ARRANGEMENT OF SECTIONS
1 Short title
3 Imposition of levy on contractors
4 Collection of levy
5 Treatment of levy for the purposes of income tax
6 Collector of Taxes may authorise payment without deduction
7 Assessment of levy
8 Objection to assessment
9 Appeal against assessment
10 Proper records to be kept
11 Exemption from payment of levy
12 Power to amend Schedules
THE CONTRACTORS LEVY ACT
[Date of Commencement: 23rd December, 1985]
Act 21 of 1985.
This Act may be cited as the Contractors Levy Act.
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 of service) with a principal contractor relating to construction operations or tillage operations or haulage operations and under that contract
(a) he is under a duty to the principal contractor to carry out operations or to furnish his own labour or the labour of others in the carrying out of the operations or to arrange for the labour 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.
Subject to any regulations made pursuant to section 14(1)(d), any person who makes any payment either to or on account of a principal contractor or a sub-contractor pursuant to a contract entered into on or after the date of commencement of this Act in respect of construction operations, tillage operations or haulage operations performed, or required to be performed, by that principal contractor or sub-contractor shall deduct from the gross amount of the payment a levy equal to two per centum of that gross amount.
(1) Subject to section 13(1), 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.
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