Title

1. This Act may be cited as the Income Tax Act 1999.

Commencement

2. Subject to section 161, this Act shall come into force from 1 January 2000 and shall apply to:

(a) the income year 2000 and subsequent income years; and

(b) the deduction of withholding tax from payments made on or after 1 January 2000.

Interpretation

3. In this Act and in Regulations authorized by the Act, unless the context otherwise requires -

"adjusted cost base" means the cost base of an asset increased by --

(a) indirect expenses such as commissions and legal fees incurred in respect of the acquisition, production, or construction of an asset;

(b) interest and taxes incurred during the acquisition, production, or construction period of an asset;

(c) customs duties incurred in respect of the importation of an asset; and

(d) the cost of improvements and other costs properly added to capital account in respect of the asset (other than an amount allowed as a deduction);

"agent" includes any partnership, company or body of persons which is acting as an agent;

"approved retirement fund" means a pension fund approved by the Minister for the purposes of this Act;

"assessment" includes an amended assessment and a deemed assessment;

"associate", in relation to a person, means any other person who --

(a) being an individual, is a relative of the person; or

(b) being a company, is controlled, directly or indirectly, by the person; or

(c) is controlled, directly or indirectly, by a person or group of persons that control the person.

"bad debt claim" means a debt claim with respect to which the taxpayer has taken all reasonable steps to pursue payment and which the taxpayer reasonably believes will not be satisfied;

"business" includes 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 employment;

"business asset" means an asset held for the production of assessable income and which is used in a business or is held for sale in a business, but does not include trading stock of a business;

"business income" has the meaning in section 21;

"Comptroller" means the Comptroller of Inland Revenue and, except for the purpose of section 129, includes an Assistant Comptroller or a Deputy Comptroller;

"company" means a body corporate, wherever incorporated, but does not include a partnership, trust or unincorporated body of persons;

"consideration received" has the meaning in section 50;

"cost base" has the meaning in section 49;

"debt claim" means a right to receive a payment or repayment of money or property from another person, and includes deposits in banks and other financial institutions, accounts receivable, notes, bills of exchange, and bonds;

"debt obligation" means the obligation corresponding to a debt claim;

"depreciable asset" means tangible movable property or intangible property which is wholly or partly used in the production of assessable income and which is likely to lose value because of wear and tear, obsolescence, or the passage of time, but does not include trading stock of a business;

"disposal", in relation to an asset, means -

(a) the sale, exchange, redemption, or distribution of the asset;

(b) the transfer of the asset as a gift or at death; or

(c) the destruction, loss, or extinction of the asset,

and includes the disposal of a part of the asset;

"dividend" means a distribution by a company to a shareholder of the company as shareholder, and includes a distribution of shares, securities or other property, but does not include any payment or transfer to a director or employee of a company by way of remuneration for services rendered or any loan or advance made to a director, employee or shareholder;

"employee" means an individual who receives employment income;

"employer" means a person who employs or remunerates an employee;

"employment" means -

(a) the position of an individual in the employ of another person;

(b) a directorship of a company;

(c) a position entitling the holder to a fixed or ascertainable remuneration; or

(d) a public office;

"employment income" has the meaning in section 20;

"exempt organisation" has the meaning in section 23(2);

"financial institution" means any person carrying on the business of receiving funds from the public or from members and includes a bank, investment company, mutual fund, building society, friendly society and other similar institution;

"interest" includes -

(a) an amount paid or accrued under a debt obligation which is not a return of capital; and

(b) any gain realized by way of a discount, premium, swap payment, or similar payment;

"Minister" means the Minister of Finance;

"minor" means an individual who is under 18 years of age at the end of the year of assessment;

"natural resource payment" means -

(a) a payment for minerals or a living or non-living resource of the land or of the sea-bed; or

(b) a payment calculated in whole or in part by reference to the quantity or value of minerals or living or non-living resource taken from the land or from the sea-bed;

"non-resident person" has the meaning in section 13;

"objection decision" has the meaning in section 139(5);

"paid" includes credited;

"payment" includes an amount payable, the transfer of property, and any other means of conferring value or benefit on a person;

"person" includes a partnership, a company, a government, a political subdivision of a government, and a public international organisation;

"property income" has the meaning in section 22;

"public international organisation" means an organisation listed as such in Regulations;

"relative" means an individual who is related to a person by blood, adoption or marriage and includes an individual who is a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of a person, or a spouse of such an individual;

"rent" includes -

(a) any premium paid in respect of a lease or rental agreement; and

(b) any payment made in respect of the use of, or the right to use, industrial, commercial, or scientific equipment;

"resident company" has the meaning in section 12;

"resident individual" has the meaning in section 11;

"retirement fund" means a pension, provident, or superannuation fund or society;

"return of income" has the meaning in section 85;

"royalty" means a payment for -

(a) the use of, or the right to use, a copyright, patent, design, model, plan, secret formula or process, trademark, or other intangible property or right;

(b) the supply of know-how;

(c) the use of, or right to use, a cinematographic film, video tape, sound recording, or any other like medium;

(d) the supply of assistance ancillary to a matter referred to in paragraphs (a) to (c);

"shareholder", in relation to a company, includes a holder of an equity interest in the company;

"specified rate" has the meaning in section 122;

"tax cost" of an asset means -

(a) in the case of a non-depreciable asset, its adjusted cost base;

(b) in the case of a depreciable asset, its undepreciated capital cost; and

(c) in the case of an asset that is inventory of a business, the lower of its cost or market value;

"taxpayer" means a person who is subject to any tax, interest, or penalty imposed by this Act or who derives income assessable under this Act, and includes a withholding agent;

"taxpayer identification number" has the meaning in section 158;

"trading stock" includes goods sold or intended to be sold by a taxpayer in the ordinary course of business, work in progress on such goods, and inventories of materials to be incorporated into such goods;

"Tribunal" has the meaning in section 140;

"trust" includes the estate of a deceased person;

"trustee" includes -

(a) an executor, administrator, tutor, or curator;

(b) a liquidator or judicial manager;

(c) a person having or taking on the administration or control of property subject to a trust;

(d) a person acting in a fiduciary capacity; and

(e) a person having the possession, control, or management of the property of a person under a legal disability;

"undepreciated capital cost" means the balance of a class of assets as determined under section 31(7);

"underlying ownership or control", in relation to a company, means ownership interests held, or control exercised, directly or indirectly through interposed entities;

"whole-time service director" means a director of a company who is required to devote substantially the whole of his or her time to the service of the company in a managerial or technical capacity and who does not enjoy underlying ownership or control of more than 5 percent of the share capital or voting power of the company;

"withholding agent" means a person required to withhold tax under Part IV of Chapter Eight; and

"year of assessment" has the meaning in section 37.

Income Tax Payable

4.

(1) Income tax is payable by every person who has chargeable income for the year of assessment.

(2) The chargeable income of a person is determined by subtracting from the assessable income of that person the allowances permitted under Part III of this Chapter.

(3) The income tax payable is calculated by

(a) applying the relevant rates of tax determined under Part II of this Chapter to the taxpayer's chargeable income for the year of assessment, and

(b) subtracting from the resulting amount any tax credit to which the taxpayer is entitled for the year of assessment under section 79.

Rate of Tax for Resident Individuals

5.(1) Subject to subsections (2) and (3), the chargeable income of a resident individual is taxed at the following rates:

(a) chargeable income not exceeding EC $ 10,000 is taxed at the rate of 10 percent;

(b) chargeable income in excess of EC $ 10,000 but not exceeding EC $ 20,000 is taxed at the rate of 15 percent;

(c) chargeable income in excess of EC $ 20,000 but not exceeding EC $ 30,000 is taxed at the rate of 20 percent;

(d) chargeable income in excess of EC $ 30,000 is taxed at the rate of 30 percent.

(2) The chargeable property income of a resident minor is taxed at the rate of 30 percent.

(3) If a resident minor has chargeable income other than chargeable property income, that other income is taxed at the rates specified in subsection (1) without regard to any liability under subsection (2).

Rate of Tax for Companies

6. The chargeable income of a company is taxed at the rate of 33 and one-third percent.

Rate of Tax for Trustees

7.(1) Subject to subsections (2) and (3), the chargeable income of a trust is taxed at the rate of 30 percent.

(2) The chargeable income of an incapacitated person's trust is taxed at the rates specified in section 5(1) as if it were the income of the incapacitated person.

Rate of Tax for Non-Residents

8. (1) The chargeable income of a non-resident person that is derived from -

(a) employment performed in Saint Lucia; or

(b) business carried on in Saint Lucia,

is subject to tax at the rate or rates prescribed in section 5(1), section 6 or section 7(1), as though the non-resident person were a resident individual, company or trust, as the case may be.

(2) Subject to subsection 9(2), any other income of a non-resident person is taxed at the rate of 30 percent.

Rates of Withholding Taxes

9.(1) Where a resident person is required to withhold tax from a payment made to a person resident in Saint Lucia, tax shall be withheld at the following rates -

(a) payments to which section 95 applies - at the rates prescribed in Regulations;

(b) payments to which section 96 applies - 10 percent;

(c) payments to which sections 97, 98 or 99 apply - 30 percent.

(2) Where a resident person is required to withhold tax from a payment made to a non-resident person, tax shall be withheld at the following rates -

(a) payments to which section 95 applies - at the rates prescribed in Regulations;

(b) payments to which section 96 relates - 10 percent;

(c) payments to which sections 97, 98, 99, 100, or 101 - 30 percent.

Personal Allowances

10.(1) An individual who is resident in Saint Lucia in a year of assessment is entitled to deduct from the amount of assessable income for that year -

(a) a basic allowance of EC $ 15,000; and

(b) an additional allowance of EC $ 1,000 each in respect of any spouse, minor child or other relative who is wholly or principally dependant on the individual and is resident in Saint Lucia.

(2) If the assessable income for the year of a spouse, child or relative in respect of whom an additional credit is claimed exceeds EC $ 1,000, the amount of the credit is reduced by the amount of the excess.

(3) A credit in respect of a minor child is granted to the parent of the child whose assessable income for the year of assessment is the greater, unless the parents otherwise agree in writing.

Resident Individual

11 (1). Subject to subsections (2) and (3), an individual is resident in Saint Lucia for the entire year of assessment if that individual -

(a) has a normal place of abode in Saint Lucia and is present in Saint Lucia at any time during the year of assessment;

(b) is present in Saint Lucia on more than 183 days in a year of assessment; or

(c) is an employee or an official of the government of Saint Lucia posted abroad during the year of assessment.

(2) An individual who was not a resident in the preceding year of assessment is not treated as a resident for the period preceding the day the individual was first present in Saint Lucia during the year of assessment.

(3) An individual who is not a resident in the following year of assessment is not treated as a resident for the period following the last day on which the individual was present in Saint Lucia during the year of assessment if during that period the individual had a closer connection to a foreign country than to Saint Lucia.

(4) For purposes of paragraph (1)(b) of this section, an individual is not treated as present in Saint Lucia on a day when -

(a) the individual enters Saint Lucia;

(b) the individual is in transit between two points outside Saint Lucia; or

(c) the individual is present in Saint Lucia by reason of diplomatic status, or is a dependent of such an individual.

Resident Company

12. A company is a resident company if it -

(a) is incorporated under the laws of Saint Lucia; or

(b) has its centre of management and control in Saint Lucia.

Non-Resident Person

13. A non-resident person is a person who is not resident in Saint Lucia during the year of assessment or, where section 11(2) or 11(3) applies, during part of the year of assessment.

14. Where, by virtue of sections 11(2) or 11(3), a taxpayer becomes resident or ceases to be resident in Saint Lucia during a year of assessment the taxpayer shall be liable to tax

(a) for the part of the year in which the taxpayer is resident in Saint Lucia, as a resident of Saint Lucia; and

(b) for the part of the year in which the taxpayer was not resident in Saint Lucia, as a non-resident.

Chargeable Income of Resident Taxpayers

15. The chargeable income of a taxpayer resident in Saint Lucia is the taxpayer's assessable income from all sources less those deductions allowed under this Act.

Chargeable Income of Non-Resident Taxpayers

16. The chargeable income of a non-resident taxpayer is the sum of --

(a) all payments from which tax is required to be withheld under Part IV of Chapter Eight, and

(b) all other assessable income from a source in Saint Lucia,

less any deductions allowed under this Act.

Chargeable Property Income of Minors

17. The chargeable property income of a resident minor is the property income included in the taxpayer's assessable income, reduced by the allowable deductions which relate to the production of that property income.

Chargeable Income of a Trust

18. The chargeable income of a trust is the assessable income of the trust determined under Part III of Chapter Four less any deductions allowed under this Act.

Assessable Income

19. For the purposes of this Act, the assessable income of a taxpayer for a year of assessment is the sum of the taxpayer's --

(a) employment income;

(b) business income; and

(c) property income,

for the year, but does not include exempt income.

