Revenue Administration Act

Year of Act: 
2009
Number of Act: 
27
Date of promulgation: 
01 January 2009
Date of commencement: 
01 January 2010
In force: 
Yes

 

CONSOLIDATED TO 8 NOVEMBER 2017

 

EDITORS' NOTE: The digital versions of legislation accessible through SeyLII are UNOFFICIAL and provided solely in the interests of increasing access to legal information.  Their currency and accuracy cannot be warranted.  Official versions of Seychelles legislation can only be obtained in hard copy from the Attorney-General’s Chambers, Department of Legal Affairs.

 

CONSOLIDATED TO 8 NOVEMBER 2017

LEGISLATION OF SEYCHELLES

CHAPTER 308

REVENUE ADMINISTRATION ACT, 2009

[1st January, 2010]

Act 27 of 2009

Act 6 of 2011

Act 16 of 2011

SI 26 of 2011

Act 3 of 2015

Act 4 of 2015

________________________

REVENUE ADMINISTRATION ACT, 2009

PART I - PRELIMINARY PROVISIONS

Short title.

Interpretation.

PART II - RETURNS

Furnishing of returns.

Tax agent's certification

Extension of time to furnish return.

Return duly made.

PART III - ASSESSMENTS

Self-assessments.

Assessment.

Default assessments.

Advance assessments.

Amendment of assessments.

Validity of a revenue commission.

Evidence.

Rectification of mistakes.

PART IV - OBJECTIONS AND APPEALS

Objections.

Appeal to revenue tribunal.

Appeal to supreme court.

Appeal to court of appeal.

General provisions relating to objections and appeals.

PART V - COLLECTION AND RECOVERY OF REVENUE

Revenue as debt due to the government.

Recovery of unpaid revenue.

Extension of time to pay revenue.

Trustees to notify revenue commissioner on appointment.

Revenue commissioner may collect revenue from person owing money to taxpayer.

Security.

Taxpayer leaving Seychelles.

Unpaid revenue a charge over property.

Collection of revenue by distress and sale.

Refunds.

No double collection of revenue.

Ceiling on withholding obligations.

PART VI - RECORD-KEEPING AND INFORMATION COLLECTION

Accounts and records.

Power to enter and search.

Revenue commissioner may require information or evidence.

PART VII - TAXPAYER IDENTIFICATION NUMBERS

Issue of Taxpayer Identification Numbers.

Cancellation of Taxpayer Identification Number.

Quotation of a taxpayer identification number.

PART VIII - REPRESENTATIVES

Liabilities and obligations of representatives.

Public officer.

Liability of revenue payable by a company in financial difficulties.

PART IX - INTEREST, ADDITIONAL TAX, AND OFFENCES

Interest on unpaid revenue.

Additional tax for failure to furnish return.

Additional tax for failure to issue tax invoices.

Additional tax for failure to pay revenue by due date.

False or misleading statement.

General provisions relating to additional tax.

Offence failure to furnish return.

Offence of failure to comply with obligations under this Act.

Offence of failure to maintain records.

Offence for improper use of Taxpayer Identification Number.

Offence of making false or misleading statement.

Offence of obstructing revenue officer.

Offence of aiding or abetting commission of an offence.

Offences by companies.

Court order to comply with revenue law.

PART X - REVENUE PROCEEDINGS

General provisions relating to revenue proceedings.

No objection to informality.

Conviction not to be quashed.

PART XI - RULINGS

Binding public rulings.

Making a public ruling.

Withdrawal of a public ruling.

Liability in reliance of a public ruling.

Binding private rulings.

Refusing an application for a private ruling.

Making a private ruling.

Withdrawal of a private ruling.

Liability in reliance of a private ruling.

Publishing of binding private rulings.

Provision of general guidance.

Providing general guidance.

PART XII - REVENUE TRIBUNAL

Establishment of revenue tribunal.

Appointment of members of the revenue tribunal.

Application for review of reviewable decision.

Revenue commissioner or tax and customs agents board required to lodge documents with tribunal.

Alternative dispute resolution procedure.

Proceedings of the revenue tribunal.

Discontinuance, dismissal or reinstatement of application to the revenue tribunal.

Decision of revenue tribunal.

Appeal from decision of the revenue tribunal.

Offences relating to the revenue tribunal.

PART XIII - TAX AND CUSTOMS AGENTS BOARD

Establishment of the tax and customs agents board.

Appointment of members of the tax and customs agents board.

Proceedings of tax and customs agents board.

Registration of tax agents.

Registration of custom agents.

General provisions relating to registration as a tax or customs agent.

Code of conduct and sanctions.

Sanctioning of a tax agent or customs agent.

Cancellation of registration.

Unregistered persons not to charge fees or advertise as tax or customs agent.

Negligence of tax or customs agent.

Offences relating to tax or customs agents.

Part XIV - FORMS AND NOTICES

Approved form.

Forms and notices; authentication of documents; compliance with revenue law.

Manner of lodging documents.

Free Postage.

Service of documents.

Due date for documents and revenue payments.

PART XV - TAX INVOICES

Tax invoice.

PART XVI - FINAL PROVISIONS

Power to enter into tax agreement or treaty relating to tax compliance.

Regulations.

Transitional and savings.

SECOND SCHEDULE

SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Business Registration) Regulations, 2010

Citation.

Registration requirement.

Date for registration.

Particulars.

Additional information.

SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Fees) Regulations, 2011

Citation.

Fees.

SCHEDULE

SUBSIDIARY LEGISLATION: Sections 72(2) and 99: Revenue Administration (Review Form and Fees) Regulations, 2013

Citation.

Application form for Review and Fees.

SCHEDULE 1

SCHEDULE 2

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Common Reporting Standard) Regulations, 2015

Citation

Declaration

Interpretation

Terms defined

Reporting Seychelles Financial Institution to report to Seychelles Revenue

Lodging of return for Reporting Seychelles Financial Institution with no reportable account

Application of due diligence by Reporting Seychelles Financial Institution

Obligation towards arrangement entered into

Offences and penalties

Person appointed as agent

Information submitted to Seychelles Revenue Commission

SCHEDULE I

SCHEDULE 2

SCHEDULE 3

SCHEDULE 4

SCHEDULE 5

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Double Taxation Agreement) Regulations, 2016 [Belgium]

Citation

Declaration and effect of Protocol

SCHEDULE

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016 [India]

Citation

Declaration and effect of Protocol

SCHEDULE

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016 [Georgia]

Citation

Declaration and effect of Protocol

SCHEDULE

SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Filing of Business Activity Statement) Regulations, 2016

Citation

Form of Business Activity Statement

Penalty

SCHEDULE

 

________________________

PART I - PRELIMINARY PROVISIONS

Short title.

1.         This Act may be cited as the Revenue Administration Act, 2009.

Interpretation.

2.         (1) In this Act, unless the context requires otherwise—

“Alternative dispute resolution procedure” means a procedure for the resolution of an application for a review of a reviewable decision including conferencing or mediation, but does not include a hearing under section 75 or court procedures;

“Assessment” means an assessment of revenue made under a revenue law, including a self-assessment, an amended assessment, or an advance assessment;

“Business tax” means business tax imposed under the Business Tax Act, 2009;

“Business Tax Act” means the Business Tax Act, 2009;

“Commencement date” means the date specified in section 1;

“Commission” means the Seychelles Revenue Commission established under the Seychelles Revenue Commission Act, 2009;

“Customs Agent” means a person registered as a Customs Agent under section 84;

“Customs legislation” means the Trades Tax Act and any successor legislation dealing with customs;

“Deputy Commissioner” means the Deputy Commissioner appointed under section 4 of the Seychelles Revenue Commission Act, 2009;

“Entity” has the same meaning as in the Business Tax Act;

“*GST” means the goods and services tax imposed under the Goods and Services Tax Act, (Act 10 of 2001);

“Installment of tax” means an installment of tax under Division III of Part V of the Business Tax Act;

“Large business” has the same meaning as in the First Schedule;

"Medium business" has the same meaning as in the First Schedule;

"Minister" means the Minister responsible for finance;

"Objection decision" has the same meaning as in section 15(4);

"Person" means an individual, entity, partnership, trust, estate, government, political subdivision of a government, or public international organisation;

"Prescribed" means prescribed by regulations made under this Act;

"Price" means—

(a) the amount of money without any discount for the amount of GST* (if any) payable on the supply; and

(b) if no amount of money is specified or payable, the GST*-inclusive market value of that supply;

"Purchaser created tax invoice" means a document that complies with the requirement of section 98(3);

"Public officer" has the same meaning as in section 39;

"Representative" has the same meaning as in section 38(1);

"Return" means—

(a) a return required to be furnished under a revenue law; or

(b) a statement required to be furnished under the Business Tax Act, 2009 in respect of withholding tax;

"Revenue" means any tax, withholding tax, duty, contribution, fee, levy, charge, additional tax, interest, and other monies liable or payable under a revenue law;

"Revenue Commissioner" means the Revenue Commissioner appointed under section 4 of the Seychelles Revenue Commission Act, 2009;

"Revenue decision" means—

(a) an assessment; or

(b) in relation to this Act, the Business Tax Act, Exercise Tax Act or the Goods and Services Tax Act*, a decision on any matter left to the discretion, judgement, direction, opinion, approval, consent, satisfaction, or determination of the Revenue Commissioner, other than made in relation to the making of an assessment;

"Revenue law" means—

(a) this Act;

(b) an Act listed in the Schedule to the Seychelles Revenue Commission Act, 2009;

(c) any other Act under which a tax, duty, fee, levy, or charge is imposed if responsibility for the general administration of the tax, duty, fee, levy, or charge is on the Revenue Commissioner; and

(d) any regulations or other subsidiary legislation made under an Act referred to in paragraphs (a) to (c);

"Revenue officer" means the Revenue Commissioner, Deputy Commissioner, and any officer of the Commission appointed under the Seychelles Revenue Commission Act to perform duties under a revenue law;

"Revenue period", means—

(a) in the case of the business tax—

(i) for the purposes of withholding tax, the period to which the withholding relates; or

(ii) for the purposes of installments of tax, the period to which the payment of provisional tax relates; or

(iii) for any other purposes, the tax year;

(b) in the case of GST*, the calendar month; or

(c) in any other case, the period for which the revenue is reported;

"Revenue proceeding" means a proceeding under this Act;

"Revenue Tribunal" means the Revenue Tribunal established under section 70;

"Reviewable decision" means—

(a) an objection decision;

(b) a decision relating to the amount or rate of trades tax on any goods or as to the liability of goods to trades tax;

(c) a decision relating to the registration or cancellation of the registration of a Tax or Customs Agent, or the imposing of a sanction under section 87; or

(d) a decision made under the Customs legislation;

[Am by s 2(a)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

"Self-assessment" means an assessment treated as having been made under section 7(a);

[Am by s 2(a)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

"Self-assessment return" means a return declared in the Second Schedule to be a self-assessment return;

"Self-assessment taxpayer" means a person required to furnish a self-assessment return;

"Seychelles Business Number" means the Seychelles Business Number as defined in the Seychelles Business Number Act, 2009;

"Seychelles Revenue Commission's web site" means the official web site of the Seychelles Revenue Commission at www.src.gov.sc;

"Seychelles Revenue Commission Act" means the Seychelles Revenue Commission Act, 2009;

"Small business" has the same meaning as in the First Schedule;

"Tax Agent" means a person registered as a Tax Agent under section 83;

"Tax and Customs Agents Board" means the Tax and Customs Agents Board established under section 80;

"Taxpayer" means—

(a) a person liable for revenue under a revenue law; or

(b) a person liable to deduct withholding tax from a payment made by the person;

"tax agreement or treaty" means any agreement or treaty between the Government of Seychelles and the Government of one or more countries for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes or exchange of information on tax matters.

[Ins by s 2(i) of Act 16 of 2011 w.e.f. 27 December 2011.]

"Trades tax" means trades tax imposed under the Trades Tax Act;

"Trades Tax Act" means the Trades Tax Act, 1992 (Act 10 of 1992); and

"Withholding tax" means an amount required to be withheld from a payment under Division II of Part V of the Business Tax Act;

(2) When this Act applies for the purposes of a revenue law, any term not defined in this Act has the meaning that it has under that law.

[*Goods and Services Tax Act repealed by Value Added Tax Act (Act 35 of 2010).

**Trades Tax Act, 1992 repealed by Customs Management Act 2011 (Act 22 of 2011).]

PART II - RETURNS

Furnishing of returns.

3.         (1) If a taxpayer has failed to furnish a return as required under a revenue law, the Revenue Commissioner may, by notice in writing, require the taxpayer to furnish the return by the date set out in the notice.

(2) The Revenue Commissioner may, by notice in writing, require a taxpayer who has furnished a return (other than a self-assessment return) under a revenue law to furnish a further or fuller return by the date set out in the notice.

(3) A notice issued under this section does not change the original due date for furnishing a return.

Tax agent's certification

4.         (1) A Tax Agent who charges directly or indirectly any fee for preparing or assisting in the preparation of a return required under a revenue law shall sign a certificate in the prescribed form—

(a) stating the sources available to the Tax Agent for the preparation of the return; and

(b) certifying that the Tax Agent has examined the books, accounts, records, and other relevant documentation of the taxpayer, and that, to the best of the Tax Agent's knowledge, the return and the accompanying documentation correctly reflect the data and transactions to which they relate.

(2) A certificate provided to a taxpayer under subsection (1) shall be endorsed or annexed to the return.

(3) A Tax Agent who refuses to provide a certificate referred to in subsection (1) shall provide the taxpayer with a statement in writing of the reasons for such refusal and the taxpayer shall include that statement with the return.

(4) When—

(a) a Tax Agent who has prepared a return has refused to provide the certificate referred to in subsection (1); or

(b) a taxpayer has not used a Tax Agent to prepare a return, the taxpayer shall include with the return a declaration in the approved form setting out such information as to the sources available for the preparation of the return as is required by the form.

Extension of time to furnish return.

5.         (1) A taxpayer required to furnish a return under a revenue law may apply, in writing, to the Revenue Commissioner for an extension of time to furnish the return and the Revenue Commissioner may allow or reject the application.

(2) The Revenue Commissioner shall serve the taxpayer with notice of the decision on an application made under subsection (1) as soon as is practicable after the making of the decision.

(3) An extension of time granted under this section does not change the date for payment of any revenue due as specified in the revenue law under which the return has been made.

Return duly made.

6.         A return purporting to be furnished by or behalf of a taxpayer is treated as having been furnished by the taxpayer or with the taxpayer's authority unless the contrary is proved.

PART III - ASSESSMENTS

Self-assessments.

7.         For the purposes of this Act—

(a) a self-assessment taxpayer who has furnished a self-assessment return is treated as having made an assessment of the amount of revenue payable for the revenue period to which the return relates being that amount as set put in the return; and

(b) a self-assessment return furnished by a self-assessment taxpayer is treated as a notice of the assessment served by the Revenue Commissioner on the taxpayer on the date that the return was furnished.

Assessment.

8.         When a taxpayer has furnished a return (other than a self-assessment return), the Revenue Commissioner shall make an assessment of the revenue liability of the taxpayer under the return and, as soon as is convenient after making the assessment, serve the taxpayer with notice of the assessment stating—

(a) the amount of revenue payable;

(b) the amount of interest or additional tax (if any) payable in respect of the revenue payable;

(c) the revenue period covered by the notice;

(d) the date of issue of the notice; and

(e) the due date for payment of the revenue payable under the notice.

Default assessments.

9.         (1) If a revenue liability is required to be assessed under a revenue law and a taxpayer has failed to furnish a return as required under the law or has furnished a false or incomplete return (other, than a self-assessment return), the Revenue Commissioner may make an assessment of the revenue payable (including interest and additional tax if applicable) by the taxpayer.

(2) The Revenue Commissioner shall serve a taxpayer assessed under subsection (1) with notice, in writing, of the assessment as soon as is practicable after making the assessment, and such notice shall set out the matters specified in section 8.

(3) The service of a notice of an assessment under this section does not extent the time for payment of the revenue the assessment as determined under the revenue law imposing the revenue.

Advance assessments.

10.       (1) If the revenue liability of a taxpayer is required to be assessed under a revenue law and during a revenue period—

(a) the taxpayer has died;

(b) the taxpayer has been declared bankrupt, or has gone into winding up or liquidation;

(c) the Revenue Commissioner has reason to believe that the taxpayer is about to leave Seychelles; or

(d) the taxpayer has ceased, or the Revenue Commissioner has reason to believe that a taxpayer will cease, carrying on business in Seychelles,

the Revenue Commissioner may make an assessment of the revenue payable by the taxpayer for the period and the revenue is payable on the date set out in the notice of assessment served on the taxpayer.

(2) An assessment made under subsection (1)—

(a) may be made before the date on which the taxpayer's return for the period is due; and

(b) shall be made in accordance with the law in force at the date the assessment was made.

(3) The Revenue Commissioner shall serve a taxpayer assessed under subsection (1) with notice, in writing, of the assessment as soon as is convenient after making the assessment, and such notice shall set out the matters specified in section 8.

(4) An assessment made under subsection (1) may be amended under section 11 so that the taxpayer is assessed in respect of the whole of the revenue period to which an assessment made under subsection (1) relates.

Amendment of assessments.

11.       (1) Subject to this section, the Revenue Commissioner may amend an assessment by making such alterations or additions to the assessment as the Revenue Commissioner considers necessary to ensure that a taxpayer is liable for the correct amount of revenue payable in respect of the revenue period to which the assessment relates.

(2) A self-assessment taxpayer may apply to the Revenue Commissioner within the time specified in subsection (3)(b) for the Revenue Commissioner to make an amendment under subsection (1) to a self-assessment and the Revenue Commissioner shall serve the taxpayer with notice of the decision on the application as soon as is practicable after the making of the decision.

(3) The amendment of an assessment under subsection (1) may be made—

(a) in the case of fraud or evasion by or on behalf of the taxpayer, at any time; or

(b) in any other case, within four years of the date the Revenue Commissioner served or is treated as having served notice of the assessment on the taxpayer.

(4) As soon as practicable after making an amended assessment under this section, the Revenue Commissioner shall serve the taxpayer with notice of the amended assessment.

(5) Subject to subsection (6), if a notice of assessment (referred to as the “original assessment”) has been amended under subsection (1), the Revenue Commissioner may further amend the original assessment within the later of—

(a) four years after the Revenue Commissioner served or is treated as having served notice of the original assessment on the taxpayer; or

(b) one year after the Revenue Commissioner served notice of the amended assessment on the taxpayer.

(6) If subsection (5)(b) applies, the Revenue Commissioner is limited to amending the alterations and additions made to the original assessment in the amended assessment.

(7) An amended assessment is treated in all respects as an assessment for the purposes of this Act (other than subsection (1) or (2)) and the revenue law under which the original assessment has been made.

(8) The making of an amended assessment does not preclude the liability for interest and additional tax from arising from the date that revenue was due under the original assessment.

Validity of a revenue commission.

12.       The validity of a revenue decision or a notice of a revenue decision is not affected by reason that any procedural provisions of the revenue law under which it has been made have not been complied with.

Evidence.

13.       (1) The production of a notice of assessment, or a document under the hand of the Revenue Commissioner purporting to be a copy of a notice of assessment, is conclusive evidence of the due making of the assessment and (except in proceedings under Part IV) that the amount and all particulars of the assessment are correct.

(2) The production of the original self-assessment return, or a document under the hand of the Revenue Commissioner purporting to be a copy of such return, is conclusive evidence of the contents of the return.

(3) The production of a notice of a revenue decision (other than a notice of assessment), or a document under the hand of the Revenue Commissioner purporting to be a copy of such notice of a revenue decision, is conclusive evidence of the due making of the decision and (except in proceedings under Part IV) that the decision is correct.

(4) The production of a document under the hand of the Revenue Commissioner purporting to be a copy of a document issued by the Revenue Commissioner is conclusive evidence that the document was issued.

(5) The production of a document under the hand of the Revenue Commissioner purporting to be a copy of or extract from a return or notice of assessment is evidence of any matter therein set forth to the same extent as the original would be if it were produced.

Rectification of mistakes.

14.       If the Revenue Commissioner is satisfied that an order made or document issued by the Revenue Commissioner under a revenue law contains a mistake which is apparent from the record and the mistake does not involve a dispute as to the interpretation of the law or facts of the case, the Revenue Commissioner may, for the purposes of rectifying the mistake, amend the order or document any time before the expiry of four years from the date of making or issuing the order or document.

PART IV - OBJECTIONS AND APPEALS

Objections.

15.       (1) Subject to subsection (2), a taxpayer dissatisfied with a revenue decision may, within sixty days after service of the notice of the decision, serve on the Revenue Commissioner an objection in writing against the decision stating fully and in detail the grounds for the objection.

(2) If the Revenue Commissioner has amended an assessment under section 11, the taxpayer has no further right of objection than the taxpayer would have had if the amendment had not been made, except to the extent that by reason of the amendment a fresh liability is imposed on the taxpayer or an existing liability is increased.

(3) A taxpayer may apply, in writing, to the Revenue Commissioner for an extension of time to serve notice of an objection and the Revenue Commissioner may, if satisfied there is reasonable cause, grant an application under this subsection and shall serve notice of the decision on the taxpayer as soon as is practicable after the making of the decision.

(4) The Revenue Commissioner shall consider the objection and either allow the objection in whole or part, or disallow it, and the Revenue Commissioner's decision is referred as an “objection decision”.

(5) The Revenue Commissioner shall serve notice of the objection decision on the taxpayer as soon as is practicable after making the decision.

Appeal to revenue tribunal.

16.       (1) A taxpayer dissatisfied with an objection decision may make an application to the Revenue Tribunal in accordance with section 72 for review of the decision.

(2) The Revenue Tribunal may, in reviewing an objection decision, exercise all the powers and discretions of the Revenue Commissioner under the revenue law under which the assessment to which the objection decision relates was made.

(3) If an application for review relates to an assessment, the Revenue Tribunal may make an order to—

(a) affirm, or reduce, increase, or otherwise vary the assessment to which the objection decision relates; or

(b) remit the assessment to the Revenue Commissioner for reconsideration in accordance with the directions of the Tribunal.

(4) If an application for review relates to any other revenue decision, the Revenue Tribunal may make an order to affirm, vary, or set aside the decision.

Appeal to supreme court.

17.       (1) A party to a proceeding before the Revenue Tribunal dissatisfied with the Tribunal's decision on an objection decision may lodge a notice of appeal against the decision to the Supreme Court in accordance with section 78.

(2) The Supreme Court shall hear and determine the appeal and may make such order as it thinks appropriate by reason of its decision, including an order affirming or setting aside the decision of the Revenue Tribunal or an order referring the case to the Tribunal or Revenue Commissioner for reconsideration in accordance with the directions of the Court.

Appeal to court of appeal.

18.       (1) A party to a proceeding before the Supreme Court dissatisfied with the Court's decision may, with leave of the Court of Appeal, lodge a notice of appeal against the decision to the Court of Appeal.

(2) If the Court of Appeal grants leave to hear an appeal under subsection (1), the Court of Appeal may make such order as it thinks appropriate, including an order affirming or setting aside the decision of the Supreme Court or an order referring the case to the Tribunal or Revenue Commissioner for reconsideration in accordance with the directions of the Court of Appeal.

General provisions relating to objections and appeals.

19.       (1) In a proceeding under this Part—

(a) in the case of an assessment, the burden is on the taxpayer to prove that the assessment is excessive; or

(b) in the case of a revenue decision (other than an assessment), the burden is on the person objecting to decision to prove that the decision should not have be made or should have been made differently.

