The General Consumption Tax Act

8/13/2019 The General Consumption Tax Act

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GENER L C O N S W T I O N T X

THEGENER LCONSUMPTION T X CTARRANGEMENT O F SECTIONS

1. Short title.2. Interpretation.PART11

GENERAL CONSUMPTlON TAXImposition o f General Consumption ar

3 Imposition of general consumption tax.4 Rate of general consumption tax5 When general consuinption taxpayable.

Time and Value of su pp ly6 Time of supply for purposes of general consum ption tax7 Value of supply for puIposes of general consum ption tax8 Value of imported taxable supply for purposes of general consumption tax

PART 111SPECIAL CONSUMPTION TAX

IMPOSITIONF SPECIALONSUMPTIONAX8A Interpretation.9 Imposition of specia l consumption tax

10. Rates of specia l consumption tax
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GENERAL C O N S W T I O N TAXProvisions relating to non payment and remittance 1Special Consumption m

14. Partial exemption from special consumption tax15. Circumstances in which no special consumwon tax payable.16. Circumstances in which Commissioner may remit specialconsumpttontax.17. [R ep eal edl byA ct2 1 of 1991.1

18. Meaning of supply.19 Place of supply. P RT V

20 Calculation of tax21. Conversion of consideration in foreign currency.22 Tax invoice etc. to be issued.23 Provisions regarding payment of tax where registered taxpayer nolonger registered.

2 3 ~ ayment of tax in respect of tourist accommodationand services.2 3 ~ Payment of tax in respect of imported services.24 Zero rated taxable supply.25 Exemption from tax

P RTVIInterpretation.Application for registration by persons carryingo a taxableactivityRegistrationCommissioner may require registration.Exemption h m egistrationRegistration of partnership.
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GENERAL C O N S W T I O N TAX 3

33.34.35.

36.

37.38.39.

40.

41.

42.43.44.45.46.47.

48.49.50.

PART WIADMINISTRATION F TAXReturns

Retums required rom registered taxpayer.Application for branch or division to f ile separatereturns.Commissioner may amend return.

Keeping ofRecordsRegistered taxpayer to keep records.

Demand Notice and Assessm entsDemand forpayment of tax.Commissioner may make assessment.Assessment deemed correct except inproceedingson objection.

ObjectionsRegistered taxpayer may object to assessment of tax.

Appeals

Deferment and RefirnakDeferment of payment of tax.Refund to certainorganizations.Refund of tax on motor spirit and diesel oil inqkcial circumstances.Refund of tax on taxable supply exported, etc.Refund of tax paid inexcess.Ministermay remit tax.

Recoveryof TaxApplication of Tax Collection Act.Recovery oftax shownon ax invoice, tc.Recoveryoftax iom third party.

[The inclusionof this page is authorizedby L.N. 88L?003]
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4 GENERAL CONSUMPTION TAXPowers of Authorized Person

51. [Repealed b yAc t 20 o 1999, S. 3.152. [Repealed by Ac t 20 of 1999, S. 3.1

53. Authorized person m y ake sample.PART VIII

Oflences and Penalties54. Penalties.55. Penalty, etc. , may be added to tax.56. OfTences.

PART IXGeneral

57. Documentaryevidence.58. Responsibility of agent under Act.59. Liabilities and obligations not affected by cessation of registration.60. Power ofMinister to amend Schedules.61 . Agreement to defeat intentionand application of Act void.63. Regulations.62. Obli@tiOn for Secrecy.

SCHEDULES.

[The inclusion of tl i is page IS authorized by L.N. 88i20031
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GENERAL CONSUMPTION TRY

THE GENERAL CONSUMPTION TAX ACT ~ g16 011991

PART IPRELIMINARY

1.-(1) This Act may be cited as theTax Act.

21 of 1991[22nd October 1991 lo f lmof1997.20o 1999s.3..21 012001.26 012009.28 al 2W

9.2.General Consumption Sh(2) Sections 26 to 32 inclusive (in this subsection referredto s the relevant sections ) and so much of section 2 as relateto the construction of the relevant sections and sections 40, 54and 56 as relate to the enforcement of offences against therelevant sections shall come into operation on the 26th day ofJuly, 1991.

Interprets2 4 1 ) In this Act unless the context otherwise requires-absolute alcohol means 100 per cent alcohol by volume; 2i11991s a).authorized person means an officer o f a revenuedepartment s defined in the Revenue AdministrationAct, a member of the Jamaica Constabulary Force orany other officer authorized by the Commissioner ofTaxpayer Audit and Assessment, and any person LN.acting in the aid o f any such officer or member; 16~11999Commissioner of Taxpayer Appeals means the L.N.

Commissioner of Taxpayer Appeals appointed under 8W2002section 1 1B of the Revenue Administration Act;connected person has the same meaning as in the IncomeTax Act;consideration in relation to the supply of goods andservices to any person, includes any payment made orany act or forbearance in respect of, in response to, orfor the inducement of, the supply of any goods orservices, whether by that person or by any other


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GENER L CONSUMPTION TRY

2111991s 2 c).

document includes any electronic data, computerprogrammes, computer tapes, computer discs andmicrofilm;factory means any building or place licensed undersection 25 of the Excise Duty Act;goods means all kinds o f property other than realproperty, money, securities or choses in action;hire-purchase agreement has the same meaning as in the

Hire-Purchase Act;input tax in relation t o a registered taxpayer means-a) ax charged under section 3 (1) on the supply ofgoods and services made to that taxpayer o r onthe importation into Jamaica of goods andservices by that taxpayer being goods andservices required wholly or mainly for the

purpose of making taxable supplies; o rb) tax charged under section 9 on the manufactureof prescribed goods or on the importation intoJamaica of such goods being prescribed goodsacquired wholly or mainly for the purpose ofmanufacturing taxable supplies;

1 0 1 1 ~ s manufacture means the process or method wherebys.2 8) i). goods are made by converting or fabricating rawmaterials o r intermediate goods or both into a new ordifferent product or articl; and manufacturer shallhave a corresponding meaning;open market value means the amount of consideration inmoney (excluding tax) which the Commissioner ofLN. Taxpayer Audit and Assessment is satisfied would be16511999. payable in respect o f a taxable supply by a person w ho

is not a connected person in an arms length


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G E N E R A L CONSUMPTION T A X 7a) tax paid by a registered taxpayer on themanufacture by him of prescribed goods; or( b ) tax charged by a registered taxpayer on asupply by him of a taxable supply;

per cent of alcohol by volume means the percentage CJZof absolute alcohol expressed as a volume m easure-ment contained in any mixture;prescribed goods means good s specified in the Second W a dScbcdulcSchedule;recipient in relation to a supply of goods and servicesmeans the person to whom the goods and services

are supplied;registered taxpayer means a person who is registeredpursuant to section 27 and is liable t o pay ta x underthis Act;services means the matters specified in the Fourth A:i\giaSchedule;tax means-

FourthSchedule

(a) general consumption tax imposed under(b) special consumption tax imposed under

tax invoice means an invoice issued under section

section 3; orsection 9;

22;taxable activity means any activity, being an activitycarried on in the form of a business, trade,profession, vocation, association or club, which iscarried on continuously or regularly by any person

~Giuaionofthirpa~eise*ri~by L . N . ~ S / I W I~~~ ~~~ ~ _ _ _ _ _ ~ ~ ~


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GEIVLIZAL CONSUMPTION T A X

1011995S. 2 (b).

whether or not for a pecuniary profit, a nd involvesor is intended to involve, in whole or in part, thesupply of goods and services (including servicesimported into Jamaica) to any other person for aconsideration; but does not include-( a ) any activity carried on essentially as a pri-vate recreational pursuit or hobby;(b ) any engagement, occupation or employmentunder any contract of service or as a direc-tor of a company; or(c) any activity specified in the Third Schedule;

taxable period in relation to a registered taxpayermeans the period prescribed as the period in respectof which a return of tax is to be m ade:

taxable supply means any supply of good4 and ser-vices on which tax is imposed pursuant to this Act:trustee includes a liquidator, executor or administra-tor, receiver and Trustee in Bankruptcy.

(2) Fo r the purposes of this Act-( a ) the process or method of manufacture includes-

(i) the generation of electricjty;(ii) the production of processed water;

(iii) the retreading of tyres;(iv) the assembling or rebuilding of a motorvehicle using a new chassis;(v) the dyeing. printing an d finishing of fabrics;

(vi) printing;a taxable activity includes anything done in con-nection with the commencement or termination ofthat activity.

