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Vanuatu Consolidated Legislation - 1988 |
Commencement: 29 December 1986
LAWS OF THE REPUBLIC OF VANUATU
REVISED EDITION 1988
CHAPTER 196
ARRANGEMENT OF SECTIONS
SECTION
10. Minister's power to exempt
11. Returns to be furnished by the taxpayer
12. Returns to be furnished on notice
13. Penalty for failure to furnish returns
15. Assessment of the Collector
16. Additional assessment by the Collector
18. Finality of assessment
19. Penalty for incorrect return
21. Tax in default to be a debt
22. Recovery of tax out of debts
24. Offences relating to fraud
25. Prosecutions to be with the sanction of the Collector
27. Summary procedures
28. Certificate by the Collector
29. Records
30. Collector's power to search
31. Offence by corporate body, etc.
SCHEDULE 1-Rates of tax
SCHEDULE 2-Exemption from tax
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RENT TAXATION
To provide for the imposition of tax on rent and for matters connected therewith.
INTERPRETATION
1. In this Act, unless the context otherwise requires -
"agent" includes every person who in Vanuatu, for or on behalf of any other person out of Vanuatu holds, controls, receives or disposes of any rent belonging to such other person;
"chargeable period" means either of the following 2 periods -
(a) the period commencing on 1 December of any year and ending on 31 May in the immediately succeeding year; or
(b) the period commencing on 1 June of any year and ending on 30 November of that year;
"Collector" means the Collector appointed under section 2 or any person acting under the authority of the Collector;
"lease" means any lease written or oral and includes a sublease or tenancy, and any licence, concession, permission or other night granted to any person for the use or occupation of any land in Vanuatu and "lessor" and "lessee" shall be construed accordingly;
"rent" includes all payments which a lessee is bound to make to the lessor under the terms of a lease without any deductions, and includes premiums;
"tax" means the tax chargeable under this Act, and includes any sum added to such tax by reason of defaults, and penalties imposed;
"taxpayer" means the person charged with or liable to pay the tax under this Act;
"trustee" includes any trustee, guardian, curator, manager, or other person having the direction, control or management of any land or property on behalf of any person.
APPOINTMENT OF A COLLECTOR
IMPOSITION OF TAX ON RENT
PERSONS CHARGEABLE
CHARGEABILITY TO TAX OF TRUSTEES
(2) Subject to the provisions of this Act, any person who derives rent as a trustee for another person who is not identified as beneficially entitled to that rent, shall be chargeable to tax on that rent as if he were beneficially entitled to that rent.
TAX ON NON-RESIDENT PERSONS
CHARGEABILITY ON RENT DERIVED BY WIFE OR CHILD
(2) The rent derived by any child under 18 years shall be aggregated with and deemed to form part of the rent derived by -
(a) his father, if the marriage of his parent subsists during that chargeable period; or
(b) the parent who maintains him and with whom he lives during that chargeable period, if the marriage of his parent does not subsist in that chargeable period.
CHARGEABILITY TO TAX ON RENT OF A SUBLEASE
EXEMPTION FROM TAX
(2) All custom owners of land and their trustees are exempt from paying tax under this Act on rent derived from head leases granted on land to which they are the custom owners or trustees.
(3) The following persons are exempt from paying tax under this Act-
- (a) the persons specified in Schedule 2;
(b) religious institutions;
(c) benevolent associations; and
(d) political parties, any member of which holds membership of Parliament.
MINISTER'S POWER TO EXEMPT
(2) The Minister may by Order -
(a) exempt from payment of tax any person;
(b) reduce or vary the rates specified in Schedule 1 to this Act, in respect of any person;
where such person is a citizen or a company all the shareholders of which are citizens.
RETURNS TO BE FURNISHED BY THE TAXPAYER
(2) Any taxpayer who fails to furnish a return under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding VT50,000 and if the failure continues, to a further fine of VT2,000 for each day on which the failure so continues.
