TRANSFER TAX ACT

ARRANGEMENT OF SECTIONS

PART I
Preliminary

   1   Short title

   2   Interpretation

 

PART II
Tax Imposed on Transferors

   3   Imposition of tax on transferors

   4   Assessment of consideration at market value of property

   5   Transfer on death

   6   Settlements

   7   Leases

   8   Charges and incumbrances

   9   Contingent liabilities

   10   Contracts of transfer

   11   Options

   12   Special provisions with reference to securities, and to transfers on death

      Deduction generally allowable from consideration for transfer of land

 

PART III
Relief and Exemptions

   13   Application for relief by liquidator, or receiver of property, of company or by Trustee in Bankruptcy

   14   Reliefs from tax on grounds of absence or extent of capital gains

   15   Relief from tax in case of residential, agricultural, religious or educational use

   16   Relief from tax on contracts

   17   Exemptions

      Restriction on application of Part III

 

PART IV
Payment and Enforcement of Tax

   18   Tax to be paid by transferee

   19   Payment of tax as stamp duty

      Returns to be furnished in respect of transactions by Jamaica Stock Exchange, etc

   20   Payment of tax otherwise than as stamp duty

   21   Special provisions for payment of tax on transfers of tax on transfers of securities

   22   Returns by trustees

   23   Penalty for failure to make return

   24   Assessments

   25   Objections

   26   Appeals

   27   Payment of amount assessed pending appeal

   28   Assessments or amended assessments to be final

   29   Collection

   30   Suit for tax

   31   Stamping pursuant to collection by Collector of Taxes

   32   Tax to be enforceable against property

   33   Transfers not to be registered unless tax paid

   34   Construction

 

PART V
Miscellaneous

   35   Refund of tax overpaid

   36   Duty of public officer to furnish information

   37   Secrecy

   38   Duty of person served with notice to make return, to attend before the Commissioner and to produce documents

   39   Access to land and buildings

   40   Notices

   41   Penalties for false statements

   42   General provisions as to penalties

   43   Apportionment

   44   Regulations

   45   Double taxation relief

   46   Remission of tax

      SCHEDULE

 

THE TRANSFER TAX ACT

[Date of Commencement: 4th August, 1971]

Acts
7 of 1971,
50 of 1973,
44 of 1974,
12 of 1975,
12 of 1985,
19 of 1988,
8 of 1994,
20 of 1999,
28 of 2003.

LNs
170/1972
165/1999,
113A/1997,
8B/2002.

PART I
Preliminary (sections 1-2)

1   Short title

   This Act may be cited as the Transfer Tax Act.

2   Interpretation

   (1) In this Act-

   "capital sum," means any money or money's worth except in so far as it-

   (a)   shall be treated under section 34 of the Income Tax Act, as a distribution body corporate; or

   (b)   shall be charged under the provisions, other than section 34 of the Income Tax Act, to income tax as income, or be taken into account as a receipt in computing income, gains, profits or losses under those provisions; or

   (c)   would be charged, or taken into account, as aforesaid but for any enactment by virtue of which income, gains or profits are exempted from being so charged or taken into account,

so, however, that the foregoing exception shall not be construed as inclusive of any money or money's worth which is taken into account in the making of a balancing charge under Part I or II of the First Schedule to the said Act;

   "class" in relation to shares or securities, means a class of shares or securities of any one company;

   "Commissioner" means the Commissioner of Taxpayer Audit and Assessment appointed under section 11E of the Revenue Administration Act:

[12/1985 Sch; LN 165/1999.]

   "Commissioner of Taxpayer Appeals" means the Commissioner of Taxpayer Appeals appointed under section 11B of the Revenue Administration Act;

[LN 8B/02.]

