THE CONTRACTORS LEVY ACT ARRANGEMENT OF SECTIONS

1. Short title.

2. Interpretation.

3. Imposition of levy on contractors.

4. Collection of levy.

5. Treatmentoflevy for the purposes of income tax.

6. Collector of Taxes may authorize payment without deduction.

7. Assessment levy.

8. Objection to assessment.

9. Appeal against assess meat.

10. Proper records to be kept

11. Exemption from payment of levy.

12. Power to amend schedules.

13. Penalties.

14. Regulations.

THE CONTRACTORS LEVY ACT

23rd December 1985

1. This Act may be cited as the Contractors Levy Act.  

2. In this Act- 
“Commissioner of Taxpayer Appeals” means the Commissioner of Taxpayer Appeals appointed under  section 11B of the Revenue Administration Act; 

“construction operations” means such operations as are specified in Part I of the First Schedule but does not include the operations specified in Part II of that Schedule, and references to construction operations shall be taken- 

(a) except where the context otherwise requires, as including references to the work of individuals engaged in carrying out such operations; and 

(b) as not including references to operations carried out or to be carried out otherwise than in Jamaica; 

“haulage operations” means operations of any description specified in the Third Schedule.

“levy” means the levy imposed under this Act;

“principal contractor” means a person who; being a party to a contract (not being a contract of service) is responsible for the carrying out in Jamaica of construction operations or tillage operations or haulage operations under that contract, whether or not he performs all or any of those operations;

“sub-contractor” means a person who is a party to a contract (not being a contract principal contractor relating to construction operations or and under that contract-

(a) he is under a duty to the principal officer to carry out operations or to furnish his own labor or the labor of others in the carrying out of the operations or to arrange for the labor of others to be furnished in the carrying out of the operations; or

(b) he is answerable to the principal contractor for the carrying out of the operations by other persons whether under a contract or under other arrangements made or to be made by him;

“tillage operations” means operations of any description specified in the Second Schedule but does not include operations performed manually or with non-mechanical equipment.

4.-(1) Subject to section 13 (l), a person who deducts the levy from any payment shall be deemed to be collecting the levy on behalf of the Collector of Taxes for the parish in which the levy is deducted and shall, within fourteen days after the end of the calendar month in which the levy is deducted, pay to the Collector of Taxes the amount of the levy so deducted.

(2) Subject to the provisions of this Act and except- in so far as regulations otherwise provide, the provisions of the tax collection Act concerning payment. collection and recovery of tax and the enforcing of payment shall mutatis mutandis apply to the levy in the same way as they apply to tax.

(3) A person who is required to make a deduction of levy pursuant to this Act and fails to do so shall never the less be liable to make payment to the Collector of Taxes in like manner and in like amount as if he had made the deduction aforesaid.

(4) Every person who is hired by this act to deduct the levy from any payment shall, within fourteen days after making the payment, furnish the principal contractor or sub-contractor, as the case may be, with a certificate setting out the gross amount of the payment and the amount of the levy which has been deducted (or, as the case may be, ought to have been deducted) and such other particulars as may be prescribed.

5. For the purposes of the income tax Act the levy deducted from any payment to a principal contractor or subcontractor in any year shall not be treated as an expense under section 13 of the Income Tax Act but shall be regulated by the provisions of section 25k3 or section 32 (31, as the case may be, of that Act.

6. A Collector of Taxes may authorize payment to or on account of, a principal contractor or sub-contractor without deduction of the levy where satisfied is fled that there is no liability to make a deduction of levy from that payment.

(2) A notice of objection under subsection (1) shall state precisely the grounds of objection to the assessment and shall be made within thirty days from the date of service of the notice of assessment.

(3) Where the Collector of Taxes is satisfied that owing to absence from the Island, sickness or other reasonable cause, the person disputing the assessment was prevented from making the a*plication within the period stated in subsection (2) he may extend the period as may be reasonable in the circumstances.

