Published bg kuthoritt.
Voi. 98.] SAINT VINCENT, THURSDAY, 16 DECEMBER, 1965. [No. 77.
The following Document is published with this issue of the
S.R. & O. No. 30.-The Income Tax (Employments) Rules,
HENRY H. WILLIAMS,
16th December, 1965.
PRINTED BY THE GOVERNMENT PRINTER AT THE GOVERNMENT PRINTING OFFICE,
KINGSTOWN, ST. VINCENT.
[ Price 30 cents. ]
IV IAR 28 ou
STATUTORY RULES AND ORDERS
1965, No. 30.
INCOME TAX (EMPL0OI.HENTS) RULES, 1 5.
(Gazetted 16th December, 1965).
1. These Rules may be cited as the Income Tax (Employments)
2. In these Rules unless the context otherwise requires-
"appropriate form" means a form approved by the Commissioners
for use in any particular case authorised by these Rules;
"declaration" means the declaration referred to in section 61A of
"employee" means any person in receipt of emoluments;
"employer" means any person paying emoluments whether on his
own account or on behalf of another person;
"total allowances" in relation to an individual means the aggregate
of any deductions to which an individual is entitled under sections
16 to 20 of the Ordinance in respect of himself, his wife, children,
housekeeper or dependent relatives and includes that amount of
the premiums payable by the individual in each year in respect
of a policy or policies of insurance of a kind specified in para-
graph (1) of section 19 of the Ordinance which does not exceed
one-sixth of the total income of such person but provided further
that in no case shall such deduction exceed $1,200.
3. It shall be the duty of all employers, other than those who have made
returns to the Commissioners in respect of emoluments paid to persons in their
employment for the income years 1963 and 1964, to register with the Commis-
sioners, in such form as may be approved by the Commissioners, on or before
the 20th day of December, 1965, or within 30 days after the commencement
of the trade, business, profession or vocation of such employer.
4. (1) Where an employee works under the general control and manage-
ment of a person who is not his immediate employer, that person (referred to
hereafter in this Rule as the "principal employer") shall be deemed to be
the employer for the purpose of these tules, and' the immediate employer shall
furnish the principal employer with such particulars of the employee's emolu-
iments as may be necessary to enable the principal employer to comply with the
provisions of these Rules.
(2) If the employee's emoluments are actually paid to him by the
(a) the immediate employer shall be notified by the principal em-
ployer of the amount of tax to be deducted when the emoluments
are paid to the employee and shall deduct the amount so notified
to him accordingly; and
(b) the principal employer shall make a corresponding deduction on
making to the immediate employer the payment out of which the
said emoluments will be paid.
DEDUCTION OF TAX
5. (1) Subject to the provisions of Rules 6, 7 and 9 of these Rules, on
the occasion of any payment of emoluments to an employee, the employer
shall deduct as tax the amount appearing in the appropriate column of the
table of tie tax tables to be used opposite to that amount appearing in the first
column oi the said table which is the same as or the nearest to the amount
of the emoluments due to the employee:
Provided that where-
(a) the pay period for which the emoluments are to be paid is not
provided for in the tax tables, or
(b) the emoluments paid per year are greater than any amount pro-
vided fbr in the first column of the table to be used,
the amount to be deducted shall be determined by the Commissioners.
(2) In the event of the amount of the emoluments due to the employee
being an amount exactly between two amounts appearing in the first column
of the table to be used, the tax to be deducted shad be that amount appearing
in the appropriate column of the said table opposite to the larger of the two
(3) For the purposes of this Rule, the table of the tax tables to be
used shall be that table of the tax tables prepared by the Commissioners
pursuant to Rule 23 of these Rules which takes into account total allowances
and corresponds to the pay period for which the emoluments are to be paid,
and the appropriate column shall be the column of the said table appearing
under the range of total allowances specified in the table within which the
total allowances of the employee or the greater part thereof from whom tax is
to be deducted is included:
Provided that in the case of an employee-
(a)' who is a married woman whose income pursuant to section 3 of
the Ordinance is chargeable in the name of'her husband; or
(b) resident abroad, or
(e) from whom a -edidlaration has not been received by !the employer
or who is not entitled in accordance with the provisions contained
in the second .proviso -to subsection (1) of section 61A of the
Ordinance to file a declaration,
the table of the tax tables to be used shall be that table prepared by the Com-
missioners pursuant to Rule 23 of these Rules without taking into account
total allowances and which corresponds to the pay period for which the
emolumertts are to 'be paid, and the appropriate column shall in such cases be
the second column of that table.