   "company" means any body incorporated under the law of Jamaica or any unincorporated association registered under the law of Jamaica, other than a partnership, and, for the purposes of paragraphs (e) to (i) (inclusive) of subsection (3) of section 4, includes any body incorporated, or unincorporated association registered, under the law of any other country;

   "control", in relation to any company, shall have the meaning assigned to that expression, in relation to a body corporate in the Income Tax Act;

   "deed of arrangement" has the meaning assigned thereto by section 2 of the Bankruptcy Act;

   "debentures" means, save to such extent as may otherwise be prescribed by regulations under this Act, any debentures, debenture stock or bonds of a company, whether constituting a charge on the assets of the company or not;

   "land" includes land of any tenure, and tenements and hereditaments, corporeal or incorporeal, and messuages, houses, buildings and other constructions, also an undivided share in land, but does not include land outside Jamaica;

   "lease" includes an underlease, sublease, tenancy or licence, and any agreement for a lease, underlease, sublease, tenancy or licence, and "rent" shall be construed accordingly;

   "legatee" includes any person taking under a devise or other testamentary disposition or on an intestacy or partial intestacy, whether he takes beneficially or as a trustee, and a donatio mortis causa shall be treated as a testamentary disposition and shall not be treated as a gift,

   "market value" in relation to any property, means (except as otherwise provided by this Act or any regulations thereunder) the price which such property might reasonably be expected to fetch on a sale in the open market;

   "Minister" means the Minister responsible for finance;

   "property" means property in any of the classes to which section 3 applies by virtue of the provisions of subsection (4) thereof;

   "relative", as respects any person, means his or her husband or wife, or brother, sister, uncle, aunt, nephew, niece or lineal ancestor or descendant (the step-child, adopted child or illegitimate child of any person being taken into account as a relative or to trace a relationship in the same way as that person's child);

   "securities" means securities of a company, and includes any shares therein, debentures, and rights or interests in, to or over any securities, but does not include bond, or other securities issued by the Government of Jamaica;

   "settled property" means any property held in trust, other than property in relation to which subsection (2) of section 3 applies;

   "shares" includes stalk, and members' interests in any company without share capital, but references in this Act to shares (as hereinbefore defined) shall be construed with such exceptions or other qualifications, to such extent, as may be prescribed;

   "tax" means tax imposed by this Act,

   "transfer" means any legal or equitable transfer by way of sale, gift, exchange, grant, assignment, sure render, release, or other disposal, and includes a transfer by or at the order or direction of a court of competent jurisdiction or by way of compulsory acquisition and "transferor", in relation to such a transfer of property, means the person from whom the property is so transferred;

   "year of assessments" shall have the meaning assigned hereto by subsection (1) of section 2 of the Income Tax Act.

   (2) Any reference in this Act to a person connected with another shall be construed in accordance with subsection (3) of section 4.

   (3) For the purposes of this Act-

   (a)   references to a disposal of property (whether they be made by mention of a transfer of property or otherwise) include, except where the context other wise requires, references to a part disposal of property;

   (b)   there is a part disposal of property where an interest or right in or over the property is created by the disposals as well as where it subsists before the disposal, and generally, there is a part disposal of property (hereafter referred to in this paragraph as "the original property") where, on a person making a disposal, any description of property derived from the original property remains undisposed of.

PART II
Tax Imposed on Transferors (sections 3-12A)

3   Imposition of tax on transferors

   (1) Subject to and in conformity with the provisions of this Act, tax shall be charged at the rate of seven and one-half per centum of the amount or value of such money or money's worth as is, or may be treated under this Act as being, the consideration for each transfer under the 3rd day of April, 1984, of any property, and tax charge in respect any such transfer shall be borne by the transferor.

[12/1975 s 2; 19/1988 s 2(a) and (b).]

   (2) In relation to any property held by a person as nominee for another person or as trustee for another person absolutely entitled as against the trustee (or for two or more persons who are so entitled in possession, whether as joint tenants or tenants in common), or as a trustee or assignee in bankruptcy or under a deed of arrangement, or as liquidator for any company, this Act shall apply as if the property were vested in, and the acts of the nominee, trustee, assignee or liquidator in relation to the property were the acts off the person or persons for whom he is the nominee or trustee or who is the bankrupts debtor or company, as the case may be (transfers between that person or persons and the holder of the said property in his afore mentioned capacity being disregarded accordingly), and for the purposes of this subsection no person shall be deem to be entitled otherwise than as aforesaid by reason only of his entitlement as against the trustee being subject to the satisfaction of any outstanding charge, lien or other right of the trustee to resort to the property for payment of duty, taxes costs or other outgoings.

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