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LAWS OF FIJI
BACK INCOME TAX ACT Chapter 201 TABLE OF LEGISLATION INCORPORATED IN THIS REVISED EDITION
INCOME TAX SECTION PART I – PRELIMINARY 1. Short title 2. Interpretation 3. Commissioner of Inland Revenue and officers 3A. Office of the Commissioner 4. Official secrecy 5. Free postage 6. Basic tax 7. Normal tax 7A. Tax surcharge 7B. 1992 assessment 8 Non-resident dividend withholding tax 8A. Non-resident miscellaneous withholding tax 9 Interest withholding tax 9A. Resident interest withholding tax 10. Dividend tax 10A. Royalty withholding tax Division 1 – Amounts to be Included in Arriving at Total Income 11 Definition of total income 11A. Shares acquired under employee share schemes 11B. Benefits derived by associates of employees 11C. Benefit acquired other than for arm's length consideration 11D. Benefit received by deceased's estate 11E. Benefit received on loss etc. of office 12. Deemed distribution 13. Trading stock 14. Income deemed to be derived from Fiji 15. When income is deemed to have accrued or to have been received Tax and Normal Tax 16 Exemption of certain income from tax 16A. The film-making and audio-visual incentives in the Sixth Schedule have effect. 17. Incomes not taxable 18. Shipping profits 19. Expenses not deductible 20. Remuneration or gratuity to shareholder, director, relative, etc. 21 Expenses deductible 21A. Deduction for dividends 21B. Export income deduction 21C. Investment allowance 21D. Employee share schemes 22. Losses 23. Special provision for mining expenditure 24. Chargeable income of person other than a company, etc. 25. Allowances 26. Deductible amounts 27. Age allowance 28. Maximum number of dependants 29. Education allowance 30. Passages 31. Chargeable income of non-resident individual 32. Chargeable income of company 33. Chargeable income of deceased's estate, trust or settlement 34 Commissioner may in certain circumstances determine income of business controlled from outside Fiji 35. Taxation of other than life insurance business of insurance companies 36. Taxation of re-insurance with non-residents (other than life insurance business) 37. Taxation of life insurance business 38. Resident partner to be agent of non-resident partners 39. Trustees, assignees, executors, etc., to make return and pay tax before distribution 40. Agent, etc., for non-resident 41. Authorised officer of a company 42. Persons chargeable in the case of a trust or a settlement or income paid to a beneficiary 43. Income of a married woman 44. Return of income 45. Return of corporations 46. Return by guardian or legal representative 47. Return by employers of salary and by companies of dividends, etc. 48. Time may be extended 49. Commissioner may demand special returns and make special assessments 50. Demand for additional information 51. Partnerships-return of partners 52. Return of proprietor of a business 53. Return of company where fiscal year not calendar year 54. Returns of withholding tax or dividend tax deducted 54A. Interpretation 54B. Tax Agents' Board 54C. Proceedings of the Board 54D. Protection of members 54E. Power to require attendance of witnesses, etc. 54F. Registration of tax agents 54G. Cancellation of registration 54H. Appeals 54J. Only tax agents to accept fees 54K. Advertising 55. Notice of assessment to be sent and time for payment 56. Appointment of agent in the United Kingdom 57. Assessment may be sent to agent 58. Commissioner not bound by returns 59. Additional assessments 60. Commonwealth Development Corporation 61. Provisional tax and tax deducted from emoluments to be credited against tax assessed 62. Objection to assessment 63. Establishment of Court of Review 64. Rules of Court 65. Court sittings 66. Court of Review to decide and notify appellant and Commissioner 67. Proceedings ex parte 68. Costs 69. Appeal to [High Court] 70. Discretions Review Board 71. No assessment to be set aside for technical reasons 72. Trustees, etc., to obtain certificate before distribution 73. Tax due from agent of non-resident in respect of premiums on insurance and re-insurance 74. Persons paying tax on behalf of others to be indemnified 75. Deduction from moneys payable to a taxpayer 76. Tax a debt due to [State] 77. Collection of tax by suit 78. Refunds 79. Interpretation 80. Assessment charge on emoluments 81. Regulations 82. Amounts deducted be held in trust for [State] 83. Payment of taxes by instalments 84. Ascertainment of provisional tax payable 85. When provisional tax payable 86. Additional tax where provisional tax under-estimated 87. Special circumstances 88. Voluntary payments of additional provisional tax 89. Provisional tax payments for farmers, etc. 90. Extension of time for payment of provisional tax 91. Advance payments of tax by companies 92 Additional tax payable by companies when advance payments are less by more than 20 per cent of final liability 94. Penalty for not making return 95 Penalty for understating income or making a false claim to a deduction, allowance or relief 96. Penal provisions 97. Penalty for non-payment 98. Penalty for failing to appoint an authorised officer of a company 99. Provisional tax – penalty for late payment 100. Limitation of proceedings 101. Rebates, normal tax – general rebate 102. Allowance for double taxation relief 103. Extent of relief under Double Taxation Agreement 104. Rebate of withholding tax 105. Allowances under the Hotels Aid Act 106. Prevention of or relief from double taxation 107. Regulations 108. Contracts for avoidance of tax 109. Books of account 110. Approved funds 111. Audit First Schedule – Forms Second Schedule – Discretions Appealable under Section 70 Third Schedule – Tax Concessions in respect of Approved Enterprises Fourth Schedule – Rates of Normal Tax Fifth Schedule – Export Incentives Sixth Schedule – Film Making and Audio-Visual Incentives Seventh Schedule – Agricultural Enterprises Incentives Eighth Schedule – Tourist Vessels Investment Allowance Ninth Schedule – Supportive Projects to Tourist Industry Investment Allowance CHAPTER 201 INCOME TAX AN ACT TO RE-ENACT AND AMEND THE LAW RELATING TO INCOME TAX [1 January 1974] “agent” includes every person who in Fiji, for or on behalf of any person out of Fiji, holds or has the control, receipt or disposal of any money belonging to such person, and every person declared by the Commissioner to be an agent under this Act, and includes an authorised officer and a sub-agent; “approved fund” means a fund declared by the Governor, prior to 1 January 1961, to be an approved fund, or a fund, scheme or plan approved by the Commissioner under the provisions of section 110; “arms-length transaction” means a transaction where the following conditions do not apply:— (a) the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both buyer and the seller are bodies of persons, and some other person has control over both of them; or (b) it appears with respect to the sale, or with respect to transactions of which the sale is one, that the sole and main benefit which might have expected to accrue to the parties, or any of them, was the obtaining of an allowance or deduction in respect of capital expenditure. For the purpose of this definition— (i) “body of persons” includes a partnership; (ii) “control” means, in the case of a body corporate, the power of a person to secure, by means of the holding of shares or the possession of voting power in, or in relation to, that or any other body corporate, or by virtue of any powers conferred by the Articles of Association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person, and, in the case of a partnership, the right to a share of more than one-half of the partnership assets or income; “authorised officer” means the person appointed by a company under the provisions of section 41; “basic tax”… “Commissioner” means the Commissioner of Inland Revenue or any person authorised … to act in his stead; “company” includes all bodies or associations, corporate or unincorporate, and any company incorporated by statute or by any charter, and every unit trust; “dealing in property” and “dealing in real and personal property” include— (i) the acquisition (including a gift and transfer inter vivos or by inheritance) and sale or disposition of— (a) any land scheduled for development under the Town Planning Act either before or after acquisition where any subdivision takes place; (b) any land where permission for development is granted after acquisition; (ii) the purchase of any land scheduled for development at the date of acquisition which is sold within 3 years of acquisition; unless the taxpayer can establish that one of the prime purposes of the purchase was not to make a profit [on] resale; (iii) any transaction involving the sale or disposition [or] transfer of shares of a company to the extent that the transaction is a