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Departure Tax Amendment Act 2017

NIUE

DEPARTURE TAX AMENDMENT ACT 2017

No. 339

Contents

1. Title
2. Commencement
3. Principal Act amended
4. Section 2 amended (Interpretation)
5. Section 3 amended (Departure tax)
6. New sections 4 to 5A substituted

An Act to amend the Departure Tax Act 1996 to require carriers who provide international travel to collect the departure tax.

The Assembly enacts as follows -

1. Title

This Act is the Departure Tax Amendment Act 2017.

2. Commencement

This Act comes into force on the day after the date on which this Act becomes law in accordance with Article 34 of the Constitution.

3. Principal Act amended

This Act amends the Departure Tax Act 1996.

4. Section 2 amended (Interpretation)

Section 2 is amended by inserting the following definition in its appropriate alphabetical order -

"carrier means a person who provides international travel, and includes an agent of the carrier".

5. Section 3 amended (Departure tax)

Section 3(1) is amended by inserting "at the prescribed rate" after "departure tax".

6. New sections 4 to 5A substituted

(1) Sections 4 and 5 are repealed and the following sections are substituted -

"4 Collection of departure tax
"(1) A carrier must collect the proper amount of departure tax from a person liable to pay the tax before the person departs Niue.
"(2) A person liable to pay departure tax must not depart Niue without first paying the tax.
"(3) A carrier must account to the Customs Department of Treasury for the departure tax collected and pay the amount collected to that Department.
"(4) A carrier must keep proper records showing -

• "(a) the amount and date the departure tax was collected; and
• "(b) the person from whom the departure tax was collected; and
• "(c) the international travel for which the departure tax was collected; and
• "(d) any refund of departure tax.

"(5) A carrier must keep the records required by subsection (4) for at least 7 years from the date of collection.
"(6) A carrier must, not later than the 20th day of each month, pay to the Customs Department of Treasury without any deduction the departure tax collected for international travel completed in the immediately preceding month.
"5 Departure tax to remain property of Crown
"(1) The departure tax that is required to be collected under section 4 constitutes a debt due to the Crown payable by the carrier.
"(2) Departure tax payable in accordance with section 4 and any penalties imposed under section 5A are recoverable at the suit of the Crown in a court of competent jurisdiction.
"(3) Until the departure tax collected is paid to the Customs Department of Treasury, the tax -

• "(a) is deemed to be held in trust for the Crown; and
• "(b) is a charge on the property of the carrier; and
• "(c) is not property of the carrier that is liable to execution; and
• "(d) in the event of the carrier's bankruptcy, liquidation, or an assignment for the benefit of the carrier's creditors -
  • (i) does not form part of the carrier's estate in bankruptcy, liquidation, or assignment; and
  • (ii) ranks in priority after preferential claims for wages and in priority to all other claims.

"5A Failure of carrier to pay
If a carrier fails to pay departure tax on the due date in accordance with section 4(6), there must be added to the amount due and owing a penalty of 2% for each month or part of a month that the amount remains outstanding."

I, Togiavalu Pihigia, Speaker of the Niue Assembly, certify that the requirements of Article 34 of the Niue Constitution have been complied with.

SIGNED AND SEALED at the Assembly Chambers this 28th day of March 2017.

Speaker of the Niue Assembly

COUNTERSIGNED in the presence of the Speaker

Clerk of the Niue Assembly

This Act is administered by the Customs Department.

This Act was passed by the Niue Assembly on the 22nd day of February 2017