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A
self-assessment system, patterned on the Canadian tax system, was introduced
in 1968 when the British model was revamped and the 1968-51 Income
Tax Act, Cap 73 and the Income Tax Regulations, 1969 took effect.
Under this system resident individuals and companies are required to
calculate their taxable income and tax liability and prepay and pay
the tax due at specified times.
Over time various amendments have been made to the 1968-51 act, which
is still in effect. Some of these amendments were incentive based, designed
to encourage improvements in the island’s infrastructure, to promote
investment, to facilitate growth in the agricultural, manufacturing,
hospitality, service and insurance sectors, and to enhance opportunities
for increased exports and foreign currency earnings.
Examples of some of the incentives granted to individuals over
time are deductions and allowances within specified limits for amounts
spent on support of relatives, property repair, mortgage interest, solar
water heaters and water saving devices, the purchase of life insurance
policies and registered retirement plans and investments in private
and public companies, credit unions and mutual funds.
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Self Assessment System