( b )me inclusionof thispage is authorized byL N. 5 I9971


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G E N E R A L C O NS UM P Tl ON T A X 9PARTGENERAL ONSUMP~ON.u

imposition of General Consumption Tax3.-(1) Subject to the provisions of ths Act, there shall ~mpdt io*of generalbe imposed, from and after the 22nd day of October, 1991, comumrcLion t a xa tax to be known as general consumption tax-(a) on the supply in Jamaica of goods and servicesby a registered taxpayer in the course or further-

ance of a taxable activity carried on by that tax-payer; and(b) on the importation into Jamaica of goods andservices,by reference to the value of those goods an d services.general consumption tax shall be imposed on the secondsale in Jamaica of motor vehicles, as defined in section 11 oCthe Road Traffic Act, by a person other than a registeredtaxpayer in accordance wth the provisions of the second Firstcolumn of G roup 111of Par t I of the First Schedule.manufacture in Jamaica of motor vehicles, as defined insection 11 of the Roa d Traffic Act, by any person w ho isnot a registered taxpayer, and the rate of such tax shallbe the rate specified in relation to paragraph ( e ) of GroupIV of Part I of the First Schedule.(2) General consumption tax shall be paid by-

( 1 ~ ) rom and after the 2 n d day of October, 1991, ~

Schedule.(18) General consumption tax shall be imposed on the kogk

(a) a registered taxpayer; an d( b ) any other person, who imports into Jamaica anygoods an d SeNiCeS.(3) General consumption tax shall be payable in I O / I W Ss. 3 6).respect of the prescribed goods specified in Items 2, 3, 4,

ScmndSchcdulc,5 and 6 of the Second Schedule.(4) The prescribed goods specified in Item 1 of the ,o,,995Second Schedule are exempt from payment of general con- S . 3 @ ) .sumption tax. --___~~[Lhe inclusion of hiq page s suthori ied b:; L.N. 146: 19991


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G E N E R A L C O N S U M P T I O N T A X4 .41) General consumption tax shall-

cn) subject to paragraph ( b ) , be at the rate of fifteenper Centurn;

( b ) in relation to taxable supplies specified in the FirstSchedule, be at the rate specified in that Schedule.(2) The Minister may, by order subject to affirmative

resolution of the House of Representatives, amend the ratesof general consumption tax referred to in subsection (1).

5. General consumption tax shall be due and payable-(a) at the time when goods are entered for home con-

sumption under the Customs AcS and(6) in any other case, at the time of supply.Time and Vulue of Supply

Timaof 6 . 4 1 ) Except as otherwise provided in this section or inW Q ~orPUW of regulations made under this Act, a taxable supply takes placeWnOIalmmyump[ien for the purposes of this Part when-

(a) an invoice for the supply is issued by the supplier;or(b) payment is made for the supply; or(c ) the goods are made available, or the services are

rendered, as the case may be, to the recipient,

*x.

whichever first occurs.(2) Where goods are supplied-

( a ) under an agreement for hire-purchase;or( b ) under an arrangement whereby the recipient hasan option to return the goods to the supplier,the supply takes place, for the purposes of this Act, when

the goods are made available to the recipient.[ T he inc lus ion of fhirpageinauthonzed bv L N 146119991


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G E N E R A L CONSUMPTION T A X I(3) W here goods or services ar e supplied progressivelyor periodically under an agreement that provides for theconsideration to be paid from time to time up on the suppliergiving invoices, the goods or services shall be regarded as

being supplied at the time when-( U ) an invoice for the supply is given by the supplier; or( b ) payment is made for the supply; or(c) payment for the supply becomes due,whichever first occurs.

(4) Where a contract fo r a taxable supply provides forthe retention by the recipient of part of the purchase pricepending satisfactory completion of the contract or partthereof, tax shall become payable o n the par t of the purchaseprice so retained when such payment becomes due to oris received by the supplier, whichever is earlier.

( 5 ) Where a taxable supply is made under an agree-ment other than a hire-purchase agreement, and the taxablesupply is appropriated for the use of some person otherthan the purchaser under the terms of the agreement incircumstances where the total consideration is not deter-mined at the time of appropriation, the supply shall bedeemed to have taken place when paym ent of the considera.tion or par t thereof becomes payable or is received o r a taxinvoice is issued, whichever first occurs.

(6)Where a registered taxpayer, by means of amachine, meter or other device operated by coin or token,makes a taxable supply for a consideration in money, thetime of such supply shall be regarded as the time when suchcoin or token is removed from the machine, meter or otherdevice by or on behalf of the registered taxpayer.

(7)Where a taxable supply is made by an insurer 2,,,99,pursuant to a con trac t of insurance, a supply takes place fo r S. 5 (b).me i d u s i o n of h i s mge is authorized by L N. S/ 9971


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12 GENERAL CONSUMPTION TAXthe purposes of this Act a t the time when payment is madeto a broker or insurer for that supply.

(8) In subsection (7) contract of insurance includesa policy of insurance and renewal thereof but does no t in-clude a policy of life assurance, health insurance or re-insurance.7.-(1) Subject to subsections (2 ) and (3), the value of ataxable supply (other than a taxable supply referred to insection 8) hall, for the purposes of this Pa rt, be determined

in the following manner-(a) if the consideration for the supply consists whollyof money, then the value of the supply shall be

the consideration, including special consumptiontax, if any, bu t excluding general consum ption tax ;b) if the supply is for consideration partly consistingof money, then the value of the supply shall bedeemed to be its open m arket value;

(4 if the supply is not the only matter to which thetotal consideration applies, then the value ofthe supply shall be taken as that part of the con-sideration applicable to the supply; or(d) if there is no consideration, the value shall be thecost incurred by the registered taxpayer inacquiring that supply.

(2) Where the consideration is payable by a connectedperson, then the value of the supply shall be taken to be itsopen ma rket value.( 2 ~ ) here a taxable supply is a motor vehicle towhich Group IV of Part I of the First Schedule applies, thevalue of the supply shall be its open ma rket value.(3) Th e value of a taxable supply used in the circum-stances described in section 18 (2)shall be the cost incurredby th e registered taxpayer in acquiring that supply.

[The inclusionofthis page s auUlorized by L N.95/1997l

Value ofsupplv forpurposes ofeencralC 0 S ~ p -tion t a x .21/1991s. 6 3) I ) .

101 1 9 5S . 5 (a).

21/ 1991 ,.S. 6 a) (ill).

l0 1995s. 5 (b).FirstSchedule.21 1991S.6 (b).


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GENERAL CONSUMPTION T A X 13-(U Subject to subsection (2), the value of a taxable v d w dh w o n s dsupply imported into Jamaica shall, for the purposes of this tarnbksupply forP m f6eneTal(a) the value of that taxable supply for customs duty coMwgtiolltu.purposes;(b) the amount of customs duty payable;(c) any additional stamp duty on inward customs 2111991warrants; and( d ) any special consumption tax payable in respect of 1*/1*Jthat taxable supply,

Part, be the aggregate of-

s. 7.S.6 (c).

(2) Where a taxable supply is imported into Jamaicaby any person who is not a regstered taxpayer, the valueof that supply shall be the aggregateof-(a) the value specified in subsection (1); and( b ) such percentage of that value as may be determinedby the Commissioner, h a v in g regard to the pricewhich the supply would fetch on a sale made bya retailer on the open market.

(3) Subsection (2) shall not apply to any goods whichthe Commissioner of Customs and Excise is satisfied are in-tended for personal use and not for resale.PART nI

SPECIALONSUMPTXONAXImposition of pecial Consumption TaxSA. In this Part and in Part I V Commissioner means r p w m m -

L,N.bon.the Commissioner of Taxpayer Audit and Assessment.165/1999.

9. Subject to the provisions of this Act, there shall be ofw ? i o np m a limposed, from and after the 22nd day of October, 1991, a C O M . U ~ Ftax to be known as special consumption tax on the manu-facture in or importation into Jamaica of prescribed goods.

tion tax .

[The inclusion of @his rage is authorized by L.N. 3 20011

RL-17


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14Rat- ofspccialcnnsump-l i on tax.SecondSchedule.

BY whomapec.al c o n .sumptiun121 payahl..

Whenspecial con-m m p i m$ax bccomrndue andpayable.

Value Ofprescribedpund.;.

GCNERAL C O N S U M P T I O N T A XlO.-(l) Special consumption tax shall be payable at therates specified in the Second Schedule.

(21 The Minister may by order, subject to a r m a t i v eresolution of the House of Representatives, amend the ratesof special consumption tax referred to in subsection (1).

11. Special consum ption tax shall be payable-(a) by every registered taxpayer who manufacturesprescribed goods; and(b ) by any person who imports prescribed goods intoJamaica.