Employment Income

20. (1) "Employment income" means a payment or benefit arising from past, present, or prospective employment, including but not restricted to the following payments or benefits:

(a) any salary, wages, or other remuneration provided to the employee, including leave pay, overtime payments, commissions, gratuities and bonuses;

(b) gifts provided by an employer in the course of or by virtue of employment to a past, present, or prospective employee;

(c) unless another value is specified in subsection (2), the market value of any benefit provided by an employer to an employee by way of the transfer or use of property or the provision of services, whether or not the benefit may be converted to money's worth by the employee;

(d) any allowance provided by the employer for the personal benefit of an employee or of any member of the employee's family, including any cost of living, subsistence, rent, entertainment or travel allowance;

(e) any discharge or reimbursement by an employer of expenditure incurred by an employee;

(f) any consideration provided by the employer in respect of the employee's agreement to any conditions of employment or to any changes in the conditions of employment;

(g) any payment provided by the employer in respect of redundancy, loss of office or termination of the office or employment;

(h) any pension payments, or supplements to a pension payment, provided by the employer other than pension payments from an approved retirement fund;

(i) the provision by the employer to an employee of the use, or the availability for use, of a motor vehicle wholly or partly for private purposes of the employee;

(j) the provision by the employer of accommodation or housing, other than the official residence of the Prime Minister or any High Commissioner or Ambassador of Saint Lucia;

(k) the provision by an employer to an employee of a housekeeper, chauffeur, gardener, or other domestic assistant;

(l) the provision by an employer to an employee of any meal, refreshment, or entertainment;

(m) the reimbursement or discharge by an employer of an employee's medical expenses;

(n) the waiver by an employer of an obligation of the employee to pay or repay an amount owing to the employer or to any other person;

(o) an amount which is credited to an employee in the books or in the name of the employer in circumstances in which the employee may draw sums on account of such amount or otherwise utilize such credit in any way; and

(p) an amount contributed by the employer to a pension, superannuation, provident or similar fund for the benefit of the employee other than an amount contributed to an approved retirement fund.

(2) For the purpose of determining the amount included in employment income under subsection (1), the taxable value of the benefit described in -

(a) paragraph (i) is determined in accordance with Regulations;

(b) paragraph (j) is the market rent of the accommodation or housing, reduced by any payment made by the employee for the benefit;

(c) paragraph (k) is the total employment income paid to the domestic assistant in respect of services rendered to the employee, reduced by any payment made by the employee for the benefit;

(d) paragraph (l) is the cost to the employer of providing the meal, refreshment, or entertainment, reduced by any consideration paid by the employee for the meal, refreshment, or entertainment.

(3) Notwithstanding subsection (1), the following benefits are excluded from employment income:

(a) a meal or refreshment provided in a canteen, cafeteria, or dining room operated by or on behalf of the employer solely for the benefit of employees and which is available to all employees on equal terms;

(b) the lesser of -

(i) the amount of any allowance in respect of, or any reimbursement or discharge of, an employee's medical expenses, or any contribution on behalf of an employee to a medical insurance plan; and

(ii) the amount specified in Regulations,

where the reimbursement, discharge or contribution is pursuant to an agreement by the employer to provide similar benefits to all employees;

(c) where -

(i) it is a condition of an employee's employment that the employee serve the employer at locations specified by the employer; and

(ii) an employee maintains a household in his previous place of abode after moving at the employer's request,

the value of accommodation provided to the employee;

(d) in the case of an employee who is required to change his place of abode at the request of his employer, the difference between the rental value of the employee's previous accommodation and the rental value of accommodation provided by the employer, reduced by any contributions made by the employee towards the cost of accommodation;

(e) the reimbursement of expenditures incurred by an employee on behalf of the employer for which the employer would be entitled to a deduction under Part IV of this Chapter if incurred directly;

(f) the cost incurred by the employer of any passage to or from Saint Lucia in respect of an employee's first appointment or termination of such appointment;

(g) any redundancy pay or a payment for termination or loss of office or employment or similar type of payment, to the extent that the payment does not exceed the amount specified in Regulations or is deposited by the taxpayer in an approved retirement fund as permitted by Regulations;

(h) remuneration paid to a non-resident where the period of employment in Saint Lucia does not exceed thirty days in the year of assessment; and

(i) a benefit the value of which (after taking into account the frequency with which similar benefits are provided by the employer) is so small as to make accounting for it unreasonable or administratively impracticable.

(4) Where an employer has granted to an employee an option to purchase shares in the employer or in a company that is an associate of the employer and the employee exercises that option at any time during or after the termination of the employment, there is included in the employment income of the employee for the year of assessment in which the option is exercised the amount by which -

(a) the price paid by the employee under the option,

exceeds

(b) the market value of the shares at the time the option was exercised.

Business Income

21. "Business income" means the receipts derived from carrying on a business, and includes -

(a) the proceeds of disposal of trading stock;

(b) the proceeds of disposal of business assets (other than depreciable assets or trading stock) as determined under Part VI;

(c) the proceeds of the satisfaction or cancellation of business debts, whether or not the debt was on capital or revenue account;

(c) amounts included in income under section 31(10);

(d) gifts or other ex gratia payments received by a person in the context of a business relationship;

(e) payments received as consideration for accepting a restriction on the capacity to carry on business;

(f) interest derived in respect of trade receivables or interest accruing to a person engaged in the business of banking or money lending;

(g) rent derived by a person whose business is wholly or mainly the holding or letting of property; and

(h) compensation received in respect of business assets under a policy of insurance or contract for indemnity.

Property Income

22 (1) "Property income" means -

(a) dividends, interest, natural resource payments, rent, royalties, annuity and pension payments, and other payments derived from the provision, use or exploitation of property;

(b) gifts received in connection with the provision, use, or exploitation of property; and

(c) income of a beneficiary under a trust, as determined by Part III of Chapter Four,

but does not include income which is employment income or business income.

(2) "Property income" does not include gains or losses from the disposal of property.

Exempt Income

23 (1) The following amounts are not included in assessable income:

(a) the income of a public international organisation;

(b) the official employment income of an individual who is not a citizen of Saint Lucia and

(i) who is a diplomatic or consular employee,

(ii) who is in the public service of the government of a foreign country, if the income is subject to income tax in that country, or

(iii) who is an employee of a public international organisation;

(b) foreign-source income derived by a person whose official employment income is exempt under paragraph (b), (c), or (d), or by a member of the immediate family of such person;

(c) the official emoluments of the Governor-General and of any Acting Governor-General, including any gratuity or pension payable to a former Governor or Governor-General or to the legal representative or widow of such person;

(d) any war pension (including a disability pension) or gratuity in respect of service during war;

(e) a scholarship or grant payable in respect of tuition or fees for full-time instruction at an educational institution;

(f) proceeds of a life assurance policy paid by reason of the death of the insured, except to the extent attributable to premiums for which a deduction was allowed;

(g) sums received by way of death gratuities or as compensation for death or injuries;

(h) sums received under a medical or dental insurance plan or under an insurance policy in the event of injury or illness;

(i) benefits payable under the National Insurance Act 1978 to any person by way of sickness benefit, invalidity benefit, maternity benefit, funeral grant or child allowance payable as a survivor’s benefit or death benefit;

(j) the value of property received by way of gift, bequest or inheritance, except as required to be included in assessable income by sections 20, 21 or 22;

(k) interest in respect of

(i) any loan charged on the public revenue, which is declared by the Minister to be exempt,

(ii) treasury bills, bonds and debentures,

(iii) securities issued by member governments of the East Caribbean Central Bank,

(iv) loans to the Saint Lucia Development Bank and National Commercial Holding Ltd. by the Barbados Mutual Life Assurance Society and Life of Barbados Ltd.,

(v) a deposit made by an individual in any bank in Saint Lucia, to the extent that such interest does not exceed EC $500 from any one bank in the year of assessment.

(l) a dividend received from a resident company;

(m) income accruing to an 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;

(n) a gain on the disposal of property other than business assets;

(o) a gain on the disposal of shares in a resident company, other than gains of a person engaged in the business of dealing in securities;

(p) any pension accruing from a source outside Saint Lucia to any retired person who, prior to his retirement, was not resident in Saint Lucia; and

(q) the income of an exempt organisation, except to the extent that such income is business income that is not related to the function constituting the basis for the organisation's exemption.

(2) For the purposes of paragraph (1)(q), an organisation is an exempt organisation if it is

(a) the National Insurance Fund;

(b) an approved retirement fund;

(c) a local authority as defined in the Local Authorities Ordinance;

(d) a registered building society or co-operative society;

(e) the Saint Lucia Banana Growers Association, the Windward Islands Banana Growers Association, and the Saint Lucia Agriculturalists Association Limited;

(f) the Caribbean Development Bank;

(g) the Council of Legal Education;

(h) a trade union; or

(i) a religious, charitable or educational institution that is certified by the Minister as an exempt organisation.

Income Exempt under Investment Incentive Legislation

24. (1) Assessable income does not include any amount in respect of which an exemption from income tax is granted under the provisions of the Fiscal Incentives Act 1974 or the Tourism Incentives Act 1996.

(2) After the entry into force of this Act an exemption from income tax granted under the provisions of the Fiscal Incentives Act 1974 or the Tourism Incentives Act 1996 may be granted only by the Minister and shall not be for a period exceeding ten years.

(3) Notwithstanding subsection (2), the Minister may grant a further exemption from income tax for one additional period not exceeding five years where he is satisfied that this will result in substantial benefit to Saint Lucia.

(4) The provisions of subsection (2) shall not apply to exemptions granted before the entry into force of this Act.

Expenses of Earning Income

25 (1) Subject to this Act, for the purpose of ascertaining the taxable income of a taxpayer for a year of assessment, there shall be allowed as a deduction -

(a) all outgoings and expenses incurred by the taxpayer during the year of assessment to the extent the expenses or outgoings were incurred in the production of assessable income; and

(b) losses suffered on the disposal of business assets other than trading stock, as determined under Part VI of this Chapter.

(2) With respect to employment income, no deduction is allowed except, in the case of an employee who is remunerated in whole or in part by commissions based upon sales or contracts negotiated by the employee, the expenses incurred in the year of assessment that would, if the employee were self-employed and carrying on a business, be allowable as a deduction, to the extent that those expenses do not exceed the commissions earned in that year.

(3) With respect to business income and property income, no deduction is allowed for -

(a) any expenditure or loss incurred by a taxpayer to the extent it is of a domestic or personal nature;

(b) except as otherwise provided in this Act, any expenditure or loss that is of a capital nature;

(c) any expenditure or loss incurred by a taxpayer in earning income that is exempt from income tax by virtue of section 23;

(d) income tax payable to Saint Lucia or to a foreign country;

(e) expenses incurred by a company in respect of travel to or from any place outside or inside Saint Lucia of a director (other than a whole-time service director) of the company or the dependents of the director;

(f) remuneration paid to a non-resident employee that is exempt by virtue of section 20(3)(h);

(g) subject to section 26, expenses incurred to provide meals, refreshment, or entertainment;

(h) subject to section 27, any part of the cost of acquiring a right to receive pension or annuity payments;

(i) subject to section 28, interest expenses incurred by a taxpayer that is not a bank;

(j) subject to section 29, losses in respect of bad debt claims;

(k) subject to section 30, research and development costs;

(l) subject to section 31, expenses that may be included in the adjusted cost base of an asset;

(m) subject to section 32, expenses incurred to repair, renew, alter, or improve property;

(n) subject to section 33, expenses incurred to acquire mineral and petroleum exploration and production rights and expenses incurred in respect of mineral and petroleum prospecting, exploration, and development;

(o) subject to section 34, expenses incurred in starting up a business;

(p) subject to section 45, expenses incurred to acquire trading stock or raw materials to be incorporated into trading stock;

(q) subject to section 47, foreign currency debt losses;

(r) the cost of a gift made directly or indirectly to an individual if the gift is not included in the individual's income subject to tax; or

(s) a fine or similar penalty paid to a government for breach of any law.

(3) In this section, expenditures of a domestic or personal nature incurred by a taxpayer include -

(a) the cost of maintenance of the taxpayer, the taxpayer’s family or dependants;

(b) the cost of commuting between a taxpayer's residence and work;

(c) the cost of clothing worn to work, other than clothing that is not suitable for wearing outside of work; and

(d) the cost of education not directly relevant to the taxpayer's business and the cost of education leading to a degree or diploma, whether or not it is directly relevant to the taxpayer's business.

(4) Unless this Act provides otherwise, the rules of Part V apply to determine the time when expenditures or losses are incurred.

(5) No deduction is allowed in respect of an expenditure or loss otherwise deductible under this Act except to the extent that the expenditure or loss was reasonable in the circumstances.

Meal, Refreshment, and Entertainment Expenses

26. A deduction is allowed in computing business income for the cost of providing meals, refreshment, or entertainment where -

(a) the value of the meals, refreshment, or entertainment is included in the employment income of an employee under section 20(1)(l), or would be so included but for the operation of section 20 (3)(a); or

(b) the taxpayer's business includes the provision of meals, refreshment, or entertainment and the persons to whom the meals, refreshment or entertainment are provided have paid reasonable consideration.

Expenses in Respect of Annuity and Pension Payments

27 (1) Where a taxpayer is required to include in assessable income payments under an annuity contract, there may be deducted a proportion of the payments corresponding to the portion of the payments that represents a return of the consideration paid under the annuity contract.

(2) An employer may deduct

(a) any payment to or on behalf of an employee in respect of retirement, redundancy, loss of office or termination of the office or employment, to the extent that the payment is included in the assessable income of the employee or would be included but for section 20(3)(g); and

(b) any payment made on behalf of an employee to an approved retirement fund to the extent that such payment is allowed by Regulations.

(3) An employee, a partner in a partnership, or a self-employed individual may deduct any payment made to an approved retirement fund to the extent that such payment is allowed by Regulations.

Interest

28 (1) Subject to section 80, a taxpayer is entitled to a deduction for interest paid in respect of a debt obligation incurred by the taxpayer to produce assessable business or property income.

(2) Subsection (1) does not apply to interest expenses that are included in the adjusted cost base of an asset.

(3) The amount that may be deducted under subsection (1) in any year of assessment shall not exceed that proportion of the taxpayer’s total payments of interest for the year which the taxpayer’s assessable business or property income bears to the sum of the taxpayer’s assessable business or property income and any income that is exempt from income tax by virtue of section 23(1)(k), 23(1)(l) or section 24.

