RESORT COTTAGES (INCENTIVES) ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Designation of resort cottages and groups of resort cottages

   4   Designation of recognised extension

   5   Application for designation

   6   Amendment and revocation of designations

   7   Income tax benefits

   8   Dividends

   9   Benefits in respect of customs duty and tax

   10   Commissioner's powers in respect of duty free articles

   11   Restriction upon disposition of articles and upon use of resort cottages in recognised group

   12   Saving of liability to comply with the law relating to income tax, customs duty and tax

   13   Commissioner of Income Tax may refuse to treat certain receipts and payments as received or made in a particular year

   14   Commissioner of Income Tax may issue certificates

   15   Records and returns

   16   Offences

   17   Regulations

      SCHEDULE

 

THE RESORT COTTAGES (INCENTIVES) ACT

[Date of Commencement: 4th November, 1971]

Acts
31 of 1971,
23 of 1972,
12 of 1985,
16 of 1991.

LNs
38/91,
165/1999.

1   Short title

   This Act may be cited as the Resort Cottages (Incentives) Act.

2   Interpretation

   In this Act unless the context otherwise requires-

   "annual allowance", "chargeable income", "initial allowance" and "year of assessment" have the same meanings as in the Income Tax Act, and where pursuant to this Act any annual allowance is made, such allowance shall be made subject to and in accordance with the provisions of that Act;

   "designation" means the instrument by which any resort cottage, or group of resort cottages, or any extension or other alteration is designated as a recognised resort cottage, or recognised group, or recognised extension, as the case may be;

   "recognised extension" means an extension or other alteration designated under section 4 as a recognised extension;

   "recognised group" means two or more resort cottages designated under section 3 as a recognised group of resort cottages;

   "recognised resort cottage" means a resort cottage designated under section 3 as a recognised resort cottage, or a resort cottage in any recognised group;

   "relevant concession period" means, in relation to any recognised resort cottage, or recognised group, or recognised extension, the period of seven years commencing on the date specified in the designation relating to such recognised resort cottage, or recognised group, or recognised extension, as the case may be, from which relief from income tax shall be enjoyed under section 7 in relation thereto;

   "resort cottage" means any building containing or intended to contain when completed not less than two furnished bedrooms, a furnished living room, bathroom facilities and facilities for the preparation and consumption of meals, and used or intended to be used for the accommodation of transient guests including tourists for reward;

   "tenant" does not include a transient guest;

   "transient guest" means any person occupying a resort cottage for hire for a period not exceeding sixty days in any year.

3   Designation of resort cottages and groups of resort cottages

   (1) Subject to the provisions of subsection (3) and section 6 the Minister may by instrument in writing designate any resort cottage, whether such resort cottage is in existence at the date of such designation or is proposed to be constructed thereafter, as a recognised resort cottage for the purposes of this Act.

   (2) Subject to the provisions of subsection (3) and section 6 the Minister may by instrument in writing designate two or more resort cottages-

   (a)   containing an aggregate number of not less than ten bedrooms; and

   (b)   situated in the same district, village or town; and

   (c)   owned by the same person, as a recognised group of resort cottages for the purposes of this Act, whether any of such resort cottages are in existence at the date of such designation or are proposed to be constructed thereafter; and each of such resort cottages shall, upon such designation, become a recognised resort cottage.

   (3) The Minister shall not make any designation under this section unless he is satisfied that-

   (a)   the buildings in respect of which application is made for such designation were not in existence before the 1st day of April, 1968; and

   (b)   arrangements have been made to ensure that any resort cottage recognised under such designation will be operated as a resort cottage; and

   (c)   adequate finances will be available for constructing, equipping and operating the resort cottage in respect of which application is made for such designation; and

   (d)   such operation will have beneficial economic effects, including the effect on the tourist trade.

   (4) Any designation under this section may include such terms and conditions as the Minister may think fit and shall-

   (a)   identify the persons who shall be entitled to enjoy relief from income tax under section 7, and the persons, if any, who shall be entitled to enjoy relic! from customs duty under section 9; and

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