(2) In an application for review by the Revenue Tribunal or an appeal to the Supreme Court or Court of Appeal in relation to an objection decision, the taxpayer is limited to the grounds stated in the objection to which the objection decision relates unless the Tribunal, Supreme Court or Court of Appeal grants the person leave to add new grounds.

(3) The fact that an objection under section 15, review under section 16, or appeal under section 17 or 18 is pending does not interfere with, or affect the assessment that is the subject of the objection, review, or appeal and revenue may be recovered on the assessment as if no objection or appeal were pending.

PART V - COLLECTION AND RECOVERY OF REVENUE

Division I - General provisions for collection and recovery of revenue

Revenue as debt due to the government.

20.       (1) Revenue, when it becomes payable, is a debt due to the Government and shall be paid to the Revenue Commissioner in the manner and at, the place prescribed.

(2) The Revenue Commissioner may establish a running account balance for a taxpayer.

(3) The regulations shall provide for the allocation of revenue liabilities and payments to the running account balance of a tax payer.

Recovery of unpaid revenue.

21.       (1) Any unpaid revenue may be sued for and recovered in any court of competent jurisdiction by the Revenue Commissioner or by the Attorney-General suing on behalf of the Government.

(2) In an action for recovery of revenue, a copy of the notice of assessment shall be received by the court as evidence that the revenue is due and payable, and the court shall not entertain any plea that the revenue assessed is not recoverable because it has not been properly assessed or that the assessment under which the revenue is payable is the subject of objection and appeal.

Extension of time to pay revenue.

22.       (1) A taxpayer may apply, in writing, to the Revenue Commissioner for an extension of time to pay revenue due under a revenue law and the Revenue Commissioner may, having regard to the circumstances of the case—

(a) grant the taxpayer an extension of time for payment of the revenue due; or

(b) require the taxpayer to pay the revenue due in such installments as the Revenue Commissioner may determine.

(2) The Revenue Commissioner shall serve the taxpayer with written notice of the decision on an application under subsection (1) as soon as is practicable after the making of the decision.

(3) If a taxpayer permitted to pay revenue by installments defaults in the payment of an installment, the whole balance of the revenue outstanding, at the time of default, is immediately payable.

(4) The grant of an extension of time or permission to pay revenue by installments does not preclude the liability for interest arising under section 41 from the original date the revenue was payable.

Trustees to notify revenue commissioner on appointment.

23.       (1) In this section—

“Trustee” means—

(a) a trustee in bankruptcy, assignee, or other like person;

(b) a liquidator of a company being wound up;

(c) a receiver or manager appointed in respect of any assets of a taxpayer;

(d) an agent who has been required by a taxpayer to wind up the taxpayer's business or realise the taxpayer's assets; or

(e) an executor of a deceased estate; and

(f) a fiduciary appointed under Article 820 of the Civil Code of Seychelles Act;

“Taxpayer”, in relation to a trustee, means the person whose assets are in the possession or control of the trustee including, if the trustee is an executor, the estate of the deceased person.

(2) A trustee shall, within fourteen days after becoming a trustee in respect of a taxpayer or taking possession of a taxpayer's assets in the capacity as trustee, give written notice thereof to the Revenue Commissioner.

(3) The Revenue Commissioner shall, as soon as practicable after receiving notice under subsection (2), notify the trustee, in writing, of the amount that appears to the Revenue Commissioner to be sufficient to provide for any revenue that is or will become payable by the taxpayer.

(4) Subject to subsection (5), a trustee—

(a) shall not, without leave of the Revenue Commissioner, dispose of any asset of the taxpayer until a notice has been served on the trustee under subsection (3);

(b) shall set aside, out of the assets available for the payment of revenue due by the taxpayer, assets to the value of the amount notified under subsection (3), or the whole of the assets if their value is less than the amount notified; and

(c) is, to the extent of the value of the assets required to be set aside, personally liable for the revenue due by the taxpayer.

(5) Nothing in subsection (4) prevents a trustee from paying—

(a) any debt that has priority over the revenue notified under subsection (3); or

(b) the expenses properly incurred by the trustee in the capacity as such, including the trustee's remuneration, in priority to the amount notified under subsection (3).

(6) If two or more persons are trustees in respect of a taxpayer, the obligations and liabilities under this section apply jointly and severally to them but may be discharged by any of them.

(7) The amount that a trustee is personally liable for under subsection (4)(c) is treated as “revenue” for the purposes of this Part.

Revenue commissioner may collect revenue from person owing money to taxpayer.

24.       (1) In this section—

“Payer”, in respect of a taxpayer, means a person who—

(a) owes or may subsequently owe money to a taxpayer;

(b) holds or may subsequently hold money, for or on account of, a taxpayer;

(c) holds money on account of some other person for payment to a taxpayer; or

(d) has authority from some other person to pay money to a taxpayer, but does not include a person liable to pay a pension; and

“Revenue” includes a judgement debt and costs in respect of revenue.

(2) This section applies if a taxpayer is, or will become liable to pay revenue and—

(a) the revenue has not been paid by the taxpayer by the due date for payment; or

(b) the Revenue Commissioner has reasonable grounds to believe that the taxpayer will not pay the revenue by the due date for payment.

(3) If this section applies, the Revenue Commissioner may, by notice in writing, require a payer in respect of the taxpayer to pay the amount specified in the notice to the Revenue Commissioner, being an amount that does not exceed the amount of revenue that has not been paid or the amount that the Revenue Commissioner believes will not be paid by the due date.

(4) A payer shall pay the amount specified in a notice under subsection (3) by the date specified in the notice, being a date that is not before the date that the amount owed to the taxpayer becomes due to the taxpayer or held on the taxpayer's behalf.

(5) If a notice served under subsection (3) requires a payer to deduct amounts from salary, wages, or other remuneration payable at fixed intervals to the taxpayer, the amount required to be deducted by the payer from each payment shall not exceed 20 per cent (20%) of the amount of each payment of salary, wages, or other remuneration.

(6) If a payer served with a notice under subsection (3) is unable to comply with the notice, the payer shall notify the Revenue Commissioner, in writing within fourteen days after receipt of the notice, setting out the reasons for the payer's inability to comply.

(7) If a notice is served on the Revenue Commissioner under subsection (6), the Revenue Commissioner may, by notice in writing—

(a) accept the notification and cancel or amend the notice issued under subsection (3); or

(b) reject the notification.

(8) The Revenue Commissioner shall, by notice in writing to the payer, revoke or amend a notice served sunder subsection (3) if the taxpayer has paid the whole or part of the revenue due or has made an arrangement satisfactory to the Revenue Commissioner payment of the revenue.

(9) A copy of a notice served on a payer under this section shall be served on the taxpayer.

(10) A payer making a payment under this section is treated as acting under the authority of the taxpayer and of all other persons concerned and is hereby indemnified in respect of the payment.

(11) A payer who, without reasonable cause, fails to comply with a notice under this section is personally liable for the amount specified in the notice and the amount is treated as “revenue” for the purposes of this Part.

Security.

25.       If the Revenue Commissioner has reason to believe that a person establishing a business in Seychelles intends to carry on the business for a limited period only, or if the Revenue Commissioner for any other reason thinks it proper to do so, the Revenue Commissioner may require a person, by notice in writing, to give security by bond, deposit, or otherwise, in such amount as the Revenue Commissioner thinks fit.

Taxpayer leaving Seychelles.

26.       (1) If the Revenue Commissioner has reason to believe that a taxpayer may leave Seychelles before the date on which revenue is due and payable without making adequate arrangements for the payment of the revenue, the Revenue Commissioner may serve the taxpayer with a notice of assessment, requiring immediate payment of the amount of revenue specified in the notice being the amount that the Revenue Commissioner believes the taxpayer is or will be liable to pay, and the taxpayer shall pay to the Revenue Commissioner the amount specified in the notice before the person leaves Seychelles.

(2) If the Revenue Commissioner is of the opinion that a person may leave Seychelles without paying revenue due or that will become due, the Revenue Commissioner may with notice to the person apply to the Supreme Court for, and the Court may having regard to all the circumstances and any submissions made by the person issue, an order preventing the person from leaving Seychelles without paying or providing security to the Revenue Commissioner for the payment of the revenue.

(3) An application under subsection (2) may be made to a Judge in Chambers and be accompanied by an affidavit in support disclosing sufficient material to satisfy the Judge that it is necessary to make an order preventing the person named in the application from leaving Seychelles.

(4) The Commissioner of Police or the Director General of Immigration, or both, shall, on receipt of an order of the court under subsection (2), take or cause to be taken by any police or immigration officer, such measures as may be necessary to comply with the order including the use of such force as may be necessary, and the seizure, removed, or retention of any passport, certificate of identification, or other travel document relating to the person named in the order and of any other document authorising the person to leave Seychelles.

(5) The Revenue Commissioner shall serve on the person named in the order a notice of the issue of the order but the non-receipt of the notice does not invalidate any proceedings under this section.

(6) Production to an immigration officer or to a police officer in charge of a police station of a certificate signed by the Revenue Commissioner stating that the revenue has been paid or that security has been furnished for payment of the revenue is, subject to all immigration and other requirements being satisfied, sufficient authority for allowing the person named in the order issued under subsection (2) to leave Seychelles.

(7) No civil or criminal proceedings may be instituted or maintained against the Government, the Revenue Commissioner, the Commissioner of Police, the Director-General of Immigration, or any other police or immigration officer in respect of anything lawfully done under this section.

(8) Every airline or shipping company, or their agent, shall, if requested by the Revenue Commissioner, furnish the Revenue Commissioner with a list of passengers due to leave Seychelles by air or sea, as the case may be.

Unpaid revenue a charge over property.

27.       (1) Revenue imposed under a revenue law that has not been paid by the due date is a lien and charge upon the property, real or personal, of the taxpayer.

(2) The Supreme Court may, on an application made by the Revenue Commissioner, order that a charge on real property under subsection (1) be registered by the Registrar General without fee against the title of the property charged if the Revenue Commissioner has filed with the Registrar a memorandum describing the property so charged and the amount of revenue due.

(3) A registered charge under subsection (2) shall not be removed from the register until the Revenue Commissioner advises the Registrar General that the revenue to which the charge relates has been paid.

(4) If any unpaid revenue is, by virtue of subsection (1), a charge upon the property of the taxpayer, the Revenue Commissioner may apply by petition to the Supreme Court for the enforcement of the charge and the Court may order—

(a) the sale of the property or any part of the property; or

(b) the appointment of a receiver of the rents, profits, or income from the property,

and, subject to subsection (5), that the proceeds of sale or the rents, profits, or income, shall be used to pay the revenue due and any costs of the Revenue Commissioner in enforcing the charge.

(5) A charge over property created by this section is subject to any mortgage, charge, or encumbrance over the property existing at the time of creation of the charge.

Collection of revenue by distress and sale.

28.       (1) The Revenue Commissioner or a revenue officer authorised in writing by the Revenue Commissioner for the purposes of this section may, in accordance with an order of the Supreme Court obtained previously, issue a order, in writing, for the recovery of unpaid revenue by distress and sale of the personal property of the taxpayer.

(2) An order issued under subsection (1) shall specify—

(a) the taxpayer against whose property the order is issued;

(b) the amount of the unpaid revenue liability;

(c) the location of the property; and

(d) the revenue liability to which the order relates.

(3) For the purposes of executing distress under subsection (1), the Revenue Commissioner or authorised revenue officer—

(a) may, at any time, enter any house or premises described in the order authorising the distress proceedings; and

(b) may require a police officer to be present while the distress is being executed.

(4) The property upon which distress is levied under this section, other than perishable goods, shall be kept for ten days either at the premises where the distress was levied or at any other place that the Revenue Commissioner or authorised revenue officer may consider appropriate, at the cost of the taxpayer.

(5) If the taxpayer does not pay the revenue owing, together with the costs of the distress—

(a) in the case of perishable goods, within the period that the Revenue Commissioner or authorised revenue officer considers reasonable having regard to the condition of the goods; or

(b) in any other case, within ten days after the distress is levied, the property distrained may be sold by public auction or in such other manner as the Revenue Commissioner or authorised revenue officer may direct.

(6) The proceeds of a disposal under subsection (5) shall be applied by the Revenue Commissioner or authorised revenue officer as follows—

(a) first towards the cost of taking, keeping, and selling the property distrained;

(b) then towards the payment of any revenue owing by the taxpayer; and

(c) the remainder of the proceeds, if any, shall be paid to the taxpayer.

Refunds.

29.       (1) Subject to this Act, a taxpayer who has paid revenue in excess of the amount for which the taxpayer is properly chargeable under a Revenue law may apply to the Revenue Commissioner for a refund of the excess.

(2) An application for a refund under subsection (1) shall be in the prescribed form and lodged in the prescribed manner within four years of the date on which the revenue was paid.

(3) Subject to section 20(2), if the Revenue Commissioner is required to pay a refund of overpaid revenue to a taxpayer under a revenue law, the Revenue Commissioner shall—

(a) first apply the amount of the refund against any revenue owing by the taxpayer under any revenue law; and

(b) then refund the balance (if any) to the taxpayer.

No double collection of revenue.

30.       (1) In this section—

“collection agent” means—

(a) a person referred to in paragraph (b) of the definition of “taxpayer” in section 2;

(b) a trustee liable for revenue under section 23;

(c) a person who has been served with a notice under section 24;

(d) a representative of a taxpayer; or

(e) a person liable for the tax payable by a company under section 40; and

“primary taxpayer” means the person liable for any revenue that may be collected by the Revenue Commissioner from a collection agent.

(2) If there is both a primary taxpayer and a collection agent in respect of the same revenue liability (referred to as the “primary revenue liability”) and any additional tax and interest in respect of the liability—

(a) any amount recovered from the primary taxpayer is credited against the liability of the collection agent; and

(b) any amount recovered from the collection agent is credited against the liability of the primary taxpayer, but the Revenue Commissioner shall not recover more than the amount of the primary revenue liability, and additional tax and interest in respect of the primary Revenue liability.

Ceiling on withholding obligations.

31.       Where there are multiple withholding obligations under this Act or any other revenue law in respect of the same amount payable, only the higher of the withholding obligations applies.

PART VI - RECORD-KEEPING AND INFORMATION COLLECTION

Accounts and records.

32.       (1) Subject to subsection (2), every taxpayer shall, for the purposes of a revenue law—

(a) maintain in Seychelles in either the English, French or Creole language such accounts, documents, and records (including in electronic format) as may be required under the revenue law; and

(b) retain such accounts, documents, and records for seven years after the end of the revenue period to which they relate.

(2) Subsection (1) does not require the retention of any accounts, documents, or records—

(a) that the Revenue Commissioner has notified a taxpayer are not required to be retained; or

(b) of a company that has gone into liquidation and has been finally dissolved.

Power to enter and search.

33.       (1) For the purposes of administering any revenue law or for carrying out obligation under a tax agreement or treaty, the Revenue Commissioner or a revenue officer authorised by the Revenue Commissioner, in writing, for the purposes of this section—

(a) has the right, at all times and with or without notice, to full and free access to any premises, place, property, data storage device, accounts, documents, or records (including in electronic format);

(b) may make an extract or copy of any accounts, documents, records, or information stored on a data storage device to which access is obtained under paragraph (a);

(c) may seize any accounts, documents, or records that, in the opinion of the Revenue Commissioner or authorised revenue officer, afford evidence that may be material in determining the revenue liability of a taxpayer;

(d) may retain any accounts, documents, or records seized under paragraph (c) for as long as they may be required for determining a taxpayer's revenue liability or for any proceeding under a revenue law; and

(e) may, if a hard or electronic copy of information stored on a data storage device is not provided, seize and retain the device for as long as is necessary to copy the information required.

[S 33(1) am by s 2(ii) of Act 16 of 2011 w.e.f. 27 December 2011.]

(2) A revenue officer is not entitled to enter or remain on any premises or place if, upon request by the owner or lawful occupier, the officer is unable to produce the Revenue Commissioner's written authorisation permitting the officer to exercise powers under subsection (1).

(3) The Revenue Commissioner or authorised revenue officer may require a police officer to be present for the purposes of exercising powers under this section.

(4) The owner or lawful occupier of the premises or place to which an exercise of power under subsection (1) relates shall provide all reasonable facilities and assistance to the Revenue Commissioner or authorised revenue officer.

(5) A person whose accounts, documents, or records have been seized under subsection (1) may examine them and make copies, at the person's expense, during office hours.

(6) A person whose data storage device has been seized under subsection (1) may have access to the device during office hours on such terms and conditions as the Revenue Commissioner or authorised revenue officer may specify.

(7) The Revenue Commissioner or authorised revenue officer shall sign for all accounts, documents, records, or data storage devices removed and retained under this section and, subject to subsection (1)(e), return them to the owner within thirty days of the conclusion of the investigation to which they Relate and all related proceedings.

(8) This section has effect notwithstanding—

(a) any law relating to privilege or the public interest with respect to access to premises or places, or the production of any property, accounts, documents, or records (including in electronic format);

(b) any contractual duty of confidentiality; or

anything stated to the contrary in any other Act.

Revenue commissioner may require information or evidence.

34.       (1) For the purposes of administering any revenue law or for carrying out obligation under a tax agreement or treaty, by notice in writing, the Revenue Commissioner may require any person—

(a) to furnish such information as the Revenue Commissioner may require;

(b) to attend and give evidence concerning that person's or any other person revenue affairs; or

(c) to produce all accounts, documents, and record (including in electronic format) in the person custody or under the person control relating to that person's or any other person's revenue affairs.

[S 34(1) am by s 2(iii) of Act 16 of 2011 w.e.f. 27 December 2011.]

(2) If a notice served under subsection (1) requires the production of accounts, documents, or records (including in electronic format), it is sufficient if such accounts, documents, or records are described in the notice with reasonable certainty.

(3) The Revenue Commissioner may require the information or evidence referred to in subsection (1) to be given on oath, verbally or in writing, and, for that purpose, the Revenue Commissioner may administer the oath.

(4) This section has effect notwithstanding—

(a) any law relating to privilege or the public interest with respect to the giving of information or the production of any accounts, documents, or records (including in electronic format);

(b) any contractual duty of confidentiality; or

(c) anything stated to the contrary in any other Act.

PART VII - TAXPAYER IDENTIFICATION NUMBERS

Issue of Taxpayer Identification Numbers.

35.       (1) The Revenue Commissioner may, for the purposes of identification and cross-checking, require persons liable for revenue to apply for a Taxpayer Identification Number.

(2) An application for a Taxpayer Identification Number shall be—

(a) in the approved form;

(b) accompanied by documentary evidence of the person's identity as prescribed; and

(c) lodged in the prescribed manner.

(3) If a person has applied for a Taxpayer Identification Number as required under subsection (1) and the Revenue Commissioner is satisfied that the applicant's identity has been established, the Revenue Commissioner shall issue a Taxpayer Identification Number to the applicant by written notice.

(4) The Revenue Commissioner shall refuse an application under this section—

(a) if the Revenue Commissioner is not satisfied as to the applicant true identity;

(b) if the applicant has already been issued with a Taxpayer Identification Number that is still in force; or

(c) for any other reason the Revenue Commissioner considers appropriate.

(5) The Revenue Commissioner shall serve the applicant with written notice of the decision to refuse an application under this section within fourteen days after making the decision.

(6) The Revenue Commissioner shall, without an application being made, issue a Taxpayer Identification Number to any person liable for revenue.

Cancellation of Taxpayer Identification Number.

36.       (1) A person who ceases to be a taxpayer shall apply to the Revenue Commissioner, in the approved form, for cancellation of the person's Taxpayer Identification Number within thirty days of the date on which the person ceased to be a taxpayer.

(2) The Revenue Commissioner may, by notice in writing, cancel a Taxpayer Identification Number—

(a) if satisfied that the person has ceased to be a taxpayer;

(b) if satisfied that a Taxpayer Identification Number has been issued to the person under an identity that is not the person's true identity;

(c) if satisfied that the person had been previously issued with a Taxpayer Identification Number that is still in force; or

(d) for any other reason the Revenue Commissioner considers appropriate.

(3) The Revenue Commissioner may, at any time, by notice in writing, cancel the Taxpayer Identification Number issued to a person and issue the person with a new Taxpayer Identification Number.

Quotation of a taxpayer identification number.

37.       The Revenue Commissioner may require a taxpayer to state the taxpayer's Taxpayer Identification Number in any return, notice, or other document used for the purposes of a revenue law.

PART VIII - REPRESENTATIVES

Liabilities and obligations of representatives.

38.       (1) In this section, “representative” means—

(a) in the case of an individual under a legal disability, the guardian or other legal representative who receives or is entitled to receive income on behalf, or for the benefit, of the individual;

(b) in the case of a company, the public officer of the company;

(c) in the case of a partnership (including a limited partnership), a resident partner in the partnership;

(d) in the case of a trust (including a unit trust), a trustee of the trust;

(e) in the case of an entity (other than a limited partnership, unit trust, or company), an individual responsible for accounting for the receipt or payment of moneys or funds on behalf of the entity;

(f) in the case of the Government or a Government controlled agency in Seychelles, an individual responsible for accounting for the receipt or payment of moneys or funds on behalf of the Government or agency;

(g) in the case of a foreign government, political subdivision of a foreign government, or public international organisation, an individual responsible for accounting for the receipt or payment of moneys or funds in Seychelles on behalf of the government, political subdivision of the government, or organisation;

(h) in the case of a non-resident person, a person controlling the person‘s affairs in Seychelles, including a manager of any business of such person in Seychelles;

(i) in the case of a person or deceased estate to whom section 23 applies, the trustee or fiduciary under that section in relation to the person or estate; or

(j) in the case of any person (including a person referred to in paragraphs (a)-(i)), an agent or representative of the person as provided for under a revenue law or specified by the Revenue Commissioner, by notice in writing, to the person.

(2) Every representative of a taxpayer is responsible for performing any duties or obligations imposed by a revenue law on that taxpayer, including the payment of revenue.

(3) A representative making a payment of revenue on behalf of taxpayer is treated as acting under the authority of the taxpayer and is hereby indemnified in respect of the payment.

(4) Subject to subsection (5), any revenue that, by virtue of subsection (2), is payable by a representative of a taxpayer is recoverable from the representative only to the extent of any assets of the taxpayer that are in the possession or under the control of the representative.

(5) Subject to subsections (6) and (7), every representative is personally liable for the payment of any revenue due by the representative in that capacity if, while the amount remains unpaid, the representative—

(a) alienates, charges, or disposes of any moneys received or accrued in respect of which the revenue is payable; or

(b) disposes of or parts with any moneys or teds belonging to the taxpayer that are in the possession of the representative or which come to the representative after the revenue is payable, if such revenue could legally have been paid from or out of such moneys or funds.

(6) Subsection (5) does not apply to a representative in relation to liability for revenue if the representative did not know and could not reasonably be expected to know of the liability.

(7) Nothing in subsection (5) prevents a representative paying an amount on behalf of a taxpayer that has priority over the revenue payable by the taxpayer.

(8) If there are two or more representatives of a taxpayer, the duties or obligations referred to in this section apply jointly and severally to the representatives but may be discharged by any of them.

(9) Nothing in this section relieves a taxpayer from performing any duties or obligations imposed on the taxpayer under a revenue law that the representative of the taxpayer has failed to perform.

(10) The amount that a representative is personally liable for under subsection (5) is treated as “revenue” for the purposes of Part V.

Public officer.

39.       (1) Every company carrying on business in Seychelles or deriving income from sources in Seychelles shall appoint a resident individual as its public, officer for the purposes of the revenue laws.

(2) An appointment under subsection (1) shall be made within three months after the company commences business or derives income in Seychelles.

