SI 2018-205 New Rate for Intermediated Money Transfer Tax in effect Saturday 13 October

Finance (Rate and Incidence of Intermediated Money Transfer Tax) Regulations, 2018

These regulations, made by the Minister of Finance in terms of section 3 of the Finance Act [Chapter 23:04]. were promulgated (published in the Government Gazette) on Friday 12th October.  Sections 2 and 3 of the regulations amend section 22G of the Finance Act and the Thirtieth Schedule to the Income Tax, respectively. 

These amendments came into force with effect from "the day after the promulgation of these regulations", that is, with effect from Saturday 13th October 2018.

The amendments make radical changes to both the rate of the tax and the transactions on which it is payable, as announced by the Minister on 1st October and clarified in a further statement on 5th October.

The enabling provision of the Finance Act cited by the Minister requires prompt confirmation of regulations made under it by Parliament, and spells out the consequences if this does not take place in time.  It reads as follows:

3 Regulations

(1) The Minister responsible for finance may make such regulations as he or she may consider necessary or expedient for the administration of this Act and the better carrying out of its purposes.

(2) Regulations made in terms of subsection (1) may amend or replace any rate of tax, duty, levy or other charge that is charged or levied in terms of any Chapter of this Act, and the rate as so amended or replaced shall, subject to subsection (3), accordingly be charged, levied and collected with effect from the date specified in such regulations, which date shall not be earlier than the date the regulations are published in the Gazette.

(3) If any provision contained in regulations referred to in subsection (2) is not confirmed by a Bill which—

(a) passes its second reading stage in Parliament on one of the twenty-eight days on which Parliament sits next after the coming into operation of the instrument; and

(b) becomes law not later than six months after the date of such second reading;

that provision shall become void as from the date specified in the instrument as that on which the rate of tax, duty, levy or other charge shall be amended or replaced, and so much of the rate of tax, duty, levy or other charge as was amended or replaced, as the case may be, by that provision shall be deemed not to have been so amended or replaced.

 

 

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