RETURNS TO BE FURNISHED ON NOTICE
(2) Any person who fails to comply with a notice given to him under subsection (1) requiring him to furnish a return of the rent derived, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding VT50,000 and if the failure continues, to a further fine not exceeding VT2,000 for each day on which the failure so continues.
PENALTY FOR FAILURE TO FURNISH RETURNS
(b) require such person -
(i) to pay such penalty; and
(ii) to furnish such return;
within such period as may be specified in such notice.
(2) The Collector may reduce or waive any penalty imposed on any person under this section, if such person proves to the satisfaction of' the Collector, that his failure to furnish a return was due to circumstances beyond his control and that he has after the imposition of the penalty, furnished such return.
(3) When a penalty is imposed on a person under this section he shall not be liable to prosecution for an offence under sections 11 and 12.
PAYMENT OF TAX BY SELF ASSESSMENT
ASSESSMENT OF THE COLLECTOR
(2) Any assessment made under subsection (1) shall not affect the liability of such person to a penalty under section 13 for failure to furnish a return under the Act.
ADDITIONAL ASSESSMENT BY THE COLLECTOR
APPEAL TO THE MINISTER
FINALITY OF ASSESSMENT
PENALTY FOR INCORRECT RETURN
(2) Where in respect of a taxpayer's return a penalty is imposed on him under this section, he shall not be liable to prosecution for an offence relating to that return under section 24.
TAX IN DEFAULT AND SUMS ADDED
(2) Where any taxpayer is in default, and where the amount in default is not paid, the defaulter shall in addition to the tax in default pay a further sum at the rate of 25 per cent per annum in respect of the period during which tax is in default.
(3) The Collector may reduce or waive any sum added under this section if it appears to him, that such reduction or waiver is just and equitable in all the circumstances of the case.
TAX IN DEFAULT TO BE A DEBT
(2) For the purposes of this section and sections 22, 27 and 28 "tax in default" means tax chargeable under this Act together with any sum added to such tax by reason of defaults, and penalties imposed under this Act.
RECOVERY OF TAX OUT OF DEBTS
(a) was or is about to pay money to the taxpayer; or
(b) holds money for or on account of the taxpayer; or
(c) holds money on account of some other person for payment to the taxpayer; or
(d) has authority from some other person to pay money to the -taxpayer as his agent,
the Collector may give to such person notice in writing (copy of which shall be sent by post to the defaulter) requiring him to pay any such monies not exceeding the amount of the tax in default, to the Collector, within such period as may be specified in such notice.
The notice shall apply to all such moneys which are in his hands or due from him at the date of receipt of such notice, or come into his hands or become due from him or are about to be paid by him at any time within a period of 3 months after the date of such notice.
(2) Any person who has made any payment under this section shall be deemed to have acted under the authority of the taxpayer in. default and of all other persons concerned and is hereby indemnified in respect of such payment against all proceedings, civil or criminal notwithstanding the provisions of any written law, contract or agreement.
(3) Any person to whom a notice has been given under subsection (1) who is unable to comply therewith owing to the fact that the moneys referred to in that subsection do not come into his hands or that no such moneys become due from him within the period referred in that subsection, shall within 14 days of the expiration thereof give notice in writing to the Collector apprising him of the facts.
(4) Where any person to whom a notice has been given under subsection (1) is unable to comply therewith and has failed to give notice to the Collector as provided in subsection (3), or where such person had deducted or could have deducted the tax to which the notice relate or any part thereof and has not paid as required by the Collector the amount of such tax within 14 days after the expiration of the period referred to in subsection (1), such person shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding VT20,000, and if the failure continues, to a further fine not exceeding VT2,000 for each day on which the failure so continues.