(3) No appointment of a public officer is made until after a notice, in writing, is served by the company on the Revenue Commissioner specifying the name of the public officer and an address for service of notices on the officer.

(4) A company shall keep the office of public officer constantly filled.

(5) In this section, “resident individual” means an individual who is a resident person under the Business Tax Act.

Liability of revenue payable by a company in financial difficulties.

40.       (1) In this section—

“arrangement” means any contract, agreement, plan, or understanding whether express or implied and whether or not enforceable in legal proceedings;

“associate” has the same meaning as in the Business Tax Act; and

“controlling shareholder”, in relation to a company, means any person who beneficially holds, either alone or together with an associate or associates—

(a) more than fifty per cent of the voting rights in the company; or

(b) more than fifty per cent of the rights to dividends in the company; or

(c) more than fifty per cent of the rights to capital in the company.

(2) If an arrangement has been entered into with the intention or effect of rendering a company unable to satisfy a current or future revenue liability under a revenue law, every person who was a director or controlling shareholder of the company at the time the arrangement was entered into is jointly and severally liable for the revenue liability of the company, including any interest and additional tax in respect of the liability.

(3) A director of a company is not liable under subsection (2) if the Revenue Commissioner is satisfied that the director derived no financial or other benefit from the arrangement and—

(a) the director, on becoming aware of the arrangement, has formally recorded with the company his or her dissent and notified the Revenue Commissioner, in writing, of the arrangement; or

(b) the director satisfies the Revenue Commissioner that, at the time the arrangement was entered into—

(i) the director was not involved in the executive management of the company; and

(ii) the director had no knowledge of, and could not reasonably have been expected to know of the arrangement.

(4) The amount that a director or controlling shareholder personally liable for under subsection (2) is treated as “revenue” for the purposes of Part V.

PART IX - INTEREST, ADDITIONAL TAX, AND OFFENCES

Division I - Interest

Interest on unpaid revenue.

41.       (1) A taxpayer who fails to pay revenue by the due date is liable for interest on the amount unpaid computed for the period commencing on the due date for payment and ending on the date that the revenue was paid.

(2) The rate of interest for the purposes of subsection (1) is the quarterly average prime lending rate on the first day of the period specified in subsection (1) as published by the Central Bank of Seychelles increased by three percentage points.

(3) Interest paid by a taxpayer under subsection (1) shall be refunded to the taxpayer to the extent that the revenue to which the interest relates is found not to have been payable.

(4) Interest payable under this section—

(a) is computed as simple interest; and

(b) is in addition to any additional tax or criminal sanction imposed in respect of the same act or omission.

(5) In this section, “revenue” does not include interest imposed under this section.

Division II - Additional Tax

Additional tax for failure to furnish return.

42.       (1) A taxpayer who fails to furnish a return as required under a revenue law is liable for an amount of additional tax equal to—

(a) if the return relates to the conduct of a business—

(i) in the case of a small business, SR 500 plus SR 50 for each week or part of a week that the return is not furnished;

(ii) in the case of a medium business, SR 1,000 plus SR 100 for each week or part of a week that the return is not furnished; or,

(iii) in the case of a large business, SR 5,000 and SR 500 for each week or part of a week that the return is not furnished; or

(b) in any other case, SR 500 plus SR 50 for each week or part of a week the return is not furnished.

Additional tax for failure to issue tax invoices.

43.       A taxpayer who fails to issue a tax invoice in accordance with subsection 98(1) is liable for an amount of additional tax equal to—

(a) in the case of a small business, SR 500 plus SR 50 for each week or part of a week that the tax invoice is not furnished;

(b) in the case of a medium business, SR 1,000 plus SR 100 for each week or part of a week that the tax invoice is not furnished; or

(c) in the case of a large business, SR 5,000 and SR 500 for each week or part of a week that the tax invoice is not furnished.

Additional tax for failure to pay revenue by due date.

44.       (1) In this section, “revenue” does not include interest or additional tax.

(2) A taxpayer who fails to pay revenue by the due date or, if the Revenue Commissioner has extended the due date under section 22, is liable for an amount of additional tax equal to 10% of the amount of unpaid revenue.

[S 44(2) am by s 2(b) of Act 6 of 2011 w.e.f 11 July 2011.]

(3) Additional tax paid by a taxpayer under this section shall be refunded to the taxpayer to the extent that the revenue to which the additional tax relates is found not to have been payable.

False or misleading statement.

44A.    (1) Where a person—

(a) makes a statement to a revenue officer which is false or misleading and which results in a revenue shortfall; or

(b) is assessed in accordance with section 9 of this Act,

the person is liable for an amount of additional tax in accordance with subsection (2).

(2) The amount of additional tax referred to in subsection (1) shall be equal to—

(a) in case of statement under subsection (1)(a)—

(i) 25% of the revenue shortfall where the statement being made by failure to take reasonable care to comply with revenue laws;

(ii) 50% of the revenue shortfall where the statement being made with recklessness as to the operation of revenue laws; or

(iii) 75% of the revenue shortfall where the statement being made with intentional disregard of revenue laws; or

(b) in case of an assessment under subsection (1)(b), 75% of the revenue liability.

(3) Where a person has been previously liable to additional tax referred to in this section, the amount of additional tax under subsection (2) shall be increased by 20%.

(4) For the purpose of this section—

(i) a revenue shortfall is—

(a) the amount by which the revenue liability of the person is less than it would have been if the statement was not false or misleading; or

(b) an amount the Commissioner must pay or credit the person that is more than it would have been if the statement were not false or misleading.

(ii) the revenue liability does not include the interest or additional tax.

[S 44A ins by s 2(a) of Act 4 of 2015 w.e.f. 8 July 2015.]

General provisions relating to additional tax.

45.       (1) A liability for additional tax is calculated separately with respect to each section in this Division.

(2) ...

[S 45(2) rep by s 2(c) of Act 6 of 2011 w.e.f. 11 July 2011.]

(3) ...

[S 45(3) rep by s 2(c) of Act 6 of 2011 w.e.f. 11 July 2011.]

(4) A person is liable for additional tax only if the Revenue Commissioner—

(a) makes an assessment of the additional tax imposed under this Division; and

(b) serves notice of the assessment on the person subject to the additional tax stating the amount of additional tax payable and the due date for payment.

(5) A person liable to pay additional tax may apply in writing to the Revenue Commissioner for remission of the additional tax payable and such application shall include the reasons for the remission.

(6) The Revenue Commissioner may, upon application under subsection (5) or on the Revenue Commissioner‘s own motion remit, in whole or in part, any additional tax payable by a person.

[S 45(6) rep and subs by s 2(b) of Act 4 of 2015 w.e.f. 8 July 2015.]

(7) The imposition of additional tax under this Division does not relieve the person liable from liability for the payment of the revenue to which the additional tax relates.

Division III - Offences

Offence failure to furnish return.

46.       (1) Any taxpayer who, without reasonable excuse, fails—

(a) to furnish a return by the due date, or within such further time as the Revenue Commissioner may allow under section 5; or

(b) comply with section 3,

commits an offence and on conviction is liable to a fine of an amount equal to three times the amount determined under section 42.

[S 46(1) am by s 2(d) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) For the purposes of subsection (1), a failure to comply with a notice served under section 3(3) does not constitute an offence separate from the offence constituted by the failure to furnish the return to which the section 3(3) notice relates.

Offence of failure to comply with obligations under this Act.

47.       (1) Any person who—

(a) without reasonable cause fails to—

(i) comply with section 23;

(ii) comply with a notice served on the person under section 24;

(iii) provide security as required under section 25;

(iv) comply with a request made under section 26(8);

(v) provide facilities and assistance as required by section 33(4);

(vi) comply with a notice under section 34; or

(b) knowing that an order has been made under section 26(2) leaves or attempts to leave Seychelles without paying the revenue due of making an arrangement satisfactory to the Revenue Commissioner for payment; or

(c) knowingly sells, leases, or otherwise disposes or attempts to dispose of real or personal property that is the subject of a charge under section 27,

commits an offence and on conviction is liable to a fine of no less than SR 50,000.

[S 47(1) am by s 2(e)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) Any company that fails to appoint a public officer as required under section 39 commits an offence and on conviction is liable to a fine of SR 10,000 and to a further fine of SR 100 for every day during which the failure continues.

[S 47(2) am by s 2(e)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(3) A person who notifies the Revenue Commissioner in writing under section 24(6) is considered to be in compliance with a notice served on the person under section 24(3) until the Revenue Commissioner serves the person with a notice under section 24(7) amending the notice served under section 24(3) or rejecting the person's notice under section 24(6).

(4) A person referred to in subsection (1)(b) may be arrested without warrant by any police or immigration officer.

Offence of failure to maintain records.

48.       Any taxpayer who knowingly or recklessly fails to keep, retain, and maintain accounts, documents, or records as required under a revenue law commits an offence and on conviction is liable to a fine of no less than SR 10,000 for small businesses, no less than SR 50,000 for a medium business and no less than SR 100,000 for a large business.

[S 48 am by s 2(f) of Act 6 of 2011 w.e.f. 11 July 2011.]

Offence for improper use of Taxpayer Identification Number.

49.       (1) Any person who fails to apply for a Taxpayer Identification Number as required under section 35 commits an offence and on conviction is liable to a fine of RS 1,000.

[S 49(1) am by s 2(g)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) Any person who knowingly uses a false Taxpayer Identification Number on a return or document prescribed or used for the purposes of a revenue law commits an offence and on conviction is liable to a fine of not less than SR 10,000 but not more than SR100,000 and to imprisonment for not less than one month and not more than 12 months.

[S 49(2) am by s 2(g)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(3) A person who uses the Taxpayer Identification Number of another person is treated as having used a false Taxpayer Identification Number, unless the Taxpayer Identification Number has been used with the permission of that other person on a document relating to the revenue affairs of that other person.

(4) Any person who fails to apply for cancellation of the person's Taxpayer Identification Number as required under section 36(1) commits an offence and on conviction is liable to a fine of SR 1,000.

[S 49(4) am by s 2(g)(iii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(5) Any person who fraudulently obtains a Taxpayer Identification Number using false or forged documents commits an offence and on conviction is liable to a fine of not less than R50,000 but not more than SR 500,000 and to imprisonment for not less than one month but not more than 12 months or to both such fine and imprisonment.

[S 49(5) am by s 2(g)(iv) of Act 6 of 2011 w.e.f. 11 July 2011.]

Offence of making false or misleading statement.

50.       Any person who with deliberate intention to defraud the Government or with intentional disregard of the revenue laws—

(a) makes a statement to a revenue officer that is false or misleading in a material particular; or

(b) omits from a statement made to a revenue officer any matter or thing without which the statement is false or misleading in a material particular,

commits an offence and on conviction is liable to a fine of no less than SR 50,000, or to imprisonment for not more than three months, or to both a fine and imprisonment.

[S 50 am by s 2(h) of Act 6 of 2011 w.e.f. 11 July 2011.]

Offence of obstructing revenue officer.

51.       Any person who obstructs or hinders a revenue officer in the performance of duties under a revenue law commits an offence and on conviction is liable to a fine of SR 100,000 or to imprisonment for not less than one month but not more than three months, or to both a fine and imprisonment.

[S 51 am by s 2(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

Offence of aiding or abetting commission of an offence.

52.       Any person who aids, abets, counsels, incites, conspires with, or induces another person to commit an offence under a revenue law (referred to as the “principal offence”) commits an offence and on conviction is liable for the same sanction as imposed for the principal offence.

[S 52 am by s 2(j) of Act 6 of 2011 w.e.f. 11 July 2011.]

Offences by companies.

53.       (1) If an offence under a revenue law is committed by a company, the offence is treated as having been committed by every person who, at the time the offence was committed, was—

(a) the public officer, director, general manager, company, secretary, or other similar officer of the company; or

(b) acting or purporting to act in that capacity.

(2) Subsection (1) does not apply to a person if—

(a) the offence was committed without the person's consent or knowledge; and

(b) the person, having regard to the nature of the person's functions and all the circumstances, has exercised reasonable diligence to prevent the commission of the offence.

Court order to comply with revenue law.

54.       (1) Upon conviction of a person of an offence, under this Division, the Court may, in addition to any sentence it may impose, order the convicted person to do, within the time specified in the order, the act that the person has failed, refused, or neglected to do and, if the person fails to comply with the order, the person is guilty of an offence and on conviction is liable to a fine of SR 10,000 and to a further fine of SR 1,000 for each day that the person fails to comply with the order.

(2) An order under subsection (1) may be served on the defendant in the manner prescribed.

PART X - REVENUE PROCEEDINGS

General provisions relating to revenue proceedings.

55.       (1) If a revenue proceeding has been instituted in the name of the Revenue Commissioner, by an officer authorised in writing by the Revenue Commissioner, the proceeding is, unless the contrary is proved, treated as having been instituted by the authority of the Revenue Commissioner.

(2) In a revenue proceeding, the Revenue Commissioner may appear either personally, by a legal practitioner, or by an officer in the public service.

(3) In the case of an appearance by an officer in the public service, a statement by the officer that he or she appears by the authority of the Revenue Commissioner is sufficient evidence of such authority.

(4) A revenue proceeding in the Supreme Court may be commenced, prosecuted, and proceeded with in accordance with any rules of practice established by the Court for Government suits in revenue matters or in accordance with the usual practice and procedure of the Court in civil cases, or in accordance with the directions of the Courts.

(5) In a revenue proceeding, the court may award costs against any party and the amount of the costs in favour of the Commissioner is treated as “revenue” for the purposes of Part V of this Act.

No objection to informality.

56.       (1) Subject to subsection (2), no objection shall be taken or allowed to any information or summons for any alleged defect therein in substance or in form or for any variance between the information or summons, and the evidence adduced at the hearing in support thereof, and the Court shall, at all times, make any amendment necessary to determine the real question in dispute or that may appear desirable.

(2) If a defect or variance appears to the Court to be such that the defendant has been thereby deceived or misled, it is lawful for the Court, upon such terms as it thinks just, to adjourn the hearing of the case to a future date.

Conviction not to be quashed.

57.       A conviction, warrant of commitment, or other proceeding, matter or thing done or transacted in relation to the execution or carrying but of this Act is not to be held void, quashed, or set aside by reason of any defect therein or want of form, and no party is entitled to be discharged out of custody on account of such defect.

PART XI - RULINGS

Division I - Public Rulings

Binding public rulings.

58.       (1) The Revenue Commissioner may make a public ruling in accordance with section 59 setting out the Revenue Commissioner's interpretation on the application of a revenue law.

(2) A public ruling made in accordance with section 59 is binding on the Revenue Commissioner until withdrawn.

(3) A public ruling is not binding on a taxpayer.

Making a public ruling.

59.       (1) The Revenue Commissioner makes a public ruling by publishing a notice of the ruling on the official Seychelles Revenue Commission's web site.

(2) A public ruling shall state that it is a public ruling and have a number and subject heading by which it can be identified.

(3) A public ruling applies from the date specified in the ruling.

Withdrawal of a public ruling.

60.       (1) The Revenue Commissioner may withdraw a public ruling, in whole or part, by publishing notice of the withdrawal on the official Seychelles Revenue Commission's web site or by such other form of public notification as the Revenue Commissioner may determine.

(2) If legislation is passed, or the Revenue Commissioner makes a public ruling, that is inconsistent with an existing public ruling, the existing ruling is treated as withdrawn to the extent of the inconsistency.

(3) The withdrawal of a public ruling, in whole or part, has effect—

(a) if subsection (1) applies, from the date specified in the notice of withdrawal; or

(b) if subsection (2) applies, from the date of application of the inconsistent legislation or public ruling.

(4) A public ruling that has been withdrawn in whole or in part—

(a) continues to apply to a transaction commenced before the public ruling was withdrawn; and

(b) does not apply to a transaction commenced after the ruling was withdrawn to the extent that the ruling is withdrawn.

Liability in reliance of a public ruling.

61.       If a taxpayer relies on a public ruling, a liability for revenue, and interest and additional tax related thereto, cannot arise for the taxpayer that is contrary to the ruling.

Division II - Private Rulings

Binding private rulings.

62.       (1) Subject to section 63, the Revenue Commissioner shall, upon application in writing by a taxpayer, issue to the taxpayer a private ruling setting Revenue Commissioner's position regarding the application of a revenue law to a transaction entered into, or proposed to be entered into, by the taxpayer.

(2) If the taxpayer has made a full and true disclosure of all aspects of the transaction relevant to the making of a private ruling and the transaction has proceeded in all material respects as described in the taxpayer's application for the ruling, the ruling is binding on the Revenue Commissioner in relation to the taxpayer.

(3) A private ruling is not binding on the taxpayer to whom it is issued.

(4) If a private ruling is inconsistent with an existing public ruling, the private ruling has priority to the extent of the inconsistency.

Refusing an application for a private ruling.

63.       (1) The Revenue Commissioner may refuse an application for a private ruling if—

(a) the Revenue Commissioner has already decided the matter that is the subject of the application in an assessment;

(b) the Revenue Commissioner is of the opinion that an existing public ruling adequately covers the matter that is the subject of the application;

(c) the application relates to a matter that is the subject of an audit or an objection;

(d) the application is frivolous or vexatious;

(e) the arrangement to which the application relates has not been carried out and there are reasonable grounds to believe that it will not be carried out;

(f) the applicant has not provided the Revenue Commissioner with sufficient information to make a private ruling; or

(g) in the opinion of the Revenue Commissioner, it would be unreasonable to comply with the application having regard to the resources needed to comply and any other matters the Revenue Commissioner considers relevant.

(2) The Revenue Commissioner shall serve the applicant with a written notice of a decision to refuse to make a private ruling as soon as is practicable after the making of the decision.

Making a private ruling.

64.       (1) The Revenue Commissioner makes a private ruling by serving written notice of the ruling on the applicant.

(2) The Revenue Commissioner may make a private ruling on the basis of assumptions about a future event or other matter as considered appropriate.

(3) A private ruling shall set out the matter ruled on, identifying—

(a) the taxpayer;

(b) the revenue law relevant to the ruling;

(c) the revenue period to which the ruling applies;

(d) the arrangement to which the ruling relates; and

(e) any assumptions on which the ruling is based.

(4) A private ruling is made at the time the applicant is served with notice of the ruling and remains in force for the period specified in the ruling.

(5) The making of a private ruling is not a revenue decision for the purposes of this Act.

Withdrawal of a private ruling.

65.       (1) The Revenue Commissioner may, for reasonable cause, withdraw a private ruling, in whole or part, by written notice served on the applicant.

(2) If legislation is passed, or the Revenue Commissioner publishes a public ruling, that is inconsistent with a private ruling, the private ruling is treated as withdrawn to the extent of the inconsistency.

(3) The withdrawal of a private ruling, in whole or part, has effect—

(a) if subsection (1) applies, from the date of the notice of withdrawal or such later date as may be specified in the notice; or

(b) if subsection (2) applies, from the date of publication of the inconsistent legislation or public ruling.

(4) A private ruling that has been withdrawn—

(a) continues to apply to a transaction commenced before the ruling was withdrawn; and

(b) does not apply to a transaction commenced after the ruling was withdrawn to the extent that the ruling is withdrawn.

Liability in reliance of a private ruling.

66.       If section 65(2) applies to a taxpayer, a liability for revenue, and interest and additional tax related thereto, cannot arise for the taxpayer that is contrary to the ruling.

Publishing of binding private rulings.

67.       The Commissioner may publish, for educational purposes and subject to the taxpayer's consent, an edited version of a binding private ruling issued to the taxpayer.

Division III - General Guidance

Provision of general guidance.

68.       (1) If a taxpayer does not provide sufficient information for the Revenue Commissioner to provide the taxpayer with a private ruling, the Revenue Commissioner may issue the taxpayer with general guidance rather than a ruling.

(2) Subject to subsection (3), general guidance provided to a taxpayer under subsection (1) is not binding on either the Revenue Commissioner or the taxpayer and, if the general advice is inaccurate, the taxpayer can be liable for revenue contrary to the general advice provided.

(3) If a taxpayer is liable for revenue contrary to general guidance provided, the taxpayer is not liable for any interest or additional tax arising in relation to that liability.

(4) Subsection (3) does not apply if the general guidance is inconsistent with an existing public ruling or private ruling provided to the taxpayer, or the Revenue Commissioner has withdrawn the general guidance by notice in writing to the taxpayer before the transaction in respect of which the liability arose was entered into.

Providing general guidance.

69.       (1) The Revenue Commissioner provides general guidance by serving written notice of the guidance on the applicant.

(2) The Revenue Commissioner may provide general guidance on the basis of assumptions about a future event or other matter as considered appropriate.

(3) General guidance shall set out the matter to which it relates, identifying—

(a) the taxpayer;

(b) the revenue law relevant to the general guidance;

(c) the revenue period to which the general guidance applies;

(d) the arrangement to which the general guidance relates; and

(e) any assumptions on which the general guidance is based.

(4) General guidance is provided at the time the applicant is served with notice of the guidance and remains in force for the period specified in the guidance.

PART XII - REVENUE TRIBUNAL

Establishment of revenue tribunal.

70.       (1) There is established a tribunal to be called the Revenue Tribunal to hear applications for review of reviewable decisions made under a revenue law.

(2) A reviewable decision can be challenged only under this Part.

Appointment of members of the revenue tribunal.

71.       (1) The Minister shall appoint a Chairperson and three other members to serve on a part time or full time basis on the Revenue Tribunal, who shall have special knowledge, experience or skills relevant to the functions of the Revenue Tribunal or in the field of customs, or revenue.

(2) The names of the Chairperson and members shall be published in the Gazette.

(3) The Chairperson and Members shall hold office for a term of three years and may be eligible for reappointment for another term.

(4) The Chairperson or a Member who has a material pecuniary or other interest in any proceedings shall disclose the interest in any proceedings that could conflict with the proper performance of the function and not take part in the proceedings.

(5) The terms and conditions of the appointment and the allowances of the Chairperson and Members shall be prescribed by the Minister.

(6) The Minister shall by notice in writing, terminate the office of the Chairperson or any Member, who—

(a) has or acquired a criminal record;

(b) becomes an undischarged bankrupt;

(c) is unable to perform the duties of office due to ill health or has engaged in misconduct;

(d) becomes employed as a revenue officer; or

(e) resigns by notice in a writing to the Minister.

(7) The Chairperson or any member of the Revenue Tribunal shall not be liable for any action or suit for any act done or omitted to be done in the bona fide execution of the duties in pursuance of this Act, rules or regulations made there under.

[S 71 rep and subs by s 2(k) of Act 6 of 2011 w.e.f. 11 July 2011.]

Application for review of reviewable decision.

72.       (1) A person dissatisfied with a reviewable decision may apply to the Revenue Tribunal for review of the decision.

(2) An application under subsection (1) shall—

(a) be in the approved form;

(b) include a statement of the reasons for the application;

(c) be lodged with the Revenue Tribunal within thirty days after the applicant has been served with notice of the reviewable decision; and

(d) be accompanied by the prescribed fee.

(3) The Revenue Tribunal may, on an application in writing, extend the time for making an application to the Tribunal for a review of a reviewable decision.

(4) An applicant to the Revenue Tribunal shall serve a copy of the application on the Revenue Commissioner or the Tax and Customs Agents Board, as the case may be, within five days of lodging the application with the Revenue Tribunal.

(5) The Revenue Tribunal may, in reviewing a reviewable decision, exercise all the powers and discretion's of the original decision-maker under the revenue law under which b the original decision was made.

Revenue commissioner or tax and customs agents board required to lodge documents with tribunal.

