Detail

Back to Revised Laws of Saint Lucia (2021)

Back to Table of Contents

Schedule 4

(Sections 77, 86, 90, 113, 143 and 144)

DEDUCTION OF TAX BY EMPLOYERS

1. Registration of employers

(1) Every person who pays or becomes liable to pay remuneration to any employee shall register as an employer with the Comptroller.

(2) Every person who was an employer at the commencement of this Act, but was not registered as an employer under the Income Tax (Employment) Rules, 1965 shall register with the Comptroller in the prescribed form within 30 days after the commencement of this Act and every person who becomes an employer after the commencement of this Act shall so register within 30 days after the end of the month in which he or she becomes an employer.

(3) Every employer who changes his or her business address or ceases to be an employer shall notify the Comptroller accordingly within 30 days of such change of address or of his or her ceasing to be an employer, as the case may be.

2. Deduction of tax

(1) Every employer shall, unless the Comptroller otherwise directs, deduct tax in accordance with this Schedule.

(2) Subject to this paragraph and paragraph 5 the amount of tax to be deducted is determined in accordance with tax deduction tables prescribed by the Comptroller under paragraph 4(2) and taking into account the concessional deductions claimed by the employee in the declaration lodged by him or her under paragraph 3.

(3) Where, during any calendar year an employee receives income from more than one source of employment at the same time, the amount of tax to be deducted is such amount as is directed by the Comptroller.

(4) Where, during any calendar year, an employee—
1. (a) is a non-resident individual; or
1. (b) being a resident individual, fails to lodge a declaration as required by paragraph 3,

the amount of tax to be deducted is determined in accordance with tax deduction tables prescribed by the Comptroller under paragraph 4.

3. Declaration by employees

(1) Subject to this paragraph, every employee chargeable to tax, to whom any remuneration accrues from employment after the commencement of this Act, shall furnish a declaration in the prescribed form to the person specified in subparagraphs (2) or (3).

(2) Where such remuneration is received from one employer only, such declaration shall be furnished to the employer, who shall take the particulars shown on such declaration into account in deducting tax under paragraph 2.

(3) Where such remuneration is received by that employee from more than one employer such declaration shall be furnished to the Comptroller who shall direct the respective employers as to the amount of tax to be deducted by them.

(4) A declaration under this paragraph shall not be furnished by any employee who is a non-resident.

(5) A declaration under this paragraph shall be furnished—
1. (a) where an employment commences, within 14 days of such commencement; and
1. (b) where the employee ceased to be entitled to the personal allowances or other deductions or allowances claimed in a declaration already furnished by him or her in respect of that year, within 7 days of such change of circumstance.

(6) A declaration under this paragraph may be furnished at any time during the year where there is any change of circumstances whereby an employee becomes entitled to an increase in the concessional deductions or other deductions or allowances claimed in a declaration already furnished by him or her.

4. Tax deduction tables

(1) The Comptroller shall prescribe tax deduction tables (hereinafter in this Schedule referred to as “the tables”) which come into force on the date of commencement of this Act.

(2) The tax to be deducted in accordance with the tables prescribed under this paragraph shall take into account—
1. (a) the rates of tax payable under section 80;
1. (b) the concessional deductions allowable under sections 45, 46, 48, 49, 50, 51, 52 and 53; and
1. (c) such other deductions or allowances as the Comptroller may deem appropriate.

(3) The tables shall include a table prescribing the tax to be deducted in the case of a non-resident employee and an employee who has failed to furnish a declaration under paragraph 3.

(4) The tables shall specify the manner of calculation of the tax to be deducted from any payments of remuneration by way of—
1. (a) annual or other bonuses;
1. (b) overtime; and
1. (c) other payments of an abnormal nature.

(5) In the event of any variation of the rates of tax payable or the concessional deductions allowable in relation to any year of income to which this Act applies, the Comptroller shall prescribe new tables to take into account such variation and shall, by notice published in the Gazette, specify the date upon which such tables come into force.

5. Variations from tax deduction tables

(1) Every employer shall, at the written request of any employee, deduct from his or her remuneration an amount of tax greater than that required to be deducted under the tables.

(2) Where, in relation to any year of income any employee is of the opinion that the amount of tax required to be deducted by his or her employer under the tables will be substantially greater than the amount of tax which is likely to be charged for that year of income, he or she may apply in the prescribed form to the Comptroller for the issue of a direction and, if the Comptroller is satisfied that it would be reasonable to do so, he or she may direct the employer by notice in writing to deduct either no tax or such amount as appears to the Comptroller to be appropriate to the circumstances of that employee, and the employer shall comply with that direction.