1 2 . 4 1 ) Special consum ption tax sha ll be payable-( a ) subject to subsection (2), in relation to prescribedgoods manufactured in Jamaica, immediatelybefore such goods are removed from a factory or,in the case where the goods are permitted orrequired under the Excise Duty Act to be movedfrom a factory to an excise warehouse or a privateexcise warehouse, immediately before such goodsar e removed from that warehouse; orb) in relation to prescribed goods imported intoJamaica, when such goods are entered for home

consumption pursuant to the Customs Act.(2) The Comm issioner may, in relation to prescribedgoods referred to in subsection (1) (a),authorize the payment

of special consumption tax at such times an d subject to suchconditions as he may specify.Value of Prescribed Goods

13.41) The value of prescribed goods (other than theprescribed goods referred to in subsections (2) a n d (3) ) shall,for the purposes of special consumption tax, be determinedin the following rnanner-

mhe inclusion of his page ir authorized by LN. / 2001 ]


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G E V I .R A L C 0 , S S t i h l i T I O ~ VT A X(a) if the goods are imported into Jamaica, the value

(I) the value ot the foods as determined underthe Customs Act; and(ii) the amount ol customs d u t y payable; and

shall be the aggregate of-IS

tiid any additional s tamp duly on mwards 21/1991( b ) if the goods are manufactured in Jamaica, the value 2 1 ;1991shall be the price at which the goods are sold bythe manufacturer to a person who is not a con-nected person.

(2) Where special consumption tax is chargeable on ~ : I Y Y ~beer, wines and other alcoholic beverages produced by w , e , f ,fermentation, cordials, liqueurs and spirits by reference to z;g.their value, that value shall be the price, inclusive of all scb.duties and special consumption tax payable, which, in the 2,A.P,.opinion of the Commissioner, such goods would fetch ona sale at arms length to a retailer on the open market inJamaica.shall be determined in accordance with the Second Schedule. w.c. .

5. I (11customs warrants;s. 8 (.I ca

sch.

w.e.1.

(3) The value of cigarettes and petroleum products i ,q9721.1.95.%modSchedule.(4) For the purposes of subsection (2), the goods

(a) at the time when special consu mption tax in respectof those goods becomes due; and( b ) otherwise than in bulk.

specified therein shall be deemed to be supplied-

( 5 ) The reference to price in subsection 1) ( b ) n-cludes a reference to any amount representing the cost of-(a) advertising, financing, servicing or any similar costin relation t o the prescribed goods: and( b ) any wrapper, package. box. bottle @r other

container in which such goods are contained.(6) In subsection (2)-[The inclusion of his page s authorized by L.N. 3~2001)


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16 G E N E R A L CONSUMPTION T A X

411997scb.w.r . f .7.3.97.

beer includes ale, porter, spruce beer, black beer, orany other type of beer, and liquor which is madeor supplied as a description of beer, or a substitutefor beer which on analysis of a sample theIeof isfound to contain more than 1.10 per cent of alcoholby volume;cordials, liqueurs and wines and other alcoholicbeverages produced by fermentation have themeaning assigned to them, respeotively, in the

Explanatory Notes to Chapter 22 of the Hamo-nized Commodity Description and Coding System(HS) referred to in paragraph 1 (2)of the GeneralProvisions to the Customs T a r 8 (Revision) Reso-tion, 1972;

spirits means distilled spirits of any description andincludes al liquor mixed with spirits, all mixtures,compounds or preparations made with spirits andbeer of a strength greater than 11.4 per cent ofalcohol by volume but does not include methylatedspirits, perfumes or toilet water.

(7) In subsection (3) cigarette means a roll oftobacco or any substitute for tobacco the wrapper of whichis paper or any other substance other than tobacco andwhich forms part of the cigarette.Provisions relating to non-payment and retnirtrmce ofSpecial Consumption Tax

14. Where the Commissioner is satisfied that d i e 1 oilmentioned in the proviso to Item No. 1 (d)and (e) of theSecond Scheduleis intended for use by any company licenseddiesel oil from special consumption tax to the extent speci-fied in that Schedule.

15 .41 ) No special consumption tax shall be payable on

21/1991S. 8 (a) (2).

dr1997ch.W.C.1.21.495.

Partial ex-emptimfromsumptionSahaddcs. 8 @).CircUm-t a o m inWE& no any prescribed goods-apbFialoo11-sumptronabIe.

apCnalw n -t p X . to supply electricity for public purposes he may exempt such2111991

(a) shipped as stores or exported; orPIY- ~ _ _ . ~ __ ~lThe inclusion of his page is authorized by L.N. 3/20011


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G E N E R A L CONSUMPTION T A X( b ) delivered in the Island for the use of the JamaicaDefence Force; or(c) permitted by regulations made under this Act tobe used for a n y purpose free of tax and duly usedfor that purpose.

(2) Prescribed goods shall, for the purpose of sub-section (1) (a), be deemed to have been shipped as sloresor exported if they have been shipped as stores or ex portedin accordance w ith the provisions of the customs and exciselaws relating to goods exported on drawback.(3) Where prescribed goods are delivered in theIsland for use by the Jamaica Defence Force, a certificatein respect of each delivery shall be signed by the officerfor the time being in comm and of such Force an d producedto the Commissioner stating that the prescribed goods arefor such use.

16.01

16.-(1) If any goods liable to special consumption tax Ciroum-are lost o r destroyed by u navoidable accident before delivery which am-from a Customs area, or before delivery from a factory Fi,?::ztwarehouse, or while being shipped for export, or for use h~as stores, or in the course of delivery from or to any factoryor warehouse or being received into a warehouse theCom missioner may remit th e tax if satisfied that such goodshave not been and will not be used or consumed in theIsland.

a l n m LU

# v i a lcon-or warehouse, or while being removed from a factory or rumption

(2 ) A registered taxpayer who intends to destroyany prescribed goods liable to special consumption tax shallinform the Commissioner of his intention describing thegoods and the goods may be destroyed subject to any direc-tions given by the Commissioner.[nhe inclusion of this page is authorized by L.N. 146: 19991

RL-26


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16.02 G E N E R A L C O N S U M P T I O N T A X(3) The Commissioner may remit the special con-sumption tax on a n y deficiency of spirits or beer shown tohis satisfaction to have been reasonably caused by leakage,evaporation or absorption.(4) Where any prescribed goods which have beenremoved from a factory or warehouse or from a Customsarea have become spoilt or unfit for use or do not meetthe specifications of the trade, the Commissioner may, in

his discretion, permit the g d s o be returned to the factoryor warehouse to be destroyed or otherwise disposed of tohis satisfaction, and thereupon the amount of special con-sumption tax may be credited to the registered taxpayer or,if the Commissioner thinks necessary, be refunded to thattaxpayer.

(5 ) In this section Customs area has the samemeaning as in the Customs Act and warehouse means aQueens or private warehouse under that Act or an excisewarehouse or private warehouse under the Excise Duty Act.

17. [Repealed by Acr 21 of 1991.1PART

PROVISIONS RELATINGO MAKING OF TAXABLEUPPLYlS.--(l) For the purposes of this Act supply includa -(a) the sale, transfer or other disposition of goods by

a registered taxpayer so that the goods sold, trans-ferred o r otherwise disposed of no longer form partof the assets of a taxable activity;

2&$f*.

[The nclusion of [his pa& authorizedby L.N. 146 1999]


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G E N E R A L C O N S U M P T I O N T A X 17( b ) the exercise of a power of s a l e by a person otherthan a registered taxpayer in satisfaction of a debtowed by a registered taxpayer;(c) the provision of services,(i) the use of a n asset of a taxable activity (hereinafter U / I W Ireferred to as a specified asset) as collateral for aloan;ii) the transfer of a specified asset to a trustee pur- ziii99isuant to his appointment as such;

but does not include-S. 9 (a) 0.

S. Y (a) (ii).iii) the transfer- 2111991S P fa) ii).

(na) of a specified asset free of charge (n ot form -ing a series of gifts to the same person) inthe course of furtherance of a taxableactivity where the value of the gift is lessthan one hundred dollars; or(bb) of a sample of any goods to a customer orintended customer in a form not ordinarilyavailable for use as a taxable supply; or(cc) of a specified asset or the provision of ser- 2 1 1 1 9 9 1vices as an unconditional gift to any chari- S. 9 ( s ) (iii).table body approved by the Minister.

( 2 ) Where in the course or furtherance of any taxableactivity a registered taxpayer uses for himself or for anyother business carried on by him an y goods which form partof the stock of his taxable activity, and which, if thosegoods were supplied to some other person tax would bepayable thereon, the use of such goods by the registeredtaxpayer shall be deemed to be a taxable supply withinthe meaning of this Act and the provisions of this Act shallapply accordingly.-~ ~~~[The inclusion of this page i q aiithorircd by L.N. 146: 19991


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1821 i19YI5 . 9 t b ) .

