DEPARTMENT OF INLAND REVENUE INCOME TAX NOTICE :

NOTICE TO EMPLOYERS 2013

The implementation of a Consolidation Tax from September 1, 2013, here is some RELEVANT INFORMATION for employers.

Please click here for Consolidation Notice to Employers and here for Consolidation Tax Examples.


Notice to Employers 2012


TO: ALL THIRD PARTY INFORMATION PROVIDERS

Your attention is hereby drawn to Section 67(ll) of the Income Tax Act, Cap. 73, which states that:-

"A person who fails to submit information to be supplied in a return of income or an information return as required by the Act and Income Tax Regulations 1969 :
  1. in the prescribed form;
  2. within the time required; or
  3. within such further period as the Commissioner may in writing allow and unless the Commissioner otherwise directs shall, in addition to any other penalties imposed by the Act or Regulations, pay
    1. a penalty of $100; and
    2. $10 for every day the failure continued."
Accordingly, in respect of Income Year 2010, the relevant return of information forms listed below and their corresponding summary statements must be completed and submitted to the Commissioner of Inland Revenue no later than February 28, 2011 to avoid such penalties:

A47:009 - Statement of Remuneration Paid and Deductions
A47:108 - Statement of Payments made to Individuals for the Supply of Goods and Services
A47:153 - Statement of Residential Rents Paid
A47:158 - Statement of Miscellaneous Incomes and Tax Withheld
A47:160 - Statement of Pension, Covenanted Payments and Tax Withheld
A47:162 - Statement of Tax Deductible Payments/Contributions
A47:164 - Statement of National Insurance Benefits and Pension
A47:165 - Statement of Payments to Charities
Third party information providers are urged to file on line via http://etax.ird.gov.bb, all relevant statements using the option of the XML FILE or WEB FORMS.

Please ensure the accuracy of all information to be uploaded to the system especially the National Registration/TIN Number of Reportees.

Should any difficulty be experienced in uploading information, kindly contact our Compliance Division at 430-3157; 430-3158; 430-3159 or 430-3160.

F.A. FORDE
Commissioner of Inland Revenue (ag)
November 2010




DEPARTMENT OF INLAND REVENUE

INCOME TAX NOTICE

 

TO: ALL EMPLOYERS YEAR-END ADJUSTMENT FOR TAXABLE NATIONAL INSURANCE BENEFITS


Where an employer has paid an employee his/her full salary/wages for a period for which the employee is due to receive a taxable National Insurance Benefit payment, and the employer is subsequently reimbursed with the NIS payment, then in completing the employee's A47:009 Remuneration Form for the year in which the reimbursement was actually made, the employer is required to adjust the gross emoluments to exclude the amount repaid by the employee.

F.A. FORDE
Commissioner of Inland Revenue (ag)
November 2010


The Following Files below are to assist taxpayers in the completion and filling of their taxes:

 

IRD 2009 Income Year Instructions

 

IRD Self-Registration

 

Filing Your Tax Return

 

 

 

TAX TIP

Corporations are advised that they must ensure that all the relevant fields on the prescribed 2009 corporation tax returns are completed to allow for the processing of the returns by the Department.

No supporting documentation should be submitted with these forms.

Returns without the relevant information will not be accepted or considered as filed with the Department.

The electronic filing of these returns should be submitted through our website at https://etax.ird.gov.bb

 

 

 

PREPARATION FOR E-FILING

The Inland Revenue Department (IRD) has implemented a tax administration system which is fully internet oriented and has been designed, inter alia, to receive electronically the returns of all taxpayers.

Preparations are currently being made to receive and process the 2009 income year returns of taxpayers.

The NRN and the IRD
The National Registration Number (NRN) which is issued by the Electoral Department of Barbados is very important to the IRD, since the Tax Administration uses the NRN as a Taxpayer Identification Number (TIN) to document each individual taxpayer into its records.

It is in the best interest of the taxpayer to provide the correct NRN to the IRD.  The IRD needs to verify and validate the information provided by the taxpayer in his income tax return with the information provided by the third party by means of an NRN. The finalization of the taxpayers’ assessments and refunds could be delayed if the NRN’s provided are not accurate or valid.

