the finance act, 2014

BILLAN ACT to provide for the variation of certain duties and

taxes and to introduce provisions of a fiscal natureand for related matters

[Assented to 3rd June, 2014]

ENACTED by the Parliament of Trinidad and Tobago asfollows:

1. This Act may be cited as the Finance Act, 2014.

Enactment

Short title

Fourth Session Tenth Parliament Republic of Trinidad and Tobago

REPUBLIC OF TRINIDAD AND TOBAGO

Act No. 4 of 2014

[L.S.]

2. The Gambling and Betting Act is amended—(a) in section 10—

(i) by renumbering section 10 assection 10(1);

(ii) in section 10(1) as renumbered—(A) in paragraph (b), by

deleting the word “.” andsubstituting the words “;or”; and

(B) by inserting afterparagraph (b), thefollowing paragraph:

“(c) premises specified ina licence referred toin section 35(3) or (4)of the LiquorLicences Act, whichare permitted to hostamusement gamesunder that Act;”;

(iii) by inserting after subsection (1),the following subsection:

“ (2) For the purposes ofthis section, “amusementgame” means anelectro-mechanical game ordevice set in operation whollyor partly by the insertion ofmoney or moneys’ worth andso constructed as to return tothe person inserting themoney or moneys’ worth, incertain circumstances, moneyor moneys’ worth to themaximum pay out per gameof five thousand dollars pergame.”;

Chap. 84:10

Chap. 11:19amended

2 No. 4 Finance 2014

(b) by repealing section 13; (c) in item 17(2)(a) of the First Schedule, by

deleting the words “$100,000” andsubstituting the words “$200,000”; and

(d) in section 33—(i) in subsection (3), by deleting the

word “Board” wherever it occursand substituting the word“Comptroller”;

(ii) by repealing subsection (5) andsubstituting the following newsubsection:

“ (5) Where the deposit or apart thereof is to be applied tomeet the amount of any claimis held to be valid by theComptroller or by a Court, theamount shall be paid out ofthe deposit.”; and

(iii) in subsections (6) and (7), bydeleting the word “Board” whereverit occurs and substituting the word“Comptroller”.

3. (1) The Registration of Clubs Act is amended—(a) in the definition of “Secretary” by deleting

the words “includes any officer of a club orother person” and substituting the words“means a person under section 2A”;

(b) by inserting after section 2 the followingnew section:

2A. A members’ club shall havea Secretary who shall be amember or ex officio member ofthe members’ club.”;

(c) in section 5(5)—(i) in paragraph (a), by inserting after

the word “;” the word “and”; (ii) by deleting paragraph (b); and

(iii) in paragraph (c), by deleting the

Chap. 21:01amended

“Secretary

No. 4 Finance 2014 3

words “1997” and substituting thewords “2014”;

(d) by inserting after section 9 the followingnew section:

9A. Every members’ clubseeking the renewal of acertificate in a year subsequent tothe year 2014 shall, before thecertificate is issued, satisfy theLicensing Committee that thereare no outstanding gaming taxes,interest or penalty payable to theBoard of Inland Revenue inrespect of the last six years priorto the year in which theapplication for renewal is made.”;

(e) in section 23, by repealing subsections (2),(3), (4), (5), (6) and (7) and substituting thefollowing new subsections:

“ (2) The Secretary of a members’club shall, within fifteen days of thegrant of a certificate by the LicensingCommittee, in respect of every yearcommencing from the year 2015—

(a) submit to the Board ofInland Revenue, a returnas to the number oftables and devices usedor to be used on thepremises of the club insuch form as may beapproved by the Board;and

(b) pay the taxes in respectof the tables and devicescontained in the returnon behalf of the club, atthe rates specified in theSchedule.

“Taxqualificationfor issue ofcertificate


(3) The return undersubsection (2) shall be signed by theSecretary and shall contain—

(a) the full name andaddress of the Secretaryof the members’ club;

(b) the name and registeredplace of business of themembers’ club;

(c) a full description of everytable or device used or tobe used on the premisesof the members’ club;

(d) the number of tables ordevices used or to be usedon the premises of themembers’ club;

(e) a calculation of thegaming tax payable inrespect of every table ordevice used or to be usedon the premises of themembers’ club; and

(f) an address for service ofnotices for the members’club.

(4) Where the Secretary of amembers’ club fails, neglects orrefuses to submit a return for a yearcommencing from 2015, after sixmonths from the time required to filethe return, the Secretary shall, unlessthe Board of Inland Revenueotherwise directs, pay the Board ofInland Revenue the sum of onehundred dollars for every six monthsor part thereof during which suchfailure, neglect or refusal continues.


(5) The Board of InlandRevenue, in respect of the collectionand recovery of the gaming tax, has allthe powers as it has in relation toincome tax under the Income Tax Act.

(6) Where it is proved to thesatisfaction of the Board of InlandRevenue that the Secretary has paidon behalf of the members’ club gamingtaxes in excess of the amount inrespect of which the club is properlychargeable, the club shall be entitledto have the tax so paid in excess,refunded to it.

(7) Every claim for a refundunder subsection (6) shall be madewithin one year from the end of theyear to which the claim relates.