(2) A notice of objection under subsection (1) shall state precisely the grounds of objection to the assessment and shall be made within thirty days from the date of service of the notice of assessment.

(3) Where the Collector of Taxes is satisfied that owing to absence from the Island, sickness or other reasonable cause, the person disputing the assessment was prevented from making the a*plication within the period stated in subsection

(2) he may extend the period as may be reasonable in the circumstance.

(4) On receipt of the notice of objection by the Collector of Taxes,the Collector may require the person giving the notice of objection to furnish, within such period as the Collector may specify, such additional particulars relating to the payment as the~CoHeotormay deem necessary and to produce all books and other documents relating to the payment which are in the custody of or under the control of that person, and may, ay notice, summon any person who he thinks is able to give evidence respecting the payment or the assessment to attend before him and may examine such person on oath or otherwise. Collector of Taxes from marking any refund of amounts paid in excess and which do not involve the reopening of a matter determined by the assessment aforesaid.

(7) A Collector of Taxes shall, in respect of every notice of objectionreferredto& subsection (11, give notice in writing of his decision in respect of that objection to the person disputing the assessment.

(8) Notice under subsection (7) shall not be necessary where an objector and the Collector of Taxes-

(a) agree as to the amount at which the assessment is made or

(b) agree as to the amount at which the assessment should be made and on this event, the assessment shall be amended accordingly.

(9) Where no valid objection against an assessment has been lodged within the specified for such objections,or where the amount has been grad under subsection (8) or with the amount of levy has been determined by the Coll& of Taxes on.objjbon assessment as made, agreed or dqtermhdasthec~lsemaybe, shall be final and conclusive as regards the amount of levy payable.

(10) Nothing in subsection (9) shall prevent a Collector of Taxes from making any refund of levy which he is satisfied is due.

11. Where any of the institutions or persons specified in the Fourth Schedule is a principal contractor or a sub-contractor in relation to construction, tillage or haulage operations, that institution or person shall be exempt from the levy and accordingly payments to them shall be made without the deduction prescribed by section 3.

12.-(1) The Minister may amend the Schedules by order published in the Gazette.

(2) An order made under subsection (1) shall be subject to negative resolution of the House of Representatives.

13.-(1) Where any person fails to pay or account for the levy by the date required by section 4 (l), he shall be treated as if the levy were increased at the rate of twenty-five per centum per annum, or such other rate as the Minister may by order prescribe, in respect of each day during which the failure continues after the date on which the levy is due and payable.

(2) Any person who knowingly makes or delivers any false certificate or who keeps or prepares any false accounts relating to any gross payment or deduction of levy under this Act commits an offence and is liable on conviction on indictment to a fine not exceeding ten thousand dollars and treble the amount of the levy which he ought to have deducted and in default of payment to imprisonment for a term not exceeding five years.

(3) Any person who aids, abets, assists, counsels, incites or induces another person to-

(a) make or deliver any false certificate;

(b) keep or prepare any false accounts relating to any payment or other transaction which may affect the amount of the levy, commits an offence and is liable on summary conviction before a Resident Magistrate to a fine not exceeding five thousand dollars and in default of payment to imprisonment for a term not exceeding six months.

(4) A person who fails to comply with the provisions of section 10 commits an offence and is liable on summary conviction before a Resident Magistrate to a fine not exceeding five thousand dollars and in default of payment to imprisonment for a term not exceeding twelve months.

14. (1) The Minister may make regulations generally for the Re&+ proper carrying out of the provisions of this Act and in particular, but without prejudice to the generality of the foregoing, make regulations-

(a) for the assessment, charge, collection and recovery of the levy;

(b) for the return of any amount of levy paid in error;

(c) for the keeping of records, and books of account relating to the deduction and payment of the levy;

(d) relieving from the provisions of section 3 certain payments by a principal contractor to a sub-contractor and by a sub-contractor to a principal contractor.

(2) Regulations under subsection (1) shall be subject to negative resolution of the House of Representatives.

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