scheme or undertaking or part of a scheme or undertaking entered into with the intention of making a profit and the company is [the owner of any land, or of shares, either directly or indirectly, in another company which is the owner of any land, to which paragraph (i) or (ii) applies;] “dependent child” means any child, step-child or adopted child whose [own] world total income (other than income from any scholarship) in the year in respect of which the assessment is made does not exceed [$1,000] and who— (a) is under 18 years of age and is dependent on his parents for support; (b) is over 18 and under 27 years of age and is receiving full-time instruction at any university, college, school or other educational establishment, or is serving under articles or indentures with a view to qualifying in a profession or trade and is dependent on his parents for support; or (c) is over 18 years of age and is dependent on his parents for support on account of physical or mental incapacity; “hardware” for the purpose of section 21(1)(t) means the components comprising a computer, but excludes visual display units, printers, scanners and other peripherals; “income year” means, in respect of the income of any person, the year in which that income has been derived by him; “know-how payment” means payment for any scientific, technical, commercial or industrial information, techniques, knowledge or assistance likely to assist in the carrying on of a business or in the manufacture of processing of goods or materials or in the working of a mine, oil well or other source of mineral deposits (including the searching for, discovery, or testing of deposits or the winning of access thereto) or in the carrying out of any agricultural, forestry or fishing operations; “lease” includes a sub-lease and any licence, concession, permission, easement or other right granted to any person to use or over any land, and an agreement for such a transaction; “minerals” has the meaning ascribed to it by the Mining Act and shall include natural gas and oil; “mining” includes every method or process by which any mineral (including natural gas or oil) is won from the soil or any constituent thereof; “mining company” includes a company engaged in winning natural gas or oil; “non-resident” means a person who, or a company which, is not a resident; “normal tax” means the tax authorised by section 7; “owner of land” includes the owner of any interest in land; “persons employed in Fiji” means all persons who receive, directly or indirectly, salary, wages, commissions, fees or other remuneration derived from sources within Fiji for personal service any part of which is performed in Fiji; “public company”, for the purposes of paragraph (a) of subsection (2) of section 8, means— (a) any company all classes of whose shares are publicly quoted at any time within the preceding 12 months by a stock exchange in a list issued under its authority, provided the Commissioner is satisfied— (i) that the stock exchange is a recognised and bona fide stock exchange; (ii) that the memorandum and articles of association of the company contain no restriction on the right to acquire or transfer any of its shares such as are likely to preclude members of the general public from becoming shareholders in any class of the company's shares; and (iii) that the general public was throughout the income year in question beneficially interested, either directly as shareholders or indirectly as shareholders in any other company, in more than.40 per cent of every class of shares issued by the company; (b) any other company, not being a private company as defined in the Companies Act, in respect of which the Commissioner is satisfied— (i) that the general public was, throughout the income year in question, beneficially interested, either directly as shareholders in the company or indirectly as shareholders in any other company, in more than 40 per cent of every class of shares issued by the company; and (ii) that the business of the company is conducted and its profit are distributed in such a manner that no person enjoys or receives or is entitled to enjoy or receive, by reason of any shareholding, participation in the management or otherwise, any advantage which would not be enjoyed or received by such person if the company had been under the control of a board of directors acting in the best interest of all its shareholders and had been one which could have been recognised as a public company under paragraph (a): Provided that— (a) the general public shall not be deemed to be beneficially interested in any shares if they are held— (i) by any director or associate director of the company; or (ii) by any company which is under the control of any such director or associate director; or (iii) by any associated company of the company; or (iv) as part of any fund the capital or income of which is applicable or applied wholly or mainly for the benefit of the employees or directors, or past employees or directors, of the company, or of any company referred to in paragraph (ii) or (iii), or their dependants; or (v) by any relative of any director or associate director of the company, unless it is shown, to the satisfaction of the Commissioner, that such relative, if he is not the spouse or minor child of such director or associate director, has, at all times which the Commissioner considers relevant, exercised his rights as a shareholder in the company, or in any other company through which such relative is beneficially interested in the shares of the company, independently of such director or associate director; or (vi) by any man or his wife or any minor child of any man or his wife, if 1 or more of such persons are directly or indirectly beneficially interested together in more than 10 per cent of any class of shares issued by the company; or (vii) by a company resident in Fiji which is a controlled company as defined in section 12, or by a company not so resident which would be a controlled company if it were so resident, if such company is directly or indirectly beneficially interested in more than 10 per cent of any class of shares issued by the company; (b) the general public shall be deemed to be beneficially interested in any shares if they are held— (i) by any pension fund, provident fund, or any trust or institution which, in the opinion of the Commissioner, is of a public character; or (ii) by any statutory body established by or under an Act of Parliament; or (iii) by the Unit Trust of Fiji; or (iv) by the Government of Fiji; (c)“redundancy payment” means a bona fide lump sum payment, other than a retiring allowance on the occasion of the termination of employment, where— (a) in the case of an individual who is an employee and who is not a seasonal worker, the employment is terminated by the employer, the termination being attributable, wholly or mainly, to the fact that the position filled by that individual is, or will become, superfluous to the needs of the employer; or (b) in the case of an individual who is an employee and a seasonal worker, that individual's usual seasonal employment is made unavailable by the employer, the unavailability being attributable, wholly or mainly, to the fact that the individual's position or usual position is, or will become, superfluous to the needs of the employer; but does not include— (c) any payment relating to a situation solely involving a seasonal lay-off; or (d) any payment contingent on the completion of either a fixed-term engagement or an engagement to complete work specified in a contract; or (e) any payment in lieu of notice terminating the employment of the taxpayer; or (f) any payment which, if it had not been made upon termination of employment, would, in the opinion of the Commissioner, have been paid so as to constitute monetary remuneration of the employee; or (g) any payment made by a company pursuant to its articles of association to any of its directors; or (h) any payment which, in the opinion of the Commissioner, is excessively large in relation to the earnings and length of service of the employee; “resident” means— (a) a person, other than a company, who resides in Fiji, and includes a person— (i) whose domicile is in Fiji, unless the Commissioner is satisfied that his permanent place of abode is outside Fiji; (ii) who has actually been in Fiji, [continuously] or intermittently, during more than one-half of the income year, unless the Commissioner is satisfied that his usual place of abode is outside Fiji and that he does not intend to take up residence in Fiji; (b) in the case of a company, a company which is incorporated in Fiji, or in the case of a company not incorporated in Fiji, a company which carries on business in Fiji and has either its [practical] management and control in Fiji or its voting power controlled by shareholders who are residents; “scholarship” includes