'6. On payment of a bonus or on payment of any sum to meet any retro-
active increases of emoluments granted to an employee, the following deductions
'of tax-shall, subject to the provisions of Rdles 7 and 9 of these Rules, be made
'by the -employer in accordance with the following provisions:-
(a) where the employee is at the date of the payment of the bonus
in receipt of emoluments from the employer paying the bonus, then-
(i) the total amount of bonus shall be divided by the number of
pay periods (appropriate to the employee) in the year in which
it is paid, and
'(ii) the resulting amount shall be added to the amount of emolu-
ments '(before tax was deducted) which were payable to the
employee in the pav period immediately preceding the date
on which the bonus is paid, and
(iii) the 'amount of tax which should have been deducted in the
immediately preceding ,pay period aforesaid in respect of such
aggregate sum shall be determined by reference to the appro-
priate tax table, and
('iv) the amount of tax to be deducted from the bonus shall be
the difference between the tax, determined under paragraph
(iii) a'd the tax, if any, -actually deducted in the immediately
preceding -pay period aforesaid, multiplied 'by the number of
pay periods in the year.
(b) Where the employee is at the 'date of the payment of the bonus no
longer in receipt of emoluments from the employer paying the bonus
the amount of tax to be deducted shall be the tax for the year in
which the lbonns is nmid shown to be deductible in the appropriate
table prepared by the 'Commissioners under paragraph (3) of
Rule 23 of these Rnles (which is a table prepared without taking
into account any amount of total allowances).
(c) In the case of a retroactive payment, the amount of tax to be de-
ducted shall be the driffe'enee between the total tax that should have
been deducted pursuant to Rule 5 of these Rules if such payment
had been spread evenly over those pay periods for which the pay-
ment is made and added to the amount of emoluments paid over
such pay periods and the amount of tax deducted in respect of
those pay periods prior to the making of the retroactive payment.
7. (1) The Commissioners may direct employers as to the amount of tax.
if any, to be deducted from-
(a) the emoluments of employees engaged in casual or seasonal em-
(b) the emoluments of any other class of case which in the opinion
of the Commissioners is a class of case of such a nature that deduc-
tion of tax by reference to the tax tables would be impracticable
or would constitute undue hardship.
(2) Without prejudice to the foregoing provisions of this Rule, any
directions given pursuant to the provisions of this Rule may, in particular, in-
clude directions as to the manner in which the tax, if any, shall be deducted, the
period over which such deductions shall be made and such other matters as the
Commissioners may think fit and any employer to whom any such directions
mray be so given shall comply with the directions so given.
8. If any emoluments are paid by an employer at any time after the
date of death of an employee the employer by whom the emoluments are paid
shall subject to the provisions of Rule 9 of these Rules, on making any such
payment, deduct in accordance with the provisions of these Rules the tax on
thore emoluments as if the deceased employee was still alive at the date of the
9. Tax shall not be deducted by any employer from-
(a) the emoluments of any employee who performs the duties of his
employment wholly outside of this Island;
(b) emoluments paid outside of this Island to an employee outside of
this Island; or
(c) a pension benefit or retiring allowance arising out of an employment
which was wholly carried on outside of this Island; or
(d) a pension, benefit or retiring allowance arising out of employment
under the Government of Saint Vincent payable to a person resident
in the United Kingdom; or
(e) the emoluments of any person to whom a notice published pursuant
to paragraph (c) of subsection (1) of section 61A of the Ordinance
ninlcss the Commis.ioners, in any particular case, direct the employer to deduct
t:x in accordance with these Rules.