G E N E R A L CONSUMPTION T A X(3) Where a specified asset is-

( a ) used as collateral for a loan and consequent ondefault by the borrower the collateral is forfeitedto th e lender; or(b) transferred to a trustee, and he-

211'1991S. 9 (b). (i) distributes the assets of the estate of whichthe specified asset forms a part; or(ii) distributes the assets of a company of whichthe specified asset forms a part,

the forfeiture or distribution, as the case may be, shall bedeemed to be a supply.2111991S. 9 (b j.

(4) Where a registered taxpayer receives an amountby way of reimbursement, recovery o r otherwise in respect ofgoods or services acquired by him fo r the purpose of makingtaxable supplies, he shall be deemed to have made a taxablesupply and the am oun t aforesaid shall be deemed to be theconsideration fo r that supply.21/1991S 9(d.

(5) Where a dispute arises as to whether a taxablesupply ought to be treated as a supply of goods only or,as the case may be, a supply of services only, the partiesto the dispute may refer the dispute to the Commissionerfo r his determination.

(6) For the purposes of this Act, anything which isnot a supply of goods but is done for a consideration is asupply of services.

(7) Where goods o r services are supplied by a n agentacting in his own name and who refuses on request to dis-close the name of his principal, the Comm issioner may, if hethinks f i t , treat the supply as a supply to an d by the agent.~. [The in c lw io n cf th is page IS authorized by I..N. 146119991


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G E N E R A L C O V S U M P T l O N T A X 1 i(8)The matters specified in the Fourth Schedule Four lhSchedule.5111991s. 9 (11.shall constitute the provision of services.

19.A taxable supply shall be deemed to take place in P l a e ofW W Y .Jamaica-(a ) if the supp lier is resident in Jamaica; or

b) if the supplier is n o t so resident and-(i) in the case of goods, the goods are in(ii) in the case of services, the services are per-formed or utilized in Jamaica, as the casemay be.

Jamaica at the time of the supply; or

PART vMISCBLLANBOUSROVISIONSRELATING TO TAX

2 0 . 4 1 ) Every registered taxpayer shall, in respect of eachtaxable period, calculate the amount of tax payable by him of ~ A Xin accordance with regulations made under section 63, andshall pay over that amo unt in accordance with those regula-tions.

(2) For the purposes of this Act, the tax payableby a registered taxpayer in respect of each taxable periodshall-(a) in relation to taxable supplies other than prescribedgoods and the taxable supplies specified in Part I ofthe First Schedule, be the amount arrived at afterxd..deducting the total amount of input tax or such g//o?l

portion thereof as may be prescribed from thetotal amount of output tax;me inclusionof this page 15 author i zed by 1 N 14hl19991


22/107

20

cullversionof cull-rideralionin toreigncurrency.

Tax i n d c etlC. t o bei a u e d .

2 1 / 1 9 9 1s. 11.

Prurisioqsregardingpayment oft ax where

h) in relation to prescribed goods and the taxablesupplies specified in P art I of the First Schedule, bethe amount arrived at after deducting from thetotal amount of output tax such portion of the in-put tax as may be prescribed.

21. For the purposes of this Act, the am ou nt of anyconsideration th at is in a foreign currency shall be convertedto Jamaican currency at such rate as may be specified bythe Bank of Jamaica a t the time when the t a x becomes dueand payable in accordance with section 5 or 12, as the casemay be.

22. A registered taxpayer shall-( a ) in respect of a taxable supply made by him toanoth er registered taxpay er, issue a tax invoice con-taining such particulars as m ay b e prescribed;b) in respect of a taxable supply made by him to anyother person, issue a receipt showing separatelyparticulars as to the value of the supply and theamount of tax chargeable in respect of that supply,so, however, that the provisions of this paragraphshall not apply in any case where the particularsas aforesaid are clearly displayed on the supplyconcerned. or in such o ther man ner as may be pro-scribed

23.41) Subject to subsection (2), where a registered tax-payer ceases to be a registered taxpayer, tax shall be payableon any taxable supply forming part of the assets of his tax-able activity immediately before he so ceases.

~ ~~~~ ~ ~~ ~~ ~ ~ ~ ~ ~ _ _ _ _ _ _ _[The n c l u r i a : ~f :his nape i s nnlhorizcd b ; L.N. 116 1999]


23/107

GENERAL CONSUMPTION TAX 21

(2) Tax shall not be payable pursuant to subsection

the taxable activity is transferred as a going concernto another registered taxpayer;the taxable activity is carried on by some otherperson after the registered taxpayer is declaredbankrupt or is certified to be otherwise incapableof carrying on that taxable activity or has died; orthe registered taxpayer proves to the satisfaction ofthe Commissioner of Taxpayer Audit and Assess- L.N.ment- 16511999

(i) that he was allowed no credit for input tax inrespect of the taxable supply; or(ii) that the taxable supply was not part of theassets of the taxable activity acquired by

him from some other registered person.

23A.-- I) Where a taxable activity consists of the supply EXzmtoof- respect of(a) tourist accommodation; or touristaccommo(b) services offered to tourists through the operation gzd

of a tourism enterprise as defined in section 2 of 1011995the Tourist Board Act, S 7

it shall be the responsibility of the operator of the accommo-dation or services to collect the tax chargeable in respect ofthat taxable activity and pay the tax to the Commissionerof Inland Revenue, in accordance with the provisions of L.N.section (1). 16511999.

(2) In subsection (1)operator means the person who owns the business

concerned with the operation of the tourist accom-modation or services referred to in that subsection and


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GENER L CONSUMPTION T X

Payment oftax n respectof importedservices.2612003S 2.

Zero-ratedtaxnblesupply.iSchedule.

Exemptionfrom tax.ThirdSchedule.

InterpretetionL.N.16511999.Application

includes the manager or other principal officer of thatbusiness;tourist has the sam e meaning as in section 2 of theTourist Board Act;

tourist accommodation means accommodation offered totourists in an apartment, a hotel, resort cottage or anyother group of buildings within the sam e precinct.

23B. Where a taxable activity consists of the supply ofimported services by a person who is not a resident inJamaica, th e recipient o f those services shall, for the purposes ofthat supply, be deemed to be a registered taxpayer and shall paythe tax chargeable in respect of that supply t o the Comm issionerof Inland Revenue, in accordance with the provisions of section1).24. Tax in respect of the supply in Jamaica or theimportation into Jamaica of any taxable supply specified inPart I1 of the First Schedule shall be at a rate of zero percent.25. The goods and services specified in the Third Sche-dule shall be exempt from the payment of tax under this A ct.

PART VIREGISTRATION OF PERSONS TO WHOM ACT APPLIES

25A. In this Part Comm issioner means the Comm is-sioner of Tax Adm inistration Services.

2 6 . 4 Every person who, on or after the coming intof ;egistrationby Persons operation of this section, carries on a taxable activity is liable to


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GENER L CONSUMPTION T X 3

(2) Where a taxable activity is carried on by twoor more persons as a partnership, application shall be madeto the Commissioner for registration of the partnershipunder this Act.

(3) n application under this section shall be madewithin thirty days after the coming into operation of thissection, or, as the case may require, within twenty-one daysafter the commencement of the taxable activity so, however, 2111991that the Commissioner may, if satisfied that the circumstances so S 12warrant, extend the time specified in this subsection.

2 7 . 4 1 ) On receipt of an application under section 26 Regimthe Commissioner shall- tion

a) subject to subsection (3), register the applicant asa registered person if the Commissioner is satisfiedthat the provisions of paragraph (b) do not applyta the applicant; or

(b) register the applicant as a registered taxpayer ifthe Commissioner is satisfied that-(i) in the month of application and the elevenmonths immediately preceding, the gross

value of the applicant s supplies is not lessthan three hundred thousand dollars; or 2612003

S 3 a).

(ii) in respect of a period of less than twelve


26/107

2612003S 3 b).

GENERAL CON STJMPTI0N TAX

supplies is not less than twenty-five thousanddollars; oriii) the applicant is a manufacturer of prescribedgoods.

2) Where a person is registered under subsection I),the Commissioner shall send to that person-

a) in the case of a person registered under paragraph a),a notice of registration;

b) in the case of a person registered under paragraphb), a certificate of registration.

3) Where a person who is registered under para-graph a) of subsection 1) subsequently qualifies forregistration under paragraph b) of that subsection, he shallnotify the Commissioner within twenty-one days of thedate on which he becomes so qualified and the Commis-sioner shall thereupon issue that person with a certificateof registration as a registered taxpayer.

4) A person who is registered under paragraph a)of subsection 1) may apply to the Commissioner to be regis-tered as a registered taxpayer and upon being so registeredthe provisions of this Act relating to a registered taxpayershall apply to that person.

