特多税制
The Tax System
The principal taxes in Trinidad and Tobago are income tax, corporation
tax, business levy, various petroleum taxes, value added tax (VAT), withholding
tax and customs and excise duties.
Other taxes include stamp duties, local real estate taxes, and betting
and gaming taxes. No inheritance or gift taxes are levied, and there are no
death duties.
Basic Legislation
There is a wide range of tax legislation including:
- Income Tax Act
- Corporation Tax Act
- Value Added Tax Act
- Petroleum Taxes Act
- Income Tax (In Aid of Industry) Act
- Unemployment Levy Act
- Income Tax (Employment) Regulations
- Double Tax Treaties
- Hotel Development Act
- Fiscal Incentives Act.
Amendments to the tax laws are made each year with the passing of the
Budget and Finance Act. Generally, the legislation requires voluntary
compliance.
Powers of The Board of Inland Revenue
The Board of Inland Revenue has wide statutory powers including:
To request all such information as is required in order to be satisfied
that the taxpayer has fully complied with the law.
To enter the taxpayer's premises and carry out searches.
To require that books and records are kept for at least 6 years.
To garnishee any amounts which are outstanding after due notice has been
given to the taxpayer.
To undertake civil or criminal legal action for any wilful offence or
neglect by a taxpayer.
Administration
Tax laws are administered by the Board of Inland Revenue which is headed
by a Chairman and comprises four commissioners, each dealing with different
areas. The Board is also responsible for the administration of VAT.
The Board of Inland Revenue is not usually prepared to give advance
rulings on taxation matters.
Tax Year
The tax year for a business usually corresponds to the twelve months
ending with its accounting year. Special rules operate on the commencement and
cessation of business and when a company changes its accounting year end.
Tax Returns
A tax return must be submitted on a form issued by the Board of Inland
Revenue by 30 April of the year following that in which the business accounting
year ends. There is no statutory requirement for the financial statements
accompanying the return to be audited. They must, however, be prepared on an
accruals basis. Any other basis would require the approval of the Board of
Inland Revenue. Books and records must be kept in English, maintained in
Trinidad and Tobago, in Trinidad and Tobago currency.
Assessment and Audit
The system is one of self-assessment. However, the Board of Inland
Revenue may audit every taxpayer at its discretion. The audit is carried out
after an assessment has been made. Any adjustments resulting from the audit are
then incorporated in an amended assessment.
The Board has the power to reopen assessments at any time within six
years from the end of the tax year in question.
All returns filed with the Board of Inland Revenue are initially
scrutinised to ensure completeness and then passed for processing. Thereafter,
returns are classified and selected for examination. After examining a
particular return, the Board may assess additional tax liabilities which would
be reflected in an assessment notice. If this is not disputed, the tax must be
paid within 30 days (of the date of the notice).
Disputes and Appeals
If an assessment is disputed, a company may object in writing within 15
days of the service of the notice of assessment. The Board of Inland Revenue has
two years in which to determine the objection, otherwise it is deemed to be
determined in the tax payer’s favour.
When an objection is disallowed, the company may, within 28 days of being
notified of this decision by the Board of Inland Revenue, lodge an appeal with
the Registrar of the Appeal Board. The Appeal Board is a superior court of
record, and accountants may not represent their clients before it. Appeals are
heard in camera, and the burden of proof rests with the appellant. Decisions of
the Appeal Board are final on questions of fact, but an appeal can be made to
the Court of Appeal and, thereafter, to the Privy Council on questions of law.
Any tax which becomes payable following the determination of an appeal
must be paid within 30 days of the Appeal Board's decision.
There are no special commissioners to act as a buffer between the Board
of Inland Revenue, the taxpayer, and the Appeal Court, and litigation is
expensive. The amount of tax in dispute is therefore relevant when deciding what
action to take in any disagreement with the Board of Inland Revenue.
Penalties and Interest
When any taxes are not paid by the due date through the taxpayer’s
default, interest is charged on the overdue amounts, at 15 percent per year.
Interest on overdue tax is not a deductible expense in arriving at taxable
income.