73.       (1) The Revenue Commissioner or Tax and Customs Agents Board, as the case may be, shall, within twenty eight days of being served with a copy of an application to the Revenue Tribunal or within such further time as the Revenue Tribunal may allow, lodge with the Revenue Tribunal—

(a) the notice of the reviewable decision to which the application relates;

(b) a statement setting out the reasons for the decision if these are not set out in the notice referred to in paragraph (a); and

(c) any other document that the Revenue Tribunal believes may be relevant to the Tribunal's review of the decision.

(2) If the Revenue Tribunal is not satisfied with a statement lodged under subsection (1)(b), the Revenue Tribunal may, by written notice, require the Revenue Commissioner or Tax and Customs Agents Board, as the case may be, to lodge, within the time specified in the notice, a further statement.

(3) If the Revenue Tribunal is of the opinion that other documents may be relevant to the Revenue Tribunal's review of a reviewable decision, the Revenue Tribunal may, by written notice, require the Revenue Commissioner or Tax and Customs Agents Board, as the case may be, to lodge with the Revenue Tribunal, within the time specified in the notice, the documents specified in the notice.

(4) The Revenue Commissioner or Tax and Customs Agents Board, as the case may be, shall give the applicant a copy of any statement or document lodged with the Revenue Tribunal under this section within 14 days.

Alternative dispute resolution procedure.

74.       (1) The Chairperson may direct that an application for review of a reviewable decision be referred to a particular alternative dispute resolution procedure.

(2) When a direction is made under subsection (1), each party shall act in good faith in the conduct of the alternative dispute resolution procedure.

(3) The Chairperson may give directions in relation to an alternative dispute resolution procedure, including—

(a) the type of procedure to be undertaken;

(b) the person who is required for conduct the procedure; or

(c) the procedure to be followed when the alternative dispute resolution procedure is completed.

(4) The Chairperson may, at any time, vary or revoke a direction given under subsection (3).

(5) If the alternative dispute resolution procedure directed by the Chairperson is mediation, the person conducting the mediation shall be a member of the Revenue Tribunal or another person properly qualified to conduct mediation.

(6) When, in the course of an alternative dispute resolution procedure—

(a) agreement is reached between the parties as to the terms of a decision of the Revenue Tribunal on the application the subject of the procedure;

(b) the terms of the agreement are reduced to writing, signed by the parties, and lodged with the Revenue Tribunal;

(c) seven days have passed since lodgement of the agreement and none of the parties have notified the Revenue Tribunal in writing that they wish to withdraw from the agreement; and

(d) the Revenue Tribunal is satisfied that a decision in the terms of the agreement is within the power of the Revenue Tribunal, the Revenue Tribunal may, without holding a hearing, make a decision in accordance with the agreement.

(7) evidence of anything said, or any act done, at an alternative dispute resolution procedure under this section is not admissible in any court unless the parties to the proceeding agree, in writing, to the evidence being admissible.

Proceedings of the revenue tribunal.

75.       (1) The Chairperson shall assign members to hearings and, on hearing, the Revenue Tribunal may be constituted by one member or three members at the discretion of the Chairperson.

(2) If the Revenue Tribunal is constituted by three members and the members are divided in opinion as to the decision to be made on any question, the question is decided according to the opinion of the majority.

(3) The times and places of the hearings of the Revenue Tribunal are to be specified by the Chairperson.

[S 75(3) rep and s 75(4) renumbered as 75(3) by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(4) The Revenue Tribunal is to be conducted with as little formality and technicality as possible, and the Revenue Tribunal is not bound by the rules of evidence but may inform itself on any matter in such manner as it thinks appropriate.

[S 75(5) renumbered as s 75(4) by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(5) The proceedings of the Revenue Tribunal shall be conducted in accordance with such rules of practice and procedure as the Chairperson may specify.

[S 75(6) renumbered as s 75(5) by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(6) The Revenue Tribunal may—

(a) take evidence on oath or affirmation;

(b) summon a person to appear before the Revenue Tribunal to give evidence;

(c) proceed in the absence of a party who has had reasonable notice of the proceeding; or

(d) adjourn the proceeding from time to time.

[S 75(7) renumbered as s 75(6) by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(7) The posting by certified or registered post of any pleading, decision, or order in respect of proceedings before the Revenue Tribunal is sufficient service of such pleading, decision, or order.

[S 75(8) renumbered as s 75(7) by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(9) ...

[S 75(9) rep by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

(10) ...

[S 75(10) rep by s 2(l) of Act 6 of 2011 w.e.f. 11 July 2011.]

Discontinuance, dismissal or reinstatement of application to the revenue tribunal.

76.       (1) An applicant to the Revenue Tribunal may discontinue or withdraw the application at any time by filing a written notice of withdrawal with the Tribunal and the Tribunal shall dismiss the application.

(2) If an applicant fails to appear in person or be represented at a hearing of the proceeding, the Revenue Tribunal may dismiss the application.

(3) If an applicant fails within a reasonable time to comply with a direction of the Revenue Tribunal in relation to an application, the Chairperson may, on behalf of the Tribunal, dismiss the application.

[S 76(3) am by s 2(m)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(4) If the Revenue Tribunal has dismissed an application under subsection (2) or (3), the applicant may, within thirty days after receiving notification that the application has been dismissed, apply on reasonable grounds to the Revenue Tribunal for reinstatement of the application.

[S 76(4) am by s 2(m)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(5) If an application has been made under subsection (4), the Revenue Tribunal may reinstate the application with directions.

Decision of revenue tribunal.

77.       (1) The Revenue Tribunal shall—

(a) in the case of a review of an objection decision, make an order as set out in section 16(3) or (4); or

(b) in the case of a review of any other reviewable decision, make an order to affirm, vary, or set aside the decision.

(2) The Revenue Tribunal shall—

(a) make a written decision on an application for review as soon as practicable after the hearing has been completed; and

(b) cause a copy of its decision to be served on each party to the proceeding within seven days of the making of the decision.

(3) A decision referred to in subsection (2) shall include the Revenue Tribunal's reasons for the decision and its findings on material questions of fact and reference to the evidence or other material on which those findings were based.

(4) A decision of the Revenue Tribunal comes into operation upon the giving of the decision or on such other date as may be specified by the Revenue Tribunal in the decision.

(5) Subject to subsection (6), the Revenue Tribunal shall provide for the publication of its decisions in such form and manner as may be adapted for public information and use, and such authorised publication is evidence of the decisions of the Revenue Tribunal in all courts of Seychelles without any further proof or authentication.

(6) In publishing its decisions, the Revenue Tribunal shall ensure that—

(a) the identity and affairs of the applicant and any other person Concerned are concealed; and

(b) trade secrets or other confidential information are not disclosed.

Appeal from decision of the revenue tribunal.

78.       (1) A party dissatisfied with a decision of the Revenue Tribunal may appeal to the Supreme Court against the decision.

(2) An application under subsection (1) shall—

(a) be in the approved form;

(b) include statement of the reasons for the application;

(c) be lodged with the Registrar of the Supreme Court within thirty days after the applicant has been served with notice of the decision; and

(d) for applicants other than the Revenue Commissioner, be accompanied by the prescribed fee.

(3) The party appealing to the Supreme Court shall serve a copy of the notice of appeal on the other party to the proceeding before the Revenue Tribunal.

(4) An appeal to the Supreme Court may be made on a question of law only, and the notice of appeal shall state the question or questions of law that will be raised on the appeal.

(5) The Supreme Court shall hear and determine the appeal and—

(a) in the case of an appeal relating to an objection decision, make an order as set out in section 17; or

(b) in the case of an appeal relating to any other reviewable decision, make such order as it thinks appropriate by reason of its decision, including an order affirming or setting aside the decision of the Revenue Tribunal or an order remitting the case to the original decision maker for reconsideration.

(6) A party to a proceeding before the Supreme Court dissatisfied with the Court's decision on an appeal from the Revenue Tribunal may lodge a notice of appeal against the decision to the Court of Appeal.

(7) If the Court of Appeal grants leave to hear an appeal from a decision of the Supreme Court, the Court of Appeal shall determine the appeal and—

(a) in the case of an appeal relating to an objection decision, make an order as set out in section 17; or

(b) in the case of an appeal relating to any other reviewable decision, make such order as it thinks appropriate by reason of its decision, including an order affirming or setting aside the decision of the Revenue Tribunal or an order remitting the case to the original decision maker for reconsideration.

Offences relating to the revenue tribunal.

79.       (1) Any person who—

(a) insults a member of the Revenue Tribunal in, or in relation to, the exercise of his or her powers or functions as member;

(b) interrupts a proceeding of the Revenue Tribunal;

(c) creates a disturbance, or takes part in creating a disturbance, in or near a place where the Revenue Tribunal is sitting; or

(d) does any other act or thing that would, if the Revenue Tribunal were a Court, constitute a contempt of that Court,

commits an offence and on conviction is liable to a fine of not less than SR 50,000 but not more than SR 500,000.

[S 79(1) am by s 2(n) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) Any person who—

(a) knowingly refuses or without reasonable cause fails—

(i) to comply with a summons to appear before the Revenue Tribunal;

(ii) to take an oath or affirmation before the Revenue Tribunal;

(iii) to answer any question asked of the person during a proceeding before the Revenue Tribunal; or

(iv) to produce any book, record, or document to the Revenue Tribunal that the person was required to produce by a summons served on the person; or

(b) gives false or misleading evidence to the Revenue Tribunal,

commits an offence and on conviction is liable to a fine of not less than SR 50,000 but not more than SR 500,000 and to imprisonment for not less than one month but not more than 24 months.

[S 79(2) am by s 2(n) of Act 6 of 2011 w.e.f. 11 July 2011.]

PART XIII - TAX AND CUSTOMS AGENTS BOARD

Establishment of the tax and customs agents board.

80.       (1) There is hereby established a body to be known as the Tax and Customs Agents Board.

(2) The Tax and Customs Agents Board shall be the body responsible for the registration and regulation of Tax and Customs Agents.

(3) The Tax and Customs Agents Board will consist of the Customs Agents Division and the Tax Agents Division.

Appointment of members of the tax and customs agents board.

81.       (1) The Tax and Customs Agents Board shall have a Chairperson, a Deputy Chairperson, and a Technical Advisor who shall be appointed by the Minister and they shall be known as the Executive Board.

(2) The Executive Board shall, wherever feasible and with consideration to the knowledge, experience and skills relevant to the functions of the Tax and Customs Agent Board, appoint four additional Tax and Customs Agent Board Members consisting of—

(a) one registered Customs Agent;

(b) one registered Tax Agent;

(c) one Seychelles Revenue Commission Customs Officer; and

(d) one Seychelles Revenue Commission Taxation Officer.

(3) In addition to the Chairperson and Deputy Chairperson, each Division of the Tax and Customs Agents Board shall have a minimum of three members assigned by the Chairperson and—

(a) in the case of the Customs Agents Division, one member shall be a registered Customs agent and one member shall be a Seychelles Revenue Commission Customs Officer.

(b) in the case of the Tax Agents Division, one member shall be a registered Tax Agent and one member shall be a Seychelles Revenue Commission Taxation Officer.

(4) A member, other than the member who is a registered Tax Agent or a registered Customs Agent, may be assigned to different Divisions.

(5) A person shall not be appointed as a member under subsection (1) or (2) if the person—

(a) has a criminal record; or

(b) is an undischarged bankrupt.

(6) A member appointed under subsection (1) or (2) holds office for three years and is eligible for reappointment.

(7) The appointment of a member under subsection (1) or (2) terminates if the member—

(a) acquires a criminal record;

(b) becomes an undischarged bankrupt; or

(c) resigns by notice in writing to the Minister.

(8) No member of the Tax and Customs Agents Boards is liable to any action or suit for any act done or omitted to be done in the bona fide execution of the member's duties under this Part.

Proceedings of tax and customs agents board.

82.       (1) At all meetings of the Tax and Customs Agents Board (including a meeting of a Division of the Board), a quorum is three members and all questions are decided by a majority of the members attending provided that, in the event of a tie, the chairperson has the casting vote.

(2) If the Chairperson is absent, the Deputy Chairperson shall act as the Chairperson but where both the Chairperson and the Deputy Chairperson are absent from a meeting, the members making up the quorum for the meeting shall nominate a member that is present at the meeting to act as Chairperson for that meeting.

(3) A vacancy in the office of a member does not invalidate the proceedings of the Tax and Customs Agents Board or of a Division of the Board.

(4) The Tax and Customs Agents Board has the same powers as the Revenue Tribunal with respect to the taking of evidence, the administration of oaths or affirmations, the summoning of witnesses, and the production of documents.

(5) A person dissatisfied with a reviewable decision made by the Tax and Customs Agents Board may apply to the Revenue Tribunal for review of the Board's decision.

Registration of tax agents.

83.       (1) An individual, company or partnership that holds residency status in Seychelles may apply to the Tax and Customs Agents Board for registration as a Tax Agent, and the application shall be in the approved form and be accompanied by the prescribed fee.

(2) In the case of a company or partnership, the application shall include an application for a nominee or nominees.

(3) An application for registration as a Tax Agent shall be decided by the Tax Agents Division of the Tax and Customs Agents Board.

(4) If the applicant under subsection (1) is an individual, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the individual as a Tax Agent if satisfied that the individual is a fit and proper person to prepare returns and transact business on behalf of taxpayers in revenue matters.

(5) If the applicant under subsection (1) is a partnership, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the partnership as a Tax Agent if satisfied that—

(a) a partner of the partnership nominated in the application is a fit and proper person to prepare returns and transact business on behalf of taxpayers in revenue matters; and

[S 83(5)(a) am by s 2(o)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(b) no partner of the partnership is under a legal disability at the date on which the application was made and every partner of the partnership is of integrity and good character.

[S 83(5)(b) am by s 2(o)(i) and (ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(6) If the applicant under subsection (1) is a company, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the company as a Tax Agent if satisfied that—

(a) an employee of the company nominated in the application is a fit and proper person to prepare returns, and transact business on behalf of taxpayers in revenue matters; and

(b) no director, manager, or administrative officer of the, company is under a legal disability at the date on which the application was made and every director, manager, and administrative officer is of integrity and good character.

[S 83(6)(b) am by s 2(o)(iii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(7) If a partnership or company is registered as a Tax Agent, the person referred to in subsection (5)(a) or subsection (6)(a), respectively, shall be registered by the Tax and Customs Agents Board as the nominee of the Tax Agent for the purposes of this Part.

(8) A partnership or company registered as a Tax Agent may, by application in the approved form accompanied by the prescribed fee, request the tax and Customs Agents Board to register a partner of the partnership or an employee of the company as an additional or substituted nominee for the purposes of this Part and the Board shall register the person as an additional or substituted nominee if satisfied that the person is a fit and proper person to prepare returns and transact business on behalf of taxpayers in relation to revenue matters.

(9) The registration of a person as a Tax Agent or as a nominee of a Tax Agent will relate generally to the revenue laws (other than the Trades Tax Act) or for a specific purpose as stated on the Tax Agent's certificate of registration.

Registration of custom agents.

84.       (1) An individual, company or partnership that holds residency status in Seychelles may apply to the Tax and Customs Agents Board for registration as a Customs. Agent, and the application shall be in the approved form and be accompanied by the prescribed fee.

(2) In the case of a company or partnership, the application shall include an application for a nominee or nominees.

(3) An application for registration as a Customs Agent shall be decided by the Customs Agents Division of the Tax and Customs Agents Board.

(4) If the applicant under subsection (1) is an individual, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the individual as a Customs Agent if satisfied that the individual is a fit and proper person to transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons;

(5) If the applicant under subsection (1) is a partnership, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the partnership as a Customs Agent if satisfied that—

(a) a partner of the partnership nominated in the application is a fit and proper person to transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons; and

[S 84(5)(a) am by s 2(p)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(b) no partner of the partnership is under a legal disability at the date on which the application was made and every partner of the partnership is of integrity and good character.

[S 84(5)(b) am by s 2(p)(i)and (ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(6) If the applicant under subsection (1) is a company, the Tax and Customs Agents Board may, subject to such conditions as the Board may impose, register the company as a Customs Agent if satisfied that—

(a) an employee of the company nominated in the application is a fit and proper person to transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons; and

(b) no director, manager, or administrative officer of the company is under a legal disability at the date on which the application was made and every director, manager, and administrative officer is of integrity, and good character.

[S 84(6)(b) am by s 2(p)(iii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(7) If a partnership or company is registered as a Customs Agent, the person referred to in subsection (3)(a) or subsection (4)(a), respectively, shall be registered by the Tax and Customs Agents Board as the nominee of the Customs Agent for the purposes of this Part.

(8) A partnership or company registered as a Customs Agent may, by application in the approved form accompanied by the prescribed fee, request the Tax and Customs Agents Board to register a partner of the partnership or an employee of the company as an additional or substituted nominee for the purposes of this Part and the Board shall register the person as an additional or substituted nominee if satisfied that the person is a fit and proper person to transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons.

General provisions relating to registration as a tax or customs agent.

85.       (1) The Tax and Customs Agents Boards shall make a determination on any application that it receives for registration as a Tax Agent or Customs Agent, as the case may be, to satisfy itself that the person making the application is a fit and proper person to—

(a) prepare returns and transact business on behalf of taxpayers in revenue matters; or

(b) transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons, and that the person, company or partnership holds residency status in Seychelles.

(2) In determining whether or not the Tax and Customs Agents Board is satisfied that a person making an application is a fit and proper person to, prepare returns and transact business on behalf of taxpayers in revenue matters or to transact business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons, as the case may be, the Board shall have the power to establish determination guidelines and shall be required to make such guidelines public.

(3) In determining any application for registration of any person the Tax and Customs Agents Board may seek further documents or information from the applicant or any third party that it believes is relevant.

(4) The Tax and Customs Agents Board shall serve the applicant with a written notice of its decision on the application within 30 days of the application being received or within such further time as the Board may require to make such determination.

(5) If the application for registration is approved, the Tax and Customs Agents Board shall serve an applicant With written notice of the registration of the applicant as a Tax Agent or Customs Agent or the registration of a person as a nominee of a Tax Agent or Customs Agent, as the case may be.

(6) A partner in a partnership or employee of a company ceases to be registered as a nominee of a partnership or company if—

(a) the Tax and Customs Agents Board determines that the partner or employee is no longer a fit and proper person to be a nominee of a Tax Agent or Customs Agent, as the case may be;

(b) in the case of a partnership, the partner ceases to be a partner in the partnership or the partnership notifies the Board in writing that it no longer wants the partner registered as its nominee; or

(c) in the case of a company, the employee ceases to be employed by the company or the company partnership notifies the Board in writing that it no longer wants the employee registered as its nominee.

(7) A Tax Agent or Customs Agent that is a partnership shall notify the and Customs Agents Board, in writing, of any change in the membership of the partnership within seven days of the change occurring.

(8) A Tax Agent or Customs Agent that is a company shall notify the Tax and Customs Agents Board, in writing—

(a) if a registered nominee ceases to be an employee of the company; or

(b) if a person becomes a director, manager, or other administrative officer of the company.

(9) An individual, partnership, or company holds residency status in Seychelles if the individual, partnership, or company is a resident person under the Business Tax Act.

Code of conduct and sanctions.

86.       (1) The Tax and Customs Agents Board shall have the power to establish a Code of Conduct and Sanctions for Tax Agents and Customs Agents and shall be required to make such Code of Conduct and Sanctions guidelines public.

(2) Tax Agents and Customs Agents shall comply with the Code of Conduct.

Sanctioning of a tax agent or customs agent.

87.       (1) The Tax and Customs Agents Board shall have the power to review the conduct and performance of a Tax Agent or Customs Agent in line with its Code of the conduct and sanctions guidelines and where necessary to impose sanctions on the Tax Agent or Customs Agent in accordance with its guidelines.

(2) In reviewing the conduct and performance of a Tax Agent or Customs Agent the Tax and Customs Agents Board may interview and take evidence from any person that it believes is relevant.

Cancellation of registration.

88.       (1) A Tax Agent or Customs Agent shall notify the Tax and Customs Agents Board, in writing, if—

(a) in the case of a Tax Agent, the Tax Agent ceases to carry on business as a Tax Agent or ceases to satisfy the conditions for registration in section 83, as the case may be; or

(b) in the case of a Customs Agent, the Customs Agent ceases to carry on business as a Customs Agent or ceases to satisfy the conditions for registration in section 84, as the case may be.

(2) Notification under subsection (1) shall be made within seven days of ceasing to carry on business as a Tax Agent or Customs Agent or ceasing to satisfy the conditions for registration.

(3) A Tax Agent or Customs Agent to whom subsection (1) does not apply may apply to the Tax and Customs Agents Board, in the approved form, for cancellation of the agent's registration if the agent no longer wishes to be registered.

(4) The Tax and Customs Agents Board shall cancel the registration of a Tax Agent or Customs Agent—

(a) if the Tax Agent or Customs Agent has notified the Board under subsection (1);

(b) if an application has not been made under subsection (1) but the Board is satisfied that an application should have been made;

(c) if the Tax Agent or Customs Agent has applied for cancellation of the agent's registration under subsection (3);

(d) if the Tax Agent or Customs Agent is convicted of a criminal offence;

(e) in the case of a Tax Agent or Customs Agent who is an individual, if the agent dies or becomes an undischarged bankrupt;

(f) in the case of a Tax Agent or Customs Agent that is a partnership, if there is no nominee registered in respect of the partnership, a partner in the partnership becomes an undischarged bankrupt or goes into liquidation, or the partnership is dissolved; or

(g) in the case of a Tax Agent or Customs Agent that is a company, if there is no nominee registered in respect of the company or the company goes into liquidation.

(5) The Tax and Customs Agents Board shall serve a person whose registration is cancelled under subsection (4) with notice in writing of the cancellation as soon as practicable after the decision to cancel the registration has been made and the person's registration is cancelled from the date set out in the notice.

Unregistered persons not to charge fees or advertise as tax or customs agent.

89.       (1) Subject to subsection (3), a person shall not demand or receive a fee for, or in relation to, the preparation of a return, an objection, or the transaction of any business on behalf of a taxpayer with the Revenue Commissioner, unless the person is registered as a Tax Agent with authority to prepare the return, objection, or transact the business.

(2) Subject to subsection (3), a person shall not demand or receive a fee for, or in relation to, the transaction of any business relating to the entry or clearance of any aircraft or ship, goods, or baggage on behalf of persons.

(3) Subsections (1) and (2) do not apply to a legal practitioner acting in the course of the person's profession in the preparation of an objection, or in any proceedings before the Revenue Tribunal or a Court, or in providing advice in relation to the preparation of a return.

(4) A person, not being a Tax Agent, shall not, directly or indirectly—

(a) describe the person as, or represent the person to be a Tax or Customs Agent; or

(b) advertise in any manner that returns will be prepared by the person or that any other revenue matter will be attended to by the person.

Negligence of tax or customs agent.

90.       (1) Nothing in this Act limits the right of the principal to sue the Tax Agent or Customs Agent in recovering any amount of additional tax or any other penalty imposed under this Act when the Tax Agent or Customs Agent acted negligently.

(2) Nothing in this section excuses the principal from liability for the additional tax or any other penalty imposed under this Act.

Offences relating to tax or customs agents.

91.       (1) Any person who fails to comply with section 85(6) or (8) commits an offence and on conviction is liable to a fine of SR 25,000.

[S 91(1) am by s 2(q)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) Any person who fails to comply with section 88(1) commits an offence and on conviction is liable for a fine of SR 25,000.