5) Where the Commissioner is not satisfied that anapplicant is qualified to be registered under this Act he shallnotify the applicant in writing and shall state his reasonsfor the decision.

cbmmissioner 28.-41 Where the Commissioner has reason to believe


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GENER L ONXJMPTION T X 25

that person accordingly and require him to make an applicationand to hrnish such documents as the Commissioner thinks 2112001necessary within fourteen days of the date of the receipt of the Snotice.

(2) Where a person notified pursuant to subsection 1)fails to make application within the period specified in thatsubsection the Commissioner shall register that person and theprovisions of section 27 (2) shall apply rnut tls rnut tzds toregistration under this section.

(3) Where pursuant to subsection 2), the Commissioner zl12oolS 2 b).registers a person, the date of that person s registration shall beas follows-

(a) in the case of a person liable to be registered as aregistered person, the date on which that personcommenced a taxable activity;

(b) in the case of a person-(i) liable to be registered as a registeredtaxpayer; or(ii) who was registered as a registered personand failed to notify the Commissioner that

he subsequently qualified for registration asa registered taxpayer,

the date on which the gross value of supplies madeby that person was equivalent to the respectiveamount specified in section 27(1) (b) (i) or (ii).

29.-41 A person who supplies goods and services specified ~ min the Third Schedule shall be exempt from being registered trationunder this Act in respect of those goods and services. ThirdSchedule

(2) Notwithstanding subsection (I), the Commissioner 1011995may register as a registered taxpayer any person who is engaged S 8 b).in the growing of agricultural produce and who-


28/107

GENER L CONSUM PTION T X

b) sells that produce to a registered taxpayer for use inthe production of finished goods.Re mtiOnOf 3 0 . - 1 ) Where a partnership is required to be registeredpiuinmhip under this Act-

a) the registration shall be in the name under which thepartnership trades; andb) the individual partners shall not be registered or bliable to be registered under this Act in relation t

the taxable activity carried on by the partnership.2) The supply of goods or services made or received inthe course or furtherance of a partnership shall be regarded abeing made or received by that partnership and not by anyindividual partner.

(3) For the purposes of this Ad, the business of partnership shall not be affected by any change of partners.4) The partners in any partnership are jointly anseverally responsible for any liability or obligation incurreunder this Act by that partnership and a partner shall, for thpurposes of this Act, not cease to be a partner until thCommissioner receives notification in writing of such cessation

Provided that this subsection shall not apply to any partnewho contributes to capital or the common stock of thpartnership but who is not otherwise concerned in the day to daoperation of the business of the partnership.

5) Any document which is served on any partnershipursuant to this Act or regulations made thereunder shall bdeemed to e also served on the partners thereof.6) In this section partnership includes a joinventure, an unincorporated body and trustees of a trust.


29/107

GENERAL CONSUMPTION TAX 27a) of any registered person if he is satisfied that theperson is no longer carrying on a taxable activity; or

( h ) of any registered taxpayer if he is satisfied that theregistered taxpayer no longer qualifies for registrationas such.(2) Before taking a decision under subsection (l), theCommissioner shall notify the person concerned in writhp ofhis intention to do so,stating the reasons therefor.(3) A n y person notified pursuant to subsection (2) may,in accordance with section 40 (l), object to the proposedcancellation.(4) If after considering any objections made undersubsection (3) the Commissioner decides to cancel registration

under this Act, he shall inform the registered person in writingof such decision and the right of appeal conferred by section 40,and where that person is a registered taxpayer he shall return thecertificate of registration to the Commissioner.32.-( 1) Every person who is registered under this Act shall Person1 e p t a e d

to nor l fy(a) the transfer o f ownership by him of his taxable changeofnotify the Commissioner in witing of- under Act

ss1uactivity or part thereof stating-(i) the date on which ownership or partthereof is transferred;(ii) the name of the new or part owner;(iii) the address of the new or part owner;

b) any change in the name, address, constitution ornature of any taxable activity carried on by him;(c) any change of address fiom which, or the name in

which any taxable activity is carried on by thatperson;2111991S 14.(4 he date of cessation ofhis taxable activity; and

, l l , C , I I C I " l l " , , , , , ' , l , , s p r i l r , ~ r , , t l , on~ c l i h~ .K 11?:20 1 I


30/107

GENERAL C O N S U M T I O N TAX(e) any change of persons who are partners in a

within twenty-one days of such transfer, change or cessation, asthecasemay be.(2) A person who acquires a taxable activity or partthereof kom a person registered under this Act shall so informthe Commissioner in writing within twenty-one days of the dateof acquisition.

PART VIIA D.&~~VISTRATIO,V FTAYRETURVS

partnership,

33,-(1) A registered taxpayer shall, Within such period asmay be prescribed, whether or not he makes a taxable supplyduring any taxable period-(a) fiunish to the Commissioner a return in a formprescribed or approved by the Commissionercontaining such particulars as may be prescribed; and(6) pay to the Commissioner the amount of tax if any,payable by that registered taxpayer in respect of thetaxable period to which the return relates.

(2) A registered taxpayer who ceases to be soregistered shall furnish to the Commissioner, not later than onemonth h m he date of so ceasing, a f m l return in respect of thelast taxable period during which he was so registered.(3) The Commissioner may require a registeredtaxpayer (whether in his own behalf or as agent or trustee) tofurnish the Commissioner with such other information relatingto the return as the Commissioner considers necessary.

(4) In this section and in sections 34, 35 and 37Commissionermeans he Commissioner of InIand Revenue.34.-(I) Where a taxable activity of a registered taxpayer iscarried out in more than one branch or division, that taxpayermay apply in writing to the Commissioner h r permission t o fileseparate returns in respect of each branch or division.

.N.165 1999Applica-tion forb m c h ordivisionto f i l eseperatereturns.


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GENERAL CONSUMPTION T Y 29(2) Where the Commissioner receives an applicationunder subsection (1) and is satisfied that each branch ordivision-(a) maintains an independent system of accounting; and

(b) can be separately identified by reference to the natureof activities carried on at the location of the branch ordivision,the Commissioner may in writing permit the registered taxpayerto file separate returns in relation to each such branch ordivision subject to such conditions as he may impose.(3) The Commissioner my in writing revoke any

(a) the registered taxpayer fails to comply with anyconditions thereof;(b) the Commissioner is satisfied that the requirementsofparagraphs (U) and (b) of that subsection are nolonger met; or

(c) the registered taxpayer, in writing, requests suchrevocation.

permission granted pursuant to subsection (2) where-

35. A registered taxpayer may, after making a return under commissection 33, request the Commissioner to amend that return and gZdma).the Commissioner shall do so upon being satisfied that the mum.return ought to be amended.Keeping of R e c o d

36. Every registered taxpayer shall- Rc@stcredt a X p Y WEDXds.(U ) keep such accounts, books and records as m y be mkecpprescribed;(b) if required by an authorized person, produce at suchtime and place as the authorized person may specify,any accounts, books, records or other documentsrelating to a taxable supply;

( c ) produce at such times as an authorized person mayspecify, such other information as the authorizedperson may require or asmay be prescribed.J l h c i a c l i i s i o x n l h > 5 p ; 1 pS ; i o l l l a i i d hr 1. N. I12;>003 I


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30 GENERAL CO.VSUWPTION TAXDemand Notice and Assessment

Commir-m a ke a s s e s -sioner maya1L N.16J11999

L Nlhi:l999

L.N.16Y1999

L.N.165 1999.

2 1 n z w 1s . 3.

37. Where a registered taxpayer fails to make payment onaccount of tax, the Commissioner shall issue a notice(hereinafter referred to as a "demand notice") to the registeredtaxpayer for payment of such tax.38.-( 1) Where a registered taxpayer-

a) fails to furnish a return as required by this Act;(6) furnishes a return which appears to the Commissionerof Inland Revenue to he incomplete or incorrect,that Commissioner shall refer the matter to the Commissioner ofTaxpayer Audit and Assessment who shall make an assessmentin writing of the tax payable by that registered taxpayer.

(2) Where the Commissioner of Inland Revenue is notsatisfied with the calculations on any return furnished by aregistered taxpayer or the basis on which the return is prepared,the Commissioner of Inland Revenue shall refer the matter tothe Commissioner of Taxpayer Audit and Assessment who-

( a ) may make an assessment of the amount that he thinksthe registered taxpayer ought to have stated on thereturn; and

(6) shall in any such assessment, state the general basison which it is made.(3) Where no payment of tax is made on the date onwhich tax is due and payable, the commissioner of Inland

Revenue may, if satisfied that the delay in payment is not due tothe wilful neglect or default of the taxpayer, specify a timewithin which the tax is to be paid.