(4) A taxpayer is entitled to a deduction for interest paid on money borrowed by way of mortgage and applied for the acquisition or purchase of a dwelling occupied by the taxpayer or the taxpayer’s spouse.

(5) A taxpayer is entitled to a deduction for interest paid on money borrowed under the Student Loan Scheme to the extent that the amount of the interest paid does not exceed the taxpayer’s income for the year of assessment from employment performed or business carried on in Saint Lucia.

Bad Debt Claims

29 (1) Subject to subsection (2), a deduction is allowed for a bad debt claim when the debt is written off in the taxpayer's accounts.

(2) A deduction for a bad debt claim is allowed only if

(a) the amount represented by the debt was included in the taxpayer's assessable income in a previous year of assessment; or

(b) where the taxpayer is a financial institution, the debt was in respect of money lent in the ordinary course of business to produce assessable income.

Research and Development Costs

30 (1) Subject to subsection (2), a deduction is allowed for research and development expenditure incurred in the production of assessable business income.

(2) No deduction is allowed under subsection (1) for the acquisition of a depreciable asset or of land.

(3) This section does not apply to an expense incurred for ascertaining the existence, location, extent, or quality of a natural deposit.

Deduction for Depreciable Assets

31 (1) A deduction may be claimed as provided in this section in respect of depreciable assets used in the production of business income or property income, calculated in accordance with this section.

(2) Depreciable assets are allocated to the appropriate class as follows:

(a) Class 1, comprising computer hardware and software, linen and tableware used in hotels and restaurants.

(b) Class 2, comprising plant, machinery and equipment, including automobiles and other motor vehicles, and all other tangible depreciable assets except buildings.

(c) Class 3, comprising mineral and petroleum exploration and production rights and expenses incurred in respect of mineral and petroleum prospecting, exploration, and development.

(d) Class 4, comprising intangible depreciable assets.

(e) Class 5, comprising buildings used to house industrial, manufacturing, commercial or agricultural activities.

(3) An initial allowance of 20 percent may be claimed in respect of the acquisition during the year of assessment of a depreciable asset that is allocated to Class 1 or Class 2.

(4) In addition to any allowance under subsection (3), a capital allowance may be claimed in respect of depreciation of depreciable assets.

(5) The rates of capital allowance applicable to each class are as follows:

(a) Class 1 - 40 percent;

(b) Class 2 - 20 percent;

(c) Classes 3, 4 and 5 - 10 percent.

(6) The allowable deduction for each class is calculated by applying the rate of capital allowance specified in subsection (5) against the balance of the class at the end of the year of assessment.

(7) The balance of the class at the end of the year of assessment is the total of -

(a) the balance of the class at the end of the preceding year of assessment after allowing for the deductions under this section for the preceding year of assessment; and

(b) the adjusted cost base of assets added to the class in the current year of assessment, reduced by

(c) any initial allowance claimed as a deduction under subsection (3); and

(d) the consideration received from the disposal of assets in the class during the year of assessment,

provided that the balance may not be reduced to a negative amount.

(8) Where an asset owned by a taxpayer ceases to be a depreciable asset used in the production of business income or property income, the taxpayer is deemed to have disposed of the asset for its fair market value.

(9) The adjusted cost base of an asset is added to the class in the year in which the asset is placed in service.

(10) Where the consideration received from the disposal during a year of assessment of assets in a class exceeds the balance of the class at the end of the year of assessment disregarding the amount of such consideration, the balance of the class is reduced to zero and the excess is included in the taxpayer's income from business or property, as the case may be.

(11) If the balance of the class at the end of the year of assessment, after allowing for the deduction under subsections (3) and (4), is less than EC $ 500, a deduction may be claimed for the entire amount of the balance.

(12) Where all the assets in a class are disposed of, a deduction may be claimed for the balance of the class at the end of the year of assessment.

(13) Where a building is bought or sold together with land, the Comptroller shall apportion the total consideration reasonably to arrive at a separate value of the building.

(14) Where assets are used only in part for the production of business or property income, the capital allowance deduction is allowed in respect of a proportion of the adjusted cost base equal to the proportion of use allocable to the production of that income.

(15) In the case of an asset that was acquired by a taxpayer in a year of assessment prior to the entry into force of this Act, the amount to be included in the appropriate class is the cost of the asset, less any initial allowance or annual deduction previously claimed in respect of the asset.

Repairs and Improvements

32 (1) A deduction is allowed for expenditure incurred by a taxpayer in a year of assessment to repair or improve depreciable property used in the production of assessable business or property income.

(2) The deduction under subsection (1) for each year of assessment is limited to 5 percent of the balance of the class to which the property is allocated, as determined under section 31, at the end of the preceding year of assessment.

(3) The excess, if any, of the amount described in subsection (1) over the limit in subsection (2) is treated as the cost of an asset added to the class during the year of assessment.

Mineral and Petroleum Extraction

33. Expenses incurred in respect of mineral and petroleum prospecting, exploration, and development are treated as if they were incurred for a depreciable asset in Class 3 as set out in section 31(2).

Start-Up Costs

34. A deduction is allowed for expenditures incurred in starting up a business to produce assessable income as if it were incurred for a depreciable asset in Class 4 of section 31(2).

Alimony and Maintenance

35. A deduction is allowed for payments made, pursuant to an order of a Court of competent jurisdiction or to a written separation agreement, to the spouse or former spouse of the taxpayer from whom the taxpayer is divorced or separated for the maintenance of the spouse or former spouse or of a child of the spouse or former spouse.

Net Losses

36 (1) In this section, "allowable loss" means the amount by which a taxpayer's allowable deductions for the year of assessment exceed the taxpayer's assessable income for that year.

(2) For the purpose of ascertaining the taxable income of a taxpayer for a year of assessment, there shall be deducted any allowable loss suffered by the taxpayer during the previous five years, to the extent the loss has not been deducted in a previous year of assessment.

(3) The amount deductible under subsection (2) in any year of assessment shall not exceed 50 percent of the taxpayer’s assessable income for that year as calculated without regard to the amount deductible under that subsection.

(4) For the purposes of this section, where a taxpayer receives income that is exempt from income tax by virtue of section 24 that income, and any expenditure incurred in the production of that income, shall be treated as if it were not exempt income.

Year of Assessment

37 (1) The year of assessment is the calendar year.

(2) The Comptroller may, on written application by a company or trust, grant permission to the company or trust to make up its accounts for tax purposes for some 12-month period other than the calendar year (known in this Part as a "fiscal period").

(3) Permission granted under subsection (2) may be withdrawn by written notice issued by the Comptroller.

(4) A notice issued by the Comptroller under subsection (3) will take effect at the end of the year of assessment in which it is issued.

(5) Where a taxpayer has been granted permission under subsection (2), the taxpayer’s taxable income for a year of assessment is the taxable income calculated for the fiscal period ending in that year of assessment.

Transitional Year of Assessment

38 (1) Where a taxpayer’s fiscal period changes as a result of permission being granted or withdrawn under section 37, the period between the end of the previous fiscal period and the beginning of the next year of assessment, or between the end of the previous year of assessment and the beginning of the new fiscal period, as the case may be, shall be treated as a separate year of assessment, to be known as a "transitional year of assessment".

(2) In cases to which subsection (1) applies, the Comptroller may allocate items of income and expenditure to the transitional year of assessment, or to the year of assessment preceding or following that year, as he considers appropriate in order to reflect clearly the taxpayer’s taxable income for those years.

(3) References to a year of assessment shall be read, in the case of a taxpayer to which subsection (1) applies, as a reference to the taxpayer's transitional year of assessment.

Method of Accounting

39 (1) A taxpayer's method of accounting shall clearly reflect the taxpayer's taxable income.

(2) Subject to subsections (3) and (4), a taxpayer may account for tax purposes on a cash or accrual basis.

(3) In the case of an individual or trustee, where the taxpayer's business income for a year of assessment exceeds EC $ 10,000, the taxpayer shall account for business income on an accrual basis in all succeeding years of assessment.

(4) A company shall account for income on an accrual basis.

(5) Except for a change from the cash basis to the accrual basis required under subsection (3) or (4), a taxpayer may only change its method of accounting with the prior written permission of the Comptroller.

(6) If the taxpayer's method of accounting is changed, adjustments to items of income, deduction, or credit, or to other items shall be made in the year of assessment following the change, so that no item is omitted and no item is included more than once.

Cash-Basis Accounting

40. A taxpayer who accounts for tax purposes on a cash basis derives income when it is received or made available and incurs expenditure when it is paid.

Accrual-Basis Accounting

41 (1) A taxpayer who accounts for tax purposes on an accrual basis derives income when it is receivable by the taxpayer and incurs expenditure when it is payable by the taxpayer.

(2) Subject to this Act, an amount is payable to the taxpayer when the taxpayer becomes entitled to receive it, even if the time for discharge of the entitlement is postponed or the entitlement is payable by instalments.

(3) Subject to this Act, an amount is treated as payable by the taxpayer when all the events that determine liability have occurred and the amount of the liability can be determined with reasonable accuracy, but not before economic performance with respect to the amount occurs.

(4) For purposes of subsection (3), economic performance occurs -

(a) with respect to the acquisition of services or property, at the time the services or property are provided;

(b) with respect to the use of property, at the time the property is used; and

(c) in any other case, at the time the taxpayer makes payment in satisfaction of the liability.

Claim of Right

42 (1) Where a taxpayer who accounts for tax purposes on a cash basis includes in assessable income an amount which the taxpayer is not entitled to receive or claims a deduction for an amount the taxpayer is not liable to pay, the calculation of taxable income shall be adjusted for the year of assessment in which the taxpayer refunds the amount received or receives back the amount paid.

(2) A taxpayer who accounts for tax purposes on an accrual basis shall include an amount in assessable income and may claim a deduction for a payment even if not legally entitled to receive or to pay the amount, if the taxpayer claims to be legally entitled to receive the amount or to be legally obliged to make the payment.

(3) Where an amount is included in, or deducted from, assessable income under subsection (2), the calculation of taxable income shall be adjusted for the year of assessment in which the taxpayer ceases to claim the right to receive the amount or ceases to claim an obligation to pay the amount.

Prepayments

43 (1) Where a deduction is allowable for an expenditure that is not of a capital nature incurred for a service or other benefit which extends beyond six months after the end of the year of assessment in which the expenditure is incurred, the deduction is allowed proportionately over the years of assessment in which the service is performed or the benefit is received.

(2) An otherwise deductible expenditure incurred for a service or benefit that does not extend more than six months after the end of the year of assessment in which it is incurred may be deducted in full in the year in which it is incurred.

Long-Term Contracts

44 (1) Income and deductions relating to a long-term contract are taken into account on the basis of the percentage of the contract completed during the year of assessment.

(2) The percentage of completion is determined by comparing costs allocated to the contract and incurred before the end of the year of assessment with the estimated total contract costs as determined at the time of commencement of the contract.

(3) In this section, "long-term contract" means a contract for manufacture, installation, or construction, or the performance of related services, which is not completed within six months after the end of the year of assessment in which work under the contract commenced.

Trading Stock

45 (1) A deduction is allowed for the cost of trading stock disposed of during the year of assessment.

(2) The cost of trading stock disposed of in a year of assessment is determined by adding to the value of the opening trading stock the cost of trading stock acquired during the year, and subtracting the closing value of trading stock.

(3) The closing value of trading stock on hand at the end of the year of assessment is the lower of its cost or market value at that date.

(4) The value of the opening trading stock is

(a) an amount equal to the closing value of trading stock at the end of the preceding year of assessment; or

(b) if the taxpayer commenced business during the year of assessment, the value of trading stock transferred to the business at the time of commencement.

(5) A taxpayer who accounts for tax purposes on a cash basis may calculate the cost of trading stock on the prime-cost or absorption-cost method.

(6) A taxpayer who accounts for tax on an accrual basis shall calculate the cost of trading stock on the absorption-cost method.

(7) Where particular items of trading stock are not readily identifiable, a taxpayer may account for the trading stock on the first-in-first-out method or the average-cost method, but once chosen a stock valuation method may be changed only with the written permission of the Commissioner.

Debt Obligations with Discount or Premium

46 (1) Subject to subsection (2), where a debt obligation is created subject to payment of a premium or to the granting of a discount, the amount of the premium or discount is treated as interest which accrues over the term of the debt obligation.

(2) For the purposes of section 97, where a premium or discount is treated as interest by virtue of subsection (1) tax shall be withheld

(a) from the amount of the premium when it is paid; and

(b) from the amount of the discount when the principal amount of the loan is repaid.

Foreign Currency Debt Gains and Losses

47 (1) Foreign currency debt gains are included in assessable income and foreign currency debt losses are deductible only under the provisions of this section.

(2) A foreign currency debt gain derived by a taxpayer during a year of assessment is included in -

(a) the business income of the taxpayer for that year, where the debt was incurred for the purposes of earning income from business; or

(b) the property income of the taxpayer for that year, where the debt was incurred for the purposes of earning income from property.

(3) A deduction is allowed for a foreign currency debt loss incurred by a taxpayer in the year of assessment in which it is incurred, but only to the extent that the taxpayer realizes foreign currency gains in the year of assessment.

(4) A foreign currency debt loss that is not deductible in whole or in part in a year of assessment as a result of subsection (3) is treated as incurred in the following year of assessment.