(8) Where a members’ clubfails to remit the gaming tax to theBoard of Inland Revenue within thetimes specified in subsection (2), theSecretary of the members’ clubcommits an offence and—

(a) the certificate of the clubshall be liable tocancellation by theLicensing Committee;and

(b) the Secretary shall beliable to pay togetherwith the tax payable,interest at the rate offifteen per cent perannum on the tax.

(9) The gaming tax payable fora new members’ club which applies fora certificate shall be calculated on a

Chap. 75:01


prorated basis for the unexpiredportion of the year from the date uponwhich the new club applies for thecertificate.”;

(f) by inserting after section 23 the followingnew sections:

23A. (1) With effect fromJanuary 1, 2015, the Board ofInland Revenue shall cause to beissued in respect of each table ordevice, a tag for which gaming taxis paid.

(2) Every tag issuedunder this section shall be in aform approved by the Board ofInland Revenue and shall be validfrom the day on which it is issueduntil the time in the ensuing yearwhen the gaming tax becomespayable.

(3) The Secretary of amembers’ club shall cause to bedisplayed on each table or device,the relevant tag for which the taxwas paid, failing which thecertificate of the members’ clubshall be liable to cancellation bythe Licensing Committee and theSecretary commits an offence.

(4) Where an offence iscommitted under subsection (3),the Secretary is liable onsummary conviction to a fine offifteen hundred dollars and in thecase of a continuing offence, afurther eight hundred dollars forevery day during which theoffence continues.

23B. (1) The Secretary of amembers’ club in which gamblingis carried on, shall deposit with

“BIR Tags

Deposit madeby members’club


the Comptroller of Accounts thesum of five hundred thousanddollars on behalf of the members’club and the deposit shall beinvested in the discretion of theMinister and the interest thereon,if any, paid to the members’ clubthereof at yearly intervals.

(2) In the event of amembers’ club failing to pay anyclaim validly made on it in respectof a betting transaction where themember’s club was involved in thegambling transaction, so much ofthe deposit referred to insubsection (1) as is necessary tomeet the amount of such claimshall be applied for that purpose.

(3) Where the deposit isinsufficient for the purpose ofmeeting the balance of the claimthe amount may, notwithstandingany rule of law to the contrary, berecovered by action as a civil debt.

(4) For the purposes ofsubsection (2), the validity of anyclaim in respect of a gamblingtransaction—

(a) shall be determined bythe Comptroller ofAccounts where theamount of such claimdoes not exceed fivehundred dollars; or

(b) may be determined bythe Comptroller ofAccounts with theconsent of the partiesthereto where the claimexceeds five hundreddollars.

(5) Notwithstanding anyrule of law to the contrary, but


subject to subsection (3), an actionshall lie for recovery of anyamount claimed in respect ofany gambling transactionconducted by a members’ club.

(6) Where the deposit orpart thereof is to be applied tomeet the amount of any claim heldto be valid by the Comptroller ofAccounts or by a Court, theamount payable shall be paid outof the deposit.

(7) Where the amount ofany claim is held to be valid by aCourt, the Clerk of the Court orthe Registrar thereof shall send acertified copy of the order orjudgment to the Comptroller ofAccounts within twenty-one daysof the making of such order orjudgment.

(8) Where a payment ismade out of a deposit insatisfaction of any claim in respectof a gambling transaction, theamount by which the depositrequired by subsection (1) to bedeposited with the Comptroller ofAccounts has been reduced, shallbe deposited with the Comptrollerof Accounts before a members’club undertakes any furthergambling transactions.

(9) The Secretary of amembers’ club in which agambling transaction is effected,who—

(a) without making adeposit required bysubsection (1); or

(b) without depositing theamount required to be


deposited in thecircumstances set out insubsection (8),

commits an offence and is liableon summary conviction to a fine ofone thousand, five hundreddollars and the certificate issuedunder section 5(4) shall berevoked by the LicensingCommittee.

(10) For the purpose ofthis section, “a gamblingtransaction” means a transactionwhere a payment is made inmoney or moneys’ worth to, or bya members’ club, whether or notthe purpose of the transactionis for payment, issue orredemption of moneys’ worth orfor gambling.

23C. (1) Except in respect ofan action by, or on behalf of, amembers’ club to obtain judgmentin its favour, a members’ clubshall indemnify the Secretary orhis personal representativeagainst all costs, charges andexpenses including an amountpaid to settle an action or satisfy ajudgment reasonably incurred byhim in respect of any civil,criminal or administrative actionor proceeding to which he is madea party by reason of being, orhaving been, the Secretary of thatclub. Failing which, each andevery member of the Club shall beliable for the said debt of theSecretary.

(2) Subsection (1) doesnot apply unless the Secretary tobe so indemnified—

(a) acted honestly and ingood faith with a view to

Indemnifyingthe Secretary


the best interests of themembers’ club; and

(b) in the case of a criminalor administrative actionor proceeding that isenforced by a monetarypenalty, has reasonablegrounds for believingthat his conduct waslawful.”; and

(g) the Schedule is amended by deletingitem 6.

(2) Subsections (1)(c)(iii), (d) and (e), except inrelation to section 23(5), shall come into effect onJanuary 1, 2015.