(4)The Commissioner of Taxpayer Audit andAssessment may, to the best of his judgment, make assessmentof the tax chargeable on any goods which no longer form part ofthe taxable supply of a registered taxpayer and for which nosatisfactory account can be given by that taxpayer.

(4A) Where the Commissioner registers a person as aregistered taxpayer pursuant to section 28 (2), the Commissioner


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GENERAL CONSUMPTION TAX 31may make an assessment of the tax deemed by him to be dueand payable in respect of supplies deemed by theCommissioner to be taxable supplies, made by that personduring each taxable period beginning from the date referred toin section 28(3) (b)and beginning on the date on which he is soregistered.( 5 ) Where an amount which is payable by a registeredtaxpayer has been assessed and notified to that taxpayer, theamount shall, subject to section 40, be deemed to be the amountof tax due fiom that taxpayer and may be recovered accordingly,unless the assessment has been withdrawn or reduced.( 6 ) It shall not be lawful for the Commissioner of 16511999Taxpayer Audit and Assessment, after the expiration of sixyearskom the end of any taxable period, to make an assessment oralter an assessment so as to increase the amount payablethereunder.(7) Notwithstanding subsection (6 ) , where a registeredtaxpayer with intent to defraud fails to make full disclosure ofall the material facts necessary to determine the amount of taxpayable for any taxable period it shall be lawhl for theCommissioner of Taxpayer Audit and Assessment at any time to :J,,999make or alter an assessment.(8) Notice o f any assessment made or altered pursuantto this section shall be served on the taxpayer concerned.(9) An assessment shall, subject to any amendment onobjection or any determination on appeal be deemed to be validand binding notwithstanding any error, defect or omissiontherein or in any proceeding under this Part in relation thereto.under section40- mrrec1

L N

39. Except in proceedings on objection to an assessment $e x c c p m(U) no assessment made by the Commissioner of pmfced-

Taxpayer Audit and Assessment shall be disputed in :;Lyonany court on the ground that the person so assessed is I Nnot registered under this Act; and

(b) every assessment and all particulars thereof shall bedeemed to be correct and the liability of the personassessed shall be determined accordingly.

165 1999


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32 GENER4L CO N S U W T I O N TAX

L N16511999

L.N16511999L.N16511999

L.N.16511999.

L.N.16511999.

1L.N.16511999.

Objec ons40.- I) Subject to subsection (Z), ifany person disputes anassessment made upon him or any o t h a decision of theCommissioner of Taxpayer Audit and Assessment, he may,within thirty days of the date of service of the notice of theassessment or other decision, as the case may be, apply to theCommissioner of Taxpayer Audit Assessment by notice ofobjection in writing to review the assessment or other decision,as the case may be, stating precisely the grounds o f hisobjection.(2) The Commissioner of Taxpayer Audit andAssessment may, on receipt of a notice of objection undersubsection ( l ) , require the person giving such notice-(a) within such period (not being less than thirty days) asthat Commissioner may specify, to make any return

or furnish such particulars or produce such books ofaccount or documents relating to the taxable supplyas, in the opinion of that Commissioner, are affectedby the notice of objection; and(b) to appear before him to answer any lawful questionsrelevant to the matters under consideration.(3) Where a person fails to comply with anyrequirement under subsection (2), the notice of objection served

by that person shall cease to have effect and the assessment asmade shall be fml and conclusive.(4) Where a person has objected to an assessment madeupon him

(a) in the event of his agreeing with the CommissionerofTaxpayer Audit and Assessment as to the amount atwhich he is liable to be assessed, the assessment shallbe confirmed or amended accordingly; or

b) in any other event that Commissioner shall givenotice in writing to that person of his decision inrespect of the objection, sn, however, that where thatCommissioner fails to hand down his decisions withinsix months of the receipt by him of the objection andthe delay is not attributable to the


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GENERAL C O N S M T I O N TAX 33persons omission or default, the assessment shall benull and void.

(5) Where no valid objection or appeal has been lodgedwithin the time specified for such objection or appeal, or wherethe amount assessed has been agreed to under subsection (4) rhas been determined on appeal, the assessment as made, agreedto o r determ ined, as the ca se may be, shall be final andconclusive.(6) Where the Commissioner of Taxpayer Audit and L.N.165 1999Assessment is satisfied that owing to absence from the Island,sickness or other reasonable cause, a person w as unable to makeapplication under subsection (1) within the period specified foran objection to be made, he shall extend the period as may bereasonable in the circumstances.(7) Where any person is dissatisfied with a decision ofthe Commissioner (other than a decision relating to anassessmen t made on that person) that person may appeal t o theRevenue Court within thirty days of the receipt of the decisionand the Revenue Court may make such order as it thinks fit.

Appeals4 1 . 4 1 ) A person who is dissatisfied with a decision of the ~ppea l~ .Commissioner of Taxpaye r Audit and Assessment, relating t o an 8B/2002,

assessment made upon that person may appeal. t o theCommissioner of Taxpayer Appeals within thirty days of thedate of receiving the Commissioners decision:Provided that the Commissioner of Taxpayer Appeals uponbeing satisfied that ow ing to absence from the Island, sicknessor other reasonable cause, the person disputing the assessmentwas prevented from m aking the application within such period,shall extend the period as may be reasonable in thecircumstances.

L.N.

[The inclusion of th is page i s authonzed by L N 88L?003]


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4

L W8B/T002.

L.N.88/2002.

L.N.8Bf2002.

Deferment ofpayment oftax.LN.16511999.

GENERAL CONSUMPTION TAX(2) Upon an 'appeal under subsection 1 ) theCommissioner of Taxpayer Appeals may confirm, reduce theamount under o r vacate the decision complained of.(3) Subject to subsection (5) an appellant who is

dissatisfied with the decision of the Comm issioner of T axpayerAppeals may appeal to the Revenue Court within thirty day s ofthe date of receiving that decision or within such longer periodof time as may be permitted by o r pursuant to rules of court.(4) The onus of proving that the assessm ent complainedof is erroneous shall be on the ap pellant.(5) The Revenue Court may, on an application by theCommissioner of Taxpayer Audit and Assessment, order thatthe amount assessed or such portion thereof as the Court may

specify, be paid or security be given therefor in such form andamount as may be ap roved by the Commissioner or the Court,as a condition preced t to the hearing of an appeal under thissect on.(6) An appeal shall be limited to the grounds stated inthe notice of objection but the Revenue Court may, in itsdiscretion, permit the grounds of appeal to be am ended.(7) Tax shall be payable or refundable, as the case maybe, in accordance with a determination of the Revenue Courtunless, in the event of an appeal being made to the Court ofAppeal, the Court of Appeal otherwise orders.

Deferment and Refunds4 2 . 4 1 ) The Commissioner of Inland Revenue may deferpayment of tax where he is satisfied that the reg istered taxpayermaking application for deferment has made returns as requiredby this Act and has paid all tax under this Act (except the taxwhich is the subject of the application for deferment) which heis liable to pay.

[The inclusiono f this page is authorized by L.N. 88/2003]


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GENERAL CONSUMPTION TAX 35(2) Where a registered taxpayer whose taxable activityis manufacturing, imports a taxable supply to be used in thattaxable activity as raw materials, consumables, intermediategood s or spare parts, the Com missioner of Inland Revenue may, L.Kon application being made to him, defer payment of tax to the

time when the registered taxpayer is required to fbrnish a returnand make payment pursuant to this Act.165 1999.

(3) Where the Commissioner of Inland Revenue defers L.N.the payment of tax under subsection (1) or (2) he may require 16s11999.the registered taxpayer to deposit with him security in such formand amount and upon such terms as the Commissioner maydetermine.(4) In subsection (2)-

consumables means materials (excluding lubricating oilsor he1 for use in internal combustion engines) andarticles consumed or expended by manufacturers orproducers directly in the process of manufacture orproduction including the development of prctotypes;

intermediate goods means goods which have beentransformed from their natural state by being workedor processed but which have to undergo m h e rworking or be incorporated in an assembly process orcombined with some other goods or material tobecome finished products;raw materials means natural or primary goods which

have not been worked or processed but thepreservation o f which is ensured during transportationor storage so that the original characteristics areunaltered or remains substantially unaltered.4 3 . 4 1 ) Where an approved organization- R e h d tocertain

organiza-(a) has acquired a taxable supply for use in connection tions.with the work of the organization;(b) has paid tax in respect of the supply; and

[The inclusion of this page IS authorized by L.N SSn003l


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36 GENERAL CONSUMPTION TAX(c) is not entitled to claim a credit of input tax in respect ofthat supply,

that organization m ay within two years o f the da te on which thetax was paid, apply to the Com missioner of Inland Revenue fora refind of the tax and such application shall be in the formprescribed or approved by the Com missioner.I ..N165,I999

(2) In subsection (l), "approved organization" means anorganization concerned w ith the welfare of children, the aged o rthe disabled and charitable organizations, approved by theMinister for the purpo ses of this section.Kefundol'tax

inspwial

Schcdulr. purchase.