[S 91(2) am by s 2(q)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(3) Any person who fails to comply with sections 89(1), (2) or (4) commits an offence and on conviction is liable to a fine of not less than SR 25,000 but not more than SR 250,000 and to imprisonment for not less than one month but not more than 12 month.

[S 91(3) am by s 2(q)(i) and (ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

Part XIV - FORMS AND NOTICES

Approved form.

92.       (1) Subject to subsections (2) and (3), a return, notice or other document required to be furnished under a revenue law is in the approved form if—

(a) it is in the form approved in writing by the Revenue Commissioner for that type of return, notice, or document; and

(b) it contains the information (including any attached documents required) and is signed as required by the form.

(2) A form required to be furnished under Part XII of this Act is in the Approved form if—

(a) it is in the form approved by the Chairperson of the Revenue Tribunal; and

(b) it contains the information (including any attached documents required) and is signed as required by the form.

(3) A form required to be furnished under Part XIII of this Act is in the approved form if—

(a) it is in the form approved by the Tax and Customs Agents Board; and

(b) it contains the information (including any attached documents required) and is signed as required by the form.

Forms and notices; authentication of documents; compliance with revenue law.

93.       (1) Subject to the Regulations under this Act, a form, notice, return, statement, table, or other document approved or published by the Revenue Commissioner for the purposes of any revenue law may be in such form as the Revenue Commissioner determines for the efficient administration of the revenue laws and its publication in the Gazette.

[S 93(1) am by s 2(r) of Act 6 of 2011 w.e.f. 11 July 2011.]

(2) The Revenue Commissioner shall make the documents referred in subsection (1) available to the public at the offices of the Commission and; at such other locations, or by mail, by notice on the, Seychelles Revenue Commission's web site, or such other means, as the Revenue Commissioner may determine.

(3) A notice or other document issued, served, or given by the Revenue Commissioner under a revenue law is sufficiently authenticated if the name or title of the Revenue Commissioner, or authorised revenue officer, is printed, stamped, or written on the document.

(4) For the purposes of a proceeding under a revenue law, the facts necessary to establish compliance by the Revenue Commissioner with the revenue law are sufficiently proved in the Revenue Tribunal or any Court by an affidavit of the Revenue Commissioner or authorised revenue officer.

(5) An affidavit referred to in subsection (4) shall have attached to it a copy of any notice to which the affidavit relates.

Manner of lodging documents.

94.       Subject to this Act and except as otherwise provided in a revenue law, an application, notice, or other document to be lodged with the Revenue Commissioner under a revenue law shall be delivered by personal delivery or normal post to an office of the Commission.

Free Postage.

95.       A return, correspondence, or payments of revenue made under a revenue law may be sent free of postage in an envelope addressed to the Revenue Commissioner or the Commission.

Service of documents.

96.       (1) In this section, “person” includes the person's representative.

(2) A taxpayer shall state in each return furnished by the taxpayer an address in Seychelles for service of notices and such address applies for the purposes of all revenue laws.

(3) Subject to this Act and except as otherwise provided in a revenue law, a notice or other document required to be served by the Revenue Commissioner on a person for the purposes of a revenue law is treated as properly served on the person—

(a) if served personally on the person;

(b) if an address for service is provided as, specified in subsection (2) and the notice or other document is left at or sent by registered or normal post to, the address for service stated in the most recently furnished return of the taxpayer including an address for service; or

(c) if no address for service is provided in a return and the notice or other document is left at or sent by registered or normal post to, the person's usual or last known address in Seychelles.

(4) It a notice or other document is served by normal post service is, in the absence of proof to the contrary deemed to have been effected it the time at which the notice or other document would be delivered in the ordinary course of post, and in proving such service it is sufficient to prove that the envelope containing the notice or other document was properly addressed and was posted.

(5) It the person to whom a notice or other document has been sent by registered post is informed of the fact that there is a registered letter awaiting the person at a Post Office, and the person refuses or fails to take delivery of the letter and the letter consists of the notice or other document service if the notice or other document is deemed to have been effected.

(6) The validity under of service of a notice under a revenue law cannot be challenged after the notice has been wholly or partly complied with.

Due date for documents and revenue payments.

97.       If the due date for—

(a) furnishing a return, application, notice, or other document;

(b) the payment of revenue; or

(c) taking any other action under a revenue law,

is a Saturday, Sunday, or public holiday, the due date is the next following business day.

PART XV - TAX INVOICES

Tax invoice.

98.       (1) A supplier of goods or services shall issue a tax invoice to the purchaser within 28 days of the date of the supply.

(2) Subject to subsection (3), for a tax invoice to be a valid tax invoice it shall contain—

(a) the Tax Identification Number;

[S 98(2)(a) rep and subs by s 2(s)(i) of Act 6 of 2011 w.e.f. 11 July 2011.]

(b) the name of the supplier;

(c) the date of issue;

(d) the price of the supply expressed in Seychelles Rupees;

(e) sufficient information to verify the supply, including the nature, purpose and quantity of the supply; and

(f) shall be in the approved form.

(3) The Commissioner may treat as a valid tax invoice any particular document that is not a valid tax invoice.

[S 98(2) renumbered as s 98(3) by s 2(s)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(4) With the written consent of the supplier and the Revenue Commissioner, the purchaser of the supply may create a valid tax invoice on behalf of the supplier.

[S 98(3) renumbered as s 98(4) by s 2(s)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(5) Without limiting subsection (1), a supplier is not required to issue a tax invoice if—

(a) the supply is not to a business; or

(b) the total price on the receipt is less than SR 1,000 (including any Goods and Services Tax, if any).

[S 98(4) renumbered as s 98(5) by s 2(s)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

(6) Subsection (5) does not limit any other record keeping requirements under this Act.

[S 98(5) renumbered as s 98(6) by s 2(s)(ii) of Act 6 of 2011 w.e.f. 11 July 2011.]

PART XVI - FINAL PROVISIONS

Power to enter into tax agreement or treaty relating to tax compliance.

98A.    (1) The Minister may, for and on behalf of the Government of Seychelles, enter into a tax agreement or treaty relating to international tax compliance and avoidance and prevention of fiscal evasion with respect to taxes or exchange of information on tax matters.

(2) The Minister may authorise in writing a public officer to perform his or her functions under subsection (1).

(3) Where a tax agreement or treaty has been entered into under subsection (1), the Minister shall, by regulation, declare that the tax agreement or treaty specified in the regulations has been entered into and the tax agreement or treaty shall have effect in relation to matters under any revenue law.

(4) The Minister may make regulations for, or in connection with, the giving effect to the tax agreement or treaty entered into under subsection (1).

(5) The regulations made under subsection (4) may in particular—

(a) authorise the Revenue Commissioner to require any prescribed person to provide any information (including any information relating to any class or category of other persons as may be prescribed) in his or her possession or control;

(b) require the information be provided at such times and in such form and manner as may be prescribed;

(c) impose obligations on any prescribed person;

(d) make provisions (including imposition of penalties) for contravention of or non-compliance with the regulations;

(e) contain incidental, supplemental, transitional, or savings provision.

[S 98A ins by s 2 of Act 3 of 2015 w.e.f. 11 May 2015.]

Regulations.

99.       (1) The Minister may make regulations—

(a) amending the Schedules;

(b) prescribing forms, fees, or other matters as required under this Act;

(c) for the administration of the Revenue Tribunal and Tax and Customs Agents Board;

(d) for the proper and efficient administration of this Act; and

(e) prescribing all matters which by this Act required to be prescribed, or which are necessary or convenient to be prescribed for giving effect to this Act.

(2) Without limiting the general effect of subsection (1), regulations made under that subsection may—

(a) contain provisions of a saving or transitional nature consequent on the making of this Act; or

(b) prescribe penalties for the contravention of the regulations.

(3) If regulations made under this section are of a transitional nature are made within six months after the commencement date, the regulations may provide that they take effect from the date on which the Act comes into force.

Transitional and savings.

100.     (1) Any appeal or prosecution commenced before the commencement date is continued and disposed of as if this Act had not come into force.

(2) If the period for any application, appeal, or prosecution had expired before the commencement date, nothing in this Act can be construed as enabling the application, appeal, or prosecution to be made under this Act by reason only of the fact that a longer period is specified in this Act.

(3) Any revenue liability that arose before the commencement date may be recovered under this Act, but without prejudice to any action already taken for the recovery of the revenue.

(4) Subject to this section, this Act overrides any equivalent provisions in a revenue law.

FIRST SCHEDULE

SMALL, MEDIUM AND LARGE BUSINESSES

For the purposes of this Act and other Acts to which this Act applies—

(a) a business is a small business if the annual turnover is less than SR 1,000,000;

(b) a business is a medium business if the annual turnover is between SR 1,000,000 and SR 50,000,000;

(c) a business is a large business if the annual turnover is more than SR 50,000,000.

SECOND SCHEDULE

SELF-ASSESSMENT RETURNS

The following are self-assessment returns for the purposes of this Act—

(1) a return required to be furnished under the Business Tax Act; and

(2) a return required to be furnished under the Goods and Services Tax Act.

__________________

SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Business Registration) Regulations, 2010

[1st January, 2010]

SI 71 of 2010.

Arrangement of Regulations

1. Citation.

2. Registration requirement.

3. Date for registration.

4. Particulars.

5. Additional information.

__________________

Citation.

1.         These Regulations may be cited as the Revenue Administration (Business Registration) Regulations, 2010.

Registration requirement.

2.         All businesses operating in Seychelles shall be registered with the Seychelles Revenue Commission.

Date for registration.

3.         Any business operating in Seychelles and not registered with the Seychelles Revenue Commission shall do so by 1st January, 2011 in accordance with the requirement specified in subregulation (4).

Particulars.

4.         Any new business commencing operations in Seychelles on or after 1st January, 2010 shall, within 14 days after the date on which the business commences, apply for registration in the approved form providing the following particulars—

(a) the name of the business;

(b) the date on which the business commenced;

(c) the name and address of the owner of the business and, where the owner is a partnership, the name and address of each partner;

(d) the nature of the activities of the business;

(e) an estimate of the net income the businesses expected to derive in the first tax year of its operation.

Additional information.

5.         In processing an application for registration, the Revenue Commissioner may require additional information.

__________________

SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Fees) Regulations, 2011

[28th March, 2011]

SI 26 of 2011,

75 of 2014.

Arrangement of Regulations

1. Citation.

2. Fees.

SCHEDULE

__________________

Citation.

1.         These Regulations may be cited as the Revenue Administration (Fees) Regulations, 2011.

Fees.

2.         The fees and other dues specified in the Schedule shall be paid in respect to the matters specified therein—

SCHEDULE

Application for review of any decision pursuant to section 72(2)(d) of the Act

SR 1,000

Application for registration as a tax agent pursuant to section 83(1) of the Act

SR2,500

Application for registration as a Customs Agent pursuant to section 84(1) of the Act

SR2,500

Appeal to the Supreme Court pursuant to section 78(2)(d) the fee prescribed under the Court (Supreme Court) and Cost Act.

 

Application for any corporate body or entity registered with SIBA for a Certificate of Tax Exemption

SR1,000

Application made by any registered business, other than those registered with SIBA for a Certificate of Residence for Tax Purposes

SR400

The following charges apply to the supply of copies mentioned below—

Any tax return

SR25

Official receipts issued

SR 25

Any assessment

SR25

Business activity statement

SR25

Correspondence forwarded

SR25

Customs Division

1. For attendance by an officer at any port or airport, bonded warehouse or excise warehouse at the request of an importer, owner or carrier for any matter deemed out of the ordinary relating to cargo or any request for out-hours attendance for each hour or part thereof

SR 100

2. For each certificate issued, including a Tanker Outturn, Ships Stores from Bond Undertaking, EURI Certificate, Certificate of Origin or other document signed by the Comptroller except for a clearance certificate

SR 100

3. Where any goods intended to be imported into the country are lodged in a Government Warehouse or other place of deposit provided by the Government for the security of the taxes, the following rents shall be payable

 

R20 per tonne or part thereof per day

(First 7 days free)

4. Proprietor or occupier of a warehouse licenced under the Customs Act or the Excise Act and not being a ship chandler shall pay to the Comptroller in respect of each occupied licenced warehouse an administrative charge of R10,000 per year payable in advance. A ship chandler shall pay an administrative charge of R5,000 per year payable in advance for each occupied licenced warehouse.

The administration charge shall not relieve the proprietor or occupier of a licenced warehouse of any liability to pay charges under item 1 above

5. Processing of any Bill of Entry under the ASYCUDA system

R25

6. Data capture of a Bill of Entry by a Custom officer into the ASYCUDA system

R50 for the first page and R25 for each page thereafter

7. Locating any Bill of Entry either manually or electronically at the request of an importer/agent

R50

8. Copying of any Bill of Entry and providing it to an importer/agent

R50

9. Verification of contents of a container at the importer's premises at the request of the importer

*20 foot container R1500

 

40 foot container R2000

10. Supervising the destruction of perishable goods or “out of time” goods from SIBA or a licenced bonded warehouse—

(a) when the GST payable on all the goods to be destroyed totals less than R1000, a charge of R500;

(b) when the GST payable on all the goods to be destroyed totals R1000 or more a charge of R1000.

11. Lodgement fee for a special release at Air Cargo: R100 per release.

12. Late payment fees for lodgment of Bills of Entry to cover a special release at Air Cargo at R25 per day upto 10 working days and then R75 per day after 10 days.

13. ...

[Sch item 13 rep by reg 2 of SI 75 of 2014 w.e.f. 13 October 2014.]

[*Note: Item 9 as enacted by SI 26 of 2011 was rectified by Gazette No 21 dated 25 April 2011.]

 ____________________

SUBSIDIARY LEGISLATION: Sections 72(2) and 99: Revenue Administration (Review Form and Fees) Regulations, 2013

[21st October, 2013]

SI 71 of 2013.

Arrangement of Regulations

1. Citation.

2. Application form for Review and Fees.

SCHEDULE 1

SCHEDULE 2

____________________

Citation.

1.         These Regulations may be cited as the Revenue Administration (Review Form and Fees) Regulations, 2013.

Application form for Review and Fees.

2.         An application for review shall be in the Form and in the manner together with the appropriate application Fee set out in the Schedule 1 and Schedule 2.

SCHEDULE 1

Application for review of a decision (REV01.pdf): www.seylii.org/greybook

SCHEDULE 2

Application Fees

 

 

Fees

(a)

Fees payable for tax debts in dispute up to SCR25,000

SCR500

(b)

Fees payable for tax debts in dispute between SCR25,000 to SR100,000

SCR2,500

(c)

Fees payable for tax debts in Dispute above SCR100,000

SCR5,000

(d)

Fees payable for any other reviewable decisions

SCR500

 

____________________

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Common Reporting Standard) Regulations, 2015

[1st January, 2016]

SI 1 of 2016*

SI 33 of 2017

*The Gazette incorrectly numbers this SI as 1 of 2015, which already existed.

Citation

1. These Regulations may be cited as the Revenue Administration (Common Reporting Standard) Regulations, 2015.

Declaration

2.         (1) The Minister hereby declares that the Republic of Seychelles, by virtue of the Convention on Mutual Administration Assistance in Tax matters to which Seychelles is a Party, has entered into the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information

(2) The Agreement mentioned in sub-regulations (1) shall have effect in accordance with these Regulations.

(3) The list of Participating Jurisdictions with which Seychelles has entered into agreement is listed in Schedule 4.

(4) The list of Reportable Jurisdictions with which Seychelles has entered into agreement is listed in Schedule 5.

Interpretation

3. In these Regulations -

"Active Non-Financial Entity" means any Non-Financial-Entity that meets any of the following criteria -

(a) less than 50 % of the NFE's gross income for the preceding calendar year is passive income and less than 50 % of the assets held by the NFE during the preceding calendar year are assets that produce or are held for the production of passive income:

Paragraph (a) of definition of “Active Non-Financial Entity” amended by reg 2(a) of SI 33 of 2017 with effect from 28 June 2017

(b) the stock of the NFE is regularly traded on an established securities market or the NFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market;

(c) the NFE is a Governmental Entity, an International Organisation, a Central Bank, or an Entity wholly owned by one or more of the foregoing;

(d) substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution, except that an Entity does not qualify for this status if the Entity functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;

(e) the NFE is yet to operate a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a Financial Institution, provided that the NFE does not qualify for this exception after the date, that is 24 months after the date of the initial organisation of the NFE;

(f) the NFE was not a Financial Institution in the past five years, and is in the process of liquidating its assets or is reorganising with the intent to continue or recommence operations in a business other than that of a Financial Institution;

(g) the NFE primarily engages in financing and hedging transactions with, or for, Related Entities that are not Financial Institutions, and does not provide financing or hedging services to any Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of a Financial Institution; or

(h) the NFE meets all of the following requirements -

(i) it is established and operated in its Participating Jurisdiction or other jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its Participating Jurisdiction or other jurisdiction of residence and it is a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare;

(ii) it is exempt from income tax in its Participating Jurisdiction or other jurisdiction of residence;

(iii) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;

(iv) the applicable laws of the NFE's Participating Jurisdiction or other jurisdiction of residence or the NFE's formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFE's charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased; and

(v) the applicable laws of the NFE's Participating Jurisdiction or other jurisdiction of residence or the NFE's formation documents require that, upon the NFE's liquidation or dissolution, all of its assets be distributed to a Govemmental Entity or other nonprofit organisation, or escheat to the government of the NFE's Participating Jurisdiction or other jurisdiction of residence or any political subdivision thereof.

"Account Holder" means the person listed or identified as the holder of a Financial Account by the Financial Institution that maintains the account. A person, other than a Financial Institution, holding a Financial Account for the benefit or account of another person as agent, custodian, nominee, signatory investment advisor, or intermediary is not treated as holding the account for purposes of this Regulation, and such other person is treated as holding the account. In the case of a Cash Value Insurance Contract or an Annuity Contract, the Account Holder is any person entitled to access the Cash Value or change the beneficiary of the contract. If no person can access the Cash Value or change the beneficiary the Account Holder is any person named as the owner in the contract and any person with a vested entitlement to payment under the terms of the contract. Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, each person entitled to receive a payment under the contract is treated as an Account Holder.

"Anti-Money Laundering/Know Your Client Procedures" means the customer due diligence procedures of a Reporting Seychelles Financial Institution pursuant to the anti-money laundering or similar requirements to which such Reporting Seychelles Financial Institution is subject.

"Annuity Contract" means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals. The term also includes a contract that is considered to be an Annuity Contract in accordance with the law, regulation, or practice of the Participating Jurisdiction or other jurisdiction in which the contract was issued, and under which the issuer agrees to make payments for a term of years.

"Cash Value" means the greater of

(a) the amount that the policyholder is entitled to receive upon surrender or termination of the contract, to be determined without reduction for any surrender charge or policy loan; and

(b) the amount the policy holder can borrow under or with regard to the contract.

Notwithstanding the foregoing, the term "Cash Value" does not include an amount payable under an Insurance Contract –

(a) solely by reason of the death of an individual insured under a life insurance contract;

(b) as a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the occurrence of the event insured against;

(c) as a refund of a previously paid premium (less cost of insurance charges whether or not actually imposed) under an Insurance Contract (other than an investment-linked life insurance or annuity contract) due to cancellation or termination of the contract, decrease in risk exposure during the effective period of the contract, or arising from the correction of a positing or similar error with regard to the premium for the contract;

(d) as a policyholder dividend (other than a termination dividend) provided that the dividend relates to an Insurance Contract under which the only benefits payable are described in subparagraph (b) of this definition; or

(e) as a return of an advance premium or premium deposit for an Insurance Contract for which the premium is payable at least annually if the amount of the advance premium or premium deposit does not exceed the next annual premium that will be payable under the contract.

"Cash Value Insurance Contract" means an Insurance Contract, other than an indemnity reinsurance contract between two insurance companies, that has a Cash Value.

“Common Reporting Standard" means Standard on Automatic Exchange of Financial Account Information in Tax Matters developed by the Organisation for Economic Cooperation and Development as amended from time to time and their commentaries arises therein.

"Controlling Persons" means the natural persons who exercise control over an Entity. In the case of a trust, that term means the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions.

The term "Controlling Persons" shall be interpreted in a manner consistent with the term beneficial ownership as described in the 2012 Financial Action Task Force Recommendations.

"Custodial Account" means an account (other than an Insurance Contract or Annuity Contract) which holds one or more Financial Assets for the benefit of another person.

"Custodial Institution" means any Entity that holds, as a substantial portion of its business, Financial Assets for the account of others. An Entity holds Financial Assets for the account of others as a substantial portion of its business, if the Entity's gross income attributable to the holding of Financial Assets and related financial services equals or exceeds 20% of the Entity's gross income during the shorter of: (i) the three-year period that ends on 31 December (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made; or (ii) the period during which the Entity has been in existence.

"Depository Account" includes any commercial, checking, savings, time, or thrift account, or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar instrument maintained by a Financial Institution in the ordinary course of a banking or similar business. A Depository Account also includes an amount held by an insurance company pursuant to a guaranteed investment contract or similar agreement to pay or credit interest thereon.

"Depository Institution" means any Entity that accepts deposit in the ordinary course of a banking or similar business.

"Documentary Evidence" includes any of the following -

(a) a certificate of residence issued by an authorised government body (for example, a government or agency thereof, or a municipality) of the Participating Jurisdiction or other jurisdiction in which the payee claims to be a resident;

(b) with respect to an individual, any valid identification issued by an authorised government body (for example, a government or agency thereof, or a municipality), that includes the individual's name and is typically used for identification purposes;

(c) with respect to an Entity, any official documentation issued by an authorised government body (for example, a government or agency thereof, or a municipality) that includes the name of the Entity and either the address of its principal office in the Participating Jurisdiction or other jurisdiction in which it claims to be a resident or the Participating Jurisdiction or other jurisdiction in which the Entity was incorporated or organised;

(d) any audited financial statement, third-party credit report, bankruptcy filing, or securities regulator's report;

(e) With respect to a Pre-existing Entity Account, Reporting Seychelles Financial Institutions may use as Documentary Evidence any classification in the Reporting Seychelles Financial Institution's records with respect to the Account Holder that was determined based on a standardised industry coding system, that was recorded by the Reporting Seychelles Financial Institution consistent with its normal business practices for purposes of AML/KYC Procedures or another regulatory purposes (other than for tax purposes) and that was implemented by the Reporting Seychelles Financial Institution prior 1 January 2016, provided that the Reporting Seychelles Financial Institution does not know or does not have reason to know that such classification is incorrect or unreliable.

"Entity" means a legal person or a legal arrangement, such as a corporation, partnership, trust, or foundation.

"Excluded Accounts" means an account set out in the Schedule 3 of this Regulation.

"Equity Interest" means, in the case of a partnership that is a Financial Institution, either a capital or profits interest in the partnership. In the case of a trust that is a Financial Institution, an Equity Interest is considered to be held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any other natural person exercising ultimate effective control over the trust. A Reportable Person will be treated as being a beneficiary of a trust if such Reportable Person has the right to receive directly or indirectly (for example, through a nominee) a mandatory distribution or may receive, directly or indirectly, a discretionary distribution from the trust.

"Financial Account" means an account, other than an Excluded Account, that is maintained by a Financial Institution, and includes a Depository Account, a Custodial Account and -

(a) in the case of an Investment Entity, any equity or debt interest in the Financial Institution.