4. The Municipal Corporations Act is amended byinserting after section 60, the following new section:

60A. (1) Notwithstanding section 60and any other written law, the Presidentmay, by Order grant a duty allowance toMunicipal Police Officers.”.

(2) Subsection (1) is deemedto have come into effect on 1st October,2010.”.

5. The Litter Act is amended—(a) in section 3(6), by deleting the word—

(i) “two” and substituting the word“four”; and

(ii) “four” and substituting the word“eight”;

(b) in section 3A(2), by deleting the word—(i) “two” and substituting the word

“four”; and(ii) “four” and substituting the word

“eight”;(c) in section 4, by deleting the word “two” and

substituting the word “four”;

Chap. 25:04amended

Chap. 30:52amended

“Dutyallowance


(d) in section 6(4), by deleting the words “twothousand dollars and to a further fine offour hundred dollars” and substituting thewords “four thousand dollars and to afurther fine of eight hundred dollars”; and

(e) in section 9(2), by deleting the words “twothousand dollars and to a further fine offour hundred dollars” and substituting thewords “four thousand dollars and to afurther fine of eight hundred dollars”.

6. The State Lands Act is amended in section 25—(a) in paragraph (a), by deleting the words—

(i) “one hundred and twenty thousanddollars and imprisonment for a termof one year” and substituting thewords “three hundred thousanddollars and imprisonment for a termof three years”; and

(ii) “two hundred and fifty thousanddollars and imprisonment for a termof two years” and substituting thewords “five hundred thousanddollars and imprisonment for a termof five years”; and

(b) in paragraph (b), by deleting the words—(i) “sixty thousand dollars and

imprisonment for a term of sixmonths” and substituting the words“one hundred and twenty thousanddollars and imprisonment for a termof one year”; and

(ii) “one hundred and twenty thousanddollars and imprisonment for oneyear” and substituting the words“three hundred thousand dollars andimprisonment for a term of threeyears”.

Chap. 57:01amended


7. The Minerals Act is amended in section 45—(a) in subsection (1), by deleting the words—

(i) “two hundred thousand dollars andimprisonment for a term of twoyears” and substituting the words“five hundred thousand dollars andimprisonment for a term of fiveyears”; and

(ii) “three hundred thousand dollars andimprisonment for a term of threeyears” and substituting the words“seven hundred thousand dollars andimprisonment for a term of sevenyears”;

(b) in subsection (3), by deleting the words “onehundred thousand dollars andimprisonment for a term of one year” andsubstituting the words “five hundredthousand dollars and imprisonment for aterm of five years”;

(c) in subsection (4), by deleting the words “onehundred thousand dollars andimprisonment for a term of one year” andsubstituting the words “five hundredthousand dollars and imprisonment for aterm of five years”; and

(d) in subsection (5), by deleting the words“fifty thousand dollars and imprisonmentfor a term of six months” and substitutingthe words “two hundred thousand dollarsand imprisonment for a term of two years”.

8. The Petroleum Act is amended in section 6(2), bydeleting the words “thirty thousand dollars” and “onethousand five hundred dollars” and substituting thewords “five hundred thousand dollars” and “fiftythousand dollars” respectively.

Chap. 61:03amended

Chap. 62:01amended


9. The Cocoa and Coffee Industry Act is repealed.

10. (1) The Exchequer and Audit Act is amended byinserting after section 23, the following Part:

“PART IVA

ELECTRONIC FUNDS TRANSFER

23A.(1) Notwithstanding any otherwritten law, a payment into or issue outof—

(a) the Exchequer Account; or(b) other public moneys, howsoever

held,may be made by means of electronic fundstransfer in accordance with general orspecific directions issued by the Treasury.

(2) Nothing in subsection (1), shallaffect the validity of making payments orissues referred to in that subsection by anymeans that were lawful before the cominginto force of this Part.

23B.(1) The Minister may makeRegulations to give effect to the provisionsof this Part including—

(a) the conditions relating toelectronic funds transfers,including the use of bank cards,credit cards, electronic money orany other method of transferringfunds electronically approved bythe treasury;

(b) processes and controls for ensuringvalid and reliable authenticationand access to information;

(c) environmental and applicationcontrols to support the use ofelectronic signatures;

Chap. 64:20amended

Chap 69:01amended

Electronicfundstransfer

Regulationsfor this Part


(d) guidelines and controls to ensureprotection for clients andDepartments, the content andtiming of disclosures and theidentification of documentationwith respect to electronic fundstransfers;

(e) the liabilities of the State withrespect to—

(i) unauthorized electronicfunds transfers by aDepartment or publicofficial;

(ii) fraudulent or negligentconduct of a Departmentor public official and thetreatment of lossesoccurring as a result ofsuch conduct;

(iii) notification of loss, theftor unauthorised use ofbank cards, credit cardsor other devices; or

(iv) system malfunction orfailure; or

(f) dispute resolution.(2) Regulations made under this

section shall be subject to negativeresolution of Parliament.

(3) Notwithstanding any otherwritten law to the contrary, Regulationsmade under this section may providein respect of any contravention ofa regulation a penalty on summaryconviction of a fine up to a maximum of onehundred and fifty thousand dollars andimprisonment for one year.