(5) For the purposes of this section, a taxpayer realizes a foreign currency debt gain in the year of assessment in which the taxpayer satisfies a foreign currency debt in respect of -

(a) the principal amount of a loan;

(b) an expense that is or was deductible under Part IV of Chapter Three; or

(c) part of the adjusted cost base of a depreciable asset,

where, because of a change in the value of the EC dollar as against a foreign currency, the amount in EC dollars of -

(a) the loan principal received by the taxpayer;

(b) the amount deductible by the taxpayer; or

(c) the amount included in the adjusted cost base of a depreciable asset,

respectively, is more than the amount required to settle the foreign currency debt.

(6) For the purposes of this section, a taxpayer incurs a foreign currency debt loss in the year of assessment in which the taxpayer satisfies a foreign currency debt in respect of -

(a) the principal amount of a loan;

(b) an expense that is or was deductible under Part IV of Chapter Three; or

(c) part of the adjusted cost base of a depreciable asset,

where, because of a change in the value of the EC dollar as against a foreign currency, the amount in EC dollars of -

(a) the loan principal received by the taxpayer;

(b) the amount deductible by the taxpayer; or

(c) the amount included in the adjusted cost base of a depreciable asset,

respectively, is less than the amount required to settle the foreign currency debt.

Computation of Gains and Losses

48 (1) This Part applies to the computation of gains or losses from the disposal of assets that are business assets.

(2) No gain or loss on disposal of a depreciable asset is taken into account otherwise than under section 31.

(3) The gain from the disposal of an asset is the excess of the consideration received over the adjusted cost base of the asset.

(4) The loss from the disposal of an asset is the excess of the adjusted cost base over the consideration received.

(5) Where a taxpayer -

(a) converts a business asset to some other use; or

(b) converts an asset primarily used for some other purpose to a business asset,

the taxpayer is deemed to have disposed of the asset for its market value at the time of the conversion and to have reacquired it for a cost equal to its market value.

Cost Base

49 (1) Except as otherwise provided in this Act, this section establishes the cost base of an asset.

(2) Subject to subsection (7), the cost base of an asset purchased, produced, or constructed by the taxpayer is the amount paid or incurred by the taxpayer in respect of the acquisition of the asset, and includes the market value of any consideration in kind given for the asset.

(3) Subject to subsections (4) and (7), the cost base of an asset acquired in a non-arm's length transaction is the market value of the asset at the date of acquisition.

(4) The cost base of an asset acquired from an associate or in a non-arm's length transaction described in section 51 is the amount of the consideration deemed by section 51 to be received by the person disposing of the asset.

(5) Where a part of an asset is disposed of, the adjusted cost base of the asset is apportioned between the part of the asset retained and the part disposed of in accordance with their market values at the time of acquisition.

(6) Expenses incurred to alter or improve a non-depreciable asset are added to the cost base of the asset.

(7) Subject to section 31(15), where a taxpayer acquired an asset prior to the commencement of this Act, the cost base of the asset is an amount equal to the fair market value of the asset at the time of the commencement of this Act.

Consideration Received

50 (1) The consideration received on the disposal of an asset includes the market value of consideration in kind.

(2) Subject to section 51, where an asset is disposed of by way of testamentary gift or by reason of intestacy, the disposer is treated as having received consideration equal to the fair market value of the asset at the date of death of the disposer.

(3) Subject to section 51, where the asset is disposed of to an associate or in a non-arm's length transaction other than by way of testamentary gift or by reason of intestacy, the disposer is treated as having received consideration equal to the greater of -

(a) the adjusted cost base of the asset; and

(b) the fair market value of the asset at the date of disposal.

(4) Where two or more assets are disposed of in a single transaction and the consideration paid for each asset is not specified, the total consideration received is apportioned among the assets disposed of in proportion to their respective market values at the time of the transaction.

Nonrecognition of Gain or Loss

51 (1) No gain or loss is taken into account in determining assessable income on -

(a) a transfer of an asset between spouses;

(b) a transfer of an asset between former spouses as part of a divorce settlement or bona fide separation agreement; or

(c) an involuntary disposal of an asset, to the extent that the proceeds of disposal are reinvested in a replacement asset of a like kind within one year of the involuntary disposal.

(2) Where no gain or loss is taken into account as a result of paragraph (1)(a) or paragraph (1)(b), the transferee is deemed to have acquired the transferred asset for consideration equal to its adjusted cost base at the time of the transfer.

(3) The adjusted cost base of a replacement asset described in paragraph (1)(c) is an amount equal to -

(a) the adjusted cost base of the replaced asset, and

(b) the excess, if any, of the consideration paid for the replacement asset over the consideration received for the replaced asset.

Income of Joint Owners

52. Assessable income or deductions relating to jointly owned property are apportioned among the joint owners in proportion to their respective interests in the property.

Valuation

53 (1) For the purposes of calculating taxable income and subject to section 20, the value of a benefit in kind is its fair market value on the date the benefit is taken into account for tax purposes.

(2) The fair market value of property transferred is determined without regard to any restriction on transfer or to the fact that it is not otherwise convertible into cash.

Currency Conversion

54 (1) Taxable income under this Act shall be calculated in EC dollars.

(2) Where the calculation of taxable income involves an amount in a currency other than EC dollars, the amount shall be converted at the exchange rate applying between the currency and the EC dollar on the date that the amount is paid, accrued, or otherwise taken into account for tax purposes.

(3) With the prior written permission of the Comptroller, a taxpayer may use the average rate of exchange during the year of assessment, or may keep books of account in a currency other than EC dollars.

Indirect Payments and Benefits

55 (1) The income of a taxpayer includes -

(a) a payment that directly or indirectly benefits the taxpayer; and

(b) a payment dealt with as the taxpayer directs,

which would have been income of the taxpayer if the payment had been made directly to the taxpayer.

(2) The deductions of a taxpayer include a payment made on behalf of the taxpayer or as the taxpayer directs which would have been a deduction of the taxpayer if the payment had been made directly by the taxpayer.

Compensation Payments

56. A compensation payment received by a taxpayer takes the character of the item that is compensated.

Recouped Deductions

57 (1) Where a previously deducted expenditure, loss, or bad debt claim is recovered, the amount recovered is income of the year of assessment in which it is recovered and takes the character of the income to which the deduction related.

(2) For the purposes of subsection (1), a deduction is considered recovered upon the occurrence of an event inconsistent with the basis for the deduction.

Finance Leases

58 (1) Where a lessor leases an asset to a lessee under a finance lease, for all the purposes of this Act -

(a) the lessee is treated as the owner of the asset and as the person entitled to claim a deduction in respect of the asset under section 31; and

(b) the lessor is treated as having made a loan to the lessee, in respect of which the payments of interest and principal are made equal in amount to the rental payable by the lessee.

(2) The interest component of each payment under the loan is considered as an interest expense for the lessee and as interest income for the lessor.

(3) A lease of an asset is a finance lease if -

(a) the lease term exceeds 75 percent of the effective life of the leased asset; or

(b) the lessee has an option to purchase the asset for a fixed or determinable price at the expiration of the lease; or

(c) the estimated residual value of the asset to the lessor at the expiration of the lease term is less than 20 percent of its market value at the commencement of the lease.

(4) For the purposes of subsection (3), the lease term includes any additional period of the lease under an option to renew.

(5) For the purposes of subsection (3), the effective life of an asset, where the asset is an asset included in a class of assets under section 31(2), is determined as follows -

(a) assets of Class 1 - 3 years;

(b) assets of Classes 2, 3, and - 10 years;

(c) assets of Class 5 - 20 years.

59 (1) For the purposes of this section, an insurance company is a company that carries on an insurance business in Saint Lucia.

(2). In the case of an insurance company that carries on business other than life insurance business, the assessable income from such business is

(a) the sum of

(i) the gross premiums received or receivable in respect of any property or risk situated in Saint Lucia, less any premiums returned and less any premiums paid for re-insurance; and

(ii) any other income of the company from a source within Saint Lucia;

less

(b) the sum of

(iii) payments made under insurance policies in respect of any property or risk situated in Saint Lucia, less any such amounts that were covered by re-insurance; and

(iv) a reserve for unexpired risks as allowed by Regulations; and

(v) agency expenses incurred in Saint Lucia; and

(vi) a reasonable proportion of the expenses of the head office of the company.

(3). In the case of an insurance company that carries on life insurance business within Saint Lucia, the assessable income from such business is

(a) that proportion of the company’s total investment income which the premiums received or receivable in Saint Lucia in the year bear to the total premium income of the company

less

(b) the sum of

(i) agency expenses incurred in Saint Lucia; and

(ii) a reasonable proportion of the expenses of the head office of the company.

(4) A taxpayer is not entitled to claim any deduction from the amount determined under subsections (2) or (3) in respect of expenditure incurred for the purposes of producing income from the insurance business.

(5) Where the Comptroller considers that satisfactory information is not available to enable an accurate assessment of taxable income to be made under subsections (2) or (3), the company’s taxable income shall be deemed to be equal to 10 percent of the premiums paid in the year received in respect of any person, property or risk within Saint Lucia.

60 (1) The assessable income from a source in Saint Lucia of a non-resident person carrying on the business of -

(a) shipowner or charterer;

(b) air transport; or

(c) broadcasting or transmitting messages by cable, telegraph, wireless, or other similar means,

is determined according to the provisions of this section.

(2) Where for any period a non-resident person who carries on the business of shipowner or charterer produces the certificate mentioned in subsection (3), the profits accruing in Saint Lucia from the business for such period, before deducting any allowance for wear and tear, shall be a sum bearing the same ratio to the sums receivable in respect of the carriage of passengers, mails, livestock, and goods shipped in Saint Lucia as the ratio for the said period shown by that certificate of the total profits to the total sum receivable by him in respect of the carriage of passengers, mails, livestock, and goods.

(3) The certificate shall be one issued by or on behalf of any income tax authority with regard to which the Comptroller is satisfied that it computes and assesses the full profits of

the non-resident person from his shipping business on a basis not materially different from that prescribed by this Act, and shall certify for any accounting period as regards such business -

(a) the ratio of the profits or, where there are no profits, of the loss, as computed for the purposes of income tax by that authority, without making any allowance by way of depreciation, to the total sums receivable in respect of carriage of passengers, mails, livestock, or goods; and

(b) the ratio of the allowance for wear and tear as computed by that authority to the said total sums receivable in respect of the carriage of passengers, mails, livestock, and goods.

(4) Where at the time of assessment the provisions of subsection (2) cannot be satisfactorily applied, the profits accruing in Saint Lucia shall be computed as five percent of the full

sum receivable on account of the carriage of passengers, mails, livestock, and goods shipped in Saint Lucia.

(5) Where any person has been assessed for any year of assessment by reference to subsection (4), he shall be entitled to claim at any time within six years after the end of such year of assessment that his liability to tax for that year be recalculated on the basis provided

by subsection (2).

(6) A taxpayer is not entitled to claim any deduction from the amount determined under subsections (2) or (4) in respect of expenditure incurred for the purposes of producing income from the business to which this section applies.

(7) Where the Comptroller decides that the call of a ship belonging to a particular non-resident shipowner or charterer at a port in Saint Lucia is casual and that further calls by that ship or others in the same ownership are improbable, the provisions of this Schedule shall not apply to the profits of such ship and no tax shall be chargeable thereon.

(8) The master of the ship, or the agent or other representative in Saint Lucia of the shipowner or charterer, shall make a return of the amount of tax due under this section, but if such return is not made, or if the Comptroller is not satisfied with the return, the Comptroller may determine the amount of tax payable.

(9) The master, agent, or representative, as agent for the owner or charterer, may be assessed upon the taxable income and shall be liable to pay the tax assessed and, where the assessment is made on the agent or representative, and the tax is not paid upon receipt of notice of the assessment, the master shall be liable to pay the tax.

(10) Subsection (9) shall not, so long as any tax for which the master becomes liable under this paragraph remains unpaid, relieve any other person to whom the notice of assessment has been given in respect of that tax, from liability to pay the tax remaining unpaid.

(11) A collector or officer of customs shall not grant a clearance to the ship until he is satisfied that any tax which has been or may be assessed under this section has been paid, or that arrangements for its payment have been made to the satisfaction of the Comptroller.

(12) Where a non-resident person carries on the business of air transport or the business of the transmission of messages by cable or by any form of wireless apparatus he shall be assessable to tax as if he were a non-resident shipowner and the provisions of this section shall apply mutatis mutandis to the computation of the gains or profits of such business.

61 The taxable income of each individual is determined separately.

62(1) Where a resident individual transfers property, directly or indirectly, to a spouse the income from that property, or from any substituted property, is treated as the income of the transferor and is taxed accordingly, so long as the transferor

(a) is living;

(b) is resident in Saint Lucia; and

(c) is married to the transferee, or is not living separate and apart from the transferee under a judicial order of separation.

(2) For the purposes of this section -

(a) a transfer includes a loan, but does not include a bona fide transfer of property for a consideration that is not less than market value and that has been paid in full; and

(b) property includes money.

63 (1) Income arising from business carried on by a partnership or from property that is partnership property, and gains from the disposal of assets that are partnership property, are taxed in accordance with this Part.

(2) The presence or absence of a written partnership agreement is not determinative as to whether a partnership relationship exists between persons.

(3) Income of a partnership is considered to be the income of the partners and is subject to tax in their hands as provided in section 65.

(4) A partnership is required to file a partnership return of income if -

(a) the partnership carries on business in Saint Lucia; or

(b) any one or more of the partners is an individual or company resident in Saint Lucia.

(5) An election, notice, or statement required to be filed in relation to a partnership's activities shall be filed by the partnership.

64 (1) Partnership income is -

(a) the income of the partnership that would be assessable income if received by a resident taxpayer; less

(b) the deductions allowable in respect of that income, but not including deductions allowed under section 36(2).