Even though, filing electronically allows taxpayers to benefit from the efficient processing of refunds which is considerably faster than paper filing, the invalid NRN will delay the successful completion of this procedure.

Employers are encouraged to ensure that the correct NRN’s are provided to the Department.

 

SABINA WALCOTT-DENNY (Mrs.)
Commissioner
February, 2010

 

 

 

The Move Towards Electronic Filing

The Department of Inland Revenue has entered a new and exciting era of tax administration. Electronic filing and other electronic services are available to taxpayers as from calendar year 2009. Tax- payers are 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 are also available.

Employers and other third party providers are 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

  1. For income year 2009 in calculating the taxable income of an individual there shall be deducted from the assessable income of that individual, in respect of an investment in shares during that income year with co-operative societies registered under the Co-operative Societies Act, an amount not exceeding $10,000 for each year on the certificate to that effect of an officer within the meaning of Section 2 of the Co-operative Societies Act.
  2. Where an individual referred to in subsection (1) with-draws any shares within 5 years of the year in which they were invested from a co-operative society in respect of which a deduction was made, the amount so withdrawn shall be brought back into charge to tax in the year in which the withdrawal was made.
  3. In this section, shares means deposits in co-operative societies classified as shares.
To give practical expression to the above section, the Department advises as follows:-
  1. Co-operative Societies must first ascertain from each member whether the member is desirous of making a claim for a tax deduction for amounts of savings invested in shares in 2009.
  2. Only those members who qualify and who have indicated their intention to make a claim should be provided with a Certificate of Shares for tax purposes.
  3. The member may be reminded that any savings invested in shares for which a claim was made will be subject to the with-drawal restriction as outlined in subsection (2) of Section 36B above.
  4. Without prejudice, qualifying first time claimers who are entitled to claim the initial period of savings January, 2006 to December, 2007 - may claim a tax deduction for that period in accordance with the new legislation up to a maximum of $10 000.
  5. Co-operative Societies may initiate and implement any system that would enable them to effectively administer the new regime of share holdings and share withdrawals in accordance with the new provisions of the Act. It is not necessary to obtain prior approval from the Department to implement any such system. However, it is advisable that Co-operative Societies notify the Department when a system has been instituted.

S. WALCOTT-DENNY (Mrs.)
Commissioner of Inland Revenue
February 12, 2008

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:-

  • You may apply to your credit union for a ‘Certificate of Shares’.
  • This should only be done if you intend to claim a tax deduction for the amount invested in shares.
  • Your claim is limited to $10,000, which is the maximum allowable deduction.
  • The amount invested should be held for 5 years.
  • However if the amount or any part thereof is withdrawn within the five year period it will be taxed in the year in which it is withdrawn.
  • The amount withdrawn will be subject to a 20% with-holding tax at the time of withdrawal.

Please be guided accordingly.
S. WALCOTT-DENNY (Mrs.)
Commissioner of Inland Revenue

 

The Direct Deposit of Income Tax Refunds

For the income year 2009, the Department of Inland Revenue has provided for taxpayers to opt to have their income tax refunds, credited to a designated account at a bank or credit union.
 
This 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 CORORATIONS/BUSINESSES

Corporations are informed that their 2009 Tax Return form, which is due on or before 15th March, 2010, may be filed electronically to the department, with immediate effect.

In addition, such corporations and other businesses are alos advised that the details of the remuneration paid and the deductions made in respect of their employees, for the 2009 income year (A47:009, A47:010) may be submitted electronically to the Department, also with immediate effect, using the XML Scheme.

It is noted that the Department considers that, while the manual filling of returns and other documents to the the Department will remain an available method for the 2009 year of income, you are advised that the electronic filing of such documentation will be the preferred option for the submission of this information.

SABINA WALCOTT-DENNY (Mrs.)
Commissioner
January 2010

 

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.
-------------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------------
For the Income Year 2007 + subsequent income years
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.
© 2008 Department of Inland Revenue, Treasury Building, Bridge Street, Bridgetown, Barbados
all rights reserved.
News