an exhibition, bursary, or other similar educational benefit; “shareholder” includes any registered holder or beneficial owner of a unit in a unit trust; “software” for the purposes of section 21(1)(t) includes— (a) the copyright in software; (b) the right to use the copyright in software; (c) the right to use software; and (d) a copy of a software program which has been purchased; “means any levy or tax charged under this Act and includes any rebate withdrawn under section 100A; “taxpayer” means any person paying, liable to pay, or believed by the Commissioner to be liable to pay, any tax imposed by this Act; “trading stock” includes— (a) anything produced or manufactured and anything acquired, purchased or held for purposes of manufacture, sale or exchange; (b) any livestock or produce held in connection with the occupation of land for the purposes of pastoral, agricultural or other farming operations; (c) any property where the business of the person by whom it is sold or disposed of comprises dealing in property of that nature; and (d) any property acquired for the purpose of sale or otherwise disposing of the ownership of it; “trust deed”, “trustee”, “unit holder” and “unit trust” shall have the meanings ascribed to them by the Unit Trusts Act; “withholding tax” means the tax authorised by sections 8, 9, 9A, 10 and 10A; “world total income”, for the purpose only of the definition of “dependent child” in this section, of paragraph (b) of the proviso to subsection (3) of section 25, of paragraph (a) of the proviso to subsection (4) of section 25 and of paragraph (d) of the proviso to paragraph (ii) of subsection (2) of section 29, shall include all overseas income and any dividends, interest and other sum which would otherwise be excluded in arriving at total income for the purposes of this Act; “year” means the calendar year or part of the year ended 31 December; “year-2000-compliant”, in relation to a computer means that the performance and functionality of the computer are not affected by dates prior to, during or after the year 2000; “of assessment” means the year in respect of which tax is payable. (2) The person for the time being appointed as the Chief Executive Officer of the [Fiji Islands Revenue and Customs Authority] shall hold office as the Commissioner of Inland Revenue. (3) The Commissioner may authorise any other officer or employee of the [Fiji Islands Revenue and Customs Authority] to exercise any of the powers conferred upon him by this Act except the power of delegation under this subsection. Office of the Commissioner (2) Every officer or person employed in carrying out the provisions of this Act who— (a) directly or indirectly asks for, or takes, in connection with any of his duties, any payment or reward whatsoever, whether pecuniary or otherwise, or any promise or security for any such payment or reward, not being a payment or reward which he is lawfully entitled to receive; or (b) enters into or acquiesces in any agreement to do, abstains from doing, permits, conceals, or connives at, any act or thing whereby the tax revenue is or may be defrauded, or which is contrary to the provisions of this Act or to the proper execution of his duty thereunder; or (c)in contravention of the provisions of subsection (1) or of the terms of his declaration of secrecy, and without lawful excuse, reveals to any person any document or information which has come into his possession or to his knowledge in the course of his official duties, or permits any other person to have access to any document in the possession or custody of the Commissioner in his official capacity, shall be guilty of an offence against this Act and shall be liable, on conviction, to a fine not exceeding $1,000 or to imprisonment for a term not exceeding 3 years or to both such fine and imprisonment. (3) No officer or person appointed under, or employed in carrying out the provisions of, this Act shall be required to produce in any court any return, document or assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties under this Act, except as may be necessary for the purpose of carrying into effect the provisions of this Act, or in order to institute a prosecution, or in the course of a prosecution, for any offence committed in relation to tax. (4) Notwithstanding anything contained in this section the Commissioner may disclose to the Minister or members of the [Fiji Islands Revenue and Customs Authority] such information, records or documents as may be necessary for the purposes of this Act or the [Fiji Islands Revenue and Customs Authority Act] and the Minister or members, as the case may be, shall thereupon become subject to the provisions of this section. (5) The Auditor-General, exercising the powers and performing the duties imposed upon him by the provisions of section 111, shall be deemed to be an officer employed in carrying out the provisions of this Act for the purposes of this section. (6) Nothing in this section shall prohibit the Commissioner or any person authorised by him from communicating information to the Tax Agents' Board constituted under Part VIIA. §6 Act 6/1974, amended by §3 Act 10/1975 wef 1st January 1975, §2 Act 7/1981 wef 1st January 1981, §3 Act 3/1982 wef 1st January 1982, §3 Act 17/1984 wef 1st January 1985, §3 Act 23/1985 wef 1st January 1986, §3 Act 25/1986 wef 1st January 1987, §2 Decree 10/1990 wef 1st January 1990 Normal tax [Provided that no resident individual whose total income is below [$6,500] shall be subject to assessment under the principal Act as from 1st July 1992.] (b) a company, other than a company to which paragraph (c), (d) or (e) applies, in respect of its chargeable income derived during the year preceding the year of assessment; (c) a mutual insurance company in respect of its life insurance business derived during the year preceding the year of assessment; (d) non-resident or a non-mutual insurance company, except to the extent that the income in respect of its life insurance business is deemed to be mutual under section 37, in respect of its chargeable income derived during the year preceding the year of assessment; (e) a non-resident shipping company in respect of its chargeable income derived from Fiji during the year preceding the year of assessment. For the purposes of this section— (i) the calendar year in which more than half of the fiscal year of any company falls shall be deemed to be the year preceding the year of assessment of such company and, for all the purposes of this Act, the profits for the fiscal year shall be regarded as the profits of that calendar year; (ii) where a trade, business, profession or vocation is carried on by an individual either solely or in partnership, the income year in relation to such trade, business, profession or vocation shall be the calendar year in which more than half of the fiscal year of such trade, business, profession or vocation falls and, for all the purposes of this Act, the profits for the fiscal year shall be regarded as the profits of that calendar year; (iii) the normal tax charged under this section … is in addition to [basic tax]. (f)… (2) Any person may, with the leave of the Commissioner, adopt an accounting period being the 12 months ending on some date other than 31st day of December. His accounting period in each succeeding year shall end on the corresponding date of that year, unless with the leave of the Commissioner some other date is adopted. (3) The rates of normal tax chargeable are set out in the Fourth Schedule. Tax surcharge (2) For the purposes of this Section, unless the context otherwise requires: “Period A” means the period from 1st January 1992 to 30th June 1992; “Period B” means the period from 1st July 1992 to 31st December 1992; “Period A Income” means the income derived in or during period A; “Period B Income” means the income derived in or during period B; “Notional Annual Income” means the sum of period A income and period B income; “Notional Period A Tax” means the tax assessed on notional annual income, applying the taxes, rates of tax, allowances and rebates under this Act applicable during period A; “Notional Period B Tax” means the tax assessed on notional annual income, applying the taxes, rates of tax, allowances and rebates under this Act applicable during period B; “Notional Annual Tax” means the sum of notional period A tax and notional period B tax; “Total Tax” means the total tax due under this Act in respect of any income derived in or during the year of assessment ending 31st December 1992; “Person” means all legal persons, other than a company. (3) Where a person has period A income only, the total tax due will be deemed to be the notional period A tax. (4) Where a person has period B income only, the total tax due will be deemed to be the notional period B tax. (5) Where a person continuously derives