(2) A partnership loss occurs where the amount in paragraph (1)(b) exceeds the amount in paragraph (1)(a).

(3) In the case of a deduction allowable under sections 31, 32, 33 or 34, an election must be made by the partnership whether, and to what extent, to claim a deduction in any year of assessment.

65 (1) The assessable income of a resident partner includes the partner's share of partnership income for the year of assessment.

(2) The assessable income of a non-resident partner includes the partner's share of partnership income derived from a source in Saint Lucia for the year of assessment.

(3) No deduction may be claimed by a partner in respect of expenditure allowable in computing the income of the partnership under section 64.

(4) A resident partner is allowed a deduction for the partner's share of a partnership loss for the year of assessment.

(5) A non-resident partner is allowed a deduction for the partner's share of a partnership loss, but only to the extent that the activity giving rise to the loss would have given rise to income from a source in Saint Lucia if a loss had not been incurred.

(6) Income, expenses, or losses derived or incurred by a partnership retain their character as to geographic source and type of income, expense, or loss in the hands of the partners.

(7) Subject to subsections (8) and (9), a partner’s share of the partnership income or loss for a year of assessment is equal to the partner’s percentage interest in the income or loss for that year of assessment as determined under the terms of the partnership agreement.

(8) Where the allocation of income or loss in the partnership agreement does not have substantial economic effect, the Comptroller may make a re-allocation of income or loss in order to reflect economic reality.

(9) Where two or more partners are associates the Comptroller may make a re-allocation of income or loss between or among them in order to reflect their respective contributions to the partnership of capital, expertise and labour.

66 (1) A contribution to a partnership by a partner of an asset owned by the partner is treated as a disposal of the asset to the partnership for a consideration equal to -

(a) the tax cost of the asset at the time the contribution was made, if

(i) the asset is a business asset;

(ii) the partner was resident in Saint Lucia at the time of the transfer; and

(iii) all the partners so elect in writing;

or

(b) in any other case, the market value of the asset at the time the contribution was made.

(2) Where, in connection with the dissolution of a partnership, an asset is disposed of by the partnership to a partner in full or partial satisfaction of that partner’s interest in the partnership, that asset is treated as disposed of for a consideration equal to -

(a) the tax cost of the asset at the time of the disposal, if

(i) the asset is a business asset;

(ii) the partner was resident in Saint Lucia at the time of the transfer; and

(iii) all the partners so elect in writing;

or

(b) in any other case, the market value of the asset at the time of the disposal.

(3) Where a partnership continues after the death or retirement of a partner or after the admission of a new partner, the change in membership of the partnership shall not be considered to give rise to a transfer of the assets of the partnership provided that persons who were members before the change are resident in Saint Lucia and continue to be entitled to not less than 50 percent of the profits of the partnership.

67. In this Part -

"grantor" means a resident person who transfers property to, or confers a benefit on, a trust for no consideration or for a consideration that is less than the market value of the property transferred or the benefit conferred;

"grantor trust" means a trust in relation to a whole or part of which, a grantor has -

(a) the power to revoke or alter the trust so as to acquire a beneficial interest in the corpus or income of the trust; or

(b) a reversionary interest in either the corpus or income of the trust;

"incapacitated person's trust" means a trust for the benefit of a person, not being a minor, who is under a legal disability;

"qualified beneficiary" means a person referred to in paragraph (a) or (b) of the definition of "qualified beneficiary trust"; and

"qualified beneficiary trust" means -

(a) a trust in relation to which a person (other than a grantor) has a power solely exercisable by that person to vest the corpus or income of the trust in that person; or

(b) a trust whose sole beneficiary is an individual or an individual's estate or appointees,

but does not include an incapacitated person's trust.

(2) In computing the income of a trust that is included in the assessable income of a resident beneficiary, there shall be excluded any income received by the trust that is exempt income.

(3) Where income that is included in the assessable income of a resident beneficiary is -

(a) income from which tax is required to be withheld under section 97, 98 or 99; or

(b) income from a source outside Saint Lucia,

there shall be included in the assessable income of the beneficiary the amount of such income grossed-up to take account of the tax withheld or paid in respect of that income, and the beneficiary shall be entitled to claim a credit under section 109(3) or section 79 (as the case may be) in respect of such tax.

(4) In computing the income of a trust that is included in the assessable income of a non-resident beneficiary, there shall be included only those amounts actually paid to the beneficiary together with the tax withheld under section 101.

(5) Where a trust has received income of different types or from different sources, that income is deemed to be distributed or distributable to a beneficiary pro rata in proportion to the beneficiary’s share of the total income of the trust.

(6) No beneficiary is allowed a deduction for a trust loss.

(7) Income that is subject to taxation under section 72 is not included in the income of a beneficiary to whom it is subsequently distributed.

(8) For the purpose of this section and section 72(4), a beneficiary is deemed to be presently entitled to a share of the income of a trust in a year of assessment where the beneficiary becomes presently entitled to the income within 30 days following the year of assessment.

70 (1) Subject to subsection (2), a trustee is liable for income tax on the taxable income of the trust.

(2) Trustees are jointly and severally liable for a tax liability arising from trust income that is not satisfied from trust assets, but any trustee required to meet such liability is entitled to a contribution from each of the other trustees.

71 (1) Where a trust is not subject to tax under section 68(2), and -

(a) a grantor has contributed property to, or conferred a benefit on, the trust, and

(b) the trustees of the trust have a power to advance income or capital of the trust to a resident person,

the income of the trust, to the extent that it is not distributed to any beneficiary, is treated as the income of the grantor.

(2) Where more than one grantor has contributed value to a trust to which subsection (1) applies, the income of the trust is attributed proportionally to each grantor who has contributed value with regard to the proportion of value contributed by that grantor.

72 (1) Where the provisions of this section are inconsistent with those of sections 68 and 69, the provisions of this section prevail.

(2) Income accruing or received -

(a) in the year of assessment in which a taxpayer dies; and

(b) prior to the date of death,

which would, but for the death of the taxpayer, have been assessable to tax to the taxpayer for any year of assessment is assessable to the executor or administrator of the deceased taxpayer for that year of assessment.

(3) Income -

(a) accruing or received after the date of death of a deceased taxpayer; and

(b) arising from an income-producing activity of the taxpayer before the taxpayer's death,

which would, but for the death of the taxpayer, have been assessable to the taxpayer for any year of assessment is assessable to the executor or administrator of the deceased taxpayer for that year of assessment.

(4) For the years of assessment referred to in section 7(2), the executor or administrator of a deceased taxpayer is taxed on income subject to subsections (2) and (3) for the year of assessment on the basis that no beneficiary is presently entitled to the income, and no beneficiary is taxed on that income.

(5) An executor or administrator of a deceased taxpayer is responsible for the tax liability of the taxpayer arising from any year of assessment prior to the year of assessment in which the taxpayer died.

(i) both the individual and the company were resident in Saint Lucia at the time of the transfer;

(ii) the individual owned 50 percent or more of the company’s shares immediately before the exchange; and

(iii) the individual and the company so elect in writing;

or

(e) in any other case, the market value of the asset at the time of the transfer.

76. Where there has been a change of 50 percent or more in the underlying ownership or control of a company, no deduction is allowed under section 36(2) in years of assessment following the change, with respect to an assessed loss suffered before the change, unless the company, for a period of three years after the change or until the assessed loss has been exhausted, if that occurs within three years after the change -

(a) continues to carry on the same business after the change as it carried on before the change; and

(b) does not engage in a new business or investment after the change, where the primary purpose for engaging in the new business or investment is to utilise the deduction otherwise allowed under section 36(2) so as to reduce the tax payable on the income arising from the new business or investment.

77(1). A company that is resident in Saint Lucia may claim a deduction for an amount that is paid, or is deemed for the purposes of this Act to have been paid, to another company

(a) that is resident in Saint Lucia,

(b) that is related to the claimant company, and

(c) is not a company that is

(i) an exempt organisation for the purposes of section 23(1)(q); or

(ii) a company to which section 24, 59 or 60 applies.

(2). For the purposes of this section, companies are related if -

(a) one company owns more than 50 percent in value of the shares of the other company, or

(b) one company is entitled to cast more than 50 percent of the total votes at a general meeting of the other company, or

(c) the same person owns not less than 75 percent in value of the shares, or is entitled to cast not less than 75 percent of the votes at a general meeting, of both companies.

(3). Where one company claims a deduction under subsection (1) in respect of an amount, that amount shall be included in the assessable income of the other company.

78 (1) Income is from a source in Saint Lucia if it is -

(a) derived from an employment exercised or service rendered in Saint Lucia;

(b) derived from a business or activity carried on in Saint Lucia;

(c) derived from the disposal of a business asset used in carrying on a business in Saint Lucia;

(d) derived from real property located in Saint Lucia;

(e) derived from the disposal of an interest in a company, trust or partnership, the principal assets of which consist of real property situated in Saint Lucia;

(f) derived from the rental of personal property used in Saint Lucia;

(g) derived from the sale or license of industrial or intellectual property used in Saint Lucia;

(h) derived from any employment exercised or service rendered under a contract with the Government of Saint Lucia, wherever the employment is exercised or the service is performed;

(i) interest where -

(i) the debt is secured by real or personal property located in Saint Lucia;

(ii) the borrower is resident in Saint Lucia; or

(iii) the borrowing relates to a business carried on in Saint Lucia;

(j) a director's fee paid by a company resident in Saint Lucia;

(k) a management fee paid by any person resident in Saint Lucia;

(l) a pension or annuity where the pension or annuity is paid by the government of, or by a resident of, Saint Lucia; or

(m) a natural resource payment for a natural resource taken from or exploited in Saint Lucia.

(2) Any income which is not from a source in Saint Lucia is foreign-source income.

79 (1) A resident taxpayer is entitled to a tax credit in respect of foreign income tax borne by the taxpayer on assessable income that is foreign-source income.

(2) The tax credit in respect of any foreign-source income may not exceed the amount of Saint Lucia income tax payable on that foreign-source income, calculated by applying the taxpayer’s average rate of Saint Lucia income tax for the year to the foreign-source income for that year, reduced by any deduction properly allocated to that income.

(3) For the purposes of subsection (2), the tax credit allowed in respect of foreign-source income and the Saint Lucia income tax imposed on that income are calculated separately for each country from which income is derived by a taxpayer.

(4) Foreign income tax borne by -

(a) a partnership is treated as borne by the partners;

(b) a trustee is treated as borne by the beneficiary where the income on which the trustee was assessed in the foreign country is included in the assessable income of a beneficiary under this Act; and

(c) a beneficiary is treated as borne by the trustee where the income on which the beneficiary was assessed in the foreign country is included in the income of a trustee under this Act.

(5) For the purposes of this section, "average rate of Saint Lucia income tax payable" is the percentage that the taxpayer's Saint Lucia income tax for the year of assessment calculated under section 4, but without subtracting any credit under this section, is of the taxpayer's taxable income for that year.

80 (1) Where a foreign-controlled resident company (other than a financial institution) has a foreign debt - to - foreign equity ratio in excess of 3 - to - 1 at any time during a year of assessment, the Comptroller may disallow a deduction for the interest paid by the company on that part of the debt that exceeds the 3 - to - 1 ratio.

(2) In determining whether to disallow a deduction under this section, the Comptroller shall have regard to -

(a) the number of days in the year of assessment during which the 3 - to - 1 ratio was exceeded; and

(b) such other matters as the Comptroller considers relevant.

(3) To the extent that the deduction of a payment of interest is disallowed under this section, that payment shall be treated as a payment of a dividend.

(4) In this section,

"foreign-controlled resident company" means a resident company in which more than 50 percent of the underlying ownership or control is held by a non-resident person (referred to as the "foreign controller"), either alone or together with an associate or associates;

" foreign debt" means the amount of any debt obligation owed by the company to the foreign controller, or to some other non-resident person where the debt obligation is guaranteed or otherwise indirectly provided by the foreign controller; and

"foreign equity" means the paid-up value of all shares in the company owned by the foreign controller or by a non-resident person who is an associate of the foreign controller.

81 (1) Where a taxpayer -

(a) is a resident person;

(b) owns, directly or indirectly, 10 percent or more of the issued shares of a non-resident company, in value or in voting power; and

(c) more than 50 percent of the issued shares of that company, in value or in voting power, are owned, directly or indirectly, by -

(i) the person and associates of that person; or

(ii) five or fewer persons resident in Saint Lucia,

there shall be included in the taxpayer’s assessable income for a year of assessment that proportion of the company’s income for that year, other than income from active business, which the number of shares owned directly by the taxpayer bears to the total number of shares issued by the company.

(2) For the purposes of subsection (1), where the company has issued shares of more than one class, the proportion of its income to be included in the income of the taxpayer shall be determined as if the whole of its income for the year had been distributed by way of dividend.

(3) Where -

(a) an amount is included in a taxpayer’s income under subsection (1); and

(b) the taxpayer receives a dividend from the company in the year,

the amount included in the taxpayer’s income is deducted from the amount of the dividend received in determining the taxpayer’s assessable income for the year.

(4) Where the amount in paragraph (3)(a) exceeds the amount in paragraph (3)(b), the excess may be carried forward and deducted from any dividend received from the company in a subsequent year.

82 (1) To the extent that the terms of a treaty or other international agreement to which Saint Lucia is a party are inconsistent with the provisions of this Act (apart from Chapter Six), the terms of the treaty or international agreement prevail over the provisions of this Act.

(2) In this section, "international agreement" means an agreement between Saint Lucia and a foreign government providing for -

(a) the relief of international double taxation and the prevention of fiscal evasion; or

(b) reciprocal administrative assistance in the enforcement of tax liabilities;

that has entered into force in Saint Lucia.