10. (1) The amount of tax to be deducted pursuant to any direction given
by the Commissioners in any particular case shall in no event exceed the
amount of tax which is deductible or would be deductible by reference to the
(2) If any question shall arise as to-
(a) the amount of tax to be deducted on payment of any emoluments,
(b) whether or not any emoluments are of any class of case specified
in Rule 7 of these Rules or in a notice published pursuant to
paragraph (c) of subsection (1) of section 61A of the Ordinance,
(c) whether or not any payment of emoluments is a payment of a
bonus or a retroactive payment,
such question shall be determined by the Commissioners.
PAYMENT OF TAX DEDUCTED
11. Within the first 15 days of every month, every employer shall pay
to the Commissioners the total amount of tax deducted by him in accordance
with the provisions of these Rules during the immediately preceding month:
Provided that where an employer ceases to carry on business all amounts
of tax deducted by him pursuant to these Rules and not paid to the Commis-
sioners shall be paid by him to the Commissioners within seven days of the day
on which the last payment of emoluments was made.
ACCOUNTING FOR TAX DEDUCTED
12. Every payment of tax made pursuant to Rule 11 of these Rules shall
be accompanied by a return made out on the appropriate form by or on behalf
of the employer.
13. Where the payment of a bonus or of any sum to meet any retroactive
increases of emoluments granted to an employee is made at any time in any
year and the whole or any part of such payment relates to any pay periods
of any calendar year preceding the year in which such payment is made, the
employer shall within seven days of such payment being made deliver or send
by post to the Commissioners a separate account of such payments made c;it
on the appropriate form and showing the total of such emoluments paid and
the total amount of tax deducted therefrom.
14. (1) Within the month of January of each year next following a year
in which tax was deducted from the emoluments of an employee the employer
by whom the tax was deducted shall, unless he has previously delivered or
sent to the employee a certificate provided for by Rule 15, 16 or 17 of these
Rules, deliver personally or send by post to the employee a certificate made out
on the appropriate form and containing the following particulars namely--
(a) the name and address of the employee;
(b) any number used to identify the employee;
(c) the total amount of all .emoluments paid 'by rhim
during the year immediately preceding that.in which .the certificate
is by this Rule required to be sent or delivered;
(d) the total amount deducted by him for or in respect of any amount
contributed by the employee to any scheme or fund within the
meaning of paragraph (v) of section 20 of the Ordinance on the
making of any payment of those emoluments to the employee;
(e) the total amount of tax deducted in accordance with these Rules
from those emoluments;
(f) the appropriate code number df the tax table, if any, used in
making the deductions of tax; and
(g) the date when the employment commenced if subsequent to the first
day of January in the year to which the certificate relates.
(2) The employer required by this Rule to deliver or send ,a certificate
to the employee shall make on the appropriate forms two copies of the said
certificate which he shall deliver personally or send by post to the Commis-
sioners by the 31st day of January.
15. (1) If the employer ceases to employ an employee from whose
emoluments tax was deducted by him in accordance with these Rules he shall
not later than the day on which the last payment of emoluments was made,
deliver personally or send by post to the employee a certificate on the appro-
priate form containing the following particulars namely-
(a) the name and address of the employee;
(b) any number -msed to identify the employee;
(c) the date on which the employment ceased;
(d) the total amount of all emoluments paid by him to the employee
from the 1st day of January of the year in which the employment
ceased up to and including the day on which the last payment of
emoluments was made to the employee;
(,) the total amount deducted by him for or in respect of any amount
contributed by the employee to any scheme or fund within the
meaning of paragraph (v) of section 20 of the Ordinance on
the making of any payment of those emoluments;
(f) the total amount of tax deducted in accordance with these Rules
from those emoluments; and
(g) the appropriate code number of ithe tax table, if any, used In
making the deductions of tax.
(2) The employer shall make on the appropriate form two copies of
the said certificate which he shall deliver personally or send by post to the
Commissioners on the day on which the last payment of emoluments was made.