income during the whole of period A and during the whole of period B, the total tax due is deemed to be one half of the notional annual tax. (6) If a person does not derive income in any of the circumstances defined in subsections (3), (4), or (5), the total tax due will be calculated according to the formula: where: NPAT means Notional Period A Tax NPBT means Notional Period B Tax PAI means period A Income PBI means period B Income NAI means Notional National Income. (2) Such tax shall be payable in respect of— (a) [the portion of a dividend] declared, paid or credited by a company incorporated in Fiji [and which has been paid or credited, either wholly or partly, from chargeable income upon which no tax has been paid by that company] ; for the purpose of this paragraph— “dividend” means any amount distributed by a company, whether carrying on business in Fiji or not, to its shareholders; “amount distributed” shall be deemed to include— (aa) subject to paragraph (ee), in relation to a company that is being wound up or liquidated, any profits distributed, whether in cash or otherwise, other than of a capital nature, earned before or during the winding up or liquidation; (bb)in relation to a company that is not being wound up or liquidated, any profits distributed other than realized capital profits, whether in cash or otherwise and whether of a capital nature or not, including an amount equal to the value of any debentures or securities awarded to shareholders, but excluding the nominal value of any bonus shares issued to a shareholder, other than a resident company, to the extent to which such shares have been paid up by means of the company's undistributed revenue profits ascertained in accordance with the provisions of this Act; (cc) subject to paragraph (ee), in the event of the partial reduction of the capital of a company, which is not a public company, any cash or the value of any asset which is given to a shareholder in excess of the cash equivalent of the nominal value by which the shares of that shareholder are reduced; (dd) subject to paragraph (ee), in the event of the reconstruction, re-organisation or amalgamation of a company, which is not a public company, any cash or the value of any asset which is given to a shareholder in excess of the nominal value of the shares held by him before the reconstruction, re-organisation or amalgamation; (ee) in the event of the winding up or liquidation or the partial reduction of the capital or the reconstruction, re-organisation or amalgamation of a company, which is not a public company or a company to which paragraph (ff) applies, any cash or the value of any asset which. is given to a shareholder up to the nominal value of any bonus shares awarded to him after 31 December 1979, to the extent to which such shares were paid up by means of— (i) the company's undistributed revenue profits; or (ii) profit arising from the revaluation of the company's assets (other than goodwill and any other right where the profit from the sale of such right falls within the meaning of total income) not acquired for the purpose of resale at a profit; (ff) in the case of an investment company or a company whose business consists wholly or mainly in the provision of professional, technical or personal services, an amount equal to the nominal value of any bonus shares awarded to the shareholder; (gg)any money advanced by a company, either directly or indirectly, to or for the benefit of any of its shareholders or relatives of shareholders if, in the opinion of the Commissioner, the making of the advance was not a bona fide investment by the company; (hh) ….. Provided that an amount distributed shall not be deemed to include— (i) the nominal value of any bonus shares awarded to a shareholder, to the extent to which such shares have been paid up by means of the company's share premium account; (ii) the nominal value of any bonus shares (other than redeemable bonus shares) awarded to a shareholder, to the extent to which such shares have been paid up by means of profit arising from the revaluation of the company's assets (other than goodwill [and any right where the profit from the sale of such right falls within the meaning of total income]) not acquired for the purpose of resale at a profit. For the purpose of this sub-paragraph, the expression “profit arising from the revaluation” shall— (a) be deemed not to include any such profit or gain unless— (i) the assets which are revalued by the company were held by it continuously for a period of not less than 7 years immediately preceding the date of revaluation; and (ii) it is a bona fide revaluation made by a valuer acceptable to the Commissioner; (b) not include revaluation of land on the whole of which there has been no development; “development” means— (a) substantial building operations on any land; (b) re-building operations, material alterations or additions to or major structural repairs to any building or structure; (c) subdivision of any land by dividing the same and the laying out of plots, roads, drains, sewers, parks, gardens, lawns, orchards or the like, and shall include any development of land used or proposed to be used for agricultural development. For the purposes of— (i) paragraphs (cc) and (dd), where any cash or the value of any asset is given to a shareholder, such distribution shall be deemed to be firstly in respect of the nominal value of any bonus shares; and (ii) paragraph (ee), in the event of the winding up or liquidation of a company, there shall be excluded any cash or the value of any asset which is given to a shareholder, up to the nominal value of any bonus shares awarded to him, to the extent to which such shares were paid up by means of the company's profit arising from the revaluation of its assets (other than goodwill) not acquired for the purpose of wide at a profit; (b) ….. (c) ….. (d) ….. if the person in whose favour or to whom [any dividend has] been declared, paid or credited is— (i) a non-resident; or (ii) the holder, whether a resident or not, of any bearer scrip, who was either a shareholder at the date of declaration of the dividend or was entitled to the payment at the date on which it accrued due. (b) in the case of a dividend referred to in paragraph (a) of subsection (2) received by an agent in Fiji on behalf of any person, the agent receiving the dividend; (c) ….. For the purposes of this subsection— (i) a person shall, in the case of a dividend referred to in paragraph (a) of subsection (2), be deemed to be the agent of the shareholder referred to and to have received a dividend on behalf of the shareholder if that person's address appears in the share register of the company as the registered address of the shareholder and the dividend warrant or cheque in payment of the dividend distributable to the shareholder is delivered at that address: Provided that any person so deemed to be the agent of a shareholder shall, as regards such dividend, have and exercise all the powers, duties and responsibilities conferred or imposed by this Act on an agent of a taxpayer absent from Fiji; (ii) in the case of a dividend not payable in money, a company shall not pay it until an amount equal to the tax that would have been paid if it had been payable in money has been paid to the Commissioner. (b) any sum payable to a person referred to in paragraph (5) of section 17; (c) ….. (a) any payment made for the hire or rent of films and any sum paid for the use of such films whether by way of purchase or long term hire; (b) subject to subsection (4), a know-how payment and any sum paid or credited for the management of or supervision in connection with the carrying on of a business, to the extent that such payment or credit does not constitute reimbursement of expenditure, that is— (i) of a kind that is deductible under this Act; and (ii) incurred in relation to the payment or credit by the person to whom the payment or credit is made; and (c) alimony and maintenance paid under an order of a court of competent jurisdiction, allowed as a deduction in arriving at total income, if the person in whose favour or to whom any such sums have been paid or credited is a non-resident. (3) For the purposes of subsection (2)(a) “films” includes— (a) motion picture films; and (b) films or video tapes for use in connection with television. (4) If a payment or credit referred to in subsection (2)(b) is made partly for any purpose other than those mentioned in that subsection, the Commissioner may, for the purposes of this subsection, determine to what extent the sum so paid or credited is for such other purpose. (9) The person who, in accordance with the provisions of subsection (6), is required to pay the tax shall remit the same to the Commissioner within 30 days, or such other period as the Commissioner may specify, of the payment or crediting of the sum