(4) In this section—“bank card” has the meaning assigned

by section 2 of the ElectronicTransfer of Funds Crime Act;

“client” means a person who conductsbusiness with a Department orany other person who is entitled toreceive or required to makepayments to such a Department;

“credit card” has the meaning assignedto it by section 2 of the ElectronicTransfer of Funds Crime Act;

“Department” includes—(a) a Ministry;(b) Parliament, a Joint Select

Committee of Parliamentor a committee of eitherHouse of Parliament;

(c) the Court of Appeal, theHigh Court, theIndustrial Court, the TaxAppeal Board or any courtof summary jurisdiction;and

(d) a department ofGovernment not underministerial control;

“electronic funds transfer” means anytransfer of funds throughelectronic means that is initiatedby a Department or a client, so asto instruct or authorize a CentralBank in the case of a Department,or a financial intermediary in thecase of a client, to debit or creditan account held with the CentralBank or financial intermediary, asthe case may be;


“electronic money” has the meaningassigned to it by section 2 of theFinancial Institutions Act;

“electronic signature” has the meaningassigned to it in section 2 of theElectronic Transactions Act, 2011;

“information” has the meaningassigned to it by section 2 of theElectronic Transactions Act, 2011;

“Minister” means the Minster withresponsibility for finance;

“public official” means an individualexercising a public function in anofficial capacity and includes thefollowing:

(a) the President;(b) a Minister of

Government;(c) a Parliamentary Secretary;(d) a member of Parliament;(e) a Judge, Magistrate or

the holder of any otherjudicial or quasi-judicialoffice;

(f) a member of the PublicService, Judicial andLegal Service, TeachingService and Police ServiceCommissions;

(g) an accounting officer;(h) a receiver of revenue;(i) an administering officer

appointed by the Ministerto administer a specialfund;

(j) an officer authorised bythe State to attend

Chap. 79:09

Act No. 6 of 2011


meetings abroad; and(k) such other individuals as

are approved by theTreasury in writing.

11. The Income Tax Act is amended in—(a) section 8(1)—

(i) in paragraph (aa), by deleting thefull stop and substituting asemi-colon; and

(ii) by inserting after paragraph (aa),the following new paragraph:

“(ab) with effect from1st October, 2010, theduty allowance paid toa member of aMunicipal PoliceService.”;

(b) section 45A, by deleting the words “, afterconsultation with the IndustrialDevelopment Corporation”;

(c) section 45C—(i) in subsection (1), by deleting the

words “2015” and substituting thewords “2018”; and

(ii) in subsection (2)(b), by deletingthe words “2015” and substitutingthe words “2018”;

(d) section 45D(1), by deleting the words“Minister with responsibility for housing”and substituting the words “Minister withresponsibility for industry”; and

(e) Class C of the Seventh Schedule byinserting after “Roadmaking Plant – Jitney”the following item:

“Natural Gas Compressors(Transmissions)… 33.3%”.

Chap. 75:01amended


12. The Corporation Tax Act is amended—(a) in section 3—

(i) in subsection (2)(a), by—(A) inserting the word

“unconnected”, before theword “shareholders”; and

(B) inserting the word “new”,before the words “issuedshare capital of the company”;and

(ii) in subsection (2)(b), by—(A) inserting the word

“unconnected”, before theword “shareholders”; and

(B) inserting the word “new”,before the words “issuedshare capital of thecompany”;

(iii) in subsection (3), by deletingparagraphs (a), (b) and (c) andsubstituting the followingparagraphs:

“(a) minimum issued sharecapital is five milliondollars and maximumissued share capitaldoes not exceed fiftymillion dollars followingthe initial publicoffering;

(b) minimum andmaximum capital basecomprises of issuedshare capital only anddoes not includeretained earnings and

Chap. 75:02amended


accounts transferredfrom such issued sharecapital or retainedearnings to a reservedaccount; and

(c) minimum number ofunconnected shareholdersis twenty-five.”; and

(b) in section 10F, by inserting aftersubsection (1), the following subsection:

“ (1A). For the purposes ofsubsection (1), all outgoings andexpenses wholly and exclusivelyincurred by the company in respect ofthe acquisition of the income inrelation to those debt securitieswhether or not such income is exemptfrom tax under this Act or any otherwritten law shall not include purchaseconsideration paid.”;

(c) in subsection (2), by deleting the words “orthe consideration paid”; and

(d) by inserting after subsection (2), thefollowing new subsections:

“ (3) Subsection (1) shall not apply tooutgoings and expenses incurred by acompany in relation to strips of bondsor other securities that were notoriginally issued either in Trinidadand Tobago or in a CARICOM MemberState.

(4) For the purposes ofsubsection (3), “a CARICOM MemberState” means a State Party to theRevised Treaty of Chaguaramas


including the Single Market andEconomy signed in 2001 in Nassau,Bahamas.”.