Notwithstanding the foregoing, the term "Financial Account" does not include any equity or debt interest in an Entity that is an Investment Entity solely because it -

(i) renders investment advice to, and acts on behalf of; or

(ii) manages portfolios for, and acts on behalf of, a customer for the purpose of investing, managing, or administering Financial Assets deposited in the name of the customer with a Financial Institution other than such Entity;

(b) in the case of a Financial Institution not described in subparagraph (a), any equity or debt interest in the Financial Institution, if the class of interests was established with the purpose of avoiding reporting in accordance with Part I of Schedule I; and

(c) any Cash Value Insurance Contract and any Annuity Contract issued or maintained by a Financial Institution, other than a noninvestment-linked, non-transferable immediate life annuity that is issued to an individual and monetises a pension or disability benefit provided under an account that is an Excluded Account.

"Financial Asset" includes a security (for example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps, equity index swaps, and similar agreements), Insurance Contract or Annuity Contract, or any interest (including a futures or forward contract or option) in a security, partnership interest, commodity, swap, Insurance Contract, or Annuity Contract. The term "Financial Asset" does not include a non-debt, direct interest in real property.

"Financial Institution" means a Custodial Institution, a Depository Institution, an Investment Entity, or a Specified Insurance Company.

"High Value Account" means a Pre-existing Individual Account with an aggregate balance or value that exceeds USD1,000,000, as of 31 December 2015, or 3 1 December of any subsequent year.

"Investment Entity" means any Entity -

(a) which primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer –

(i)  trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodity futures trading;

(ii) individual and collective portfolio management: or

(iii) otherwise investing, administering, or managing Financial Assets or money on behalf of other Persons; or

(b) the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets, if the Entity is managed by another Entity that is a Depository institution, a Custodial Institution, a Specified Insurance Company'. or an Investment Entity described in subparagraph (a).

An Entity is treated as primarily conducting as a business one or more of the activities described in subparagraph (a), or an Entity's gross income is primarily attributable to investing. reinvesting, or trading in Financial Assets for the purposes of subparagraph (b), if the Entity's gross income attributable to the relevant activities equals or exceeds 50 % of the Entity's gross income during the shorter of -

(i) the three-year period ending on 3l December of the year preceding the year in which the determination is made. or

(ii) the period during which the Entity has been in existence. The term "Investment Entity" does not include an Entity that is an Active NFE because that Entity meets any of the criteria in subparagraphs (d) through (g) of the definition of Active NFE.

"Lower Value Account" means a Pre-existing Individual Account with an aggregate balance or value as of 31 December 2015 that does not exceed USD 1 000 000.

"Pre-existing Entity Account" means a preexisting Account held by one or more Entities.

"New Account" means a Financial Account maintained by a Reporting Seychelles Financial Institution opened on or after 1 January 2016 unless it is treated as a Pre-existing Account under subparagraph (b) of the Pre-Existing Account definition.

"New Individual Account" means a New Account held by one or more individuals.

"New Entity Account" means a New Account held by one or more Entities.

"Non-Financial Entity" means any Entity that is not a Financial Institution.

"Non-Reporting Seychelles Financial Institution" means an Institution described under Schedule II.

“Participating Jurisdiction Financial Institution” means (i) any Financial Institution that is resident in a Participating Jurisdiction, but excludes any branch of that Financial Institution that is located outside such Participating Jurisdiction, and (ii) any branch of a Financial Institution that is not resident in a Participating Jurisdiction, if that branch is located in such Participating Jurisdiction.

“Participating Jurisdiction” means a jurisdiction which is specified under Schedule 4.

“Passive NFE” means any: (i) NFE that is not an Active NFE; or (ii) an Investment Entity described in subparagraph (b) of the definition of Investment Entity that is not a Participating Jurisdiction Financial Institution.

"Pre-existing Account" means -

(a) a Financial Account maintained by a Reporting Seychelles Financial Institution as of 31 December 2015;

(b) any Financial Account of an Account Holder, regardless of the date such Financial Account was opened, if -

(i) the Account Holder also holds with the Reporting Seychelles Financial Institution (or with a Related Entity within the same Participating Jurisdiction as the Reporting Seychelles Financial Institution) a Financial Account that is a Pre-existing Account under subparagraph (a) of this definition;

(ii) the Reporting Seychelles Financial Institution (and, as applicable, the Related Entity within the same Participating Jurisdiction as the Reporting Seychelles Financial Institution) treats both of the aforementioned Financial Accounts, and any other Financial Accounts of the Account Holder that are treated as Preexisting Accounts under point (b), as a single Financial Account for purposes of satisfying the standards of knowledge requirements set forth in paragraph A of Part VII in Schedule 1, and for purposes of determining the balance or value of any of the Financial Accounts when applying any of the account thresholds;

(iii) with respect to a Financial Account that is subject to AML/KYC Procedures, the Reporting Seychelles Financial Institution is permitted to satisfy such AML/KYC Procedures for the Financial Account by relying upon the AML/KYC Procedures performed for the Pre-existing Account described in subparagraph (a) of this definition; and

(iv) the opening of the Financial Account does not require the provision of new, additional or amended customer information by the Account Holder other than for the purposes of this Regulation.

"Pre-existing Individual Account" means a Preexisting Account held by one or more individuals.

"Pre-existing Entity Account" means a Pre-existing Account held by one or more Entities.

"Related Entity" of another Entity if (i) either Entity controls the other Entity; (ii) the two Entities are under common control; or (iii) the two Entities are Investment Entities described in subparagraph (b) of the definition of Investment Entity, are under common management, and such management fulfils the due diligence obligations of such Investment Entities.

For this purpose control includes direct or indirect ownership of more than 50 % of the vote and value in an Entity.

"Reportable Account" means a Financial Account that is maintained by a Reporting Seychelles Financial Institution and is held by one or more Reportable Persons or by a Passive NFE with one or more Controlling Persons that is a Reportable Person, provided it has been identified as such pursuant to the due diligence procedures described in Part II through VII in Schedule l.

"Reporting Seychelles Financial Institution" means a Seychelles Financial Institution that is not a Non-Reporting Seychelles Financial Institution.

"Reportable Person" means a Reportable Jurisdiction Person other than -

(i) a corporation the stock of which is regularly traded on one or more established securities markets;

(ii) any corporation that is a Related Entity of a corporation described in clause (i);

(iii) a Governmental Entity;

(iv) an International Organisation;

(v) a Central Bank: or

(vi) a Financial Institution.

"Reportable jurisdiction" means a jurisdiction which is specified under Schedule 5.

"Reportable Jurisdiction Person" means a person identified as resident in a Reporlable jurisdiction, or an estate of a decedent that was a resident of any Reportable Jurisdiction. For this purpose, an Entity such as a partnership, limited liability partnership or similar legal arrangement, which has no residence for tax purposes shall be treated as resident in the jurisdiction in which its place of effective manageement is situated.

"Seychelles Financial Institution" means: (i) any Financial Institution that is resident in the Seychelles, but excludes any branch of Financial Institution that is located outside the Seychelles; and (ii) any branch of a Financial institution that is not resident in the Seychelles, if that branch is located in the Seychelles.

"Specified Insurance Company" means any Entity that is an insurance company (or the holding company of an insurance company) which issues, or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.

"standardised industry coding system" means a coding system used to classify establishments by business type for purposes other than tax purposes.

“TIN" means Taxpayer Identification Number or functional equivalent in the absence of a Taxpayer Identification Number.

Terms defined

4.(1) All terms and requirements contained in the Common Reporting Standard as defined in regulation 3, constitute an integral part of these Regulations and unless the context otherwise requires, shall have the same binding effect as if they were stated in these Regulations.

Regulation 4(1) repealed and substituted by reg 2(b) of SI 33 of 2017 with effect from 28 June 2017

(2) Unless the context otherwise requires. a word or expression used in these Regulations that is also used in the Common Reporting Standard shall have the same meaning as it has in the Common Reporting Standard.

Reporting Seychelles Financial Institution to report to Seychelles Revenue

5.(l) A Reporting Seychelles Financial Institution shall, in respect of the calendar year 2016 and each subsequent calendar years, report to the Seychelles Revenue Commission such information as prescribed under Part I of Schedule I in respect of Reportable Accounts maintained by that Reporting Seychelles Financial Institution in a calendar year. The reporting shall be in the form and manner laid down in regulation 5(3).

(2) An account listed under Schedule 3 is not a Reportable Account for the purposes of these Regulations.

(3) A Reporting Seychelles Financial Institution shall automatically report to the Seychelles Revenue Commission not later than the 30th June of the year following the end of the previous calendar year in an electronic format following the schema referred to under the Common Reporting Standard by using the e-platform as provided by the Seychelles Revenue Commission.

(4) Each Reporting Seychelles Financial Institution shall register on the e-platform available on the Seychelles Revenue Commission website and submitting the following information –

(a) the name of the Reporting Financial Institution;

(b) the categorization of the Reporting Financial Institution as determined in accordance with these regulations; and

(c) the full name, address, designation and contact details of the individual authorized by the Reporting Financial Institution to the Reporting Financial Institution's principal point of contact for all purposes of compliance with these regulations.

(5) The Revenue Commission shall maintain an up-to-date register of Reporting Seychelles Financial Institutions mentioned in subregulation (4) (a) and shall make it available for verification to public on demand.

(6) Any changes to the information under sub-regulation 5(4) shall be amended on the e-platform immediatelv.

(7) In determining the balance or value of an account denominated in a currency other than US dollars for the purposes of these Regulations, the Reporting Seychelles Financial Institution shall translate the relevant US dollar amount described in Schedule I to these Regulations into the other currency using reference rate (mid-rate) as published by the Central Bank of Seychelles as of the last day of the calendar year preceding the year in which the Reporting Seychelles Financial Institution is determining the balance or value.

Lodging of return for Reporting Seychelles Financial Institution with no reportable account

6. [Repealed]

Regulation 6 repealed by reg 2(c) of SI 33 of 2017 with effect from 28 June 2017

Application of due diligence by Reporting Seychelles Financial Institution

7.(1) A Reporting Seychelles financial institution shall apply the due diligence procedures contained in Schedule 1 to these regulations to identify the Financial Accounts held by an Account Holder who is not resident of Seychelles.

(2) A Reporting Seychelles financial institution shall have completed the review of its pre-existing accounts –

(a) by the 31st December 2016 for high value individual accounts;

(b) by 31st December 2017 for lower value individual accounts;

(c) by 31st December 2017 for pre-existing entity accounts which aggregate account balance or value exceeds USD250,000 as of 31st December 2015; and

(d) In respect of pre-existing entity accounts which aggregate account balance or value did not exceed USD250,000 as of 31st December 2015 but which aggregate account balance or value exceeds USD250,000 as of 31st December of a subsequent year, within the calendar year following the end of the year in which the pre-existing account which aggregate balance or value exceeds USD250.00.

Obligation towards arrangement entered into

8. If  -

(a) a person who enters into any arrangements; and

(b) the main purpose, or one of the main purposes, of the person in entering into the arrangement is to avoid or circumvent any obligations under these regulation, these regulations shall have effect, as if the arrangements had not been entered into.

Offences and penalties

9.(1) A reporting Seychelles financial institution which –

(a) fails to comply with a request made under regulation 11 ;

(b) fails to report any information in the form and manner as stated under these regulations;

(c) fraudulently or negligently makes a false report whether it is its entirety or in any particular part;

(d) fails to implement such arrangements or procedures in order to comply with these regulations;

(e) with intent to avoid the provisions of these regulations, alters, destroys or removes any documents or information. including document and information electronically held; or

(f) intentionally obstructs an inquiry by the Revenue Commissioner under the course of its functions for the implementation of these regulations,

commits an offence and shall be liable on conviction to a fine of SCR20,000.

(2) [Repealed]

(3) [Repealed]

Regulations 9(2) and (3) repealed by reg 2(d) of SI 33 of 2017 with effect from 28 June 2017  

Person appointed as agent

10.(1) A reporting Seychelles financial institution may appoint a person as its agent to carry out the duties and obligations imposed on it by these regulations.

(2) Where a person is appointed under subregulation (1) -

(a) the reporting Seychelles financial institution shall at all times have access to and be able to produce, where so requested by the Revenue Commissioner, the records and documentary evidence used to identify and report on reportable accounts; and

(b) the reporting Seychelles financial institution shall be responsible for any failure of that person to carry out its obligations notwithstanding that the actions were the actions of that person or that the failure to act was the failure by that person to act.

Information submitted to Seychelles Revenue Commission

11.(1) For the purpose of determining whether any information submitted by a Reporting Seychelles Financial Institution in furtherance of the requirements of these regulations, was accurate and complete, the Revenue Commissioner may require a reporting Seychelles financial institution -

(a) to provide, within a time specified by notice, the information including copies or any relevant books, documents or other records, or any electronically stored information that the Revenue Commissioner may reasonably require: or

(b) to make available for inspection at the time specified by notice all copies of books, documents or other records or any electronically stored information, in the reporting Seychelles financial institution's possession or under its control.

(2) If information the Revenue Commissioner wants or wants to inspect is kept outside Seychelles and the Revenue Commissioner requires the Reporting Seychelles Financial Institution to bring the information to Seychelles, the Revenue Commissioner shall specify a time that will enable the Reporting Financial Institution to bring the information to Seychelles and the Reporting Financial Institution shall comply with the requirement of the Revenue Commissioner.

(3) A Reporting Seychelles Financial Institution shall retain for a period of seven years all books, documents and other records including those stored in electronic form, which relate to -

(a) the information required to be reported to the Revenue Commissioner under these regulations; and

(b) the due diligence procedures required to be applied to establish the jurisdiction in which any account holder is resident for tax purposes.

SCHEDULE I

REPORTING AND DUE DILIGENCE RULES FOR FINANCIAL ACCOUNT INFORMATION

This schedule lays down the reporting and due diligence rules that shall be applied by Reporting Seychelles Financial Institutions in order to comply with the requirements of these regulations;

PART I - GENERAL REPORTING REQUIREMENTS

A. Subject to paragraphs B through D, each Reporting Seychelles Financial Institution shall report to the Seychelles Revenue Commission the following information with respect to each Reportable Account of such Reporting Seychelles Financial Institution

Part I paragraph A of Schedule I amended by reg 2(e)(i) of SI 33 of 2017 with effect from 28 June 2017

1. The name, address, jurisdiction(s) of residence, TIN(s) and date and place of birth (in the case of an individual) of each Reportable Person that is an Account Holder of the account and, in the case of any Entity that is an Account Holder and that, after application of the due diligence procedures consistent with Parts V, VI and VII, is identified as having one or more Controlling Persons that is a Reportable Person, the name, address, jurisdiction(s) of residence and TIN(s) of the Entity and the name, address, Jurisdiction of residence, TIN(s) and date and place of birth of each Reportable Person;

2. The account number (or functional equivalent in the absence of an account number):

3. The name and identifying number (if any) of the Reporting Seychelles Financial Institution;

4. The account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value or surrender value) as of the end of the relevant calendar year or, if the account was closed during such year or period, the closure of the account;

5. In the case of any Custodial Account -

(a) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the account. in each case paid or credited to the account (or with respect to the account) during the calendar year; and

(b) the total gross proceeds from the sale or redemption of Financial Assets paid or credited to the account during the calendar year with respect to which the Reporting Seychelles Financial Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder:

6. In the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar year; and

7. In the case of any account not described in subparagraph A(5) or (6), the total gross amount paid or credited to the Account Holder with respect to the account during the calendar year with respect to which the Reporting Seychelles Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the Account Holder durins the calendar year.

8. The information reported shall identify the currency in which each amount is denominated.

B. (1) Notwithstanding subparagraph A(1), with respect to each Reportable Account that is a Pre-existing Account, the TIN(s) or date, of birth is not required to be reported if such TIN(s) or date of birth is not in the records of the Reporting Seychelles Financial Institution before the entry into force of these regulations.

(2) Subject to paragraph Cl but notwithstanding to subparagraph B(1), a Reporting Seychelles Financial Institution which would not have the TIN or date of birth in its records is required to use reasonable efforts to obtain the TIN and date of birth with respect to such account by the end of the second calendar year following; the year in which the account was identified as reportable account.

C. Notwithstanding subparagraph A(1), the TIN is not required to be reported if a TIN is not issued by the relevant jurisdiction of residence.

D. Notwithstanding subparagraph A(1), the place of birth is not required to be reported unless it is available in the electronically searchable data maintained by the Reporting Seychelles Financial Institution.

PART II - GENERAL DUE DILIGENCE REQUIREMENTS

A. An account is treated as a Reportable Account beginning as of the date it is identified as such pursuant to the due diligence procedures in Parts II through VII and, unless otherwise provided, information with respect to a Reportable Account shall be reported annually in the calendar year following the year to which the information relates.

B. The balance or value of an account shall be determined as of the last day of the calendar year.

C. Where a balance or value threshold is to be determined as of the last day of a calendar year, the relevant balance or value shall be determined as of the last day of the reporting period that ends with or within that calendar year.

D. Reporting Seychelles Financial Institutions may use service providers to fulfil the reporting and due diligence obligations imposed on such Reporting Seychelles Financial Institutions, but these obligations shall remain the responsibility of the Reporting Seychelles Financial Institutions.

E. Reporting Seychelles Financial Institutions may apply the due diligence procedures for New Accounts to Preexisting Accounts, and the due diligence procedures for High Value Accounts to Lower Value Accounts. Where New Account due diligence procedures are used for Preexisting Accounts, the rules otherwise applicable to Preexisting Accounts continue to apply.

F. In addition to the identification of any Reportable Accounts, a Reporting Seychelles Financial Institution shall also apply these due diligence procedures to identify Financial Accounts held by an Account Holder who is resident in any jurisdiction, other than Seychelles. In applying these due diligence procedures, references to "Reportable Account" or "Reportable Jurisdiction" in Parts III to VII of this Schedule and paragraphs A to E of Part II of this Schedule are to be read as if the definition "Reportable Jurisdiction" means any jurisdiction other than Seychelles. Where such account is identified, the Reporting Seychelles Financial Institution may rely on the outcome of the due diligence procedures to comply with future reporting obligations, subject to the change of circumstances procedures.

G. (1) A Seychelles Reporting Financial Institution which maintains the account of a trust which is a Passive Non-Financial Entity may opt to consider a discretionary beneficiary of the trust a controlling person who is reportable only the year in which the said beneficiary receives a distribution from the trust.

(2) An option under G.(1) shall be made to the Revenue Commissioner through formal letter not later than the due date for reporting.

(3) In opting under G.(1), a Seychelles Reporting Financial Institution must ensure it has all the appropriate procedures in place in order to identify when a distribution is made to a discretionary beneficiary as a controlling person.

(4) For avoidance of doubt where an option under G.(1) has not been formally made to the Revenue Commissioner, Part V and Part VI of Schedule I shall continue to apply.

Paragraph G inserted by reg 2(e)(ii) of SI 33 of 2017 with effect from 28 June 2017

PART III - DUE DILIGENCE FOR PRE-EXISTING INDIVIDUAL ACCOUNTS

A. The following procedures shall apply for purposes of identifying Reportable Accounts among Pre-existing Individual Accounts.

B. Lower Value Accounts.

The following procedures apply with respect to Lower Value Accounts.

1. Residence Address.

If the Reporting Seychelles Financial Institution has in its records a current residence address for the individual Account Holder based on Documentary Evidence, the Reporting Seychelles Financial Institution may treat the individual Account Holder as being a resident for tax purposes of the jurisdiction in which the address is located for purposes of determining whether such individual Account Holder is a Reportable Person.

2. Electronic Record Search.

If the Reporting Seychelles Financial Institution does not rely on a current residence address for the individual Account Holder based on Documentary Evidence as set forth in subparagraph B(l), the Reporting Seychelles Financial Institution shall review electronically searchable data maintained by the Reporting Seychelles Financial Institution for any. of the following indicia and apply subparagraphs B(3) to (6)

(a) identification of the Account Holder as a resident of a Reportable Jurisdiction:

(b) current mailing or residence address (including a post office box) in a Reportable Jurisdiction;

(c) one or more telephone numbers in a Reportable Jurisdiction and no telephone number in the Seychelles:

(d) standing instructions (other than with respect to a Depository Account) to transfer funds to an account maintained in a Reportable Jurisdiction;

(e) currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction; or

(f) a "hold mail" instruction or "in-care-of” address in a Reportable Jurisdiction if the Reporting Seychelles Financial Institution does not have any other address on file for the Account Holder.

3. If none of the indicia listed in subparagraph B(2) are discovered in the electronic search, then no further action is required until there is a change in circumstances that results in one or more indicia being associated with the account, or the account becomes a High Value Account.

4. If any of the indicia listed in subparagraph B(2)(a) through (e) are discovered in the electronic search, or if there is a change in circumstances that results in one or more indicia being associated with the account, then the Reporting Seychelles Financial Institution shall treat the Account Holder as a resident for tax purposes of each Reportable Jurisdiction for which an indicium is identified, unless it elects to apply subparagraph 8(6) and one of the exceptions in that subparagraph applies with respect to that account.

5. If a "hold mail" instruction or "in-care-of” address is discovered in the electronic search and no other address and none of the: other indicia listed in subparagraph B(2)(a) through (e) are identified for the Account Holder, the Reporting Seychelles Financial Institution shall, in the order most appropriate to the circumstances, apply the paper record search described in subparagraph C(2), or seek to obtain from the Account Holder a selfcertification or Documentary Evidence to establish the residence(s) for tax purposes of such Account Holder. If the paper search fails to establish an indicium and the attempt to obtain the self-certification or Documentary Evidence is not successful, the Reporting Seychelles Financial Institution shall report the : account to the Seychelles Revenue Commission as an undocumented account.

6. Notwithstanding a finding of indicia under subparagraph B(2), a Reporting Seychelles Financial Institution is not required to treat an Account Holder as a resident of a Reportable Jurisdiction if –

(a) the Account Holder information contains a current mailing or residence address in that Reportable Jurisdiction, one or more telephone numbers in that Reportable Jurisdiction (and no telephone number in the Seychelles) or standing instructions (with respect to Financial Accounts other than Depository Accounts) to transfer funds to an account maintained in a Reportable Jurisdiction, and the Reporting Seychelles Financial Institution obtains, or has previously reviewed and maintains, a record of –

(i) a self-certification from the Account Holder that does not include that Reportable Jurisdiction; and

(ii) Documentary Evidence establishing the Account Holder's non-reportable status;

(b) the Account Holder information contains a currently effective power of attorney or signatory authority granted to a person with an address in that Reportable Jurisdiction, and the Reporting Seychelles Financial Institution obtains, or has previously reviewed and maintains, a record of –

(i) a self-certification from the Account Holder that does not include that Reportable Jurisdiction; or

(ii) Documentary Evidence establishing the Account Holder's non-reportable status.

C. Enhanced Review Procedures for High Value Accounts.

The following enhanced review procedures shall apply with respect to High Value Accounts.

1. Electronic Record search.

With respect to High Value Accounts, the Reporting Seychelles Financial Institution shall review electronically searchable data maintained by the Reporting Seychelles Financial Institution for any of the indicia described in subparagraph B(2).

2. Paper Record Search.

If the electronic databases do not capture all of this information, then with respect to a High Value Account, the Reporting Seychelles Financial Institution shall also review the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with the account and obtained by the Reporting Seychelles Financial Institution within the last five years for any of the indicia described in subparagraph B(2) –

(a) the most recent Documentary Evidence collected with respect to the account;

(b) the most recent account opening contract or documentation;

(c) the most recent documentation obtained by the Reporting Seychelles Financial Institution pursuant to AML/KYC Procedures or for other regulatory purposes;

(d) any power of attorney or signature authority forms currently in effect; and

(e) any standing instructions (other than with respect to a Depository Account) to transfer funds currently in effect.