83 (1) In any transaction between taxpayers who are associates, the Comptroller may distribute, apportion, or allocate income, deductions, or credits between the taxpayers as is necessary to reflect the taxable income that the taxpayers would have realised in an arm's length transaction.

(2) The Comptroller may adjust the income arising in respect of any transfer or license of intangible property between associates so that it is commensurate with the income attributable to the intangible property.

(3) In making any adjustment under subsections (1) and (2), the Comptroller may recharacterise the source of income and the nature of any payment or loss as revenue, capital, or otherwise.

84 (1) For the purposes of determining liability to tax under this Act, the Comptroller may -

(a) recharacterise a transaction or an element of a transaction that was entered into as part of a tax avoidance scheme;

(b) disregard a transaction that does not have substantial economic effect; or

(c) recharacterise a transaction the form of which does not reflect the substance.

(2) A "tax avoidance scheme" in subsection (1) includes any transaction, one of the main purposes of which is the avoidance or reduction of liability to tax.

85 (1) Subject to section 87, a taxpayer or nominated officer of a partnership or trust shall file a return of income for each year of assessment not later than three months after the end of that year.

(2) The return of income shall state -

(a) the total amount of taxable income for the year of assessment;

(b) the total amount of tax credits allowable and claimed for that year;

(c) the total amount of tax payable for that year; and

(d) the amount of any tax paid or withheld in respect of that year.

(3) Where the taxable income of a taxpayer is determined under Part VIII of Chapter Three, the return shall provide such information as the Comptroller may prescribe.

(4) The return of income shall -

(a) be in the form;

(b) state such further information; and

(c) be filed,

as prescribed by the Comptroller.

(5) Where the taxpayer is about to cease activity in Saint Lucia or where the Comptroller otherwise considers it appropriate, the Comptroller may require a taxpayer to file a return of income covering a period of less than 12 months, by service of a notice in writing which specifies the due date for the return of income.

(6) A return of income shall be signed by the taxpayer, or, if the taxpayer is legally incapacitated, by the taxpayer's legal representative, and shall contain a representation that the return is complete and accurate.

(7) A person who completes or participates in the completion of a return for compensation shall also sign the return, unless the person is an employee of the taxpayer.

86. Unless expressly requested in writing by the Comptroller, no return of income is required under this Act from a resident individual -

(a) if the amount of tax payable by the individual for the year does not exceed the amount of tax paid or withheld in respect of that year by more than EC $ 10; or

(b) if the individual’s taxable income for the year of assessment consists exclusively of -

(i) employment income derived from a single employer from which tax has been withheld; or

(ii) a pension from which tax has been withheld.

87 (1) Where a person who is required to file a return under section 85 makes a written request to the Comptroller not later than the due date for filing the return, the Comptroller may extend the period in which the return is to be filed.

(2) The granting of an extension of time under subsection (1) does not affect the due date for payment of tax under section 91.

88 (1) Where a taxpayer has filed a return of income, the Comptroller is deemed to have made an assessment of the tax payable in the amount shown in the return.

(2) Where a return of income is not filed, the Comptroller is deemed to have made an assessment of the tax payable as the amount of any tax that has been paid or withheld during the year of assessment and may make such further assessment as he considers appropriate.

89. If the Comptroller considers that the assessment or collection of tax is in jeopardy because the taxpayer is about to depart from Saint Lucia, to cease business, or to transfer property, or for any other reason, the Comptroller may at any time issue a notice of assessment for the current year of assessment, for a portion of the current year, or for the preceding year of assessment.

90 (1) Subject to subsection (2), the Comptroller may, within three years after the date described in section 85(1) (or, if later, the date the return of income was filed), amend an assessment previously made or deemed to have been made.

(2) Where -

(a) a taxpayer with the intent of evading tax has failed to file a return for a year of assessment; or

(b) fraud has been committed by or on behalf of the taxpayer in relation to income tax for a year of assessment; or

(c) the taxpayer’s return for a year of assessment is inaccurate by reason of misrepresentation or deliberate omission of a material fact;

the Comptroller may make or amend an assessment for that year at any time.

(3) An amended assessment is treated in all respects as an assessment under this Act.

91 (1) Subject to section 92 and subsections (2), (3) and (4) of this section, income tax payable under this Act is due and payable on the date on which a return of income is due.

(2) Tax that is required to be withheld under Part IV is due and payable on the date specified in section 107.

(3) The Comptroller shall specify the time at which income tax assessed pursuant to section 89 is due and payable.

(4) Where an objection to, notice of appeal against, or an application for amendment to, an assessment has been filed, the full amount of the tax assessed remains due and payable, and may be recovered, notwithstanding that objection, appeal or application, except as otherwise provided by an order of the Tribunal or Court.

(5) Upon written application by the taxpayer, the Comptroller may, where good cause is shown, extend the time for payment of tax beyond the date on which it is required to be paid under subsections (1), (2), or (3), or make such other arrangements as are appropriate to ensure the payment of the tax.

(6) If the Comptroller informs the Director of Immigration by letter that a person liable for tax that has been assessed has failed to pay the tax by the due date, the Director of Immigration shall prevent the person from leaving Saint Lucia for a period of 72 hours from issuance of the letter, unless the person -

(a) makes payment in full; or

(b) makes an arrangement satisfactory to the Comptroller for the payment of the tax.

(7) Upon application by the Comptroller, the High Court may extend the 72-hour period referred to in subsection (5).

92 (1) Subject to subsections (2) and (3), a taxpayer who has taxable income in a year of assessment is liable to pay instalments of tax on 30 June, 30 September and 31 December of that year of assessment, the amount of each instalment being equal to one-fourth of -

(a) the amount of tax payable by the taxpayer under this Act for the preceding year of assessment;

less

(b) the amount of such tax as was paid by withholding at source under Part IV.

(2) A taxpayer is not liable to make payment by instalments under subsection (1) if the amount of each instalment, calculated in accordance with subsection (1), would be less than EC $ 100.

(3) The Comptroller may, on written application by a taxpayer, reduce the amount of any instalment payable under this section if he is satisfied that the taxpayer's income for the year of assessment, other than income in respect of which tax is withheld at source under Part IV, is likely to be substantially less than the corresponding amount for the preceding year of assessment.

(4) An instalment of tax paid pursuant to this section is treated as a part payment of the total tax payable by the taxpayer for the year of assessment to which the instalment relates.

(5) The provisions of this Act relating to the collection and recovery of income tax apply to the collection and recovery of any instalment of tax.

93 (1) Where a taxpayer has, for any year of assessment, paid income tax by withholding, instalments, or otherwise in excess of the income tax liability assessed to the taxpayer in respect of that year, the excess may be applied -

(a) to pay the taxpayer's liability to pay other taxes collected by the Income Tax Department; and

(b) if the taxpayer agrees, to pay the taxpayer's liability to make instalment payments during the year of assessment in which the notice of assessment is issued.

(2) Any excess tax not applied in the manner described in subsection (1) shall be refunded to the taxpayer.

(3) A claim for credit or refund under this section must be made within 3 years after the later of -

(a) the date on which the assessment or any amended assessment for the year of assessment was made; and

(b) the date on which the tax was paid.

94 (1) This Part relates to payments made by persons resident in Saint Lucia.

(2) In this Part,

"payee" means a person receiving or entitled to receive payments from which tax is required to be withheld under this Part; and

"withholding agent" means a person required to withhold tax under this Part.

95 (1) Every employer shall withhold tax from a payment of employment income to an employee at the rate and in the manner prescribed by Regulations.

(2) The liability of an employer to withhold tax under subsection (1) is not abated or extinguished -

(a) because the employer has a right, or is otherwise under an obligation, to deduct and withhold any other amount from such payments; or

(b) because of any law providing that the amount of any such payment shall not be reduced or be subject to attachment.

96 (1) In this section,

"contractor" means a person engaged in the business of providing construction, transportation, management, or any other service prescribed by Rules, under a contract, where the primary purpose of the contract is the performance of services, whether or not goods are also provided under the contract;

"entertainer" includes a theatre, cinema, radio or television actor or performer, and a singer, musician or other musical performer; and

"sportsman" includes any person who engages in an athletic or other sporting activity or competition for prize money or reward.

(2) Subject to subsection (3), a person who makes a payment to a contractor, entertainer or sportsman under a contract for the provision of services shall withhold tax on the gross amount of the payment -

(a) in the case of a payment made to a payee resident in Saint Lucia, at the rate prescribed in section 9(1); and

(b) in the case of a payment made to a non-resident payee, at the rate prescribed in section 9(2).

(3) Subsection (2) does not apply to -

(a) payments made under a contract of employment;

(b) payments made where the services are not provided in connection with a business carried on by the payer;

(c) payments not exceeding EC $ 500 in any month to a single payee, provided the payer notifies the Income Tax Department in the prescribed manner of the identity of and the amount paid to the payee.

(4) For the purposes of this section, payment to a contractor includes any charge or fee paid for the provision of management services other than under an employment contract.

(5) The tax otherwise payable by a contractor, entertainer or sportsman on income from which tax has been withheld under this section is reduced by the tax withheld under this section.

97 (1) Subject to subsection (2), a person who pays interest shall withhold tax on the gross amount of the payment -

(a) in the case of a payment made to a person resident in Saint Lucia, at the rate prescribed in section 9(1), and

(b) in the case of a payment made to a non-resident person, at the rate prescribed in section 9(2).

(2) This section does not apply to -

(a) interest paid to a bank or other financial institution that is resident in Saint Lucia;

(b) interest paid on accounts outstanding to a person carrying on business in Saint Lucia; or

(c) interest that is exempt income under section 23.

98 (1) Subject to subsection (2), a person who pays rent or a royalty shall withhold tax on the gross amount of the payment -

(a) in the case of a payment made to a person resident in Saint Lucia, at the rate prescribed in section 9(1), and

(b) in the case of a payment made to a non-resident person, at the rate prescribed in section 9(2).

(2) Subsection (1) does not apply to rents or royalties where the monthly rental or its equivalent does not exceed EC $ 500.

99(1) Subject to subsection (2), a person who makes any payment by way of pension or annuity, whether in a lump sum or by periodical payments, shall withhold tax on the gross amount of the payment -

(a) in the case of a payment made to a person resident in Saint Lucia, at the rate prescribed in section 9(1); and

(b) in the case of a payment made to a non-resident person, at the rate prescribed in section 9(2).

(2) In the case of payments of pensions or annuities that are -

(a) made by an employer to a former employee;

(b) made by a retirement fund; or

(c) made under an annuity contract to which section 27 applies;

tax shall be withheld at the rate prescribed by Regulations.

(3) This section does not apply to payments of pensions that are exempt income under section 23.

100. A person who makes a natural resource payment to a person not resident in Saint Lucia must withhold tax at the rate prescribed in section 9(2).

101. A person who distributes income of a trust to a non-resident beneficiary, or applies income of a trust for the benefit of a non-resident beneficiary, must withhold tax at the rate prescribed in section 9(2).

102. Where a payment to which this Part applies is made to -

(a) a public international organisation;

(b) an organisation that is an exempt organisation under section 23(2); or

(c) any other person, in circumstances in which the Comptroller has certified that tax is not required to be withheld;

the person making the payment is not required to withhold tax if the payee furnishes a certificate to that effect issued by the Comptroller.

103. Where a payment is made to a non-resident taxpayer and tax is required to be withheld under section 97, 98, 99, 100, or 101, the tax withheld or otherwise paid is a final tax and -

(a) no further tax liability shall be imposed upon the taxpayer in respect of the income to which the tax relates;

(b) no deduction may be claimed for any expenditure or loss incurred in earning the income;

(c) the income shall not be aggregated with other income of the taxpayer for the purpose of ascertaining taxable income; and

(d) no refund of tax shall be made in respect of the payment.

104 (1) A withholding agent shall deliver to the payee a tax withholding certificate setting out the amount of payments made and tax withheld during the year of assessment.

(2) A tax withholding certificate shall be delivered -

(a) in the case of an employee or a beneficiary of a retirement pension or annuity, within 30 days after the end of the year of assessment, or where an employee has ceased employment during the year of assessment, within 30 days of the date on which the employment ceased;

(b) in the case of rent or interest payments, within 30 days after -

(i) the end of the year of assessment; or

(ii) where a debt obligation has been redeemed or lease terminated, the date on which the obligation was redeemed or lease terminated; and

(c) in any other case, on the date of the payment.

(3) A payee who is required to file a return of income shall attach to the return the tax withholding certificates which relate to the year of assessment for which the return is filed.

105 (1) A withholding agent shall maintain and keep available for inspection by the Comptroller records showing in relation to each year of assessment -

(a) payments made to a payee from which tax is required to be withheld; and

(b) tax withheld from those payments.

(2) A withholding agent shall, within 30 days after the end of the year of assessment or within such further time as the Comptroller may allow, file with the Comptroller a statement in the prescribed form specifying -

(a) the name, address and taxpayer registration number of each payee;

(b) the amounts paid or payable and the value of all benefits provided to each payee;

(c) the amounts of tax withheld; and

(d) any other information that the Comptroller may require.

(3) Where a withholding agent ceases to carry on business during a year of assessment, the statement referred to in subsection (2) must be filed within 30 days after the cessation of business.

106 (1) A withholding agent who fails to withhold tax in accordance with this Part is personally liable to pay to the Comptroller on demand the amount of tax that was required to be withheld.

(2) A withholding agent who is held personally liable under this section to pay an amount to the Comptroller is entitled to recover that amount from the payee.