13. The Petroleum Taxes Act is amended—(a) in section 12B(1), by—

(i) inserting after the word “deduction”the words “from January 1, 2014”;and

(ii) deleting the words “other thantangible cost”;

(b) by inserting after section 12C, the followingnew section:

12D. (1) In ascertaining thetaxable profits of a personcarrying on production businesswho, during the financial yearscommencing January 1, 2014 andending on December 31, 2017,incurs capital expenditure inrespect of exploration operationson land or in a submarine area,that person may, subject tosubsection (2), elect to claim as adeduction the capital expenditureincurred in respect of suchoperations in the financial year inwhich the expenditure is incurred.

(2) Expenditure in respectof which a deduction is claimedunder subsection (1), does not fallto be treated under sections 14and 15(1C) and (1E) in computingthe taxable profits of a person whohas incurred capital expenditure

Chap. 75:04amended

“Capitalexpenditureallowance


in respect of explorationoperations on land or in asubmarine area.”;

(c) in section 13(1), by deleting the words“including in particular paragraph 7 of theSecond Schedule”;

(d) by repealing section 15(1A), (1B), (2) and (3);(e) by repealing section 26B(2) and substituting

the following new subsection: “ (2) Subject to subsection (1),where there is any excess credit at theend of a financial year it may beclaimed in the next financial yearimmediately following the financialyear in which the expenditure wasincurred and in no other financialyear.”; and

(f) in the Second Schedule, by deletingclause 7.

14. The Customs Act is amended—(a) in section 16(5), by deleting the words “two

thousand, five hundred dollars” andsubstituting the words “one hundred andtwenty-five thousand dollars or treble thevalue of such goods, whichever is thegreater.”;

(b) in section 37(3), by—

(i) deleting the words “twenty-five”and substituting the word “fifty”;

(ii) deleting the words “at the electionof the Comptroller,” and substitutingthe words “or whichever is greater,and to imprisonment for a term ofeight years”; and

Chap. 78:01amended


(iii) inserting the words “toimprisonment for a term of eightyears,” before the words “inaddition to such penalty,”;

(c) in section 38(2), by deleting the words—

(i) “twenty-five” and substituting theword “fifty”; and

(ii) “at the election of the Comptroller,”and substituting the words“whichever is greater and toimprisonment for a term of eightyears and the forfeiture of all suchgoods.”;

(d) by repealing section 45(1)(m);(e) in section 57, by deleting the word “four”

and substituting the words “one hundred”;(f) in section 62, by—

(i) deleting the word “four” andsubstituting the words “onehundred and twenty-five”; and

(ii) deleting the words “at the electionof the Comptroller” andsubstituting the words “whicheveris greater”;

(g) in section 63(3), by deleting the words “fivehundred dollars” and substituting thewords “one hundred and twenty-fivethousand dollars”;

(h) in section 67, by deleting the word “four”and substituting the word “twenty”;

(i) in section 105, by deleting the words “insuch sum” and substituting the words “inthe sum of twenty-five per cent of the dutyand tax payable on the goods”;


(j) in section 154, by deleting the words “exceptas otherwise provided in section 153” andsubstituting the words “in addition to anyoffence for which he may be convicted underany written law”;

(k) in section 156, by—


(ii) deleting the words “at the electionof the Comptroller” andsubstituting the words “whicheveris greater.”;

(l) in section 157, by—


(ii) deleting the words “at the electionof the Comptroller” andsubstituting the words “whicheveris greater.”;

(m) in section 167, by deleting the words“twenty thousand dollars” and substitutingthe words “one hundred and twenty-fivethousand dollars”;

(n) in section 170, by deleting the words “fourthousand dollars” and substituting thewords “one hundred and twenty-fivethousand dollars or treble the value of suchgoods, whichever is the greater”;

(o) in section 171, by—

(i) deleting the word “four” andsubstituting the word “twenty”;and


(ii) deleting the words “at the electionof the Comptroller” andsubstituting the words “whicheveris greater”;

(p) in section 172, by deleting the words—

(i) “eight hundred” and substitutingthe words “four thousand”; and

(ii) “at the election of the Comptroller”and substituting the words“whichever is greater”;

(q) in section 177, by deleting the word “four”and substituting the words “one hundredand twenty-five”;

(r) in section 178, by deleting the words “onehundred” and substituting the words “fourthousand”;

(s) in section 182, by deleting the words “fivehundred” and substituting the words “fourthousand”;

(t) in section 183, by deleting the word “eight”and substituting the word “fifty”;

(u) in section 196, by deleting the word “four”and substituting the word “fifty”;

(v) in section 198(1)—

(i) in paragraph (a), by deleting theword “two” and substituting thewords “five hundred”;

(ii) in paragraph (b), by deleting theword “two” and substituting thewords “five hundred”; and

(iii) in paragraph (c), by—(A) deleting the word “two”

and substituting the


words “five hundred”; and(B) deleting the word

“twenty thousand” andsubstituting the words“one million”;

(w) in section 210, by deleting the word “two”and substituting the word “four”;

(x) in section 211, by—

(i) inserting after the words “where nopenalty is provided, shall incur”the words “upon conviction”;

(ii) deleting the word “four” andsubstituting the word “fifty”;

(iii) deleting the words “at the electionof the Comptroller,” andsubstituting the words “whicheveris greater and to imprisonment fora term of eight years and theforfeiture of all such goods”; and

(iv) deleting the words “and any suchperson may be arrested anddetained by an Officer, and takenbefore a Magistrate to be dealt withaccording to law”;

(y) in section 213—

(i) by deleting the words“notwithstanding sections 248 and249” and substituting the words “inaddition to any offence for which hemay be convicted under anywritten law”; and


(ii) in subparagraph (iii), by insertingafter the word “years” the words“, and in any case the goods may beforfeited”; and

(z) in the Prohibition (Carriage Coastwise,Importation and Exportation) Order, 1953in the Second Schedule, by repealing thethird paragraph entitled “mechanicalgames of chance for gambling”.