44. Any person to whom Item 2 of Group 4 of Part I1 of theFirst Schedule applies may, on the purchase by him of motorspirit or diesel oil, make application to the Commissioner ofInland Revenue in writing for a refbnd of tax paid on suchon niotor spiritand diesel oilcircumstances.FirstI..NIhS/I 999K e h n d o f t a i 45. Where a person who is not a registered taxpayermta uh l e purchases a taxable supply from a registered taxpayer for thesupplyeipo~edetr:purpose of exporting such supply or shipping the supply asstores that person may, on the exportation or shipment thereof,make application in the prescribed form t o the Comm issioner ofTaxpayer Audit and Assessment for a refund of the tax paid o nthat supply and the Comm issioner may, on being satisfied thatthe supply was so purchased and exported or shipped as stores,as the case may be, refbnd the tax.

I , N16511999

Kc.filndol'lnx

165/19)9.

4 6 . 4 1 ) Subject to subsections (2), (3) and (4), where aregistered taxpayer proves to the satisfaction of theCommissioner of Taxpayer Audit and Assessment that he has, inany taxable period, paid tax in excess of the amou nt with whichhe is properly chargeable that person shall be entitled to a re h n dof the amo unt paid in excess.

paid in excess...N.

(2) Where a registered taxpayer has in respect of ataxable period, failed to pay to the Commissioner of InlanilRevenue, in whole or in part, any amount of tax payable by theI..N.16511 YN.


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GENER L CONSUMPTION T X

date due for payment of such tax, the Commissioner may set offagainst the unpaid tax any amount or part thereof refundable tothat registered taxpayer and shall treat any amount so set off as apayment received from that registered taxpayer who shall beinformed accordingly.

3) Where a registered taxpayer has not furnished theCommissioner of Inland Revenue with any return in respect of LNany taxable period, the Commissioner may withhold any refund 16511999of tax paid in excess until receipt of the return.

4) The Commissioner of Inland Revenue shall, before I N.16511999taking action under subsection 3), give notice thereof in writingto the registered taxpayer.

5) No rehnd of tax paid in excess shall be made ifapplication for such refund is made after the expiry of six yearsfrom the last day of the taxable period in which the excess taxwas paid.

6) Subject to the provisions of this section, where anyrehnd is not made within three months after the date on whichthe claim for such rehnd is received by the Commissioner ofInland Revenue, interest at a rate of two and one-half per cent L.Nper month or part thereof shall be payable to the taxpayer as 16511999respects the period beginning immediately after the end of threemonths aforesaid and ending on the date on which the rehnd is


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38 GENER L C O N S W T I O N T X

M i m d a m a y 47. The Minister may, upon application in writing made toremit tax him by a person liable to pay tax under this Act, waive, remit orrehnd in whole or in part, any tax payable under this Act if inthe circumstances o f the case he considers it just so to do; andsuch waiver, remission or rehnd may be subject to such termsand conditions a s the Minister thinks fit.

ecovery o TmApplic~tion f 48. - 1) The provisions of the Tax Collection Act concerningTax Collection~ c t . payment, collection and recovery of tax and the enforcement ofpayment thereof shall apply to tax imposed under this Act.

2) In addition to any other remedy provided under thisAct, tax and any penalty, surcharge or interest payable thereonmay be sued for and recovered in the Revenue Court or in aResident Magistrate s Court by a Collector o f Taxes a s a debtdue to the Government.

ROCOV o f 4 9 4 Where-tax h w n ontax invoicect a) a tax invoice or other document states that a taxable

supply has been made and tax has been paid thereon;and(b) the amount of tax shown thereon is in excess of thetax payable on that supply,

there shall be recoverable fiom the person who issues suchinvoice or other document, an amount equal to the amountshown thereon as tax o r if the tax is not itemized separately, so


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GENER L CONSUMPTION T X 3

(2) Subsection 1) applies whether or not-a) he person issuing the tax invoice or other documentis a registered taxpayer;

(b) the tax invoice is issued pursuant to section 22;c) the taxable supply, as shown on the tax invoice or m 9 9 1other document, is supplied; or S 154 the amount of tax shown on the tax invoice or otherdocument is chargeable.

50.-41 Where a registered taxpayer is in default o f payment Recovw ofof tax, in whole or in part, the Commissioner of Inland Revenue zrfzmay, at any time by notice in writing to a person (hereafter in L.N.this section referred to as the debtor ) who, in connection with 165/1999any business owned or operated by the registered taxpayer isrequired to make a payment in money to, or who keeps orretains money on behalf of, the registered taxpayer, require thedebtor to pay over to the Commissioner for the account of theregistered taxpayer within the time specified in the notice theamount stated therein.

(2) The Commissioner of Inland Revenue shall send Zilmforthwith a copy of the notice referred t o in subsection (1) t o theregistered taxpayer.3) Where any amount is to be paid over to the


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GENERAL CONSUMPTION TAX

4) A debtor shall, for the purposes of this section, bedeemed to be acting on the authority of the registered taxpayerand shall, in respect of any payment made, be indemnified tothe extent of the payment made.2612003 4A) Where a debtor fails to pay any amount stated inS 5. the notice referred to in subsection I), the amount unpaid shallbe deemed to be tax and the provisions of section 48 shall applyin respect of the recovery of that amount

5) A notice under subsection 1) may at any time beL N revoked by the Commissioner of Inland Revenue if he is165 1999 satisfied that any amount of tax owed by the registered taxpayerhas been paid.

Powers of Authorized Person51 [Repealedby Act 20 of 1999 S 3.15 2 [Repealed by Act 20 of 1999 S 3 1

Authotized 53 Where an authorized person considers it expedient for theprotection of the revenue, he may enter during ofice hours thebusiness premises of a registered taxpayer in order to take suchsamples of any taxable supply found thereon as may benecessary for determining the tax applicable to that supply.

PART VIIIOflences and Penalties


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GENER L CONSUM PTION T X 40 01

a) in the case of a person liable to be registered as aregistered person, to a penalty of two hundred dollarsfor each complete month of the period during whichhe is not registered; or

b) in the case of a person liable to be registered as a 21ltoo1registered taxpayer, where that person i s - s 4

i) an individual, to a penalty of five thousanddollars; or

ii) a body corporate, to a penalty of tenthousand dollars,

and interest at the rate of two and one-half per centper month or part thereof, of the tax assessed inrespect of the period aforesaid.

2) Every person who fails to make a return under 10~1995section 33 shall be liable-- s 8).

a) in the case of-i) an individual, to a penalty of one thousanddollars; orii) a body corporate, to a penalty of twothousand dollars; or

b) to a penalty of an amount equal to fifteen per cent of


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40 02 GENERAL C INSUMPT10N TAX

2A) Every person who fails to pay the fill amount of1011995 tax due and payable under section 33 in respect of a taxables.9 a) period shall be liable to a penalty of fifteen per cent of theamount unpaid

1011995S. 9 (b). 3) Where a registered taxpayer does not, on theprescribed date, make a return or pay tax for two or more

taxable periods within a twelve month period that person shall,in addition t o a penalty under subsections 2) and ZA), be liableto a surcharge, in respect of the third and each subsequenttaxable period for which the return is not made o r tax is not paid,of ten per cent of the amount of tax due and payable.

4) Interest shall be chargeable at the rate of two andone-half per cent per month o r part thereof on the am ount of anytax, penalty or surcharge payable under this Act from the date onwhich such tax, penalty o r surcharge becomes due until the dateof payment thereof.

411997Sch. 5) Where the total amount under subsection 4) remainsw.e unpaid for one month or part thereof after it is due and payable7 3 97 interest shall be chargeable on that amount at the rate specifiedin that subsection until the da te of payment thereof.

PenaltK etc. 55 Any penalty, surcharge o r interest payable under this Act


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GE NE RA L C0,VSUMPTION T A X 415 6 . 4 1 ) A registered taxpayer w h o - mcaocs.