(3) A request by an employee under subparagraph (1) or a direction by the Comptroller under subparagraph (2) may be withdrawn at any time by notice in writing given to the employer and upon receipt of any such notice the employer shall deduct tax in accordance with the tables.

(4) Any request under subparagraph (1), direction under subparagraph (2) or notice of withdrawal under subparagraph (3) shall be complied with by the employer on and after the pay day next succeeding a period of 7 days following the receipt by him or her of such request, direction or notice.

6. Payment to or recovery by Comptroller

Any tax deducted under this Schedule—

(a) is due and payable within the time specified in section 116; and

(b) when it becomes due and payable, is a debt due to Government and, if unpaid, is liable to the penalty specified in section 135 and to interest at the rate specified in section 117 and may be recovered in the manner provided in sections 118, 119, or 121.

7. Payment or remuneration free of tax

(1) Any agreement between an employer and an employee whereby the employer agrees to pay, as remuneration to the employee, an amount expressed to be free of tax, is considered an agreement providing for payment to the employee of such an amount of remuneration as, after deduction of tax would leave an amount equal to the remuneration paid.

(2) In any case to which subparagraph (1) applies—
1. (a) the employer is liable to pay to the Comptroller an amount equal to the difference between the remuneration considered to be paid and the amount of remuneration paid;
1. (b) the amount is considered to be tax to be deducted under this Schedule; and
1. (c) the employee is considered to have received as income from employment the amount considered to have been paid by the employer.

8. Certificate of remuneration and tax deducted

(1) Every employer who deducts any tax under this Schedule in any calendar year shall within the time and in relation to the period specified in subparagraph (2), furnish to every employee to whom remuneration has been paid, a certificate in the prescribed form the contents of which shall include—
1. (a) the total remuneration accrued to that employee; and
1. (b) the total of the amounts of tax deducted from such remuneration.

(2) The certificate referred to in subparagraph (1) shall specify the period of employment to which it relates and shall be furnished to the employee or former employee—
1. (a) where the employer has not ceased to be an employer in relation to that employee at the end of the calendar year, within one month after the end of that calendar year;
1. (b) where the employer has ceased to be an employer in relation to that employee but has continued to be an employer in relation to other employees, on the date of cessation of the employment of that person; or
1. (c) where the employer has ceased to be an employer in relation to all employees, within one month after the date on which he or she ceased to be an employer.

(3) Any employee who has not received a certificate within the time specified in subparagraph (2) shall apply to the employer for such certificate to be furnished and in the event of such certificate not being furnished within a further period of 15 days he or she shall notify the Comptroller of such failure by the employer to furnish the certificate.

(4) Every employee, when furnishing his or her return of income for any year of income, shall attach to such return the certificate furnished to him or her under this paragraph.

(5) The certificate to be furnished under this paragraph by an employer to an employee may be delivered—
1. (a) by hand to such employee or his or her authorised agent;
1. (b) by registered letter addressed to that employee at his or her usual or last known postal address; or
1. (c) where the chargeable income of that employee is not chargeable to tax in his or her name, by hand or registered letter addressed to the person chargeable.

However, in the event of inability to deliver a certificate in the manner provided by this subparagraph the employer shall retain such certificate and forward it to the Comptroller with the return required under paragraph 12.

(6) In addition to the annual certificate referred to in subparagraph (1), on every occasion during the calendar year upon which a payment of remuneration is made to an employee from which tax is deducted under this Schedule the employer shall furnish to him or her particulars of the total remuneration payable for the pay period and of the amount of tax deducted therefrom.

9. Personal liability of employer and employee

(1) Where, in any calendar year, an employer fails to deduct any tax under paragraph 2, he or she, in addition to any penalty for which he or she may be liable, is personally liable to pay to the Comptroller within the time specified in section 116 the amount which he or she has failed to deduct.

(2) Where an employer pays to the Comptroller the amount of tax which he or she failed to deduct, such amount is considered to have been deducted under this Schedule.

(3) The employer shall be entitled to recover from the employee any amount paid to the Comptroller under subparagraph (2).