15. The Excise (General Provisions) Act is amended—(a) in section 40(1), by deleting the word “four”

and substituting the word “forty”;(b) in section 57, by deleting the word “four”

and substituting the word “forty”; and (c) in section 62—

(i) in subsection (1), by deleting theword “four” and substituting thewords “two hundred”; and

(ii) in subsection (2), by deleting theword “twenty” and substituting thewords “two hundred”.

16. (1)The Liquor Licences Act is amended—(a) in section 20, by inserting after

subsection (4) the following new subsection:“ (5) With effect from the year 2016,an applicant for a licence undersection 16 who desires to hostamusement games in his premisesshall, in respect of a year subsequentto the year 2014, provide the licensingcommittee with a certificate from theBoard of Inland Revenue that theapplicant is not in arrears of any

Chap. 78:50amended

Chap. 84:10amended


gaming tax, interest or penaltypayable to the Board of InlandRevenue in respect of the last six yearsprior to the year of application.”; and

(b) by inserting after section 20 the followingnew section:

20A. (1) N o t w i t h s t a n d i n gsection 58, licenced premisesreferred to in section 35(3) or (4)may host amusement gameswhere there are no more thantwenty amusement games inoperation at any given time.

(2) In respect ofamusement games referred to insubsection (1), the maximum payout sum per game of five thousanddollars shall be prominentlydisplayed on each amusementgame.

(3) The holder of a licencespecified under section 35(3) or (4)who hosts amusement games onhis premises, shall not permit anindividual who is under the age ofeighteen years, to be in that partof the premises where amusementgames are conducted or to engagein amusement game activities onhis premises.

(4) The holder of a licencespecified under section 35(3) or (4)who hosts amusement games on

“Certainlicensedpremises tohostamusementgames


his premises, shall cause to bedisplayed at all times, in aprominent place in that part of thepremises where the amusementgames are conducted, a sign,written in large, bold, upper casecharacters, that reads as follows:

“INDIVIDUALS UNDERTHE AGE OFEIGHTEEN YEARS ARENOT ALLOWED INTHIS PART OF THEPREMISES AND AREPROHIBITED FROMENGAGING INAMUSEMENT GAMEACTIVITIES”.

(5) The holder of a licencespecified under section 35(3) or (4)who knowingly permits anindividual under the age ofeighteen years—

(a) to be in that part ofhis premises whereamusement gamesare conducted; or

(b) to engage inamusement gameactivities on hispremises,

commits an offence and is liableon summary conviction for a firstoffence, to a fine of five thousanddollars, and in the case of asubsequent offence, to a fine of tenthousand dollars and the licenceissued under this Act may berevoked.


(6) The holder of a licencespecified under section 35(3) or (4)who fails to comply withsubsection (4), commits an offenceand is liable on summaryconviction to a fine of onethousand dollars and the licenceissued under this Act may berevoked.

20B. (1) Commencing in theyear 2015, there shall be chargedon all amusement games to beoperated on premises referred toin section 20A, a tax to be knownas a “gaming tax”, which shall bepayable annually at the rate ofthree thousand dollars in respectof each amusement game.

(2) The holder of a licencespecified in section 35(3) or (4)who desires to operate anamusement game on licencedpremises shall, within fifteen daysof the issue of the licence, inrespect of every year commencingfrom the year 2015—

(a) submit to the Boardof Inland Revenue, areturn as tothe number ofamusement games tobe used on thelicensed premises, insuch form as may beapproved by theBoard of InlandRevenue; and

Annual Taxon amuse-ment games


(b) pay to the Board thegaming taxes inrespect of everyamusement game tobe used on thelicensed premises.

(3) The return undersubsection (2) shall be signed bythe holder of the licence referredto in that subsection and shallcontain—

(a) the name andaddress of the holderof the licence;

(b) the operation andaddress of thelicensed premises;

(c) the exact numberand description ofthe amusementgames to be used onthe licensedpremises;

(d) the calculation of thegaming tax payablein respect of everyamusement game tobe used on thelicensed premises;and

(e) the address forservice of notices.

(4) Where the holder of alicence fails, neglects or refuses tosubmit a return for a yearcommencing from 2015, after sixmonths from the time required tofile the return, the holder of thelicence shall, unless the Board of


Inland Revenue otherwise directs,pay to the Board of InlandRevenue a sum of one hundreddollars for every six months orpart thereof during which suchfailure, neglect or refusalcontinues.

(5) The Board of InlandRevenue, in respect of thecollection and recovery of thegaming tax, has all the powers asit has in relation to income taxunder the Income Tax Act.

