tax and excess profits levy in respect of the
following profits—
(i) profits by reference to which income tax is, or but
for the present Convention would be chargeable for
any year of assessment beginning on or after the 6th
April, 1953;
(ii) other profits being profits by reference to which
income tax is not chargeable, but which arise in any
chargeable accounting period beginning on or after
the 1st April, 1953, or are attributable to so much of
any chargeable accounting period falling partly
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before and partly after that date as falls after that
date.
(b) In Switzerland—for any taxable year beginning on or
after the 1st January 1953.
(2) The exemption from tax provided in Article V shall have effect
for any year of assessment beginning on or after the 6th April,
1946.
ARTICLE XXIV
The present Convention shall continue in effect indefinitely but
either Contracting Party may, on or before the 30th June in any
calendar year not earlier than the year 1957, give to the other
Contracting Party, through the diplomatic channel, written
notice of termination and, in such event, the Convention shall
cease to be effective—
(a) In the United Kingdom—
as respects income tax (including surtax) for any year of
assessment beginning on or after the 6th April in the
calendar year next following that in which the notice is
given; as respects profits tax in respect of the following
profits—
(i) profits by reference to which income tax is
chargeable for any year of assessment beginning on
or after the 6th April in the calendar year next
following that in which the notice is given;
(ii) other profits being profits by reference to which
income tax is not chargeable, but which arise in any
chargeable accounting period beginning on or after
the 1st April in the calendar year next following that
in which the notice is given or are attributable to so
much of any chargeable accounting period falling
partly before and partly after that date as falls after
that date;
(b) In Switzerland—
for any taxable year beginning on or after 1 January of the
calendar year next following that in which the notice is given.
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IN WITNESS WHEREOF the above-mentioned
Plenipotentiaries have signed the present Convention and have
affixed thereto their seals.
Done in duplicate at London, the 30th day of September, one
thousand nine hundred and fifty-four, in the English and French
languages, both texts being equally authoritative.
(Sgd.) (L.S.) DOUGLAS DODDS-PARKER,
(Sgd.) (L.S.) E. BERNATH.
SCHEDULE 2
(Section 2)
APPLICATION
1. The said Convention as modified by the present Annex shall
apply in the case of Saint Lucia—
(a) as if the Contracting Parties were the Swiss Federal
Council and the Government of Saint Lucia ;
(b) as if the taxes concerned in the case of Saint Lucia were
income tax;
(c) as if references to ―the date of signature of the present
Convention‖ were references to the date of the Exchange
of Notes to which the present Annex is appended.
2. When the last of those measures shall have been taken in
Switzerland and in Saint Lucia necessary to give the present
extension the force of law in Switzerland and in Saint Lucia
respectively, the present extension shall have effect—
(a) in Switzerland : for any taxable year beginning on or after
the first day of January, 1961; and
(b) in Saint Lucia : as respects taxes charged for the year of
assessment or year of income beginning on the 1st
January 1961, and for subsequent years, years of
assessment or years of income.
3. The Swiss Federal Council shall inform the Government of the
United Kingdom in writing through the diplomatic channel
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when the last of the measures necessary, as indicated in
paragraph (2) have been taken in Switzerland. The Government
of the United Kingdom shall inform the Swiss Federal Council
in writing through the diplomatic channel when the last of the
measures necessary, as indicated in paragraph (2), have been
taken in Saint Lucia.
(4) The present extension shall continue in effect indefinitely but
either the Government of the United Kingdom or the Swiss
Federal Council may, on or before the 30th of June in any
calendar year not earlier than the year 1966 give to the other
through the diplomatic channel written notice of termination
which may apply to Saint Lucia and in such event the present
extension shall cease to have effect,
(a) in Switzerland : for any taxable year beginning on or after
the first day of January of the calendar year next
following that in which the notice is given ; and
(b) in Saint Lucia : as respects taxes charged for any year,
year of assessment or year of income beginning on or
after 1st January, 1961 in the calendar year next following
that in which the notice is given.
