1 L.R.O.
1985
shipping
(Incentives)
CAP.!lOA
CHAPTER90A
SHIPPING
(INCENTIVES)
ARRANGEMENT
OF SECTIONS
SECTION
1.
Short title
2.
Interpretation.
3.
Approved
shipping
4.
Condition
respecting
5.
Income tax concessions.
6.
Dividends.
7.
Customs duties concessions.
8.
Imported
articles
9.
Restriction
on use of disposal of imports.
10.
Compliance
11.
Records and returns.
12.
Certificate
13.
Offences.
company.
revocation
of order.
and. ships.
with income tax law.
of Commissioner
of Inland
Revenue.
14. Regulations.
THE
LAWS
OF
BARBADOS
Ptinted by the Government Printing Department. Bay Street..St.
by the authoiity of the Government of Barbados
Michael.
3
L.R.O.
1987
Shipping
CHAPTER
SHIPPING
CAP. 90A
(Inccn tiucs)
ss.l-3
90A
(INCENTIVES)
An Act to muke provision for the granting
illcerlrives to certain shipping companies.
of tax and
duty
1982-39.
1984-29.
1985-6.
Commence-
[ 1st December,
1. This Act may be cited as theshipping
19821 ment.
S.I. 1982
No. 215.
Short title.
(Incefztives)Act.
2. In this Act
Interpretalion.
“approved shipping company” means any company
the Minister under section 3;
approved
by
“annual allowances”, “assessable income”, “initial allowances”
and “investment
allowances” have the meanings assigned
to them respectively by theIncome TuxAct;
“Commissioner”
“Comptroller”
means the Commissioner
means the Comptroller
Cap. 73
of Inland Revenue;
of Customs;
“concession period” means, in respect of an approved shipping
company, 10 years beginning on the date specified in an
order made by the Minister;
“shipping
activities”
(a) the operation
cargo;
means
of ships for the carriage
of passengers
or
(b) the leasing of ships; and
(c) shipbuilding,
including
the reconstruction,
refitting, equipment, maintenance or repairing
alteration,
of ships.
3. The Minister may, on application being made to him in Approved
such form as he approves, by order, subject to negative resolu- company.
shipping
tion, approve any company
THE
LAWS
OF
BAKBADOS
Primed by the Government Printing Department, Bay Street, St. Michael.
by the authority of the Government of Barbados
ss.4-6
CAP.90A
Shipping
(a) that is engaged
(fncentives)
in shipping
L.R.O.
1987 4
activities;
(b) that is wholly owned by the Crown; or
(c) in which the Government
as an approved
Condition
respecting
revocation
of order.
has a majority interest,
shipping company.
4. The Minister may not revoke an order made under this
Act before he gives to the company a reasonable opportunity
to
show cause to the satisfaction of the Minister why a revocation
order should not be made.
lncomc
5. (1) Notwithstanding
any provision in the Income Tax Act,
aeon,‘““““’ the Minister of Finance may by order grant to an approved
shipping company income tax concessions in respect of profits or
Cap. $3.
gains accruing during a concession period.
(2) Notwithstanding
any provision in the Income Tax Act
relating to income tax or corporation
tax, no initial allowance
shall be made in respect of assets acquired in relation to an
approved shipping company before or during the concession
period.
(3) Initial allowances,
investment
allowances and annual
allowances may, on the expiration of the concession period, be
made on the original cost of the assets, less any allowance made
before the beginning
of the concession period; and initial
allowances and investment allowances shall not be made more
than once in respect of an asset.
(4) An approved shipping company that is granted income tax
concessions under subsection (1) may, for the purpose of the
assessment of income tax, carry forward in respect of the first 6
years of assessment after the expiration of the concession period
losses that were incurred during the concession period and were
not written off, so, however, that the annual allowances referred
to in subsection (3) and the amount of any loss admitted under
section 23 of the Income Tax Act shall be taken into account.
Dividends.
6. (I) An approved shipping company that is granted income
tax concessions in respect of profits or gains arising from its
operations during the concession period shall deposit all such
5
L.R.O.
1987
Shipping
profits or gains into a separate
pay dividends to its shareholders
(Incentives)
CAP.90A
account; and the company
out of that account.
(2) Dividends
paid to a shareholder
who is resident
Barbados are exempt from payment of income tax.
s.7
may
in
(3) An approved shipping company shall, unless the Commissioner otherwise determines,
deduct income tax from any
dividend paid to a person who is not resident in Barbados as if
that dividend has been paid out of profits or gains within the
meaning of the Inconze Tax Act; and any income tax so deducted
shall be paid to the Commissioner.