(6) Where it is proved tothe satisfaction of the Board ofInland Revenue that the holder ofthe licence has paid gaming taxesin excess of the amount in respectof which the licence holder isproperly chargeable, the holder ofthe licence shall be entitled tohave the tax so paid in excess,refunded to him.

(7) Every claim for arefund under subsection (6) shallbe made within one year from theend of the year to which the claimrelates.

(8) Where the holder of alicence specified in section 35(3) or(4) fails to remit the gaming tax tothe Board of Inland Revenuewithin the time specified insubsection (2), he shall be liable topay together with the tax payableinterest at the rate of fifteen percent per annum on the tax.

(9) The gaming tax payablefor an applicant who applies for a


new certificate shall be calculatedon a prorated basis for theunexpired portion of the year fromthe date upon which the applicantfor a new certificate applies forthe certificate.

(10)For the purposes of thissection, “an amusement game”has the meaning assigned to it bysection 10 of the Gambling andBetting Act.

20C. (1) Where a gaming taxhas been paid in respect of anyamusement game—

(a) the Board of InlandRevenue shall cause to beissued in respect of eachamusement game a tagfor which gaming tax hasbeen paid; and

(b) the holder of the licenceshall cause to be attachedand displayed on eachamusement game the tagissued by the Board ofInland Revenue, prior toinstallation or operationof such amusementgame.

(2) Every tag issued under thissection shall be in a form approved by theBoard of Inland Revenue and shall be validfrom the day on which it is issued until thetime in the ensuing year when the gamingtax becomes payable.

(3) Where the holder of a licencespecified in section 35(3) or (4) fails to

BIR Tag


display the tag issued by the Board ofInland Revenue on the amusement gamesituate on the licensed premises or fails todisplay the maximum payout on theamusement game—

(a) he commits an offence and isliable to a penalty of fifteenhundred dollars and in thecase of a continuing offence afurther eight hundred dollarsfor every day during whichthe offence continues; and

(b) the licence specified undersection 35(3) or (4) shall beliable to cancellation by thelicencing committee.

(4) A tag issued under this sectionis non-transferable.

(5) For the purposes of this section,“amusement game” has the meaningassigned to it by section 10 of the Gamblingand Betting Act.”.

(2) Where on or after the coming into force ofthis Act, a licensed premises referred to in section 35(3)or (4) has on it an amusement game, the gaming taxpayable in respect of the game for the unexpired portionof the year 2014, shall be calculated on a prorated basisfor the unexpired portion of the year.

(3) The tax payable under subsection (2), inrespect of an amusement game already on a licensedpremises on the coming into force of this Act, shallbecome due and payable three months within thecoming into force of this section.


17. The Income Tax (In Aid of Industry) Act isamended—

(a) in section 2—(i) in subsection (3), by deleting the

words “Petroleum Act” andsubstituting the words “PetroleumTaxes Act”; and

(ii) by inserting after subsection (3),the following new subsection:

“ (4) For the purposes ofParts II and IIA, “refiningbusiness” has the samemeaning assigned to it in thePetroleum Taxes Act.”;

(b) in section 16—(i) in subsection (1A), by deleting the

words “the production of sugar,petroleum” and substituting thewords “the refining business or theproduction of sugar”; and

(ii) by inserting after subsection (1A),the following new subsection:

“ (1B) In the case of personscarrying on productionbusiness, the rate of initialallowance shall be limited tofifty per cent of theexpenditure incurred.”;

(c) by repealing section 16A;(d) by repealing section 17A and substituting

the following new section:17A. (1) For the purposes of

section 11(1)(b) of the Income TaxAct, where, on or after January 1,2014, a person carrying onrefining business incursexpenditure on the provision of

Chap. 85:04amended

“Allowance onmachinery orplant


machinery or plant for thepurposes of the trade, there shallbe made to him from the financialyear in which the expenditure wasincurred an allowance of twentyper cent calculated on a straightline basis, on the residue of suchexpenditure after deduction of theinitial allowance referred to insection 16(1A).

(2) For the purposes ofsection 11(1)(b) of the Income TaxAct, where on or after January 1,2014, a person carrying onproduction business incursexpenditure on the provision ofmachinery or plant for thepurposes of the trade, there shallbe made to him—

(a) in the first year followingthe year in which theexpenditure is incurred,an allowance of thirty percent of the expenditure;and

(b) in the second yearfollowing the year inwhich the expenditure isincurred, an allowance oftwenty per cent of theexpenditure.

(3) Where a personcarrying on production businessor refining business has anunrelieved balance as atDecember 31, 2013, his allowanceshall continue to be calculated in


the manner in which it wascalculated prior to January 1,2014.”;

(e) in section 18(1), by deleting thewords “5(1)(c) and (d)” and substituting thewords “5(1)(b) and (c)”;

(f) by repealing section 21A(3);(g) in section 23(1), by deleting the words—

(i) “the appointed day”, andsubstituting the words “January 1,2014”; and

(ii) “one-tenth” and substituting thewords “fifty per cent”;

(h) by repealing section 23(2) and (3); (i) in section 24—

(i) by repealing subsections (1), (2), (3)and (4), and substituting thefollowing subsections:

“ (1) Where on afterJanuary 1, 2014, a personcarrying on a trade whichconsists of, or includes theworking of any mine, oil wellor other source of mineraldeposits of a wasting naturehas carried out such trade, forthe purposes of that tradeexpenditure to which thisPart applies, in ascertainingthe chargeable income of suchperson, there shall be made tohim—


(a) in the first yearfollowing the year inwhich the expenditureis incurred, anallowance of thirtyper cent of theexpenditure; and

(b) in the second yearfollowing the year inwhich the expenditureis incurred, anallowance of twentyper cent of theexpenditure.