specified in subsection (2). (i) any non-resident, other than a company; (ii) the estate of a deceased person who was, at the date of his death, a non-resident; or [(iii) a company not resident in Fiji, [(1A) For the purposes of subsection (1), the prescribed rate is 10 percent.] (b) Where the payer of any such interest is the estate of a deceased person, such estate shall, for the purposes of this section, be deemed to be a resident or carrying on business in Fiji if the deceased was, at the date of his death, a resident or carrying on business in Fiji. (b) interest on any amount borrowed by the debtor and paid to him outside Fiji for the sole purpose of carrying on any trade outside Fiji and not intended for use in Fiji; (c) interest which is, or under the terms of the loan is required to be, paid in Fiji on money lent in Fiji by any person who has a permanent place of business in Fiji; (d) interest accruing from the payer to any person during any calendar year which, together with any other interest accruing from him to such person during such period, does not exceed $20; (e) interest on any bill of exchange or any promissory note to the extent that such interest is payable [to the supplier] in respect of the purchase price of goods imported into Fiji [and acquired for the purpose of resale at a profit], if such bill or note is issued through a bank in possession of a valid licence granted under the provisions of the Banking Act and such bank has certified on such bill or note that a bill of lading or other document covering the importation of such goods has been exhibited to it; (f) interest accruing to a person referred to in paragraph (5) of section 17; (g) interest in respect of a loan made, or in respect of a specific sum agreed to be advanced under an agreement signed, on or before 30 November 1973, from a source outside Fiji; (h) ….. [(i) any interest which is exempt from [basic tax] and normal tax under item (44) of section 17.] (6) Any tax paid under the provisions of subsection (5) by any person may, notwithstanding any agreement to the contrary, be deductible or withheld from the interest which is liable to be paid and recovered by the person making the payment from the person, estate or company to whom or in whose favour the interest accrued or be retained out of any money that may be in his possession, or may come to him, as the agent of such person, estate or company, and no action shall lie against the person making any payment or deduction under the provisions of this section. (7) For the purposes of this section, interest includes discount. (a) in the year of assessment 2001 – at the rate of 34%; (b) in the year of assessment 2002 – at the rate of 32%; (c) in every subsequent year of assessment – at the rate of 30%.] (3) Resident interest withholding tax shall not be payable where— (a) the depositor in whose favour the interest accrues has provided the financial institution paying the interest with a tax identification number in accordance with subsection (5); or, (b) the depositor in whose favour the interest accrues has obtained a valid certificate of exemption in accordance with subsections (10) and (11) and furnished the said certificate to the financial institution paying the interest; or, (c) the depositor in whose favour the interest accrues is a financial institution; … (d) the interest which accrues to the depositor, in respect of each account held by the depositor, does not exceed $120 if the interest is paid or credited annually; (e) the interest which accrues to the depositor does not exceed $P if the interest is paid credited in respect of a period [less] than one year, where— $P = $120 x n/365 and n = number of days in the period. (4) The person liable for resident interest withholding tax shall be the depositor to whom or in whose favour the interest accrues. (5) Any depositor who elects to provide the financial institution with a tax identification number shall do so by providing, to the satisfaction of the financial institution, documentary evidence of the depositor's identity and tax identification number. (6) Subject to subsection (7), resident interest withholding tax shall be payable in respect of any interest which accrues to or in favour of more than one person unless [at least 2 of] such persons entitled to such interest have provided their tax identification numbers in accordance with subsection (5). (7) Notwithstanding subsection (6), where interest accrues to or in favour of a husband and wife jointly, it shall be sufficient compliance with subsection (3)(a) if the tax identification number of the husband only is provided in accordance with subsection (5). (8) Where interest accrues to or in favour of a dependent child or legally incapacitated person it shall be sufficient compliance with subsection (3)(a) if the tax identification number of that child's or person's parent, guardian or other legal representative is provided in accordance with subsection (5). (9) Where the Commissioner determines that a tax identification number provided to a financial institution is incorrect he shall notify the financial institution in writing of that fact and the financial institution shall be required, within 10 days from the date of the Commissioner's notice, to deduct tax in accordance with subsection (12) from interest thereafter accruing to the depositor in question. (10) Any person the whole of whose income is otherwise exempt from [tax] under the provisions of this or any other Act may apply in writing to the Commissioner for a Certificate of Exemption from resident interest withholding tax. (11) Upon being satisfied that any person is a person to whom subsection (10) applies, the Commissioner may grant a Certificate of Exemption from resident interest withholding tax in such form as he may determine. (12) Notwithstanding subsection (4), every financial institution when paying or crediting interest shall deduct a sum equal to the amount of resident interest withholding tax applicable thereto and remit such amount to the Commissioner within 15 days after the end of the month in which the interest is paid or credited, together with a report, in such form as may be approved by the Commissioner, containing details of tax identification numbers provided, names [and addresses] of all depositors to whom interest has accrued, amounts of interest and tax deducted therefrom. (13) Any tax paid under subsection (12) by any financial institution may, notwithstanding any agreement to the contrary, be deducted or withheld from interest which is liable to be paid or credited and recovered by the financial institution from the person to whom or in whose favour the interest accrued and no action shall lie against a financial institution making any deduction under this section. (14) Every financial institution shall furnish to the Commissioner in such form as he may prescribe an annual report as required by section 54 containing details of— (a) all tax identification numbers provided to the financial institution; (b) interest paid and amounts of tax deducted therefrom; and (c) the names [and addresses] of all depositors to whom interest has accrued. (15) Every financial institution shall, not less than once a year and in writing, notify a depositor of the amount of interest which is paid or credited to each account held by the depositor. (15A) Every financial institution shall, not later than 31st January immediately following a year of income in which it deducted tax under subsection (12), issue a notice in writing, in a form approved by the Commissioner, to the person to whom or in whose favour the interest accrued in respect of each account held by the depositor, stating— (a) the name and address of the depositor; (b) the total amount of interest paid or credited in that year; and (c) the total amount of tax deducted under this section. (16) For the purposes of this section— “depositor” means any person depositing money with a financial institution om terms under which it will be repaid with or without interest and either on demand or after a fixed period or after notice; “financial institution” means a financial institution licensed under the Banking Act 1995; “interest” means any interest paid or credited to the account of any depositor whether actually paid, credited, reinvested, accumulated, or dealt with on behalf of the depositor; “identification number” means the tax file number provided to a taxpayer by the Commissioner for the purposes of this Act. (2) ….. (3) ..