MODIFICATIONS
The said Convention shall, for the purposes of the extension to
Saint Lucia, apply with the following modifications—
(a) For the purposes of the extension of the Convention to
Saint Lucia, Article VI shall be deleted ;
(b) for the purposes of the extension of the Convention to
Saint Lucia, references to interest in Article VII of the
Convention shall be deemed to be deleted, and in Article
XV (3) the words in brackets shall be deemed to be
replaced by the words ―other than dividends and interest‖;
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INCOME TAX (FORMS) RULES – SECTION 151
(Statutory Instrument 42/1949)
Commencement [30 July 1949]
1. SHORT TITLE
These Rules may be cited as the Income Tax (Forms) Rules.
2. FORMS
The Income Tax forms appearing in the Schedule are the forms under
the Income Tax Act, 1947.16
3. FORMS MAY BE OBTAINED AT TREASURY
The said forms with the exception of Forms 5 and 7 may be obtained
at the Treasury in Castries or at any district revenue office in other
parts of Saint Lucia.
SCHEDULE
(Section 2)
No. of Form. Description.
1. Notice and return under section 37 of the Act (Return — General
Form).
2. Notice and return under section 38 of the Act (Employers).
3. Notice and list to be delivered for the purposes of sections 30, 31,
32 of the Act (Agents, etc., of non-residents).
4. Notice and list to be delivered for the purposes of sections 29, 31,
32 of the Act (Trustees, Executors, etc.).
5. Notice of assessment, section 47 of the Act.
16 Editor’s note: This Act was repealed by the Income Tax Act, 1965 which itself was
repealed and replaced by the Income Tax Act. These Rules were continued in force by the
1965 Act and section 153 of the Income Tax Act.
314 Cap.15.02 Income Tax Forms Rules Laws of Saint Lucia
Revision Date: 31 Dec 2008
6. Account to be rendered under section 36 of the Act by persons
paying mortgage or debenture interest to persons not resident
in Saint Lucia.
7. Declaration required by section 4 of the Act (Declaration of
Official Secrecy).
315Laws of Saint Lucia Income Tax Appeals Against Cap.15.02 Assessments Rules
Revision Date: 31 Dec 2008
INCOME TAX APPEALS AGAINST ASSESSMENTS,
RULES – SECTION 15117
(Statutory Instrument 14/1924)
1. In the notice in writing to be given by the appellant to the
Commissioner the grounds, reasons, or particulars of the appeal
shall be clearly stated and the said notice shall be served on the
Commissioner.
Such notice may be served through the Sheriff‘s Office and if
so served, the return of service of the said notice on the
Commissioner shall be made on a duplicate or copy of the
notice to be delivered in the Sheriff‘s Office by the appellant at
the time of delivering the notice in writing for service.
If the notice in writing is not served through the Sheriff‘s Office
an affidavit by the person serving such notice shall be similarly
made on the duplicate or copy of such notice.
2. The appellant shall before the expiration of the third day
computing from the day of service of the notice referred to in
rule 1 file in the Registry of the High Court (a) an application to
the judge in chambers to fix a day for the hearing of the appeal
and (b) the duplicate or copy of the notice with the return of
service or affidavit required by rule 1.
3. A copy of the order fixing the day of the hearing of the appeal
may be served on the Commissioner through the sheriff‘s office
and if so served the return of service shall be filed by the
appellant in the Registry before the day fixed for the hearing of
the appeal.
If the copy of the order is not served through the sheriff‘s office
an affidavit by the person serving such copy shall be similarly
filed as required by the preceding paragraph.
4. The proceedings in the appeal shall be intituled.
―IN THE EASTERN CARIBBEAN SUPREME COURT (SAINT LUCIA).
17 Editor’s note: These Rules were continued under the Income Tax Act, 1965. That Act
was repealed and replaced by the Income Tax Act. However, the rules continue in force
under section 153.
316 Cap.15.02 Income Tax Appeals Against Laws of Saint Lucia
Assessments Rules
Revision Date: 31 Dec 2008
(In Chambers).‖
In the matter of the Income Tax Act and of an appeal against
assessment by (state name of Appellant),
Date of the Commissioner‘s refusal to amend assessment............................‖
(state day with month and year).
(A short heading or description of the proceeding should follow — e.g.
―APPLICATION TO FIX DATE FOR HEARING OF APPEAL‖ or
as the case may be).