1 L.R.O shipping (Incentives) CAP.!lOA CHAPTER90A 14. Short title Interpretation Approved shipping company.

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1 1 L.R.O shipping (Incentives) CAP.!lOA CHAPTER90A SHIPPING (INCENTIVES) ARRANGEMENT OF SECTIONS SECTION Short title Interpretation. Approved shipping company. Condition respecting revocation of order. Income tax concessions. Dividends. 7. Customs duties concessions. 8. Imported articles and. ships Restriction Compliance on use of disposal of imports. with income tax law Records and returns. Certificate of Commissioner of Inland Revenue. Offences. Regulations. THE LAWS OF BARBADOS Ptinted by the Government Printing Department. Bay Street..St. Michael. by the authoiity of the Government of Barbados

2 3 L.R.O Shipping (Inccn tiucs) CAP. 90A ss.l-3 CHAPTER 90A SHIPPING (INCENTIVES) An Act to muke provision for the granting of tax and duty illcerlrives to certain shipping companies This Act may be cited as theshipping (Incefztives)Act. Commence- [ 1st December, ment. S.I No Short title. 2. In this Act Interpretalion. approved shipping company means any company approved by the Minister under section 3; annual allowances, assessable income, initial allowances and investment allowances have the meanings assigned to them respectively by theincome TuxAct; Cap. 73 Commissioner means the Commissioner of Inland Revenue; Comptroller means the Comptroller 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 means (a) the operation of ships for the carriage of passengers or cargo; (b) the leasing of ships; and (c) shipbuilding, including the reconstruction, alteration, refitting, equipment, maintenance or repairing 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- shipping company. 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

3 ss.4-6 CAP.90A Shipping (fncentives) L.R.O (a) that is engaged in shipping activities; (b) that is wholly owned by the Crown; or (c) in which the Government as an approved shipping company. has a majority interest, Condition 4. The Minister may not revoke an order made under this respecting Act before he gives to the company a reasonable opportunity to revocation show cause to the satisfaction of the Minister why a revocation of order. 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 Cap. $3. shipping company income tax concessions in respect of profits or 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

4 5 L.R.O Shipping (Incentives) CAP.90A s.7 profits or gains into a separate account; and the company may pay dividends to its shareholders out of that account. (2) Dividends paid to a shareholder who is resident in Barbados are exempt from payment of income tax. (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 Cap. 73. 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. (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 custotns 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 duties concessions. THE LAWS OF BARBADOS Printed by the Government Printing Department. Bay Street, St. Michael, by the outhorlty of the Government of Barbados

5 ss.8-11 CAP. 90A Shippin q (Incentives) L.R.O Condiritrns regarding 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. 8. An approved shipping company that imports any article or ship pursuant to section 7 shall imported (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; arliclc5and \hips. (b) cause the article or ship to be marked in such manner as the Comptroller directs; and (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 9. JNO article or ship imported under section 7 shall m uw or di\pusal of (u) before the expiration of 10 years from the date of imports. importation; or (b) without the written permission of the Minister, be disposed of or be used for any purpose other than that for which it was imported. Complinnce 10. An approved shipping company is no1 exempt under this with incume tax Act from the making of any return to the Commissioner law. under the Income Tax Act or from complying with that Act or Cap. 73. any other enactment relating to income tax, except in so far as this Act otherwise provides. Records and return\. 11. An approved shipping company shall (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;

6 7 L.R.O Shipping (Incentives) CAP. 90A ss (c) (d 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 make such returns or give such information operations as the Minister determines. relating to its 12. Notwithstanding any provision to the contrary in the Certificate _^ Income 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. 13. Any person who Offences. (a) makes any false statement or representation in respect of any concession allowed under section 5; (b) makes or delivers any false account, kept or prepared in respect of that concession; or (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 $ or to imprisonment for 12 months, or to both. 14. (1) The Minister may make regulations generally for the Regulations. 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

7 s. 14 CAP. 90A. Shipping (Incentives) L.R.O (c) any other matter that is by this Act required to be prescribed. (2) Regulations made under subsection (1) are subject to negative resolution.