… Person liable for the tax (1A) In this section "royalties" means payments of any kind to the extent to which they are made as consideration for - (a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trademark, or other like property or right; (b) the use of, or the right to use, any industrial, agricultural, commercial or scientific equipment; (c) the supply of scientific, technical, industrial or commercial knowledge or information; or (d) the supply of any assistance which is given as a means of enabling the application or enjoyment of, any such property or right of the kinds mentioned in paragraph (a), any such equipment as mentioned in paragraph (b) or any such knowledge or information as is mentioned in paragraph (c). (2) The person liable for the tax shall be the person to or in favour the royalty or other payment accrues. (3) Notwithstanding subsection (2), the tax shall be payable and recoverable from the person or agent by whom such royalty or other payment is made or credited. (4) Any amount payable under subsection (3) by any person or agent, otherwise than by deduction, may, not withstanding any agreement to the contrary, be recovered by such person or agent from the person entitled to the royalty or other payment. (5) The person or agent who, under the provisions of subsection (3), is required to pay the tax shall remit the same to the Commissioner within 30 days, or such other period as the Commissioner may specify, of the date upon which the royalty or other payment is or credited. (6) ..… PART IV – Division 1 – Amounts to be Included in Arriving at Total Income Definition of total income (a) any profit or gain accrued or derived from the sale or other disposition of any real or personal property or any interest therein, if the business of the taxpayer comprises dealing in such property, or if the property was acquired for the purpose of selling or otherwise disposing of the ownership of it, and any profit or gain derived from the carrying on or carrying out of any undertaking or scheme entered into or devised for the purpose of making a profit; but nevertheless, the profit or gain derived from a transaction of purchase and sale which does not form part of a series of transactions and which is not in itself in the nature of trade or business shall be excluded; (b) any rent, fine, premium or like consideration (including a payment for or in respect of the goodwill of any business or the benefit of any statutory licence or privilege) derived by the owner of land from the grant of any lease, licence, concession, permission, easement or any other right granted to any person to use or over any land, or from the grant of any right of taking the profits thereof: Provided that, where any such sum is derived by way of anticipation, the Commissioner may, in his discretion, apportion that income between the income year and any number of subsequent years, not exceeding 5, and the part so apportioned to each of those years shall be deemed to have been derived in that year and shall be chargeable with tax accordingly; (c)remuneration becoming due and payable in respect of or in relation to services rendered by any person during any year in any office or employment, and such remuneration shall be total income of that person for that year but shall not include the amount of inducement allowance, education allowance or the proportion of the gratuity payable to any designated officer by the Government of the United Kingdom under the provisions of the Overseas Service (Fiji) Agreement, 1961, as amended from time to time: Provided that, where any remuneration is received after the end of a particular year, the Commissioner may reopen such assessments as may be necessary to comply with this paragraph without the restriction as to time imposed by subsection (2) of section 59, but otherwise the provisions of that subsection shall apply to such reassessments; (d) any royalty, profit or gain derived from the extraction, removal or sale of minerals, gravel or timber reduced by an amount equal to the cost of such minerals, gravel or timber. Such royalty, profit or gain shall be deemed to include – (i) any royalty or other like payment dependent upon production from or the use of any real or personal property, whether or not such royalty or other payment is an instalment of the purchase price of any property; (ii) any profit or gain derived from the sale of any rights over, or rights, to work, minerals or to extract gravel or timber; (iii) any profit or gain derived from the sale of any option, survey or geological report or anything appertaining thereto representing valuable consideration, whether by the owner of the land from which it is obtained or by any other person; Provided that the Minister, if satisfied that it is expedient for the economic development of Fiji, may, by notice to the Commissioner, direct that the whole or any part of any profits or gains derived from the sale of any minerals, gravel or timber shall be excluded from the total income of any taxpayer for the purposes of this Act. For the purpose of this paragraph— (a) “minerals” shall have the same meaning as in the Mining Act, and shall be deemed to include natural gas, oil, clay, gravel, sand, stone or other common mineral substances; (b) [“sale” shall be deemed to include an assignment or a disposition by way of a licence or easement, or the grant of any right or taking of any profits or produce from land, or the sale of shares of a company whose major asset comprises a mining lease or tenement or the like;] (c) “timber” shall be deemed to include standing timber; Dividends (g) any amount received by a trustee of the estate of a deceased person, which would have been total income in the hands of such deceased person if it had been received by him during his lifetime; (h) subject to paragraph (37) of section 17, any sum received or receivable in respect of the sale of any bonus shares by a shareholder to whom such shares were awarded after 31 December 1979, by a company which is not defined as a public company for the purposes of paragraph (a) of subsection (2) of section 8 [and is not also a company all classes of the shares of which are publicly quoted at any time within the preceding twelve months by a stock exchange established and operating in Fiji in a list issued under its authority], to the extent to which such shares were paid up by means of the company's undistributed revenue profits, up to the nominal value of such bonus shares; (i) any income received or accrued by way of annuity or pension, including voluntary pension; (j) any amount, including any voluntary award, received or accrued, whether contractual or not, in respect of the relinquishment, termination, repudiation, loss, cancellation or variation of any office, employment or service, or of the right or claim to be appointed to any office, employment or service, otherwise than a sum to which paragraph (o) applies: Provided that any amount received [other than a redundancy payment] by or accrued to an employee or the holder of any office by way of bonus, gratuity or compensation upon and because of the termination of his services (less so much thereof as is exempt from [basic tax] and normal tax under the provisions of paragraph (13) of section 17) shall be deemed to have been received or accrued in 3 successive equal annual instalments over the last year and the 2 preceding years of service, if— (i) the termination of the services of such employee or officeholder is due to superannuation, ill-health or other infirmity; or (ii) the Commissioner is satisfied that the circumstances of the case warrant this concession; (k) the amount of any balancing charge required to be made under instructions given by the Minister in respect of allowances for depreciation and capital improvement or in respect of deductions allowed under section 21(1)(c) or section 23; (l) where a person acquired an interest in land after 31 December 1960 and— (i) he has been allowed a deduction in arriving at his total income for any year in respect of capital improvements to … land [used for agricultural or pastoral purposes]; or (ii) he has received assistance by way of subsidy payment towards the cost of planting, replanting, maintenance or extension of a coconut plantation, the amount by which the consideration for the sale or disposal of the interest in land and improvements thereto exceeds the aggregate amount consisting of the original purchase price and any expenditure on improvements for which no deduction has been allowed in calculating his total income shall be deemed to be total income derived by the taxpayer in the year in which the property is sold or disposed of, to the extent of the total of such deductions allowed and subsidies received since the acquisition of the interest in the land. The Commissioner may, in his discretion, make all necessary apportionments, including apportionment or consideration for sale or disposal, of deductions in respect of capital improvements, of subsidy payments of the original purchase price of land, and of expenditure on improvements for which no deduction has been allowed: Provided that the interest in land, together with improvements thereon, is sold or