(4) Where, in relation to any payment of remuneration an employer has failed to deduct tax under paragraph 2, but the Comptroller is satisfied that tax deducted under this Schedule from earlier or later payments of remuneration is sufficient to meet the amount of tax which he or she has failed to deduct, the Comptroller may absolve the employer from his or her liability under subparagraph (1).

(5) Where the Comptroller is of the opinion that any amount of tax which has been set off under section 81 under a certificate under paragraph 8 has not been deducted by the employer, the employer and the employee is jointly and severally liable to pay to the Comptroller the amount which has been so set off and such amount is recoverable under this Act.

However, where the Comptroller is satisfied that the employee alone was responsible for the incorrect amount being shown on his or her certificate under paragraph 8, the employer is absolved from liability under this subparagraph.

(6) Where it is proved to the satisfaction of the Comptroller that any amount of tax is deducted from the remuneration of any employee, although the employer has failed to pay such amount to the Comptroller, no action shall be taken by the Comptroller for the recovery thereof from that employee.

10. Employer to keep records

Every employer shall, in respect of each of his or her employees, maintain a record showing in relation to each calendar year, the amounts of—

(a) remuneration accrued to that employee; and

(b) tax deducted from such remuneration,

and such record shall be kept available for examination by the Comptroller as and when required.

11. Employer's monthly return of tax deductions and remittances

Every employer shall, when making any payment under section 116 furnish a return showing the amount of tax deducted and remitted.

12. Employer's ANNUAL return of tax deductions and remittances (Amended by Act 2 of 2009)

(1) Every employer shall, in respect of each calendar year—
1. (a) within one month after the end of that year; or
1. (b) where he or she ceases to be an employer during that year, within 15 days after such cessation,

or within such further time as the Comptroller may allow, furnish to the Comptroller a return showing the total amount of tax deducted by him or her in respect of all of his or her employees during that year and the total payments of such tax made to the Comptroller.

(2) In the event of there being any deficiency between the total amount of tax deducted and the total payments of such tax made to the Comptroller, the employer shall be required to account to the Comptroller for such deficiency.

(3) The return referred to in subparagraph (1) shall be accompanied by a copy of all certificates issued under paragraph 8.

13. Duties and liabilities of representative employers

(1) Every representative employer, in relation to any remuneration paid by him or her in his or her representative capacity to any employee shall be subject to the same duties and liabilities under this Schedule as if such remuneration had been paid by him or her in his or her personal capacity.

(2) Any tax which should be deducted by a representative employer under this Schedule, any penalty due by him or her under section 135, any interest due by him or her under section 117 or fine imposed under section 143 or 144 on him or her shall be recoverable from him or her but to the extent only of any assets of the person whom he or she represents which may be in his or her possession or may come to him or her while acting in his or her representative capacity.

(3) The executor of the estate of any deceased employer or the trustee of the estate of any bankrupt employer shall fulfil such obligations of that employer under this Schedule as were not fulfilled at the time of his or her death or bankruptcy.

14. Liability to deduct tax not abated by other rights or obligations

The liability of an employer to deduct tax under this Schedule shall not be abated or extinguished by reason of—

(a) the fact that the employer has a right or is, otherwise than in terms of any law, under an obligation to deduct any other amount from the employee's remuneration and such right or obligation, despite anything to the contrary contained in any other law, is considered to refer only to the balance of remuneration remaining after tax has been deducted; and

(b) the provisions of any law which may provide that the amount of remuneration shall not be reduced or be subjected to attachment.

15. Definitions

In this Schedule—

“employee” means any person who, in respect of an employment, as defined in section 2, receives remuneration from an employer, and includes any person to whom remuneration accrues—

(a) as a director of a company;

(b) from a former employer or the trustee of a pension fund, as a consequence of a former employment; or

(c) as a dependent of a deceased person where such remuneration accrued to that dependent as a consequence of the former employment of that deceased person;

“employer” means any person who pays remuneration to an employee, and includes—

(a) the Government of Saint Lucia;

(b) a representative employer; and

“remuneration” means any amount accrued to an employee by way of employment income within the meaning of section 34, and includes any advance payments of remuneration;

“representative employer” means—

(a) in the case of a company, the principal officer or, where such company is in liquidation, the liquidator;

(b) in the case of a partnership, the precedent partner;

(c) where the employer is the Government, a local authority, a corporation or other authority established by statute or a body corporate or unincorporate (not being a company or partnership), the person responsible for paying remuneration on behalf of such employer;