(3) If a withholding agent fails to withhold tax in accordance with this Part and has not otherwise paid the tax, the Comptroller may demand payment of the tax from the payee.

(3) The provisions of this Act relating to the collection and recovery of tax apply to the liability imposed by subsections (1) and (3).

107 (1) A withholding agent shall pay to the Comptroller any tax that has been withheld or that should have been withheld under this Part within 15 days of the date on which it was or should have been withheld, or within such other time prescribed by Regulations.

(2) The provisions of this Act relating to the collection and recovery of tax apply to any amount withheld under this Part.

108 (1) Tax withheld by a withholding agent under this Part -

(a) is held in trust for the government of Saint Lucia; and

(b) is not subject to attachment in respect of a debt or liability of the withholding agent,

and in the event of any liquidation, assignment, or bankruptcy of the withholding agent, an amount withheld under this Part does not form part of the estate in liquidation, assignment, or bankruptcy and shall be paid in full to the Comptroller before any distribution of property is made.

(2) Every sum which a withholding agent is required under this Part to withhold from a payment is -

(a) a first charge on that payment; and

(b) withheld prior to any other deduction which the withholding agent may be required to make by virtue of any other law or of an order of a court.

109 (1) An amount of tax withheld under this Part is treated as -

(a) having been received by the payee at the time it was withheld; and

(b) as being income of the same nature as the payment from which it was withheld;

and, subject to section 103, the income of the payee is calculated accordingly.

(2) A person who has withheld tax under this Part and remitted the withheld amount to the Comptroller is treated as having paid the withheld amount to the person deriving income from which tax has been withheld for the purposes of any claim by that person for payment of the withheld amount.

(3) Tax withheld from a payment under this Part is deemed to have been paid by the payee and, except in the case of a tax that is a final tax by virtue of section 103, is credited against the amount of tax payable by the payee for the year of assessment in which the payment was made.

110 (1) Income tax that is due and payable is a debt owed to the government of Saint Lucia and is payable to the Comptroller in the manner prescribed.

(2) Tax that has not been paid when it is due and payable, may be sued for and recovered in a court of competent jurisdiction by the Comptroller acting in his official name.

(3) In any suit under this section, production of a certificate signed by the Comptroller giving the name and address of the defendant and the amount of tax due shall be sufficient evidence of the amount of tax for the court to give judgment for that amount.

(4) In this Part, any reference to "tax" refers also to any interest or penalty payable under this Act.

111 (1) If a taxpayer fails to pay tax by the due date, a lien is created in favour of the Comptroller in the amount of tax owed (together with any costs of collection that may accrue), on all property of the taxpayer.

(2) The lien created by subsection (1) has priority as against all other rights, except as otherwise provided in this section and in the Bankruptcy Act.

(3) The lien described in subsection (1) arises at 23.59 hours on the due date and continues until the liability is satisfied or becomes unenforceable by reason of lapse of time.

(4) Except as may otherwise be prescribed by Regulations, the lien imposed by this section is not valid against the interest of -

(a) a person who is a purchaser from the taxpayer; or

(b) the holder of a security interest granted by the taxpayer;

where the interest -

(c) arose in a bona fide arm's length transaction between the taxpayer and the other person referred to in this subsection;

(d) arose before such other person had actual knowledge of the lien; and

(e) arose before notice of the lien has been duly filed.

(5) The Comptroller may file a civil action in the High Court to enforce the lien imposed by this section.

112 (1) Where -

(a) a non-resident person has failed to pay to the Comptroller tax which has been assessed; or

(b) the Comptroller believes a non-resident person may not pay tax that is expected to be assessed on income payable to the non-resident person,

the Comptroller may require any person who is liable to make any payment to the non-resident, whether or not that payment is a payment that constitutes assessable income of the non-resident person, of which to withhold an amount from the payment and remit the amount to the Comptroller.

(2) The Comptroller may, by notice in writing, require any person who is in possession of assets belonging to a non-resident taxpayer to pay tax on behalf of the non-resident, up to the amount of tax due.

(3) The master of any ship or the captain of any aircraft owned or chartered by a non-resident person is deemed to be in possession of the ship or aircraft respectively for the purposes of this section.

(4) The income from a partnership of any non-resident partner may be assessed in the name of the partnership or of any partner resident in Saint Lucia and the tax may be recovered out of the assets of the partnership or from any such partner.

(5) The income of any non-resident beneficiary of a trust may be assessed in the name of the trustee and the tax may be recovered out of the assets of the trust or from the trustee personally.

(6) A person making a payment of tax under this section is deemed to have been acting with the authority of the taxpayer and is hereby indemnified in respect of the payment.

113 (1) The Comptroller may recover unpaid tax by distress proceedings against the property of the taxpayer by issuing an order in writing, specifying the taxpayer against whose property the proceedings are authorized, the location of the property, and the assessment to which the proceedings relate, and may require a police officer to be present while the distress is being executed.

(2) An order under subsection (1) may only be issued after 30 days from the date the Comptroller notifies the taxpayer in writing of the Comptroller's intention to proceed with distress, unless the Comptroller has reasonable grounds for believing that the collection of tax is in jeopardy.

(3) For the purpose of executing distress under subsection (1), the Comptroller may at any time enter any house or premises described in the order authorizing the distress proceeding.

(4) Property upon which a distress is levied under this section must be kept for 10 days either at the premises where the distress was levied or at such other place as the Comptroller may consider appropriate, at the cost of the taxpayer whose tax liability is involved.

(5) If the taxpayer does not pay the tax due, together with the costs of the distress, within 10 days after the distress is levied, then the property distrained upon may be sold by public auction, or in such manner as the Comptroller may direct, the proceeds of the sale being applied first toward the cost of taking, keeping, and selling the property distrained upon, then toward the tax due and payable, and the remainder of the proceeds, if any, shall be restored to the owner of the property.

(6) Nothing in this section precludes the Comptroller from proceeding under section 110 with respect to any balance owed if the proceeds of the distress are not sufficient to meet the costs thereof and the tax due.

(7) The 10-day period in subsections (4) and (5) does not apply to delay the sale of property which is subject to spoilage.

114 (1) Where a taxpayer fails to pay tax on the date on which it becomes due and payable, the Comptroller may by notice in writing require any person -

(a) owing or who may owe money to the taxpayer;

(b) holding or who may subsequently hold money for, or on account of, the taxpayer; or

(c) having authority from some other person to pay money to the taxpayer,

to pay the money to the Comptroller on the date set out in the notice, up to the amount of tax due.

(2) The date specified in the notice under subsection (1) may not be a date before the money becomes due to the taxpayer, or is held on behalf of the taxpayer.

(3) A copy of a notice issued under subsection (1) shall be forwarded to the taxpayer.

(4) A person making a payment pursuant to a notice under subsection (1) is deemed to have been acting under the authority of the taxpayer and of all other persons concerned and is hereby indemnified in respect of the payment.

115 (1) Where a company has -

(a) failed to pay tax for which it is liable; or

(b) failed to withhold tax from any payment made by it as required by Part IV of Chapter Eight; or

(c) having withheld tax, has failed to account for the tax as required by section 107;

those persons who were directors of the company at the time of such failure are jointly and severally liable for the tax owed by the company.

(2) Notwithstanding subsection (1), a director is not liable if he has exercised the degree of care to prevent the failure that a reasonably prudent person would have exercised in like circumstances.

(3) A director who is held liable for any amount under this section is entitled to be indemnified by the company.

(4) For the purposes of this section, "director" has the meaning given to it in the Companies Act.

116 (1) A receiver shall notify the Comptroller within 14 days after being appointed.

(2) The Comptroller may notify a receiver of the amount which appears to the Comptroller to be sufficient to provide for any income tax which is or will become payable by the person whose assets are in the possession of the receiver.

(3) A receiver -

(a) shall set aside out of the proceeds of sale of an asset the amount notified by the Comptroller under subsection (2), or such lesser amount as is subsequently agreed by the Comptroller;

(b) is liable to the extent of the amount set aside for the tax owed by the person who owned the asset; and

(c) may pay any debt that has priority under any other law before paying the tax referred to in this section notwithstanding any provision of this section.

(4) A receiver is personally liable to the extent of any amount required to be set aside under subsection (3) for the tax referred to in subsection (2) if, and to the extent that, the receiver fails to comply with the requirements of this section.

(5) In this section, "receiver" means a person who, with respect to an asset in Saint Lucia, is -

(a) a liquidator of a company;

(b) a receiver appointed out of court or by a court;

(c) a trustee for a bankrupt; or

(d) a mortgagee in possession.

117. The Minister may remit wholly or in part tax payable where the Comptroller certifies in writing to the Minister that he is satisfied that the tax cannot effectively be collected.

118 (1) Unless otherwise authorized by the Comptroller, a taxpayer shall maintain in Saint Lucia such records, in the English language, as may be necessary for the accurate determination of the tax payable by the taxpayer.

(2) The Comptroller may disallow a claim for a deduction if the taxpayer is unable without reasonable excuse to produce a receipt or other record of the transaction, or to produce evidence relating to the circumstances giving rise to the claim for the deduction.

(3) The record or evidence referred to in subsection (1) or (2), and the records which a withholding agent is required to maintain under section 105(1), must be retained for a period of [six] years from the end of the year of assessment to which they relate.

119 (1) Subject to subsection (2), in order to enforce the provisions of this Act, the Comptroller, or any officer authorized by the Comptroller in writing for this purpose -

(a) shall have at all times and without any prior notice full and free access to any premises, place, book, record, or computer;

(b) may make an extract or copy from any book, record, or computer-stored information to which access is obtained under paragraph (a);

(c) may seize any book or record that, in the opinion of the Comptroller or other authorized officer, affords evidence which may be material in determining the liability of any person to tax, interest or penalty under this Act;

(d) may retain any such book or record for as long as it may be required for determining a person's liability or for any proceeding under this Act; and

(e) may, where a hard copy or computer disk of information stored on a computer is not provided, seize and retain the computer for as long as is necessary to copy the information required.

(2) The powers authorized by subsection (1) may be exercised only during ordinary business hours unless the Comptroller determines that the collection of tax is in jeopardy and that their exercise outside ordinary business hours is necessary to ensure the collection of the tax.

(3) An officer who attempts to exercise a power under subsection (1) on behalf of the Comptroller is not entitled to enter or remain on any premises or place if, upon being requested by the occupier of the premises or place, the officer does not produce an authorization in writing from the Comptroller to the effect that the officer is authorized to exercise that power under this section.

(4) The owner, manager, or any other person on the premises or place entered or proposed to be entered under this section shall provide all reasonable facilities and assistance for the effective exercise of power under this section.

(5) A person whose books, records, or computer have been removed and retained under subsection (1) may examine them and make copies or extracts from them during regular office hours under such supervision as the Comptroller may determine.

120 (1) The Comptroller may, by notice in writing, require a person, whether a taxpayer or not, to furnish such information as may be required for an authorised purpose by the notice within the time specified in the notice.

(2) The Comptroller by notice in writing may, for an authorised purpose, require a person, whether a taxpayer or not, to attend at the time and place designated in the notice for the purpose of being examined on oath before the Comptroller or any officer authorized by the Comptroller for this purpose, concerning the income tax liability of that person or any other person, and for that purpose require such person to produce any book, record, or computer-stored information in the control of that person.

(3) The Comptroller shall pay the reasonable expenses of any person required to attend an examination under subsection (2).

(4) Where the notice requires the production of documents or other records, it is sufficient if such documents or other records are described with reasonable certainty.

(5) In this section, "authorised purpose" means -

(a) the collection of information for the purpose of determining the liability of any specific person for a tax; or

(b) the collection of information required for the collection of tax from a specific person.

124 (1) Where, in consequence of an objection, appeal, or application, a taxpayer is entitled to a refund of tax, interest or penalty; the taxpayer is entitled to interest at the specified rate on the amount of the refund.

(2) Subject to subsection (3), interest payable under subsection (1) is calculated from the date the refunded amount was originally paid to the Comptroller until the date it was refunded.

(3) Where tax for which a taxpayer is entitled to a refund of tax under section 93(2) is not refunded at the time the notice of assessment is issued, the taxpayer is entitled to interest on the refunded amount calculated from -

(a) the later of -

(i) the date on which the taxpayer's return of income was filed with the Comptroller; and

(ii) the date of service of any notice of assessment,

until

(b) the date the excess tax is refunded.

125 (1) The Comptroller may impose penalties in accordance with the provisions of this Part.

(2) Where the Comptroller imposes a penalty a written notice of assessment of the penalty must be served on the person on whom the penalty is imposed.

(3) The imposition of a penalty is in addition to any interest imposed under Part I of this Chapter and to any penalty imposed as a result of a conviction for an offence under Part III of this Chapter.

(4) Liability for a penalty is calculated separately with respect to each provision in this Part and, in the case of section 126, each subsection of that provision.

126 (1) A taxpayer who, without reasonable cause, fails to file a return of income within the time required is liable to a penalty of -

(a) 5 percent of the amount of tax owing; plus

(b) a further 1 percent of the amount of tax owing for each month or part of a month during which the failure to file continues.

(2) In addition to any penalty under subsection (1), where a person who is -

(a) has been expressly required by the Comptroller under section 85 or 86 to file a return; or

(b) required to file a statement under section 105(2),

fails to file the return or statement within the time specified, that person is liable to a penalty of

(c) EC $100; and

(d) a further penalty of EC $ 200 in respect of any subsequent demand.

127. A taxpayer who intentionally or negligently files a return of income that incorrectly states the amount of taxable income is liable to a penalty of 25 percent of the amount that is the difference between the amount of tax payable for the year of assessment and the amount that would have been payable if the tax payable had been calculated by reference to the incorrectly stated amount.