otherwise disposed of for value by the taxpayer within 10 years from the date of his acquisition of that interest[,] the taxpayer may elect that the amount which would otherwise be included in total income for the year of sale or disposal should be apportioned over the period of ownership or over a period of 5 years, that is to say, the year of sale or disposal and the immediately preceding 4 years whichever is the less; (m) a bad debt recovered which has previously been written off. Such sum shall be included in the total income of the year of recovery; (n) alimony and maintenance due and paid under … an order of a court of competent jurisdiction; (o) any lump sum or any refund of contributions received under any approved superannuation or retirement benefit scheme, including any contributions made [to the Fiji National Provident Fund in excess of the minimum contributions other than on retirement or where contributions have been made for at least 10 years], but shall not include the commuted portion of any pension paid under any such scheme or under any written law granting pensions in respect of service with the Government of Fiji. Such sum or refund shall be deemed to be income of the recipient in the year in which the lump sum or refund is received: Provided that the total tax due thereon shall not exceed the sum of— (i) the additional tax which would have been due if the contributions by the employee to the scheme which are included in the lump sum or refund had not been allowed as a deduction in arriving at chargeable income; and (ii) the tax due on any refunded contributions made by the employer as if such sums comprised additional income for the years in which the amounts were contributed; (q) any sum disallowed by the Commissioner under the provisions of section 20 which has been deemed to be income of the person thereinmentioned; (r) any interest or discount; (s) any royalty or other like payment dependent upon production from, or the use of, any real or personal property, whether or not such royalty or other payment is an instalment of the purchase price of any property; (t) in the case of any person to whom, in accordance with the terms of any agreement relating to the grant, licence, concession or permission in favour of any other person of the right to use or occupy, or over any land or buildings, or by virtue of the cession to him of any such rights, there has accrued in any year or period the right to have improvements effected on the land or to the buildings— (i) the amount stipulated in the agreement as the value of the improvements or as the amount to be expended on the improvements; or (ii) if neither amount is so stipulated, an amount representing in the opinion of the Commissioner the fair and reasonable value of the improvement; (u) any know-how payment and any sum paid or credited for the management of or supervision in connection with the carrying on of a business, to the extent that such payment or credit does not constitute reimbursement of expenditure that is— (i) of a kind that is deductible under this Act; and (ii) incurred in relation to the payment or credit by the person to whom the payment or credit is made: Provided that, where the payment or credit is made partly for any purpose other than those mentioned in sub-paragraphs (i) and (ii), the Commissioner may, for the purposes of this paragraph, determine to what extent the sum so paid or credited is for such other purposes; (v)any sum and benefit in kind deemed to have been received under the provisions of this Act; (w) any sum previously allowed as a deduction under paragraph (m) of section 21 which is subsequently withdrawn and distributed to the members of any co-operative society registered under the Co-operative Societies Act; (x) any amount of [maritime] vessels investment allowance that, by virtue of paragraph 6 of the Eighth Schedule, is to be taken to be an amount to which this paragraph applies; (y) any amount of supportive projects to tourist industry investment allowance that, by virtue of paragraph 6 of the Ninth Schedule, is to be taken to be an amount to which this paragraph applies; (z) the value of any benefit or allowance, as estimated by the Commissioner having regard to the cost incurred by the employer in providing such benefit and-the market value of such benefit as ascertained by the Commissioner, granted in respect of or arising from employment, received either directly or indirectly in cash or otherwise and whether for the benefit of the person in employment, his wife, dependent children or other dependent relatives, including— (i) quarters, board, residence or other housing provided by the employer; (ii) any private use of a vehicle owned, leased or otherwise hired at the cost of the employer; (iii) private expenses such as electricity, water, telephone, gas, housemaid, medical expenses, education expenses and the like paid by the employer; (iv) any subsidy or discount on interest on any loan provided by the employer representing the difference between the market lending rate of interest and the rate actually charged by the employer; (v) the value of discount provided by an employer being the difference between the normal selling price of the item and the price at which the item is sold to the employee in respect of items forming stock-in-trade of the employer, or any discount provided under any reciprocal arrangement between two or more employers; (vi) the value of free or subsidised travel provided by the employer or received by virtue of employment which entitles such free of subsidised travel to be provided by the employer or some other person; (vii) contributions to any retirement or superannuation fund made by an employer which is in excess of the statutory minimum required to be made by the employer or in excess of the amount required to be contributed by the employer under the trust deed and rules setting up such fund, and any am6unt which the employer is entitled to recover from the employee, which is not so recovered; (viii) any entertainment allowance not expended for the purpose of the employer's business; (aa) the value of any benefit or allowance as estimated by the Commissioner, granted in respect of, or arising from any business dealings, received either directly or indirectly, in cash or otherwise, and whether for the benefit of the recipient, his wife, dependent children, or other dependent relatives or, where the recipient is a company, whether received directly or indirectly by the company, any director, shareholder, or relative of any director or shareholder, or any employee of the company; and (bb)any amount withdrawn from a cyclone reserve account in respect of which a deduction was allowed under section 21(1)(q) unless the amount withdrawn together with any interest thereon was applied towards the repair of property damaged by windstorm, tidal wave, landslide or a like catastrophe and, if required by the Commissioner, certified by the Commissioner of Insurance to have been so applied: Provided that tax shall be assessed on the amount withdrawn and interest thereon in the year of withdrawal or in the year the deposit was made and interest credited, as the [company] opts. (2) Subject to subsections (6) to (8), for the purposes of this section, sections 11D and 11E and section 21(1)(u), “discount” is the market value of a share or option at the time it was acquired by the taxpayer less any consideration paid or given by the taxpayer for the acquisition of that share or option. (3) This section applies only to shares or options acquired in a company listed on a stock exchange. (4) The market value of a share or option is the last price at which it was traded on the stock market of a stock exchange on which the share or option is quoted, either— (a) on the day the share or option was acquired; or (b) if no shares or options were traded on the day set out in paragraph (a)— on the last day traded before that day. (5) Subject to subsections (7) and (8), the discount is included in total income— (a) if there is no restriction on the sale or disposal of the share or option – the year in which the share or option was acquired; or (b) if there is a restriction on the sale or disposal of the share or option – the year in which the restriction ceases to apply. (6) If subsection (5)(b) applies, the value of the discount is the market value of the share or option at the time the restriction on the sale or disposal of the share or option ceases less any consideration paid or given by the taxpayer for the acquisition of that share or option. (7) If an option, which is not listed on a stock exchange, is sold or otherwise disposed of without the taxpayer exercising that option to purchase shares, the proceeds of the sale or disposal, less any consideration expended by the taxpayer to acquire the option, shall be included in total income in