TAX TO BE PAYABLE NOTWITHSTANDING ANY PROSECUTION OR CONVICTION
OFFENCES RELATING TO FRAUD
(a) omits from a return made or furnished under this Act, any rent which he should have included in such return; or
(b) makes any false statement, or entry in any return made or furnished under this Act; or
(c) gives any false answer whether verbally or in writing to any question or request for information asked or made in accordance with the provisions of this Act; or
(d) prepares or maintains or authorizes the preparation or maintenance of any false books of account or other records or falsifies or authorizes the falsification of, any books of account or record; or
(e) makes use of any fraud, art or contrivance of whatsoever or authorizes the use of any such fraud, art or contrivance,
and thereby evades or attempts to evade tax or assists any other person to evade such tax shall be guilty of an offence and shall be liable on conviction to a fine not exceeding VT500,000 or to imprisonment for a term not exceeding 2 years or to both such fine and imprisonment.
PROSECUTIONS TO BE WITH THE SANCTION OF THE COLLECTOR
COLLECTOR'S POWER TO ACQUIRE FURTHER INFORMATION
(a) to furnish within the time specified in such notice fuller and further information relating to any matter as in the opinion of the Collector is necessary or relevant for the assessment of the tax payable by him or any other person;
(b) to produce for examination or transmit to the Collector, within the period specified in such notice any book, register, file, tape, disc, record, paper, cheque, instrument or other document or article, in his possession or control as may be specified in that notice;
(c) to attend in person or by representative authorized by him at such place and on such date and at such time as may be specified in the notice, for the purpose of being examined regarding the rent he or any other person derived.
(2) Any person who fails to comply with a notice given to him under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding VT100,000 and if the failure continues, to a further fine not exceeding V72,000 for each day on which the failure so continues.
SUMMARY PROCEDURES
CERTIFICATE BY THE COLLECTOR
28. In any proceedings for the recovery of tax in default under this Act -
(a) a certificate by the Collector that any tax is in default shall be sufficient evidence of that fact until the contrary is proved;
(b) a photocopy of any document or extract from any document certified by the Collector to be such document shall be admissible in any proceedings to the same extent as the document itself;
(c) a document purporting to be a certificate under paragraph (a) or (b) shall be accepted as such certificate unless the contrary is proved.
RECORDS
(2) Any taxpayer who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding VT100,000.
COLLECTOR'S POWER TO SEARCH
OFFENCE BY CORPORATE BODY, ETC.
RENT TAXATION NOT TO BE PASSED ON TO LESSEE OR TENANT
DELEGATION OF POWERS OF THE COLLECTOR
(2) Every officer to whom any power or function is delegated under subsection (1) shall exercise or discharge that power or function subject to the directions of the Collector.
REGULATIONS
(2) In particular and without prejudice to the generality of the powers conferred by subsection (1) the Minister may make regulations in respect of any matter which is required or authorized by this Act to be prescribed.
(3) Contravention of or failure to comply with any regulation made under this Act shall be an offence under this Act and shall be punishable on conviction with a fine not exceeding VT200,000.
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SCHEDULE 1
RATES OF TAX
Rates of tax for each chargeable period (i.e. half year rates) -
a. Where the taxpayer is a natural person:
Total amount of all rent derived by the Amount of tax to be charged–
taxpayer during the chargeable period -
- does not exceed VT150,000 - no taxis charged
- exceeds VT150,000 but does not - 5% of the excess over
exceed VT 300,000 VT150,000
- exceeds VT300,000 but does not - VT7,500 plus 10% of the
exceed VT500,000 excess over VT300,000
- exceeds VT500,000 - VT27,500 plus 15% of the
excess over VT500,,000
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SCHEDULE 2
EXEMPTION FROM TAX
The following are exempt from paying tax under this Act:
(1) Vila Urban Land Corporation.
(2) Luganville Urban Land Corporation.
(3) Santo Land Council.
(4) National Housing Corporation.
(5) National Provident Fund.
(6) Local Government Councils.
(7) Port Vila Municipal Council.
(8) Luganville Municipal Council.
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URL: http://www.paclii.org/vu/legis/consol_act1988/rta170