128. A withholding agent who, without reasonable cause, fails to pay any tax that has been withheld as required by section 107(1) is liable to a penalty of -

(a) 5 percent of the amount of tax owing; plus

(b) a further 1 percent of the amount of tax owing for each month or part of a month during which the failure to file continues.

129. The Comptroller may transfer information concerning a person to the Director of Public Prosecutions to enable the Director to bring charges against the person in respect of an offence set out in this Part.

130. A person who has fraudulently, in any manner, evaded or attempted to evade tax imposed by this Act, or the payment or collection of such tax, is guilty of an offence and, in addition to any penalty otherwise provided, is liable on conviction to a fine of not more than EC $ 50,000 or imprisonment for a term not exceeding 5 years, or both.

131. A person who has wilfully, in any manner, impeded or attempted to impede the administration of this Act is guilty of an offence and, in addition to any penalty otherwise provided, is liable on conviction to a fine of not more than EC $ 5,000 or imprisonment for a term not exceeding one year, or both.

132. A person who contravenes section 150 (1) is guilty of an offence and is liable on conviction to a fine not exceeding EC $ 1000 or imprisonment for a term not exceeding six months, or both.

133. A person who contravenes section 143(6) is guilty of an offence and is liable on conviction to a fine not exceeding EC $ 1000 or imprisonment for a term not exceeding six months, or both.

134. A person who knowingly or recklessly -

(a) files a return or makes a statement to a taxation officer that is false or misleading in a material particular; or

(b) omits from return or from a statement made to a taxation officer any matter or thing without which the statement is misleading in a material particular,

is guilty of an offence and, in addition to any penalty otherwise provided, is liable on conviction to a fine of not more than EC $ 1000 or imprisonment for a term not exceeding 6 months, or both.

135. A taxpayer that is -

(a) a company;

(b) a member of a partnership;

(c) an importer;

(d) an exporter; or

(e) an individual who derives business income in the year of assessment greater than EC $ 50,000,

and who fails to maintain proper records with respect to income from any source in accordance with the requirements of this Act is liable on conviction to a fine not exceeding 10 percent of the taxpayer's assessable income from that source.

136. Any person who, without due cause, fails to produce books or records or furnish information requested by the Comptroller under sections 118 or 119 is guilty of an offence and is liable on conviction to a fine not exceeding EC $ 1,000.

137. Any person who aids or abets a person to commit an offence under this Part, or counsels or induces another person to commit such an offence, is guilty and liable on conviction to a fine or to imprisonment as if he had committed the offence.

138. Any person who, being a person appointed for the due administration of this Act or any assistant employed in connection with the assessment and collection of tax levied under this Act -

(a) demands from any person an amount in excess of the authorized assessment of the tax;

(b) withholds for his own use or otherwise any portion of the amount of tax collected;

(c) renders a false return, whether verbal or in writing, of the amounts of tax collected or received by him;

(d) defrauds any person, embezzles any money, or otherwise uses his position so as to deal wrongfully either with the Comptroller or any other individual; or

(e) not being authorized under this Act to do so, collects or attempts to collect tax under this Act,

is guilty of an offence and liable on conviction to a fine of EC $ 5,000 or imprisonment for 3 years, or both.

(7) No action, suit, prosecution, or any other proceeding may be brought or instituted personally against a person who is or was a member of the Tribunal in respect of any act done or omitted to be done in good faith in the discharge of any function under this Act.

(8) A member appointed to the Tribunal who has a material, pecuniary, or other interest that could conflict with the proper performance of the member's functions shall disclose the interest and may not take part in any hearing of the Tribunal that could conflict with such interest unless both parties to the proceeding agree on the member taking part in the hearing.

142. The Tribunal shall have jurisdiction to hear and determine appeals against any objection decision of the Comptroller with respect to tax, interest or penalties payable under this Act.

143 (1) The times and places of the hearings of the Tribunal shall be as specified by the Chairman with a view to securing a reasonable opportunity for taxpayers to appear before the Tribunal with as little inconvenience and expense as is practicable.

(2) An appeal shall be heard by not less than three members of the Tribunal, who shall be nominated by the Chairman, except where the Rules provide for a single member to hear appeals.

(3) The Chairman shall preside or shall nominate a member of the Tribunal to preside over any hearing.

(4) The proceedings of the Tribunal shall be conducted in accordance with the [Income] Tax Tribunal Rules and with such further rules of practice and procedure as the Chairman may specify.

(5) The Tribunal shall have such assistance in carrying out its lawful writs, processes, orders, rules, decrees, or commands as is available to the High Court.

(6) A person shall not do any thing that would, if the Tribunal were a court of record, constitute a contempt of that court.

144 (1) Hearings before the Tribunal shall be open to the public unless the Chairman orders otherwise.

(2) In all proceedings before the Tribunal the taxpayer and the Comptroller may be represented by a barrister, a solicitor or an accountant.

(3) A decision on an appeal shall be made as quickly as practicable and notified to the parties in writing.

(4) The written decision of the Tribunal shall include its findings of fact or opinion, and shall be signed by the Chairman or other member of the Tribunal who presided over the hearing.

(5) Subject to subsection (7), decisions of the Tribunal and evidence received by it, including a transcript of the report of the hearings, are public records open to the inspection of the public.

(6) The Tribunal shall provide for the publication of its decisions in such form and manner as may be adapted for public information and use, and such authorized publication is evidence of the decisions of the Tribunal in all courts of Saint Lucia without any further proof or authentication.

(7) A person who has appealed to the Tribunal may request that documents released under subsection (5) be amended to conceal -

(a) the person's name; or

(b) aspects of the person's business or affairs that might reveal the person's identity.

145 (1) A taxpayer who is dissatisfied with an objection decision may, within 60 days after being served with notice of the objection decision, file a notice of appeal with the Registrar of the Tribunal and must serve a copy of the notice of appeal on the Comptroller.

(2) The Registrar shall give not less than 15 days notice to the parties before the date fixed for hearing of the appeal.

(3) In an appeal to the Tribunal against an objection decision, the taxpayer is limited to the grounds of objection set out in the notice of objection, unless the Tribunal grants the taxpayer leave to add new grounds.

(4) In deciding an appeal, the Tribunal may make an order -

(a) affirming, reducing, increasing, or varying the assessment under appeal; or

(b) remitting the assessment for reconsideration by the Comptroller in accordance with the directions or recommendations of the Tribunal.

(5) An order made under subsection (4) may be based on the Tribunal's conclusions regarding a question of fact or a question of law relevant to the assessment, and shall state what those conclusions are.

(6) Subject to the right of the Comptroller to issue an amended assessment under section 90, where no notice of appeal is served within the time permitted by sub-section (1), the assessment is deemed to be final.

146 (1) A party to a proceeding before the Tribunal who is dissatisfied with the decision of the Tribunal may, within 60 days after being notified of the decision, file a notice of appeal with the Registrar of the High Court, and must serve a copy of the notice of appeal on the other party to the proceeding before the Tribunal.

(2) Appeals under subsection (1) are restricted to appeals on questions of law.

(3) An appeal to the High Court shall be conducted in accordance with procedures specified in the Rules of the High Court.

147. In any appeal from an objection decision, the onus is on the taxpayer to prove on the balance of probabilities the extent to which the assessment made by the Comptroller does not correctly reflect the taxpayer's liability to tax for the year of assessment.

148 (1) The Government of Saint Lucia may by notice in the Gazette appoint a Comptroller of Inland Revenue, Deputy Comptrollers, Assistant Comptrollers, and such other officers and persons as may be necessary for the proper administration of this Act.

(2) The Comptroller has the general administration of this Act.

(3) A Deputy Comptroller shall, under the direction of the Comptroller, perform such general official duties as required by this Act or by the Comptroller, and shall, in the case of illness, absence, or temporary incapacity of the Comptroller, act in the office of the Comptroller.

149 (1) The Comptroller may delegate to any officer of the Department of Income Tax any power or duty conferred or imposed on the Comptroller by this Act, other than -

(a) this power of delegation; or

(b) the power conferred by section 129.

(2) Subject to such conditions as the Comptroller may specify, the Comptroller may direct that any information, return, or document required to be supplied, forwarded, or given to the Comptroller shall be supplied to such other person as the Comptroller may nominate.

150 (1) Subject to subsections (3), (4), and (5), a person appointed under this Act shall preserve secrecy with regard to all information or documents which may come to the person's knowledge in an official capacity, and shall not communicate such information or the contents of such documents to any other person except in the performance of his or her duties under this Act or by order of a competent court for the purpose of carrying into effect the provisions of this Act, or in order to institute a prosecution, or in the course of a prosecution for any offence committed in relation to income tax.

(2) A person appointed to audit the assessments and accounts of the Comptroller, is, for the purposes of this section, deemed to be a person appointed under this Act.

(3) Subsection (1) does not prohibit the disclosure of information or documents to -

(a) the Minister or any other person where such disclosure is necessary for the purposes of this Act;

(b) the Director of Audit or the Director of the Central Statistics Office or any officer duly authorized by either of them to have such access to any records or documents as may be necessary for the performance of their official duties;

(c) the competent authority of the government of a country with which an agreement for the avoidance of double taxation exists, to the extent permitted under that agreement; or

(d) the Comptroller of Customs and Excise.

(4) Information obtained by the Comptroller in the performance of the Comptroller's duties under this Act may be used by the Comptroller or by the Comptroller of Customs and Excise for purposes of any other fiscal law administered by the Comptroller or by the Comptroller of Customs and Excise.

(5) Information concerning a taxpayer may be disclosed to another person with the taxpayer's written consent.

(6) Persons receiving information under this section are deemed, for the purposes of this section, to be persons appointed under this Act.

(7) No officer or employee of the Department of Income Tax may enter upon his or her duties unless he or she has first taken and subscribed before the Comptroller the prescribed oath of secrecy.

(8) Proceedings for an offence against this section may only be taken with the consent of the Attorney-General.

151. The Minister may make Regulations for the better carrying into effect of the purposes of this Act.

152 (1) To achieve consistency in the administration of this Act and to provide guidance to taxpayers and officers of the Income Tax Department, the Comptroller may issue Public Guidelines setting out the Comptroller's interpretation of this Act.

(2) A Public Guideline is binding on the Comptroller until revoked.

(3) A Public Guideline is not binding on a taxpayer.

153 (1) Under procedures prescribed by Regulation, the Comptroller may issue to a taxpayer a private ruling setting out the Comptroller's position regarding the application of this Act to a specific transaction proposed by the taxpayer.

(2) Provided the taxpayer has made a full and true disclosure of the nature of all aspects of the transaction relevant to the ruling and the transaction proceeds in all material respects as described in the taxpayer's application for the ruling, the ruling shall be binding on the Comptroller with respect to the law as it stood at the time of the ruling.

154. With the exception of a private ruling issued under section 153, no statement or agreement concerning a taxpayer's tax liability made or purported to be made by an officer of the Income Tax Department is binding on the Comptroller, unless it is a written statement personally signed by the Comptroller or by a delegate of the Comptroller authorized to do so by a delegation order.

(2) The Comptroller shall notify in writing every person so registered of the taxpayer identification number assigned to that person.

(3) The Comptroller may require a taxpayer to include his taxpayer identification number in any return, notice or other document used for the purposes of this Act.

159. Where under any enactment a person or authority is empowered to issue a licence, permit, registration certificate or other similar document and the Comptroller requests in writing that the person or authority not issue such document, the document shall not be issued unless the person applying for the document produces a valid Tax Clearance Certificate issued by the Comptroller or by some other person authorized by the Comptroller.

160. The following laws and any regulations or rules made thereunder (referred to as the "Repealed Legislation") are hereby repealed:

[list to be supplied]

161 (1) Subject to this section, this Act comes into effect for years of assessment commencing on or after 1 January 2000.

(2) The Repealed Legislation continues to apply to years of assessment prior to the year of assessment in which this Act comes into operation pursuant to subsection (1).

(3) All appointments made under the Repealed Legislation and subsisting at the date of commencement of this Act are deemed to be appointments made under this Act, and an oath of secrecy taken under the Repealed Legislation is treated as having been taken under this Act.

(4) A double taxation agreement made before this Act comes into effect continues to have effect under this Act.

(5) All forms and documents used in relation to the Repealed Legislation may continue to be used under this Act and all references in those forms and documents to provisions of and expressions appropriate to the Repealed Legislation are taken to refer to the corresponding provisions and expressions of this Act.

(6) A reference in this Act to a previous year of assessment includes, where the context requires, a reference to a year of assessment under the Repealed Legislation, and a reference in this Act to this Act, or to a provision of this Act, includes, where the context requires, a reference to the Repealed Legislation, or to a corresponding provision of the Repealed Legislation, respectively.

(7) Where this Act requires a taxpayer other than a company to change its method of accounting for a year of assessment commencing on or after 1 January 2000, then one-third of the adjustment under section 39(6) is included in the taxpayer’s taxable income for that year of assessment and a further one-third in each of the two subsequent years of assessment.

(8) Chapter Eight (relating to collection of tax), Chapter Nine (relating to records and investigation powers) and Chapter Eleven (relating to objections and appeals) apply with respect to assessments made on or after 1 January 2000.

(9) Chapter Ten (relating to interest and penalties) applies to tax due and to offences committed on or after 1 January 2000.

(10) Subject to section 37, a company or trust that has been granted permission under the repealed legislation to use a fiscal period other than the calendar year may continue to use that period under this Act.

(11) The Minister may make Regulations as required with respect to transitional measures related to the implementation of this Act.