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Section 111V: Election to pay presumptive tax

Income Tax Act

This section is inserted by Finance Act 2019, section 26.

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

111V. Election to pay presumptive tax (1) Subject to the other provisions of this Sub-part, a small enterprise may, by irrevocable notice, on or before the due date for the filing of its return of income, elect to pay a presumptive tax at the rate of one per cent of its gross income. (2) Where a small enterprise has made an election under subsection (1), it shall submit a return to the Director-General not later than the due date for the filing of the return under sections 112, 116 and 119, as the case may be, specifying such particulars as the Director-General may determine and at the same time pay the presumptive tax payable in accordance with the return, after offsetting any tax deducted at source under section 111B. (3) Where a small enterprise has made an election under subsection (1), it shall not be entitled to claim any deduction, Income Exemption Threshold, relief or allowance under Sub-part B, C, D or E of Part III or Sub-part C of Part IV, as the case may be. 111W.Penalty for late payment Sections 122 and 122D shall apply in all respects where a small enterprise fails to pay the presumptive tax in accordance with section 111V. 111X.Assessment and recovery proceedings (1) Where a person has submitted a return under section 111V, Parts IX, X and XI shall, subject to this section, apply with such modifications, adaptations and exceptions as may be necessary. (2) Where it is found that a small enterprise eligible for an election under section 111V has underdeclared its gross income and the undeclared amount when aggregated to the declared gross income does not exceed 10 million rupees, the Director-General may impose presumptive tax on the undeclared gross income. Acts 2019 335 (x) in section 124, by adding the following new subsection – (4) (a) Notwithstanding section 64 of the Banking Act, section 14(7) of the Companies Act, the Data Protection Act 2017 or section 44(6) of the Financial Services Act, nothing in subsection (1) shall prevent the Judge in Chambers, upon application being made to him by the Director-General, from making an order requiring a person to give to the Director-General information for the purpose of enabling the Director-General to comply with a request for the exchange of information under an arrangement made pursuant to section 76. (b) An order under paragraph (a) shall not be made unless the Judge is satisfied that – (i) a person has failed to comply with subsection (1) within the time fixed by the Director-General; and (ii) the order is necessary to enable the Director-General to comply with a request for the exchange of information under an arrangement made pursuant to section 76. (c) An order under paragraph (a) shall specify the delay within which a person shall give information to the DirectorGeneral. (y) in section 123E(1), by deleting the words “100,000 rupees” and replacing them by the words “50,000 rupees”; (z) by inserting, after section 146B, the following new section – 146C.Offences relating to presumptive tax Any person who – (a) wilfully and with intent to evade income tax, holds himself to be a small enterprise under section 111V; or 336 Acts 2019 (b) fails to pay tax or otherwise contravenes Sub-part BD of Part VIII, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees and imprisonment for a term not exceeding 2 years. (aa) by inserting, after section 155, the following new section – 155A.Admissibility of documents produced by computer (1) In mptive tax Any person who – (a) wilfully and with intent to evade income tax, holds himself to be a small enterprise under section 111V; or 336 Acts 2019 (b) fails to pay tax or otherwise contravenes Sub-part BD of Part VIII, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees and imprisonment for a term not exceeding 2 years. (aa) by inserting, after section 155, the following new section – 155A.Admissibility of documents produced by computer (1) In any legal proceedings under this Act or any regulations made thereunder, a statement contained in a document generated by a computer shall be admissible as evidence of any fact stated therein of which direct oral evidence would be admissible if it is shown that the prescribed conditions have been satisfied. (2) Any person giving any information under this section which is false or misleading in any material particular shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 5 years. (ab) in section 161A, by adding the following new subsection – Voluntary Disclosure of Income Scheme – Foreign Assets (63) (a) Where, on or before 31 March 2020, a person makes a voluntary disclosure of his undeclared income in respect of any year of assessment preceding the year of assessment ending on 30 June 2020, he shall, at the same time, pay tax on that income at the rate of 15 per cent of his chargeable income, free from any penalty and interest which may have become due in accordance with this Act. (b) The Scheme shall apply only to undisclosed income derived from Mauritius but held offshore in bank accounts or used to purchase assets offshore. (c) Where the tax under paragraph (a) is not paid in full on or before 31 March 2020, any unpaid tax shall carry interest at the rate of 0.5 per cent per month. Acts 2019 337 (d) The disclosure under this subsection shall be made in such form and manner, and the payment of any tax liability shall be governed by such other conditions, as the Director-General may determine. (e) Paragraphs (a) to (d) shall not apply to any person – (i) who has been convicted on or after 1 July 2001 of an offence relating to; (ii) against whom any civil or criminal proceedings are pending or contemplated in relation to an act of; or (iii) in relation to whom an enquiry is being conducted into an act of, trafficking in dangerous drugs, arms trafficking, or an offence related to terrorism under the Prevention of Terrorism Act, money laundering under the Financial Intelligence and Anti-Money Laundering Act or corruption under the Prevention of Corruption Act. (f) The disclosure under paragraph (a) shall be supported by documentary evidence on existence of offshore assets. (ac) in the Second Schedule – (i) in Part I, by inserting, after item 22, the following new item –

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