@) uses for himself any taxable supply without pay-ing tax thereon; or( b ) fails to issue a tax invoice under section 22;or(c) fails t o return to the Commissioner of Tax Admin- LN.

istration Services a certificate. of registration uponcancellation of his registration under section 31,16511999.

commits an offence unde r this Act.(2) A registered taxpayer who fails-

a) to keep proper books of account, records or otherdocuments relating to any taxable supply; orb) to produce such books of account, records or otherdocuments to an authorized person,

commits an offence unde r this Act.(3)Any person who-

(a) knowingly gives to an authorized person any falseinformation relating to the carrying on of ebusiness of a registered person registered under thisAct;( b ) falsifies any accounts relating to such business;(c) hinders any authorized person in the exercise ofthat authorized persons duty under section 51; or(d) aids and abets or conspires with any person in thecommission of an offence under paragraph (a), ( b )

or (CAcommits an offence and is liable on summary conviction ina Resident Magistrates Court to a fine not exceeding tenthousand dollars or to imprisonment for a term not exceed-ing twelve months or to both such fine and imprisonment.

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42 GENERAL CONSUMFTlON T A X(4) Any-

(a) person who with intent to defraud the revenue,enters into any arrangement or agreement for thepurpose of evading tax under this Act; or(6) registered taxpayer who with intent to defraud therevenue delivers from a factory or warehouse any

prescribed goods without paying special consump-tion tax,commits an offence and is liable on summary conviction in aResident Magistrates Court to a fine not exceeding tenthousand dollars or to imprisonment for a term not exceed-ing twelve months o r to both such fine and imprisonment.(5) A person who knowingly-

(a\ issues a tax invoice or represents to another personthat tax is chargeab le where-(i) no tax is chargeable in respect of any supplyto which such invoice or representationrelateq orii) the amount of tax shown or represented asbeing charged is in excess of the amountproperly chargeable; or

(iii) there is no intention to make a taxable(b ) iswes a tax invoice which is incorrect in any

material particular; or(c ) makes any statement or declaration relating to anymatter under this Act which is incorrect in anymateriaI particular,commits an offence and is liable on summary conviction ina Resident Magistrates Court to a fine not exceeding tenthousand dollars or to imprisonment for a term not exceed-ing twelve months or to both such fine and imprisonment.

(6 ) Any person who commits an offence for whicbno penalty is provided is liable on summary conviction in a

supply;

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GENERAL CONSUMPTION TAXResident Magistrates Court to a fine not exceeding fivethousand dollars or to hnprkonment for a term not exceed-ing six months or to both such h e nd mprisonment.

(7)Wherean offence against t h i s Act iscommittedbya body corporate, the managing director, manager or otherofficerconcerned in the managementof that body corporateshall, without prejudice to the liability of the body cor-porate, be deemed to have committed the offence unless atthe trial he proves that the offence was committed withouthis knowledge, consent or connivance or that he exercisedall due diligence to prevent the commission thereof as heought to have exercised having regard to the nature of hisfunctions in the body corporate and the circumstances ofthe case.

PARTGeneral

43

57. In any c m r t proceedings the court m a y atxept aa DO.CQ-evidence a copy or extract from any document or record, asthe case may be, purporting to be signed by the Commis-sioner of Taxpayer Audit and Assessment, the Commis- %;,*.sioner of Tax Administration Services or the Commissionerof Inland Revenue, as the case m y be, as pr ima j a c kevidene of matters contained therein.58.-(1) Where a registered taxpayer is not midcut in &%-Jamaica, any person resident in Jamaica and who is the asca(mdcragent of or person in charge of the taxable activity of that Arcnon-resident taxpayer shall-

(a) perform any obligation or discharge any liabilityincurred by the non-resident taxpayer; and( b ) keep in a separate account any tax payable by thattaxpayer and pay such tax to the Commissionerof Inland Revenue in accordance with the pro- U.visions of this Act. 165/1999.

me inclusion of this page IS authorized by LN. /wOl ]


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44 G EN ERAL CONSUMPTION TAX(2) A n y person being a n agent as referred to in sub-section (1) wh o contrav enes he provisions of that subsec-tion com mits a n offence.

59. Any obligations or liabilities incurred by a registeredtaxpayer under this Act in respect of anything done oromitted to be done by him while he was registered underthis Act shall not be affected by his ceasing to be so regis-tered.

Ljabilitiesandobliga-tions notaffected bycessationof registra-tion.

Agreementto defeatinawlionand appli-Lalian ofAct void.L.N.16511999.

6 0 . 4 1 1 The Minister may by order published in the(2)An order under subsection ( 1 ) shall be subject to

Gazette amend the Schedules.affirmative resolution of the House of Representatives.

61 .41) Where the Commissioner of Taxpayer Auditand Assessment decides that an arrangement has beenentered into between persons to evade the payment of taxdue unde r this Act, the Comm issioner shall treat the arrange-ment as void for the purposes of this Act and shall adjustthe am ount of tax pavable by or. a s the case may be, refund-able to, any registered taxpayer who is affected by thearrangement, in such manner as the Commissioner maydecide so as to counteract any tax advantage obtained bythat registered taxpayer from or under that arrangement.(2) In this section arrangement means any agree-ment. contract, plan or undetstandins (whether enforceableor not) and includes all steps and transactions preparatoryto carrying it in to effect.

6 2 4 1 ) Every person having an official duty or beingemployed in the administration of this Act shall regardand deal with as secret and confidential all documents,information and records obtained from a Tax Cornmissioneror any officer of a revenue department a n d relating to the

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GENERAL CONSUMPTION TAXincome or items of income of any person and shall makeand subscribe a declaration to tha t effect before a Justice ofthe Peace.

(2) Every person as is referred to in subsection 1 )having possession of or control over any documents, in-formation or records, who a t any time communicates orattempts to comm unicate such information or anything co n-tained in such documents to any person-

(a) other than a Tax Commissioner or an officer of arevenue departm ent or any other person to w homhe i s authorized by the Minister to communicateit; or(6) otherwise than for the purpose of this A ct,

commits an offence unde r this Act.(3) Any person to whom information is communi-cated pursuant to an authority of the Minister in thatbehalf shall regard and deal with such information as secretand confidential and shall mak e and subscribe a declarationto th at effect before a Justice of the Peace.14) Any person as is referred to in subsection (3)who a t any time comm unicates or attempts to communicateany information referred to in that subsection to any per-son otherwise than for the purposes of this Act, commits anoffence against this Act.

63.41) he M inister m ay m ake regulations generally for R ~ ~ .giving effect to the provisions of this Act and, without pre-judice to the generality of the foregoing, may mak e regula-tions-(a) in respect of the time at which a taxable supplyis made;(6) or the remittance of the whole or part of the taxchargeable on the importation of any taxab le

supply which is to be re-exported;[Themclu'ion of ?his p s e iq authorize3 by LN. 3120011


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46 GENERAL CONSUMPTION TAX(E) prescribing the method of ascertaining the cost oferection or installationof any taxabIe supply wheresuch cost is included in the price of such supply;(d) prescribing the method of collection and remittanceof tax and any condition affecting such collectionor remittance;(e) prescribing the circumstances in which refund oftax may be given and the terms and conditionsattached thereto;(fl prescribing the manner of the keeping of accounts,books, documents and records;{g) prescribing the treatment of a taxable supply wherethere is a change in the rate of tax;( h ) for the prevention of fraud on he revenue;(i) in respect of the circumstances in which the pay-ment of tax may be deferred,(j) in respect of the computation of input tax creditin relation to prescribed goods and goods specifiedin Part I of the First Schedule;(k) prescribing the circumstances in which a registeredtaxpayer may be given credit against output tax;Cn prescribing any other matter required by this Actto be prescribed.

(2) Notwithstanding the provisions of section 29 ofthe Interpretation Act, regulations made under subsection(1) may provide for the imposition of penalties on summaryconviction m a Resident Magistrates Court not exceedinga fine of five thousand doflars or imprisonment for a termnot exceeding six months or both such fine and imprison-ment.

or

(3) Any regulations made under-(a) paragraphs (b) , (eh 13 and (k) hall be subject to(& paragraphs (a), (c), 6),f l . (g ) , (h) , I ) ,and (0 hallbeaffirmative resolution;subject to negative resolution.

IThe inclusion of his page is a u h r i z e d by L.N. 3/2001]

Pirotschedula


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GENERAL CONSUMPTION T AX 41FIRST %LEDULB ( W O N 4 . 2 0 , % 4 8 d 63) LN.PART-Motor Vehicles 136Cr/1993.GROUP --lmporred by DeokrsRa t e ofTaxpayable bydealer at Rate of Tax

Point first saleCustoms Entry payable onategory1. Motor cars as defined insection 11 of t he RoadT r d c Act, including sta-tion waggons and estatecars and buses whlch haveless than ten seats includ-ing the driver's seat (butexcluding motor vehiclesof the type sold under thebrand name or descriptionof Range Rover, Jeep.Pathfinder or Trooper, orany other motor vehiclewhich, in the opinion ofthe Commissioner of In-land Revenue is of aconstruction similar tosuch type&-

L.N

The General Consumption Tax Act

Documents

Transcript of The General Consumption Tax Act