3. Exception

To The Extent Databases Contain Sufficient Information. A Reporting Seychelles Financial Institution is not required to perform the paper record search described in subparagraph C(2) to the extent the Reporting Seychelles Financial Institution's electronically searchable information includes the following –

(a) the Account Holder's residence status;

(b) the Account Holder's residence address and mailing address currently on file with the Reporting Seychelles Financial Institution;

(c) the Account Holder's telephone number(s) currently on file, if any, with the Reporting Seychelles Financial Institution;

(d) in the case of Financial Accounts other than Depository Accounts, whether there are standing instructions to transfer funds in the account to another account (including an account at another branch of the Reporting Seychelles Financial Institution or another Financial Institution) ;

(e) whether there is a current "in-care-of” address or "hold mail" instruction for the Account Holder; and

(f) whether there is any power of attorney or signatory authority for the account.

4. Relationship Manager Inquiry for Actual Knowledge.

In addition to the electronic and paper record searches described in subparagraphs C(l) and(2), the Reporting Seychelles Financial Institution shall treat as a Reportable Account any High Value Account assigned to a relationship manager (including any Financial Accounts aggregated with that High Value Account) if the relationship manager has actual knowledge that the Account Holder is a Reportable Person.

5. Effect of Finding Indicia –

(a) If none of the indicia listed in subparagraph B(2) are discovered in the enhanced review of High Value Accounts described in paragraph C, and the account is not identified as held by a Reportable Person in subparagraph C(4), then further action is not required until there is a change in circumstances that results in one or more indicia being associated with the account.

(b) If any of the indicia listed in subparagraphs B(2)(a) through (e) are discovered in the enhanced review of High Value Accounts described in paragraph C, or if there is a subsequent change in circumstances that results in one or more indicia being associated with the account, then the Reporting Seychelles Financial Institution shall treat the account as a Reportable Account with respect to each Reportable Jurisdiction for which an indicium is identified unless it elects to apply subparagraph 8(6) and one of the exceptions in that subparagraph applies with respect to that account.

(c) If a "hold mail" instruction or “in-care-of” address is discovered in the enhanced review of High Value Accounts described in paragraph C, and no other address and none of the other indicia listed in subparagraphs B(2)(a) through (e) are identified for the Account Holder, the Reporting Seychelles Financial Institution shall obtain from such Account Holder a self-certification or Documentary Evidence to establish the residence(s) for tax purposes of the Account Holder. If the Reporting Seychelles Financial Institution cannot obtain such self-certification or Documentary Evidence, it shall report the account to the Seychelles Revenue Commission as an undocumented account.

6. If a Pre-existing Individual Account is not a High Value Account as of 31 December 2015, but becomes a High Value Account as of the last day of a subsequent calendar year, the Reporting Seychelles Financial Institution shall complete the enhanced review procedures described in paragraph C with respect to such account within the calendar year following the year in which the account becomes a High Value Account. If based on this review such account is identified as a Reportable Account, the Reporting Seychelles Financial Institution shall report the required information about such account with respect to the year in which it is identified as a Reportable Account and subsequent years on an annual basis, unless the Account Holder ceases to be a Reportable Person.

7. Once a Reporting Seychelles Financial Institution applies the enhanced review procedures described in paragraph C to a High Value Account, the Reporting Seychelles Financial Institution is not required to reapply such procedures, other than the relationship manager inquiry described in subparagraph C(4), to the same High Value Account in any subsequent year unless the account is undocumented where the Reporting Seychelles Financial Institution shall reapply them annually until such account ceases to be undocumented.

8. If there is a change of circumstances with respect to a High Value Account that results in one or more indicia described in subparagraph B(2) being associated with the account, then the Reporting Seychelles Financial Institution shall treat the account as a Reportable Account with respect to each Reportable Jurisdiction for which an indicium is identified unless it elects to apply subparagraph B(6) and one of the exceptions in that subparagraph applies with respect to that account.

9. A Reporting Seychelles Financial Institution shall implement procedures to ensure that a relationship manager identifies any change in circumstances of an account. For example, if a relationship manager is notified that the Account Holder has a new mailing address in a Reportable Jurisdiction, the Reporting Seychelles Financial Institution is required to treat the new address as a change in circumstances and, if it elects to apply subparagraph 8(6), is required to obtain the appropriate documentation from the Account Holder.

D. Any Pre-existing Individual Account that has been identified as a Reportable Account under this regulation shall be treated as a Reportable Account in all subsequent years, unless the Account Holder ceases to be a Reportable Person.

PART IV - DUE DILIGENCE FOR NEW INDIVIDUAL ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts among New Individual Accounts.

A. With respect to New Individual Accounts, upon account opening, the Reporting Seychelles Financial Institution shall obtain a self-certification, which may be part of the account opening documentation, that allows the Reporting Seychelles Financial Institution to determine the Account Holder's residence(s) for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the Reporting Seychelles Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures.

B. If the self-certification establishes that the Account Holder is resident for tax purposes in a Reportable Jurisdiction, the Reporting Seychelles Financial Institution shall treat the account as a Reportable Account and the self-certification shall also include the Account Holder's TIN with respect to such Reportable Jurisdiction (subject to paragraph D of Part I) and date of birth.

C. If there is a change of circumstances with respect to a New Individual Account that causes the Reporting Seychelles Financial Institution to know, or have reason to know, that the original self-certification is incorrect or unreliable, the Reporting Seychelles Financial Institution cannot rely on the original self-certification and shall obtain a valid self-certification that establishes the residence(s) for tax purposes of the Account Holder.

PART V . DUE DILIGENCE FOR PRE-EXISTING ENTITY ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts among Pre-existing Entity Accounts.

A. Entity Accounts not required to be reviewed, identified or reported.

Unless the Reporting Seychelles Financial Institution elects otherwise, either with respect to all Pre-existing Entity Accounts or, separately, with respect to any clearly identified group of such accounts, a Pre-existing Entity Account with an aggregate account balance or value that does not exceed, as of 31 December 2015, an amount that corresponds to US$250,000, is not required to be reviewed, identified, or reported as a Reportable Account until the aggregate account balance or value exceeds that amount as of the last day of any subsequent calendar year.

B. Entity Accounts subject to review

A Pre-existing Entity Account that has an aggregate account balance or value that exceeds, as of 31 December 2015, an amount that corresponds to US$250,000 and a Pre-existing Entity Account that not exceed, as of 31 December 2015, that amount but the aggregate account balance or value of which exceeds such amount as of the last day of any subsequent calendar year, shall be reviewed in accordance with the procedures set forth in paragraph D.

C. Entity Accounts with reporting requirements

With respect to Pre-existing Entity Accounts described in paragraph B, only accounts that are held by one or more Entities that are Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons, shall be treated as ReportableAccounts.

D. Review Procedures for identifying Entity Accounts with reporting requirements

For Pre-existing Entity Accounts described in paragraph B, a Reporting Seychelles Financial Institution shall apply the following review procedures to determine whether the account is held by one or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons –

1. Determine Whether the Entity Is a Reportable Person.

(a) Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to AML/KYC Procedures) to determine whether the information indicates that the Account Holder is resident in a Reportable Jurisdiction. For this purpose, information indicating that the Account Holder is resident in a Reportable Jurisdiction includes a place of incorporation or organisation, or an address in a Reportable Jurisdiction.

(b) If the information indicates that the Account Holder is resident in a Reportable Jurisdiction, the Reporting Seychelles Financial Institution shall treat the account as a Reportable Account unless it obtains a self-certification from the Account Holder, or reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Reportable Person.

2. Determine Whether the Entity is a Passive NFE with one or more Controlling Persons who are Reportable Persons. With respect to an Account Holder of a Preexisting Entity Account (including an Entity that is a Reportable Person), the Reporting Seychelles Financial Institution shall determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account shall be treated as a Reportable Account. In making these determinations the Reporting Seychelles Financial Institution shall follow the guidance in subparagraphs (2Xa) through (c) in the order most appropriate under the circumstances –

(a) Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive NFE, the Reporting Seychelles Financial Institution shall obtain a self-certification from the Account Holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the Account Holder is an Active NFE or a Financial Institution other than an Investment Entity described in subparagraph (b) of the definition of Investment Entity that is not a Participating Jurisdiction Financial Institution.

(b) Determining the Controlling Persons of an Account Holder. For the purposes of determining the Controlling Persons of an Account Holder, a Reporting Seychelles Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures.

(c) Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For the purposes of determining whether a Controlling Person of a Passive NFE is a Reportable Person, a Reporling Seychelles Financial Institution may rely on –

(i) information collected and maintained pursuant to AML/KYC Procedures in the case of a Pre-existing Entity Account held by one or more NFEs with an aggregate account balance or value that does not exceed an amount that corresponds to us$1,000,000; or

(ii) a self-certification from the Account Holder or such Controlling Person of the jurisdiction(s) in which the Controlling Person is resident for tax purposes.

3. If there is a change of circumstances with respect to a Pre-existing Entity Account that causes the Reporting Seychelles Financial Institution to know, or have reason to know, that the self-certification or other documentation associated with an account is incorrect or unreliable, the Reporting Seychelles Financial Institution shall re-determine the status of the account in accordance with the procedures set forth in paragraph D.

PART VI – DUE DILIGENCE FOR NEW ENTITY ACCOUNTS

The following review procedures apply for purposes of identifying. New Entity Accounts with respect to which reporting is required.

For New Entity Accounts, a Reporting Seychelles Financial Institution shall apply the following review procedures to determine whether the account is held by one or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons:

1. Determining whether the Entity is a Reportable Person –

(a) Obtain a self-certification, which may be part of the account opening documentation, that allows the Reporting Seychelles Financial Institution to determine the Account Holder's residence(s) for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the Reporting Seychelles Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures. If the Entity certifies that it has no residence for tax purposes, the Reporting Seychelles Financial Institution may rely on the address of the principal office of the Entity to determine the residence of the Account Holder.

(b) If the self-certification indicates that the Account Holder is resident in a Reportable Jurisdiction, the Reporting Seychelles Financial Institution shall treat the account as a Reportable Account, unless it reasonably determines based on information in its possession or that is publicly available that the Account Holder is not a Reportable Person with respect to such Reportable Jurisdiction.

2. Determining Whether the Entity is a Passive NFE with one or more Controlling Persons who are Reportable Persons. With respect to an Account Holder of a New Entity Account (including an Entity that is a Reportable Person), the Reporting Seychelles Financial Institution shall determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account shall be treated as a Reportable Account. In making these determinations the Reporting Seychelles Financial Institution shall follow the guidance in subparagraphs (2)(a) through(c) in the order most appropriate under the circumstances –

(a) Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive NFE. the Reporting Seychelles Financial Institution shall rely on a self-certification from the Account Holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the Account Holder is an Active NFE or a Financial Institution other than an Investment Entity described in subparagraph (b) of the definition of Investment Entity that is not a Participating Jurisdiction Financial Institution.

(b) Determining the Controlling Persons of an Account Holder. For purposes of determining the Controlling Persons of an Account Holder, a Reporting Seychelles Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures if they are consistent with the 2012 FATF Standards.

(c) Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For purposes of determining whether a Controlling Person of a Passive NFE is a Reportable Person, a Reporting Seychelles Financial Institution may rely on a self-certification from the Account Holder or such Controlling Person.

PART VII - SPECIAL DUE DILIGENCE RULES

The following additional rules apply in implementing the due diligence procedures described above –

A. Reliance on Self-Certifications and Documentary Evidence.

A Reporting Seychelles Financial Institution may not rely on a self-certification or Documentary Evidence if the Reporting Seychelles Financial Institution knows or has reason to know that the self-certification or Documentary Evidence is incorrect or unreliable.

B. Account Balance Aggregation and Currency Rules

1. Aggregation of Individual Accounts

For purposes of determining the aggregate balance or value of Financial Accounts held by an individual, a Reporting Seychelles Financial Institution is required to aggregate all Financial Accounts maintained by the Reporting Seychelles Financial Institution, or by a Related Entity, but only to the extent that the Reporting Seychelles Financial Institution's computerised systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph.

2. Aggregation of Entity Accounts

For purposes of determining the aggregate balance or value of Financial Accounts held by an Entity, a Reporting Seychelles Financial Institution is required to take into account all Financial Accounts that are maintained by the Reporting Seychelles Financial Institution, or by a Related Entity, but only to the extent that the Reporting Seychelles Financial Institution's computerised systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph.

3. Special Aggregation Rule Applicable to Relationship Managers

For purposes of determining the aggregate balance or value of Financial Accounts held by a person to determine whether a financial account is a High Value Account, a Reporting Seychelles Financial Institution is also required, in the case of any Financial Accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled, or established (other than in a fiduciary capacity) by the same person, to aggregate all such accounts.

4. Amounts Read to Include Equivalent in Other Currencies

All amounts denominated in US dollars shall be read to include equivalent amounts in other currencies as determined under regulation 6(3) of these regulations.

SCHEDULE 2

NON REPORTING FINANICAL INSITUTIONS

The following Financial Institutions are Non-Reporting Financial Institutions

l. A Governmental Entity, International Organisation or Central Bank, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution;

2. A Broad Participation Retirement Fund; a Narrow Participation Retirement Fund; a Pension Fund of a Governmental Entity, International Organisation or Central Bank; or a Qualified Credit Card Issuer;

3. An Exempt Collective Investment Vehicle; or

4. A trust to the extent that the trustee of the trust is a Reporting Financial Institution and reports all information required to be reported pursuant to Section I with respect to all Reportable Accounts of the trust.

For the purpose of this Schedule, the following terms are defined –

1. "Broad Participation Retirement Fund" means a fund established to provide retirement, disability, or death benefits, or any combination thereof, to beneficiaries who are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered. provided that the fund -

(a) does not have a single beneficiary with a right to more than 5% of the fund's assets;

(b) is subject to government regulation and provides information reporting to the tax authorities; and

(c) satisfies at least one of the following requirements –

(i) the fund is generally exempt from tax on investment income, or taxation of such income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan;

(ii) the fund receives at least 50% of its total contributions (other than transfers of assets from other plans described in paragraphs (1), (6) and (7) or from retirement and pension accounts described in paragraph 1 of Schedule 3 from the sponsoring employers;

(iii) distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in paragraphs (l), (6) and (7) or retirement and pension accounts described in paragraph 1 of Schedule 3, or penalties apply to distributions or withdrawals made before such specified events; or

(iv) contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed, annually, an amount denominated in the domestic currency of each Participating Jurisdiction that corresponds to USD 50,000, applying the rules set forth in paragraph B of Part VII for account aggregation and currency translation.

2. "Central Bank" means an institution that is by law or government sanction the principal authority, other than the government of the Participating Jurisdiction itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government of the Participating Jurisdiction, whether or not owned in whole or in part by the Participating Jurisdiction.

3. "Exempt Collective Investment Vehicle" means an Investment Entity that is regulated as a collective investment vehicle. provided that all of the interests in the collective investment vehicle are held by or through individuals or Entities that are not Reportable Persons, except a Passive NFE with Controlling Persons who are Reportable Persons. An Investment Entity that is regulated as a collective investment vehicle does not fail to qualify under Schedule III as an Exempt Collective Investment Vehicle, solely because the collective investment vehicle has issued physical shares in bearer form, provided that –

(a) the collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after3l December2015;

(b) the collective investment vehicle retires all such shares upon surrender;

(c) the collective investment vehicle performs the due diligence procedures set forth in Parts II through VII and reports any information required to be reported with respect to any such shares when such shares are presented for redemption or other payment; and

(d) the collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilised as soon as possible, and in any event prior to 1 January 2018.

4. Governmental Entity" means the government of a Participating Jurisdiction or other jurisdiction, any political subdivision of a Participating Jurisdiction or other jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or municipality), or any wholly owned agency or instrumentality of a Participating Jurisdiction or other jurisdiction or of any one or more of the foregoing (each, a "Governmental Entity"). This category is comprised of the integral parts, controlled entities, and political subdivisions of a Participating Jurisdiction or other jurisdiction –

(a) "integral part" of a Participating Jurisdiction or other jurisdiction means any person. organisation, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a governing authority of a Participating Jurisdiction or other jurisdiction. The net earnings of the governing authority shall be credited to its own account or to other accounts of the Participating Jurisdiction or other jurisdiction, with no portion inuring to the benefit of any private person. An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity.

(b) "controlled entity" means an Entity which is separate in form from the Participating Jurisdiction or other jurisdiction or which otherwise constitutes a separate juridical entity, provided that –

(i) the Entity is wholly owned and controlled by one or more Governmental Entities directly or through one or more controlled entities;

(ii) the Entity's net earnings are credited to its own account or to the accounts of one or more Governmental Entities, with no portion of its income inuring to the benefit of any private person: and (iii) the Entity's assets vest in one or more Governmental Entities upon dissolution.

(c) Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental programme, and the programme activities are performed for the general public with respect to the common welfare or relate to the administration of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a Governmental Entity to conduct a commercial business, such as a commercial banking business, that provides financial services to private persons.

5. "International Organisation" means any international organisation or wholly owned agency or instrumentality thereof. This category includes any intergovernmental organisation, including a supranational organisation –

(a) that is comprised primarily of governments;

(b) that has in effect a headquarters or substantially similar agreement with the Participating Jurisdiction; and

(c) the income of which does not inure to the benefit of private persons.

6. "Pension Fund of a Governmental Entity, International Organisation or Central Bank" means a fund established by a Governmental Entity, International Organisation or Central Bank to provide retirement, disability, or death benefits to beneficiaries or participants who are current or former employees (or persons designated by such employees), or who are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed for the Governmental Entity, International Organisation or Central Bank.

7. "Narrow Participation Retirement Fund" means a fund established to provide retirement, disability or death benefits to beneficiaries who are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that –

(a) the fund has fewer than 50 participants;

(b) the fund is sponsored by one or more employers that are not Investment Entities or Passive NFEs;

(c) the employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described in 1 of Schedule 3 are limited by reference to earned income and compensation of the employee, respectively;

(d) participants that are not residents of the Participating Jurisdiction in which the fund is established are not entitled to more than 20% of the fund's assets; and

(e) the fund is subject to government regulation and provides information reporting to the tax authorities.

8. "Qualified Credit Card Issuer" means a Financial Institution satisfying the following requirements –

(a) the Financial Institution is a Financial Institution solely because it is an issuer of credit cards that accepts deposits only when a customer makes a payment in excess of a balance due with respect to the card and the overpayment is not immediately returned to the customer; and

(b) beginning on or before lst January 2016, the Financial Institution implements policies and procedures either to prevent a customer from making an overpayment in excess that corresponds to USD 50,000, or to ensure that any customer overpayment in excess of USD50,000 is refunded to the customer within 60 days, in each case applying the rules set forth in paragraph B of Part VII of Schedule 1 for account aggregation and currency translation. For this purpose, a customer overpayment does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns.

Paragraph 8(b) of Schedule 2 amended by reg 2(f) of SI 33 of 2017 with effect from 28 June 2017

SCHEDULE 3

EXCLUDED ACCOUNTS

"Excluded Account" means any of the following accounts –

1. a retirement or pension account that satisfies the following requirements –

(a) the account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits (including disability or death benefits);

(b) the account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded from the gross income of the Account Holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate):

(c) information reporting is required to the tax authorities with respect to the account;

(d) withdrawals are conditioned on reaching a specified retirement age, disability, or death, or penalties apply to withdrawals made before such specified events; and

(e) either (i) annual contributions are limited to an amount that corresponds to USD50,000 or less; or  (ii) there is a maximum lifetime contribution limit to the account of an amount that corresponds to USD 1,000,000 or less, in each case applying the rules set forth in paragraph B of Part VII for account aggregation and currency translation. A Financial Account that otherwise satisfies the requirement of this subparagraph will not fail to satisfy such requirement solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet the requirements of paragraphs 1 or 2 of this Schedule or from one or more retirement or pension funds that meet the requirements of a "broad participation retirement fund", a "narrow participation retirement fund" or "Pension Fund or a Government Entity, International Organisation or Central Bank" as defined under these Regulations.

2. An account that satisfies the following requirements –

(a) the account is subject to regulation as an investment vehicle for purposes other than for retirement and is regularly traded on an established securities market, or the account is subject to regulation as a savings vehicle for purposes other than for retirement;

(b) the account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded from the gross income of the Account Holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate);

(c) withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account (for example, the provision of educational or medical benefits), or penalties apply to withdrawals made before such criteria are met: and

(d) annual contributions are limited to an amount that corresponds to USD50,000 or less, applying the rules set forth in paragraph B of Part VII for account aggregation and currency translation. A Financial Account that otherwise satisfies the requirement of this subparagraph will not fail to satisfy such requirement solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet the requirements of paragraphs 1 or 2 of this Schedule or from one or more retirement or pension funds that meet the requirements of a "broad participation retirement fund", a "narrow participation retirement fund" or "Pension Fund or a Government Entity, International Organisation or Central Bank" as defined under these Regulations.

3. A life insurance contract with a coverage period that will end before the insured individual attains age 90, provided that the contract satisfies the following requirements –

(a) periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence or until the insured attains age 90, whichever is shorter;

(b) the contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without terminating the contract;

(c) the amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed) for the period or periods of the contract's existence and any amounts paid prior to the cancellation or termination of the contract; and

(d) the contract is not held by a transferee for value;

4. an account that is held solely by an estate if the documentation for such account includes a copy of the deceased's will or death certificate;

5. an account established in connection with any of the following –

(a) a court order or judgment.

(b) a sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements: the account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a Financial Asset that is deposited in the account in connection with the sale, exchange, or lease of the property, the account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease, the assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee (including to satisfy such person's obligation) when the property is sold, exchanged, or surrendered, or the lease terminates, the account is not a margin or similar account established in connection with a sale or exchange of a Financial Asset, and the account is not associated with an account described in paragraph 6;

(c) an obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a payment solely to facilitate the payment of taxes or insurance related to the real property at a later time;

(d) an obligation of a Financial Institution solely to facilitate the payment of taxes at a later time;

6. A Depository Account that satisfies the following requirements –

(a) the account exists solely because a customer makes a payment in excess of a balance due with respect to a credit card or other revolving credit facility and the overpayment is not immediately returned to the customer; and

(b) beginning on or before 1 January 2016, the Financial Institution implements policies and procedures either to prevent a customer from making an overpayment in excess of an amount that corresponds to USD 50,000, or to ensure that any customer overpayment in excess of that amount is refunded to the customer within 60 days, in each case applying the rules set forth in paragraph B of Part VII for currency translation. For this purpose, a customer overpayment does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns.

