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Moving Towards Electronic Filing The Department of Inland Revenue will be entering into a new and exciting era of tax administration. Electronic filing and other electronic services will be made available to taxpayers from calendar year 2009. Tax- payers will be able to file Individual, Reverse Tax Credit, Corporation and Divided Income Returns electronically from that year. Services such as electronic filing of objections, applications for tax clearances will also be facilitated. Employers and other third party providers will now be required to send information such as Return of Remuneration directly to the department in an electronic format either through the internet or on CD, DVD etc. It is there- fore necessary that employers and other third party providers begin the process of putting in place systems to gather information vital to the process of electronic filing. With this in mind the Department made several presentations to third party providers between 19th and 23rd November, 2007 at the Grand Salle of the Central Bank, disclosing broad outlines of the Department's plans. Here are features of that presentation.
Investment in shares with Co-operative Societies Pursuant to the recent amendment to the Income Tax Act regarding deposits of saving invested in shares with co-operative societies, the Department has provided these guidelines that deal with certain situations which may arise as a consequence of the amending legislation quoted below:- Section 36B
S. WALCOTT-DENNY (Mrs.)
NOTICE: TO TAXPAYERS WISHING TO CLAIM INVESTMENT IN SHARES WITH CO-OPERATIVE SOCIETIES Pursuant to the recent amendment to the Income Tax Act regarding
deposits of saving invested in shares with co-operative societies, the
Department advises in respect of Income Year 2007 the following:-
Please be guided accordingly. 2007 Amendments to the Income Tax Act.
Parliament recently
passed the Income Tax (Amendment) Act, 2007 which contained at least
four major provisions that could affect a sizable number of taxpayers.
(1)
Rent Deduction
As of income year
2006 individual taxpayers may claim as a deduction an amount equal to
20% of rents paid in respect of a residential property or $3 000 which
ever is the lesser. This claim must however be supported by a
certificate of the owner of the property that verifies the tenancy and
the amount of rent paid.
(2) Home
Energy Audit
Individuals can now
claim for the first time the cost of a home energy audit
conducted by an authorised auditor and any conservation systems
or materials recommended in that audit not exceeding $2 000 within the
limit of $10 000 granted for home allowance.
(3) Losses
from Rental of Residential Property
With effect from
income year 2006, income arisen from the Rental of Residential property
is to be taxed separately at the rate of 15%. Losses incurred from
Rental income can only be set off against this source of income and no
other, and may be carried forward for nine years if unrelieved.
(4) Tax
Free Interest on �Education Savings Plan Account�
Effective income year
2006, interest received by or credited to a special savings account
designated by the account holder as an �Education Savings Plan Account�
for the specific purpose to offset the cost of a student acquiring
tertiary education, will be tax exempt.
However, this
�Educational Savings Plan Account� must be a single account, the balance
of which does not exceed $100 000 and the holder of which satisfies the
Commissioner that the account is used specifically to offset the cost of
providing tertiary education for no more than 4 students.
Special Instructions for your 2007 Individual Tax Return
In completing your
2007 Tax Return we advise that you give due consideration to the
following:
1) Use
the unlabelled return as your work copy contained in your Tax Return
Package.
2) Then
complete the form with the preprinted label, sign it and submit to the
Inland Revenue Department in the pre addressed envelope enclosed in the
package.
3) Your
National Registration Number is very important in facilitating the
processing of your return. Please be sure to include this on the
return.
4) If
your name or address on the label is incorrect, please use the space
provided below the label to make any necessary corrections.
5) If
your National Registration Number is incorrect, please use the space
provided at the right of the label to enter the correct number.
6) Persons
who originally did not have a National Registration Number and were
assigned a temporary number in the 900 000 series, but who now have the
national Registration Number, must now enter this in the space provided
at the right of the label.
7) If
you are due a tax refund we strongly urge you to opt for the Direct
Deposit method of payment. This you can do by indicating in the space
provided on the return, the name and address of your Bank or Credit
Union and the number of the account to which you wish to have your
refund deposited. The Direct Deposit method of payment is both
speedier and safer. Go for it!