the year when the sale or disposal occurs. (8) If an option, which is not listed on a stock exchange, is exercised by the purchase of shares, the value of the discount is the market value of the share acquired at the time the option is exercised less any consideration expended by the taxpayer to acquire that share (which includes the cost if any in acquiring that option). (a) a parent, grandparent, brother, sister, uncle, aunt, nephew, niece or adopted child of that person or of his or her spouse; and (b) the spouse of that person or of any other person specified in paragraph (a). (2) For the purposes of this section, “arm's length consideration” means the consideration that might reasonably be expected to be agreed upon between independent parties operating under the same or similar conditions in the open market. (2) For the purposes of this section, any trading stock which has been disposed of otherwise than by sale shall be deemed to have been sold and any trading stock so disposed of and any trading stock which has been sold for a consideration other than cash shall be deemed to have realised the market price thereof at the date of the disposition or sale but, where there is no market price, trading stock shall be deemed to have realized such price as the Commissioner in his discretion may determine. (3) Where any trading stock is sold or otherwise disposed of without consideration in money or money's worth or for a consideration that is less than the market price or the true value thereof at the date of the sale or other disposition, the following provisions shall apply, namely— (a) the trading stock shall be deemed, for the purpose of this Act, to have been sold at and to have realised the market price thereof at the date of the sale or other disposition but, where there is no market price, shall be deemed to have been sold and to have realised such price as the Commissioner in his discretion may determine; (b) the price which, under the provisions of this section, the trading stock is deemed to have realised shall be taken into account in calculating the total income of the person selling or otherwise disposing of the trading stock; (c) the person acquiring the trading stock shall, for the purpose of calculating his total income, be deemed to have purchased the trading stock at the price which, under the provisions of this section, the trading stock is deemed to have realised. (4)Where trading stock is stolen, destroyed or in any way lost, and is the subject of an insurance or indemnity claim, any recoveries under such insurance or indemnity shall be regarded as trading or business income. Income deemed to be derived from Fiji Provided that such interest shall not be so deemed, if— (i) the loan was provided in a currency other than Fiji currency; (ii) the debtor is a resident carrying on business in Fiji; (iii) neither the lender nor the debtor has control one over the other, and no other person or persons has or have control directly or indirectly over both of them; (iv) the loan moneys have been, or, in the opinion of the Commissioner will be, employed in Fiji for the purpose either of— (a) capital construction or reconstruction of hotels, commercial, agricultural or industrial premises and similar projects, in Fiji, but excluding the cost of the land; (b) capital expenditure relating to mining and mineral exploration in Fiji; (c) capital expenditure relating to fixed assets in commercial, agricultural or industrial venture in Fiji; or (d) any other use which the Minister considers expedient to the economic benefit of Fiji; (i) not be taken into account in the determination of the taxable income of such estate; and (ii) be deemed to be expenditure incurred by such beneficiary during such year, and shall, to the extent that the deduction of expenditure of the nature of the expenditure in question is authorised by this Act, be taken into account in the determination of the taxable income of such beneficiary. Nothing in this sub-paragraph shall be construed as imposing liability for tax in respect of the same amount both in the hands of the estate or beneficiary and in the hands of such deceased person; (iii) any income deemed to accrue to any person making any gift, settlement or other disposition to which the provisions of subsection (4) of section 15 apply. When income is deemed to have accrued or to have been received Income of minor child deemed to be income of parent or grand-parent (b) it has been accumulated for the benefit of that child. Income arising from such gift, settlement or other disposition shall be regarded, for the purpose of this subsection, mutatis mutandis, as being included in such gift, settlement or other disposition. Reciprocal arrangements - minor children Revocable settlements (6) For the purposes of this section— “gift, settlement or other disposition” shall include the admission into a partnership of a minor child; “minor child” means any child, adopted child or step-child who has not attained the age of 21 years before 1 January in the year of assessment. Tax] and Normal Tax] Exemption of certain income from tax (ii)the income (in this sub-paragraph referred to as “prescribed farming income”) derived by an individual from any other farming activity, including fishing and forestry but excluding cane farming, shall be exempt from normal tax for a period of 4 years commencing on 1 January 1987 subject to the conditions that the individual shall deliver to the Commissioner a return of his total income in accordance with the provisions of this Act, and that if he has income other than prescribed farming income, such other income shall be exempt from normal tax at the average rate of normal tax applicable to the individual for the year of assessment; and for the purposes of this sub-paragraph the average rate of normal tax of the individual for the income year in question shall be the total normal tax payable by him for that income year divided by his total income (including all exempt prescribed farming income) for that income year; (iii) the income derived by a taxpayer, whether an individual or not, from cane farming (in this sub-paragraph referred to as “cane farming income”) shall be exempt from normal tax for a period of five years commencing on 1 January 1986 subject to the conditions that where the Commissioner requires such return or where the taxpayer derives other income he shall deliver to the Commissioner a return of his income in accordance with the provisions of this Act, and that such other income shall be liable to tax, and the cane farming income shall be exempt from normal tax at the average rate of normal tax applicable to the taxpayer for the year of assessment; and for the purposes of this sub-paragraph the average rate of normal tax of an individual for the income year in question shall be the total normal tax payable by him for that income year divided by his total income (including all exempt cane farming income) for that income year. (2) The Minister may, either by order, or by written direction to the Commissioner, where he is satisfied that it is expedient for the economic development of Fiji— (c) specify any interest deemed under paragraph (a) of section 14 to be derived from Fiji to be exempt from tax or taxable at such reduced rate as may be specified; (d) specify [on or before 31st December 2000,] any trade and any product to be an approved trade and an approved product qualifying for an export incentive under the provisions of the Fifth Schedule and any such sum referred to in that Schedule shall be exempt from tax or chargeable at such reduced rate as may be specified; (e) ….. (f) specify [on or before 31st December 2000,] upon such conditions as he thinks fit, any company engaged in any agricultural enterprise designated by him, [or engaged solely in agricultural contracting,] as being a company to which the tax concessions contained in the Seventh Schedule shall apply, and such company shall accordingly enjoy such concessions. (3) The income arising from investments made by the Banaban Trust Fund Board in accordance with section 6C of the Banaban Settlement Act shall be exempt from normal tax. (4) A person who has been certified in accordance with sub-paragraph (1) of paragraph 3 of the Eighth Schedule shall be entitled to a deduction of [the maritime vessels] investment allowance from total income in accordance with that Schedule. Incomes not taxable (1) the emoluments of office allowed to the [President of the Republic of Fiji]; (3) the capital element repayment from any life annuity purchased and taken out by a person on his own life, being a life annuity granted for a lump sum in consideration of money or money's worth in the ordinary course of business of granting annuities on human life; (4) the income of any company, commission or association not less than 90 per cent of th |