(3) Retirement on pension shall not be treated as a cessation of employ-
ment for the nlrnoses of this Rule if the emoluments are paicLby the same
person both before and after the retirement.
i6h (4%' it an employer ceas to carry on business he- shall, with. reject
to. elti employee, from; whose emoluments' any tax was- deducted during the
year in which the business ceased, personally deliver or send: by post not later
than the last day on which a payment of emoluments was made to that em-
ployb a< certificate made out on the appropriate formi and containing the par-
tieulbrn* sp'eifiedi in Rule 14' of these RIles for or in respect of a period
beginningW with the, first day of the year' ini which the business ceased to be
carried, on. and terminating on the- day of- cessation' ofV that business.:
Provided that in the case of a business commenced to be carried on in
the year- in, which it ceases on a day other than the 1st' day of January in that
year, the date-of commencement of the period froror in respect of which the
particulars of-the certificate shall relate shall be the date on which th2 business
commenced to-be carried onin that year.
(2) The employer shall make on the appropriate forms two copies oftlie
said certifloate which he-shall deliver personally or send by post to the Com-
missionero within one month, of the day of cessation of the business.
17. (1) On the death of an employee the employer shall not later than
tile 15th day of:' the month' next following that in which the death occurred
delivery personally or send- by post to the personal representative or next of
kin of the deceased employee, if known t'o him, the certificate mentioned' in
Rtile 15, of, these Rules..
(2) The employer shall at the same time deliver-personally or send by
post to the Commissioners-two copies of'the said certificate made on the appro-
priate forms, and. shall insert thereon the name of the personal representative
to the deceased employee, if known to him,
18. Every, employer on making any payment of emoluments to an em-
ployee- ftom- wom tax is deducted pursuant to these Riles, shall furni;;h to the
employee particulars of the payment including particulars of the gross emolu-
ments for the pay period and of the amount of tax deducted therefrom, in
sulh' fbirm; as may be' approved by the Commissioners:
Pifvidfd" that' the Commissioners may in their discretion exempt from
the provisions of this Rule all or any employers in respect to such classes
of employees as they-shall think fit.. Any such exemption may at any time be
revoked' by-the- Commissioners.
19.' EWvry emplbyer- on. making any payment of emoluments to an em-
ployee from whose emoluments tax is deducted pursuant to these Rules, shall
keep.to the satisfy tion of the Commissioners a record'of'the emoluments paid
to each such~employee and the tax deducted therefrom on each payment thereof.
20. If any employer dies anything which he would have been liable to do
undr -these Rules shall be done by his personal representative, or, in the case
of an employer who paid emoluments on behalf of another person, by the
person succeeding him or, if no person succeeds him, the person on whose behalf
lie paid the emoluments.
21. (1) This Rule applies where there has been a change in the employer
from wliho ai employee receives emoluments in respect of his employment in
any trade, business concern or undertaking or in connection with any property,
or from whom an employee receives any annuity or pension or allowance
iii respect of past service.
(2) Where this Rule applies the change shall not be treated as a cessation
of employment for the purposes of Rule 15 of these Rules, but, in relation to
any matter arising after the change, the employer after the change shall be
liable to do anything which the employer before the change would have been
liable to do under these Rules if the change had not taken place:
Provided that the employer after the change shall not be liable for the
payment of any tax which was deductible from emoluments paid to the employee
before the change took place.
22. (1) The declaration which a person may file pursuant to section 61A
of the Ordinance, may include particulars of all or any of his total allowances
as the employee by whom the declaration is filed may think fit.
(2) A person entitled and wishing to file a declaration under section 61A
of the Ordinance shall do so at the following times-
(a) on the day on which his employment commences;
(b) within seven days of the day on which a change occurs in the total
allowances to which he is entitled;
(c) within such time or times as may be specified by notice published
by the Commissioners in the Official Gazette and at least one
newspaper of this Island, or in such other manner as the Com-
missioners shall think fit.
Provided that the Commissioners may in their discretion permit any
such person to file a declaration at any time other than the aforesaid times.