Paragraph 6(b) of Schedule 3 amended by reg 2(g) of SI 33 of 2017 with effect from 28 June 2017

 

SCHEDULE 4

Schedule 4 repealed and substituted by reg 2(h) of SI 33 of 2017 with effect from 28 June 2017

LIST OF PARTICIPATING JURISDICTIONS

1          Albania

2          Andorra

3          Anguilla

4          Argentina

5          Aruba

6          Australia

7          Austria

8          Barbados

9          Belgium

10        Belize

11        Bermuda

12        Brazil  

13        British Virgin Islands

14        Bulgaria

15        Canada

16        Cayman Islands

17        Chile

18        China (Peoples republic of)    

19        Colombia

20        Costa Rica

21        Cook Islands

22        Croatia

23        Curacao

24        Cyprus

25        Czech Republic

26        Denmark

27        Estonia

28        Faroe Islands

29        Finland

30        France

31        Germany

32        Ghana

33        Gibraltar

34        Greece

35        Greenland       

36        Grenada

37        Guernsey

38        Hungary

39        Iceland

40        India

41        Indonesia

42        Ireland

43        Israel

44        Isle of Man

45        Italy

46        Japan

47        Jersey

48        Korea

49        Kuwait

50        Latvia

51        Lebanon

52        Liechtenstein

53        Lithuania

54        Luxembourg

55        Malaysia

56        Malta

57        Marshall Islands

58        Mauritius

59        Mexico

60        Monaco

61        Montserrat

62        Nauru

63        Netherlands

64        New Zealand

65        Niue

66        Norway

67        Pakistan

68        Poland

69        Portugal

70        Romania

71        Russian Federation

72        Saint Kitts and Nevis

73        Saint Lucia

74        Saint Vincent and the Grenadines

75        Samoa

76        San Marino

77        Saudi Arabia

78        Singapore

79        Sint Maarten

80        Slovak Republic

81        Slovenia

82        South Africa

83        Spain

84        Sweden

85        Switzerland

86        Turkey

87        Turks & Caicos Islands

88        United Arab Emirates

89        United Kingdom

90        Uruguay

SCHEDULE 5

Schedule 5 repealed and substituted by reg 2(h) of SI 33 of 2017 with effect from 28 June 2017

LIST OF REPORTABLE JURISDICTIONS

1          Argentina

2          Belgium

3          Bulgaria

4          Colombia

5          Czech Republic

6          Denmark

7          Estonia

8          Faroe Islands

9          Finland

10        France

11        Germany

12        Gibraltar

13        Greece

14        Greenland

15        Guernsey

16        Hungary

17        Iceland

18        India

19        Ireland

20        Isle of Man

21        Italy

22        Jersey

23        Korea

24        Latvia

25        Liechtenstein

26        Lithuania

27        Luxembourg

28        Malta

29        Mexico

30        Montserrat

31        Netherlands

32        Norway

33        Portugal

34        Romania

35        Slovak Republic

36        Slovenia

37        South Africa

38        Spain

39        Sweden

40        United Kingdom

_________________________

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Double Taxation Agreement) Regulations, 2016 [Belgium]

[22 June 2017]

S.I. 13 of 2016

 

NOTE: This S.I. has the effect of amending S.I. 19 of 2006, promulgated and in force under the Business Tax Act.  See that Act for a complete copy of the Agreement as it currently stands.

Citation

1.         These Regulations may be cited as the Revenue Administration (Double Taxation Agreement) Regulations, 2016.

Declaration and effect of Protocol

2.         It is hereby declared that the Republic of Seychelles and the Kingdom of Belgium have concluded a protocol specified in the Schedule modifying the Agreement between the Republic of Seychelles and the Kingdom of Belgium for the purposes of avoidance of double taxation and prevention of fiscal evasion and the protocol shall have effect as long as the Agreement remains in force between the parties.

SCHEDULE

PROTOCOL MODIFYING THE AGREEMENT BETWEEN THE REPUBLIC OF SEYCHELLES AND THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME SIGNED AT BRUSSELS ON 27 APRIL, 2006

THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES

AND

THE GOVERNMENT OF THE KINGDOM OF BELGIUM

DESIRING to conclude a Protocol of  the Agreement between the Republic of Seychelles and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Brussels on 27th April 2006 (hereinafter “the Agreement”),

HAVE AGREED as follows:

ARTICLE 1

The following paragraphs 5, 6 and 7 are inserted in Article 24 (Exchange of information) after paragraph 4:

“5.       In no case shall be provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information requested by the other Contracting State because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

6.         Banking records will be exchanged only upon request.  If the request does not identify both a specific taxpayer and a specific bank or financial institution, the competent authority of the requested State may decline to obtain any information that it does not already possess.

7.         The competent authorities of the Contracting States shall agree upon the mode of application of this Article.”

ARTICLE 2

1.         Each Contracting State shall notify the other Contracting State of the completion of the procedures required by its laws for the bringing into force of this Protocol.

2.         This Protocol shall enter into force from the date on which the later of these notifications is received and its provisions shall have effect with respect to the taxes to which the Agreement has effect.

ARTICLE 3

This Protocol shall remain in force as long as the Agreement itself remains in force.

IN WITNESS WHEREOF the undersigned; being duly authorized thereto by their respective Government, have signed this Protocol.

DONE in duplicate at Brussels, this 14th day July 2009, in the English language.

 

FOR THE GOVERNMENT                  FOR THE GOVERNMENT

OF THE REPUBLIC OF                       OF THE KINGDOM OF

SEYCHELLES                                      BELGIUM

_______________________

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016 [India]

[28th June 2016]

S.I. 31 of 2016

Citation

1.         These Regulations may be cited as the Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016.

Declaration and effect of Protocol

2.         It is hereby declared that the Republic of Seychelles and the Government of the Republic of India have concluded a Tax Information Exchange Agreement as specified in the Schedule of the Agreement between the Republic of Seychelles and the Republic of India for the Exchange of Information relating to Taxes shall have effect as long as the Agreement remains in force between the parties.

SCHEDULE

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC SEYCHELLES AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE EXCHANGE OF INFORMATION WITH RESPECT TO TAXES

The Government of the Republic of Seychelles and the Government of the Republic of India.

Desiring to facilitate the exchange of information with respect to taxes,

Have Agreed as follows:

Article 1 - Object and Scope of the Agreement

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

 

Article 2 - Jurisdiction

Information shall be exchanged in accordance with this Agreement without regard to whether the person to whom the information relates is, or whether the information is held by, a resident of a Contracting Party. However, a requested Party is not obliged to provide information which is neither held by its authorities nor is in the possession or control of persons who are within its territorial jurisdiction.

Article 3 - Taxes Covered

1. The taxes which are the subject of this Agreement are:

(a)  in India, taxes of every kind and description imposed by the Central Government or the Governments of political subdivisions or local authorities, irrespective of the manner in which they are levied;

(b)   in Seychelles, taxes of every kind and description imposed by the Government, irrespective of the manner in which they are levied.

2. This Agreement shall also apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures which may affect the obligations of that Party pursuant to this Agreement.

Article 4 - Definitions

1. For the purposes of this Agreement, unless otherwise defined:

(a)  the term “India”  means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;

(b) the term “Seychelles” means the territory of the Republic of Seychelles including its exclusive economic zone and continental shelf where Seychelles exercises sovereign rights and jurisdiction in conformity with the provisions of the U.N. Convention on the Law of the Sea;

(c)   the term “Contracting Party” means India  or Seychelles as the context requires;

(d)   the term “competent authority” means:

(i)   in the case of India, the Finance Minister, Government of India, or its authorized representative;

(ii)  in the case of Seychelles, the Minister responsible for Finance, or its authorized representative ;

(e)  the term “person” includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting Parties;

(f)   the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g)  the term “publicly traded company” means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold “by the public” if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h)  the term “principal class of shares” means the class or classes of shares representing a majority of the voting power and value of the company;

(i)   the term “recognised stock exchange” means:

(i)        in India, the National Stock Exchange, the Bombay Stock Exchange, and any other stock exchange recognised by the Securities  and Exchange Board of India;

(ii)       in Seychelles, a securities exchange licensed under the Securities Act, 2007 or any other law governing securities exchanges; and

(iii)      any other stock exchange which the competent authorities agree to recognise for the purposes of this Agreement;

(j) the term “collective investment fund or scheme” means any pooled investment vehicle, irrespective of legal form;

(k)  the term “public collective investment fund or scheme” means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed “by the public” if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(l)   the term “tax” means any tax to which this Agreement applies;

(m) the term “requesting Party” means the Contracting Party –

(i)        submitting a request for information to, or

(ii)       having received information from, the requested Party;

(n)   the term “requested Party” means the Contracting Party –

(i)        which is requested to provide information, or

(ii)       which has provided information;

(o)  the term “information gathering measures” means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(p)    the term “information” means any fact, statement, document or   record in any form whatever.

2.  As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires or the competent authorities agree to a common meaning pursuant to the provisions of Article 11 of this Agreement, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Article 5 - Exchange of Information Upon Request

1.  The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the requested Party needs such information for its own tax purposes or whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2.  If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the requesting Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of the requesting Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4.   Each Contracting Party shall ensure that its competent authority, for the purposes specified in Article 1 of this Agreement, has the authority to obtain and provide upon request:

(a)  information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the legal and beneficial ownership of companies, partnerships, collective investment funds or schemes, trusts, foundations, “Anstalten” and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of collective investment funds or schemes, information on shares, units and other interests; in the case of trusts, information on settlors, trustees and beneficiaries; in the case of foundations, information on founders, members of the foundation council and beneficiaries; and equivalent information in case of entities that are neither trusts nor foundations. This Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the requesting Party shall provide the following information to the competent authority of the requested Party    when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a)    the identity of the person under examination or investigation;

(b)    the period for which information is requested;

(c)    a statement of the information sought including its nature and the form in which the requesting Party wishes to receive the information from the requested Party;

(d)    the tax purpose for which the information is sought;

(e)    grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(f)    to the extent known, the name and address of any person believed to be in possession or control of the requested information;

(g)   a statement that the request is in conformity with the laws and administrative practices of the requesting Party, that if the requested information was within the jurisdiction of the requesting Party then the competent authority of the requesting Party would be able to obtain the information under the laws of the requesting Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(h)  a statement that the requesting Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the requesting Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a)    Confirm receipt of a request in writing to the competent authority of the requesting Party and shall notify the competent authority of the requesting Party of deficiencies in the request, if any, within 60 days of the receipt of the request.

(b)    If the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the requesting Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

Article 6 - Tax Examinations Abroad

1.  At the request of the competent authority of the requesting Party, the requested Party may allow representatives of the competent authority of the requesting Party to enter the territory of the requested Party, to the extent permitted under its domestic laws, to interview individuals and examine records with the prior written consent of the individuals or other persons concerned. The competent authority of the requesting Party shall notify the competent authority of the requested Party of the time and place of the intended meeting with the individuals concerned.

2. At the request of the competent authority of the requesting Party, the requested Party may allow representatives of the competent authority of the requesting Party to be present at the appropriate part of a tax examination in the territory of the requested Party

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the requesting party conducting the examination shall, as soon as possible, notify the competent authority of the requesting Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

Article 7 - Possibility of Declining a Request for information

1. The competent authority of the requested Party may decline to assist:

(a)   where the request is not made in conformity with this Agreement; or

(b)   where the requesting Party has not pursued all means available in its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or

(c)   where disclosure of the information would be contrary to public policy (ordre public) of the requested Party.

2. This Agreement shall not impose on a Contracting Party the obligation:

(i)  to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, provided that information described in paragraph 4 of Article 5 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph; or

(ii)    to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice or

(b) produced for the purposes of use in existing or contemplated legal proceedings; or

(iii) to carry out administrative measures at variance with its laws and administrative practices, provided nothing in this subparagraph shall affect the obligations of a Contracting Party under paragraph 4 of Article 5.

3.   A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

4. The requested Party shall not be required to obtain and provide information which the requesting Party would be unable to obtain in similar circumstances under its own laws for the purpose of the administration or enforcement of its own tax laws or in response to a valid request from the requested Party under this Agreement.

5. The requested Party shall not decline to provide information solely because the request does not include all the information required under Article 5 if the information can otherwise be provided according to the law of the requested Party.

6. The requested Party may decline a request for information if the information is requested by the requesting Party to administer or enforce a provision of the tax law of the requesting Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the requesting Party in the same circumstances.

Article 8 - Confidentiality

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without express written consent of the competent authority of the requested Party.

Article 9 - Costs

1.           Unless the competent authorities of the Contracting Parties otherwise agree, ordinary costs incurred in providing assistance shall be borne by the requested Party, and subject to the provisions of this Article, extraordinary costs incurred in providing assistance shall, if they exceed 500 US dollars, be borne by the requesting Party.

2.           The competent authorities will consult each other, in advance, in any particular case where extraordinary costs are likely to exceed 500 US dollars to determine whether the requesting Party will continue to pursue the request and bear the cost.

3.  The competent authorities shall consult from time to time with regard to this Article.

4.         Ordinary costs include internal administration costs, any minor external costs and overhead expenses incurred by the requested Party in reviewing and responding to information requests submitted by the requested Party. Examples of extraordinary costs incurred in providing assistance include, but are not limited to the following:

(a)        reasonable fees charged by third parties for copying documents on behalf of the requested Party;

(b)       reasonable costs of engaging interpreters, translators or other agreed experts;

(c)        reasonable costs of conveying documents to the requesting Party;

(d)       reasonable litigation costs of the requested Party in relation to a specific request for information; and

(e)        reasonable costs for obtaining depositions or  testimony.

Article 10 - Implementation Legislation

The Contracting Parties shall (where they have not already done so) enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

Article 11 - Mutual Agreement Procedure

1.         Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of the Agreement, the competent authorities shall endeavour to resolve the matter by mutual agreement.

2.         In addition, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6 of this Agreement.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

Article 12 - Entry into Force

1. The Contracting Parties shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement.

2. This Agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 of this Article and shall thereupon have effect forthwith.

Article 13 - Termination

1.         This Agreement shall remain in force until terminated by either   Contracting Party.

2.         Either Contracting Party may, after the expiry of five years from the date of its entry into force, terminate the Agreement by serving a written notice of termination to the other Contracting Party through diplomatic channels.

3.   Such termination shall become effective on the first day of the month following the expiration of a period of six months after the date of receipt of notice of termination by the other Contracting Party. All requests received up to the effective date of termination shall be dealt with in accordance with the provisions of the Agreement.

4.   If the Agreement is terminated, the Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Agreement.

DONE in duplicate at New Delhi, India  26th day of  August 2015, each in the Hindi and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.

 

For the Government of the Republic of Seychelles:

Mr. Joel MORGAN

Minister of Foreign Affairs and Transport

 

For the Government of the Republic of India:

Shri Arun JAITLEY

Minister of Finance

­­­­­­­­­­­­­­­­­­­­­­­_________________________

SUBSIDIARY LEGISLATION: Section 98A: Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016 [Georgia]

[13 September 2016]

S.I. 32 of 2016

 

Citation

1.         These Regulations may be cited as the Revenue Administration (Tax Information Exchange Agreement) Regulations, 2016.

Declaration and effect of Protocol

2.         It is hereby declared that the Republic of Seychelles and the Government of Georgia have concluded a Tax Information Exchange Agreement as specified in the Schedule of the Agreement between the Republic of Seychelles and the Government of Georgia for the Exchange of Information relating to Taxes shall have effect as long as the Agreement remains in force between the parties.

SCHEDULE

AGREEMENT BETWEEN THE GOVERNMENT OF GEORGIA AND THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES FOR THE EXCHANGE OF INFORMATION RELATING TO TAXES

The Government of the Republic of Seychelles and the Government of Georgia.

Desiring to facilitate the exchange of information with respect to certain taxes,

Have Agreed as follows:

ARTICLE 1 - Object and Scope of the Agreement

1.         The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration or enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters.

2.         Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8.

3.         The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable. The requested Party shall use its best endeavors to ensure that any such rights and safeguards are not applied in a manner that unduly prevents or delays effective exchange of information.

ARTICLE 2 - Jurisdiction

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 - Taxes Covered

1.         This Agreement shall apply to the following taxes imposed by the Contracting Parties:

a)         In the case of Georgia:

i)          Income Tax1;

ii)         Profit Tax;

iii)        Property Tax;

iv)        Value Added Tax;

v)         Excise;

b)         In the case of the Republic of Seychelles:

i)          The Business tax;

ii)         The Income and Non-monetary Benefits Tax;

iii)        The Petroleum Income Tax.

2.         This Agreement shall apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes if the competent authorities of the Contracting Parties so agree. Furthermore, the taxes covered may be expanded or modified by mutual agreement of the Contracting Parties in the form of an exchange of letters. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by this Agreement.

ARTICLE 4 - Definitions

1.         For the purposes of this Agreement, unless otherwise defined:

a)         the term “Georgia” means the territory defined by Georgian legislation, including land territory, its subsoil and the air space above it,  internal waters, territorial sea, the sea bed, its subsoil and the air space above them;

b)         the term “Seychelles” means the territory of the Republic of Seychelles including its exclusive economic zone and continental shelf where Seychelles exercises sovereign rights and jurisdiction in conformity with the provisions of the United Nations Convention on the Law of the Sea;

c)         the term “Contracting Party” means Georgia or Seychelles as the context requires;

d)         the term “competent authority” means:

i)          in the case of the Georgia, the Ministry of Finance or its authorized representative,

ii)         in the case of Seychelles, the Minister responsible for Finance or his authorized representative;

e)         the term “person” includes an individual, a company and any other body of persons;

f)         the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;

g)         the term “publicly traded company” means any company whose principal class of shares is listed on a recognized stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold “by the public” if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

h)         the term “principal class of shares” means the class or classes of shares representing a majority of the voting power and value of the company;

i)          the term “recognized stock exchange” means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

j)          the term “collective investment fund or scheme” means any pooled investment vehicle, irrespective of legal form. The term “public collective investment fund or scheme” means any collective investment fund provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed “by the public” if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

k)         the term “tax” means any tax to which this Agreement applies;

l)          the term “applicant Party” means the Contracting Party requesting information;

m)        the term “requested Party” means the Contracting Party requested to provide information;

n)         the term “information gathering measures” means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

o)         the term “information” means any fact, statement or record in any form whatever;

p)         the term “national” means:

i)          any individual possessing the nationality of a Contracting Party;

ii)         any legal person, partnership or association deriving its status as such from the laws in force in a Contracting Party.

2.         As regards the application of this Agreement at any time by a Contracting Party, any term not defined herein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party. Any meaning under the applicable tax laws of that Contracting Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 - Exchange of Information upon Request

1.         The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2.         If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3.         If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4.         Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of this Agreement, have the authority to obtain and provide, upon request:

a)         information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

b)         information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries, and equivalent information in the case of entities that are neither trusts nor foundations. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5.         The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request: 

a)         the identity of the person under examination or investigation;

b)         a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

c)         the purpose for which the information is sought;

d)         the grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

e)         to the extent known, the name and address of any person believed to be in possession of the requested information;

f)         a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of its administrative practice and that the request is in conformity with this Agreement;

g)         a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6.         The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party.

To ensure a prompt response, the competent authority of the requested Party shall:

a)         Confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request.

b)         If the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 - Tax Examinations Abroad

1.         The requested Party may allow, representatives of the competent authority of the applicant Party to enter the territory of the requested Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the applicant Party shall notify the competent authority of the requested Party of the time and place of the meeting with the individuals concerned.

2.         At the request of the competent authority of the applicant Party, the competent authority of the requested Party may allow representatives of the competent authority of the applicant Party to be present at the appropriate part of a tax examination in the territory of the requested Party.

3.         If the request referred to in paragraph 2 is acceded to, the competent authority of the requested Party conducting the examination shall, as soon as possible, notify the competent authority of the applicant Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the requested Party conducting the examination.

ARTICLE 7 - Possibility of Declining a Request

1.         The requested Party shall not be required to obtain or provide information, and may decline a request for information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws.       The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2.         The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney-at-law, solicitor or barrister where such communications are:

a)         produced for the purposes of seeking or providing legal advice; or

b)         produced for the purposes of use in existing or contemplated legal proceedings.

3.         The provisions of this Agreement shall not impose on a requested Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

4.         The requested Party may decline a request for information if the disclosure of the information would be contrary to its national security interests or public policy.

5.         The requested Party may decline a request for information if the information is requested by the applicant party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested party as compared with a national of the applicant Party in the same circumstances.

6.         A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

ARTICLE 8 - Confidentiality

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 - Language

Requests for assistance and answers thereto shall be drawn up in the English language.

ARTICLE 10 - Costs

1.         Each Contracting Party agrees that each of them shall reimburse the other for all direct/extraordinary costs incurred in providing information pursuant to this Agreement.

2.         Direct/extraordinary costs do not include ordinary administrative and overhead expenses incurred in reviewing and responding to information requests submitted by the requesting Party.

3.         If a direct/extraordinary cost pertaining to a specific request is expected to exceed US 500 (five hundred) (or equivalent in another currency), the requested Party will contact the competent authority of the applicant Party to determine whether the requesting Party wishes to pursue the request and to bear the cost.

4.         Examples of direct/extraordinary costs include, but are not limited to, the following:

a)         legal fees for non-Government counsel appointed or retained with approval of the competent authority of the applicant Party, for litigations in the courts or pre-litigations processes of requested Party related to a specific request for information;

b)         reasonable costs for stenographic reports of interviews, depositions or testimony;

c)         reasonable costs of locating, reproducing and transporting documents or records      to the competent authority of the applicant Party;

d)         fees and expenses, determined in accordance with amounts allowed under    applicable laws, of a person who voluntarily appears in the requested Party for interview, deposition or testimony relating to a particular information request; and

e)         reasonable remuneration for persons, if any, hired by the Government of the requested Party, specifically and exclusively to administer requests received under the Agreement.

ARTICLE 11 - Implementation Legislation

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of this Agreement.

ARTICLE 12 - Mutual Agreement Procedure

1.         Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of the Agreement, the Contracting Parties shall endeavor to resolve the matter by mutual agreement.

2.         In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5, 6 and 9.

3.         For the purpose of reaching an agreement regarding the interpretation of this Agreement and settlement of disputes, the Competent Authorities may have consultations and communicate with each other directly.

4.         The Contracting Parties may also agree on other forms of dispute resolution.

ARTICLE 13 - Amendments

Upon mutual agreement of the Contracting Parties, amendments and additions may be introduced to this Agreement, arranged as separate Protocols and making integral parts of this Agreement. These amendments shall enter into force subject to the same requirements as this Agreement.

ARTICLE 14 - Entry into Force

1.         This Agreement is subject to ratification, acceptance or approval by the Contracting Parties, in accordance with their respective laws. Instruments of ratification, acceptance or approval shall be exchanged as soon as possible.

2.         The Contracting Parties shall notify each other in writing, through diplomatic channels, of the completion of their constitutional and legal procedures required for the entry into force of this Agreement. The Agreement shall enter into force on the date of receipt of the last notification and shall thereupon have effect on or after the first day of January in the year following the date on which the Agreement enters into force.

ARTICLE 15 - Termination

1.         Either Contracting Party may terminate the Agreement by serving a notice of termination either through diplomatic channels or by letter to the competent authority of the other Contracting Party.

2.         Such termination shall become effective on the first day of the month following the expiration of a period of six months after the date of receipt of the notice of termination by the other Contracting Party.

3.         If the Agreement is terminated the Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

DONE in duplicate in the city of Bridgetown, Barbados on 29th October 2015, in Georgian and English languages and all texts being equally authentic. In case of any divergence in the provisions of this Agreement, the Parties shall apply to the English text.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

 

Lasha Khutsishvili

Deputy Minister of Finance

For the Government of Georgia

 

Georgette Capricieuse

Acting Revenue Commissioner

For the Government of the Republic of Seychelles

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SUBSIDIARY LEGISLATION: Section 99: Revenue Administration (Filing of Business Activity Statement) Regulations, 2016

[1st January, 2017]

S.I. 1 of 2017

Citation

1.         These Regulations may be cited as Revenue Administration (Filing of Business Activity Statement) Regulations, 2016.

Form of Business Activity Statement

2.         (1) The Business Activity Statement filed under a revenue law shall be in the Form set out in the Schedule.

(2) The Business Activity Statement may also be filed using the online facility provided by the Revenue Commissioner.

Penalty

3.         A person who fails to file the Business Activity Statement under any revenue law shall be liable for the same penalty as specified under section 42 of the Act.

SCHEDULE

[The prescribed form is not reproduced in this document, but can be downloaded from https://www.src.gov.sc/pages/resources/forms.aspx or through www.seylii.org.]

 

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