(2) Where the personreferred to in subsection (1)has, as at December 31, 2013,an unrelieved balance ofexpenditure, he shall beallowed on the unrelievedbalance, an allowance oftwenty per cent, calculated ona straight line basis.

(3) Where the sourcesunder this section ceases to beworked, the person carryingon the trade may elect thatthe unrelieved allowances, ifany, for the year of income inwhich that event occurs,be claimed over the twopreceding years, providingthat the amount of suchallowance to be given for thepreceding years of incomeshall not exceed an amountwhich would reduce the taxpayable to less than one-halfof the amount which would


have been payable had theallowance not been given.”;

(ii) in subsection (5), by deleting theword “References” and substitutingthe words “Subject to subsection (5A),references”; and

(iii) by inserting after subsection (5),the following new subsection:

“ (5A) Subsection (5) appliesto annual allowances madeprior to January 1, 2014.”;

(j) in section 63(3), by deleting the words“5(1)(c) and (d)” and substituting the words“5(1)(b) and (c)”;

(k) in section 63A—

(i) by repealing subsection (2) andsubstituting the followingsubsection:

“ (2) A claim for anallowance from capitalexpenditure shall not bedeferred.”; and

(ii) in subsection (3), by deleting thewords “residue of expenditure onwhich the annual allowance”and substituting the words“expenditure on which theallowances”;

(l) in section 69(3), by inserting after the words“annual allowance” the words “and otherallowance under sections 17A(2) and 24(1)”;and


(m) in the Fourth Schedule—(i) in clause 2(a), by inserting after the

words “annual allowance” thewords “and other allowance undersections 17A(2) and 24(1)”;

(ii) in clause 3(1), by inserting after thewords “annual allowance” thewords “and other allowance undersections 17A(2) and 24(1)”; and

(iii) in clause 3(2), by inserting after thewords “annual allowances”, in thesecond place where they occur, thewords “and other allowance undersections 17A(2) and 24(1)”.

18. The Spirits and Spirit Compounds Act isamended—

(a) in section 45(2), by deleting the words “insuch sum” and substituting the words “inthe sum of twenty-five per cent of the dutyand tax payable on the goods”; and

(b) in section 64, by deleting the words “as theproper officer requires” and substituting thewords “in the sum of twenty-five per cent ofthe duty and tax payable on the goods”.

19. The Income Tax (Mineral Deposits) Regulations isamended in regulation 6—

(a) by revoking subregulation (2)(a)(ii); (b) in subregulation (2)(b), by deleting

subparagraph (ii) and its proviso andsubstituting the following paragraph:

“(ii) so much of any annual allowancesand other allowance made undersection 24(1) of the Act to theseller as is attributable to theseller’s expenditure on theassets:”; and

Chap. 87:54amended

G.N. No. 115 of 1950amended


(c) by inserting after subregulation (2), thefollowing new subregulation:

“ (3) Notwithstanding subregulation(2)(b)(ii), where only some of the assetsconnected with a source are inquestion, the amount of the seller’sannual allowances and otherallowance made under section 24(1)attributable to those assets shall beascertained by applying the provisionsof Part III of the Act relating to thecomputation of the annual allowancesand other allowance made undersection 24(1) as though the seller’sexpenditure on those assets had beenthe only expenditure qualifying forannual allowances and otherallowances made under section 24(1)in connection with the source.”.

20. (1) The Electronic Transactions Act, 2011 isamended—

(a) in section 2, by inserting in the appropriatealphabetical sequence, the followingdefinition:

“ “revenue” means all tolls, duties,fees, licences, taxes, imports,royalties, rents, penalties, fines,forfeitures, dues and all otherreceipts of the State fromwhatever source arising, overwhich Parliament has power ofappropriation, including theproceeds of all loans raised;”;

(b) in section 5—(i) by deleting the word “and” after

paragraph (d);

Act No. 6 of 2011amended


(ii) by deleting the word “.” afterparagraph (e) and substituting thewords “; and”;

(c) in section 53(1)—

(i) by deleting the word “or” at the endof paragraph (c);

(ii) by inserting the word “or” at theend of paragraph (d); and

(iii) by inserting after paragraph (d),the following paragraphs:

“(e) collects revenue ormakes payments; and

(f) make or receivepayments in electronicform or by electronicmeans.”.

(2) Subsection (1) shall come into effect on suchdate as is proclaimed by the President by Proclamation.

Passed in the House of Representatives this 5th dayof April,, 2014.

Clerk of the House


Passed in the Senate this 9th day of April, 2014.

Clerk of the Senate

Senate amendments agreed to by the House ofRepresentatives this 16th of May, 2014.

Clerk of the House


the finance act, 2014

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