23. (1) The tax tables shall be constructed with a view to securing that
so far as practicable the tax to be deducted pursuant to these Rules from the
emoluments of any employee may be readily ascertained and with a view to
securing that so far as practicable the total tax payable in respect of any
emoluments is deducted from the emoluments paid during the year.
(2) Separate tables shall be prepared for daily, weekly, monthly and
annual pay periods. Such tables shall make provision for such ranges of total
allowances and for such amounts of emoluments as the Commissioners shall
(3) In addition to the tables required by paragraph (2) of this Rule,
tables slhal be prepared relating to such of the pay periods referred to in that
paragraph as the Commissioners shall think fit and providing for such amounts
of emoluments as the Commissioners shall think fit, but without making inlo
account any total allowances.
(4) For the purposes of this Rule, references to the total tax payable
shall in relation to the tables referred to in paragraph (2) of this Rule be
construed as references to the total tax estimated to be payable having regard
only to the allowances provided for by these Rules and without aggregating
emolumcnts from two or more sources or other income and in relation to the
tables reEerred to in paragraph (3) of this Rule shall be construed as references
to the total tax estimated to be payable without having regard to any allow-
ances whatever and without aggregating emoluments from two or more sources
or other income.
24. Every employer, when called upon to do so by the Commissioners
or any person authorised in writing by them shall produce to the Commissioners
or such authorised persons for inspection, at the employer's premises, all
wages sheets and other documents and records whatsoever relating to the calcula-
tion of payment of the emoluments of his employees or the deduction of tax
therefrom or the accounting of any tax deducted therefrom.
25. If any employee considers that any tax deducted by his employer is
less than or in excess of the amount of tax that ought properly to be deducted
in accordance with these Rules from his emoluments, he may in writing give
notice of complaint, stating the grounds of his complaint, to the Commissioners.
26. In the event of the Commissioners being satisfied on the complaint
of any employee made under Rule 25 of these Rules that any tax in excess of the
amount that ought properly to have been deducted in accordance with these
Rules from the emoluments of the employee was deducted by the employer,
they shall as soon as practicable cause the excess to be refunded to the employee.
27. Any notice published by the Commissioners pursuant to paragraph
(c) of subsection (1) of section 61A of the Ordinance shall be published in
the Official Gazette and at least one newspaper in this Island or in such other
manner as the Commissioners may think fit.
28. (1) Proceedings on complaint may be brought under section 61 of
the Ordinance for the recovery of the total amount of tax which an employer
is liable to pay to the Commissioners within the times specified in Rule 11 of
these Rules without the complaint distinguishing the amounts which the em-
ployer is liable to pay in respect of each employee and without the complaint
specifying the employees in question, and for the purposes of such proceedings,
the said total amount shall be one matter of complaint, but nothing in this
Rule shall prevent the bringing of separate complaints for the recovery of each
of the several amounts which the employer is liable to pay within the first
fifteen days of every month in respect of his several employees.
(2) A certificate of the Commissioners that any amount of tax as is
mentioned in paragraph (1) of this Rule has not been paid to them, or to tle
best of their knowledge and belief, to any person acting on their behalf, shall
be sufficient evidence i at the sum mentioned in the certificate is due and
unpaid; and any document purporting to be such a certificate as aforesaid
shall be deemed to be such a certificate until the contrary is proved.
29. These Rules shall come into operation on the 1st day of January, 1966:
Provided that Rule 3 (Registration of Employers) shall come into
operation on. the date provided in that Rule.
And alb provided that Rule 27 of these Rules, and the Rules contained
in sub-paragraphs (b) and (c) of paragraph (2) of Rule 22 of these Rules
shall come into operation on the 18th day of December, 1965.
Madel$,b the Administrator in Council, under section 72 (1) (b) of the
Income Tax.-Ordinance, 1956, (No. 1 of 1956) as amended this 15th day of
GABRIEL V. BONADIE,
Clerk of Executive Council.
PRINTED BY THE GOVERNMENT PRINTER AT THE GOVERNMENT PRINTING OFFICE,
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[ Price 40 cents. ]