(4) Where a shareholder to whom a dividend is paid is not
resident in Barbados and is liable to the payment of income tax
in respect of the dividend in the country in which he is
resident, he is exempt from the payment of so much of the income
tax in respect of that dividend as, to the satisfaction
of the
Commissioner,
exceeds his liability in respect of that dividend in
the country in which he is resident.
(5) The exemption from income tax created by subsections
(2) and (4) must not, in respect of the rate of the tax from
which the shareholder is exempt, exceed the rate of the tax that
would, but for the provisions of section 5 and this section, have
been paid by the company on the profits out of which the
dividend is paid.
Cap. 73.
’
(6) Except as otherwise
provided
by this section,
the
provisions of the Income Tax Act in respect of the deduction of
income tax from dividends and the refund of income tax to
shareholders apply to dividends paid by an approved shipping
company pursuant to subsection (1).
(7) Subsection (1) does not apply to an approved shipping
company that is wholly owned by the Crown.
7. An approved shipping company is entitled to import into
Barbados free of customs duty during the concession period
(a) any ship in respect of which the Minister gives his
consent in writing; or
(b) any article to be used exclusively in the building, alteration, refitting, equipping, maintenance or repair of a ship
on a certificate
to that effect of the Secretary
or
THE
LAWS
OF
BARBADOS
Printed by the Government Printing Department. Bay Street, St. Michael,
by the outhorlty of the Government of Barbados
custotns
duties concessions.
ss.8-11
CAP. 90A
L.R.O.
Shippin‘q (Incentives)
1987
6
Managing Director of the company, subject to such conditions as to the keeping or rendering of accounts in respect
of the use of the article as the Comptroller requires.
Condiritrns
regarding
imported
arliclc5and
\hips.
8. An approved shipping company that imports
ship pursuant to section 7 shall
any article or
(u) keep records in such form and containing such particulars
as the Comptroller requires with respect to the use of any
such articles or ship;
(b) cause the article or ship to be marked
the Comptroller directs; and
in such manner
as
(c) give to the Comptroller
or any person authorised
by
him in writing access at all reasonable times to any record,
premises, article or ship of the company for the purpose of
the carrying out of an inspection.
Kebtriction
m uw or
di\pusal of
imports.
9. JNOarticle or ship imported
(u) before the expiration
importation; or
under section 7 shall
of 10 years
(b) without the written permission
law.
Cap. 73.
1985-6.
Records and
the
date
of
of the Minister,
be disposed of or be used for any purpose
for which it was imported.
Complinnce
with incume tax
from
other
than
that
10. An approved shipping company is no1 exempt under this
Act from the making of any return to the Commissioner
under the Income Tax Act or from complying with that Act or
any other enactment relating to income tax, except in so far as
this Act otherwise provides.
11. An approved
shipping company shall
return\.
(a) keep such books, records and accounts in relation to its
operations as the Minister prescribes;
(b) permit, at all reasonable times, any person authorSed in
writing by the Minister to enter any premises under its
control and inspect or make copies of any entries in such
books, records or accounts;
7 L.R.O.
CAP. 90A
Shipping (Incentives)
1985
ss. 12-14
(c) at the request of any person authorised
by the Minister,
produce, within a reasonable time, any book, record,
account or other document relating to its operations if
required so to do; and
(d make such returns or give such information
operations
relating
to its
as the Minister determines.
12. Notwithstanding
any provision to the contrary in the Certificate
_^
Tax Act, the Commissioner
of Inland Revenue may Y?~;~r
certify, in the prescribed form, the concessions enjoyed by an oft,&,nd
approved shipping company under this Act where that certificate
Hevenuc.
is to be produced by the company to the fiscal authorities of any Cap.73.
country in which a minority
shareholder
in an approved
shipping company is liable to pay tax in respect of his shareholding.
Income
13. Any person who
Offences.
(a) makes any false statement or representation
of any concession allowed under section 5;
(b) makes or delivers any false account,
respect of that concession; or
in respect
kept or prepared
in
(c) contravenes any of the provisions of section 8 or 9,
is guilty of an offence and is liable on summary conviction
to a fine of $10 000 or to imprisonment
for 12 months,
or to both.
14. (1) The Minister may make regulations generally for the
purpose of giving effect to the provisions of this Act, and, in
particular, with respect to
(a) ensuring that any article or ship is not used for a
purpose other than that for which it was imported under
this Act;
(b) the adjustment
of profits or gains when an accounting
period falls partly within and partly without a concession
period; and
THE LAWS OF BARBADOS
Printed by the Government Printmg Department. &y Street. St. Michael.
by the authority of lhe Government of Barbados
Regulations.
s. 14
CAP. 90A.
(c) any other
prescribed.
(2) Regulations
negative resolution.
Shipping (Incentives)
matter
made
that
under
is by this
subsection
L.R.O.
Act required
1985
8
to be
(1) are subject
to