2007 Individual Tax Calculations
Elsewhere on this
site under the above caption you will be able to
calculate your own Tax
Refund or tax liability as the case may be. Just enter all the relevant
information in the appropriate spaces` and you will have the results in
no time. Why not try it? Good Luck! |
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| The Direct Deposit of Income Tax Refunds |
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| With effect from the year 2004, the Department of Inland Revenue instituted a system whereby taxpayers could opt to have their income tax refunds for the income year 2003 and subsequent income years, credited to a designated account at a bank or credit union. | |
| This new process has proven to be beneficial both to the Revenue and taxpayers who have opted to use it. It has enabled the Department to process tax refunds more speedily and it has saved the taxpayer valuable encashment time, as refunds could then also be accessed through Automatic Teller Machine (ATM) facility. | |
| Persons opting for the Direct Deposit Facility are required to indicate this each time on the actual Tax Return being filed. They are also required to state the name of the Bank or the select Credit Union and provide the number of the account to which the Tax Refund is to be deposited. | |
| The Department urges the public to make full use of this facility which is a speedier and safer process for issuing tax refunds. | |
| The public's co-operation is appreciated. | |
| NOTICE TO EMPLOYERS | |
| Consequent to the recent amendments to Sec. 38B and Sec. 42 of the Income Tax Act, CAP 73, the following should be observed: | |
| For the Income Year 2004 | |
| All Resident Individuals whose total assessable income is $17,500 per year or less are not liable to tax. Tax should not be deducted from persons whose salaries and wages are: | |
| 1. $1,459.00 per month or less | |
| 2. $ 337.00 per week or less | |
| 3. $ 48.00 per day or less | |
| Rates of Tax | |
| Rates of Tax | Taxable Income |
| $24,200 or less | 20% |
| Over $24,200 | 40% |
| Pensioners | |
| Individuals 60 years of age or over and in receipt of a pension may claim a personal allowance of $30,000. | |
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| For the Income Year 2005 | |
| All Resident Individuals whose total assessable income is $20,000 per year or less are not liable to tax. Tax should not be deducted from persons whose salaries and wages are: | |
| 1. $1,667.00 per month or less | |
| 2. $ 385.00 per week or less | |
| 3. $ 55.00 per day or less | |
| Rates of Tax | |
| Rates of Tax | Taxable Income |
| $24,200 or less | 20% |
| Over $24,200 | 37.5% |
| Pensioners | |
| Individuals 60 years of age or over and in receipt of a pension may claim a personal allowance of $30,000. | |
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| For the Income Year 2006 | |
| All Resident Individuals whose total assessable income is $22,500 per year or less are not liable to tax. Tax should not be deducted from persons whose salaries and wages are: | |
| 1. $1,875.00 per month or less | |
| 2. $ 433.00 per week or less | |
| 3. $ 62.00 per day or less | |
| Rates of Tax | |
| Rates of Tax | Taxable Income |
| $24,200 or less | 20% |
| Over $24,200 | 35% |
| Pensioners | |
| Individuals 60 years of age or over and in receipt of a pension may claim a personal allowance of $30,000. | |
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| For the Income Year 2007 | |
| All Resident Individuals whose total assessable income is $25,000 per year or less are not liable to tax. Tax should not be deducted from persons whose salaries and wages are: | |
| 1. $2,083.00 per month or less | |
| 2. $ 481.00 per week or less | |
| 3. $ 68.00 per day or less | |
| Rates of Tax | |
| Rates of Tax | Taxable Income |
| $24,200 or less | 20% |
| Over $24,200 | 35% |
| Pensioners | |
| Individuals 60 years of age or over and in receipt of a pension may claim a personal allowance of $40,000. | |
| Employers are therefore reminded that the necessary procedures should be put in place to ensure that the correct amount of tax (Pay as You Earn - P.A.Y.E.) is withheld at source from their employees and paid into the Department. | |
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©
2008 Department of Inland Revenue, Treasury Building, Bridge Street,
Bridgetown, Barbados
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all
rights reserved.
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