Section 111Y: Interpretation

111Y. Interpretation In this Sub-part – “chargeable income for levy” means the aggregate amount remaining after deducting from the gross income all allowable deductions except the unrelieved amount of a loss carried forward under section 59 from a previous year of assessment; Acts 2020 25 “employer” means an individual, a resident société or a company; “levy” – (a) means the COVID-19 levy referred to in section 111Z; and (b) includes any penalty and interest imposed under this Act; “Wage Assistance Scheme” means the scheme referred to under Part XIIB. 111Z.Liability to COVID-19 levy (1) Subject to this section, every employer who has benefited from an allowance under the Wage Assistance Scheme shall be liable to pay to the Director-General, in respect of the year of assessment commencing on 1 July 2020, 1 July 2021 or 1 July 2022, as the case may be, the levy specified in subsection (3). (2) Where the employer referred to in subsection (1) is – (a) (i) an individual; (ii) a resident société; or (iii) a company whose accounting period ends on any date during the period starting on 1 May 2020 and ending on 31 December 2020, and starting on 1 May 2021 and ending on 31December 2021, the levy shall be payable in respect of the years of assessment commencing on 1 July 2020 and 1 July 2021; or 26 Acts 2020 (b) a company whose accounting period ends on any date during the period starting on 1 January 2021 and ending on 30 April 2021, and starting on 1 January 2022 and ending on 30 April 2022, the levy shall be payable in respect of the years of assessment commencing on 1 July 2021 and 1 July 2022. (3) (a) In the case of an employer who is an individual, the levy payable under subsection (1) shall – (i) in respect of the year of assessment commencing on 1 July 2020, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme; or (B) 15 per cent of the gross income derived by him under section 10(1)(b), (c) and (g) after deduction of any expenditure allowable under sections 18, 19 and 24, whichever is lower; and (ii) in respect of the year of assessment commencing on 1 July 2021, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme as reduced by the amount of levy payable for the year of assessment commencing on 1 July 2020; or Acts 2020 27 (B) 15 per cent of the gross income derived by him under section 10(1)(b), (c) and (g) after deduction of any expenditure allowable under sections 18, 19 and 24, whichever is lower. (b) In the case of an employer who is a resident société or company referred to in subsection (2)(a) (ii) and (iii), the levy payable under subsection (1) shall – (i) in respect of the year of assessment commencing on 1 July 2020, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme; or (B) 15 per cent of his chargeable income for levy, whichever is lower; and (ii) in respect of the year of assessment commencing on 1 July 2021, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme as reduced by the amount of levy payable for the year of assessment commencing on 1 July 2020; or (B) 15 per cent of his chargeable income for levy, whichever is lower. 28 Acts 2020 (c) In the case of an employer who is a company referred to in subsection (2)(b), the levy payable under subsection (1) shall – (i) in respect of the year of assessment commencing on 1 July 2021, be equivalent to – (A) the total amount paid to him under the W total amount paid to him under the Wage Assistance Scheme as reduced by the amount of levy payable for the year of assessment commencing on 1 July 2020; or (B) 15 per cent of his chargeable income for levy, whichever is lower. 28 Acts 2020 (c) In the case of an employer who is a company referred to in subsection (2)(b), the levy payable under subsection (1) shall – (i) in respect of the year of assessment commencing on 1 July 2021, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme; or (B) 15 per cent of his chargeable income for levy, whichever is lower; and (ii) in respect of the year of assessment commencing on 1 July 2022, be equivalent to – (A) the total amount paid to him under the Wage Assistance Scheme as reduced by the amount of levy payable for the year of assessment commencing on 1 July 2021; or (B) 15 per cent of his chargeable income for levy, whichever is lower. (4) The levy payable under subsection (1) shall be declared by the employer in his return required to be submitted by him under section 112, 116 or 119, as applicable, and shall be paid to the Director-General, on or before the date by which the return is required to be submitted. (5) Where an employer who is required to pay a levy under subsection (1) fails to do so on or before the date it is payable, the Director-General may, within a period of 3 years from the date the levy is payable, issue a claim to him Acts 2020 29 requesting him to pay the levy, together with any penalty and interest applicable under section 111ZA, within 28 days from the date of the notice. (6) Where an employer to whom a claim has been issued under subsection (5) fails to pay the amount claimed within the date specified in the notice, the Director-General may use his powers under Part IVC of the Mauritius Revenue Authority Act, with such modifications, adaptations and exceptions as may be necessary, to enable him to recover the amount unpaid. (7) The Minister may by, regulations, exclude certain category of employers from the levy. 111ZA.Penalty, interest and offence relating to levy (1) Where an employer fails to pay the levy on or before the last day on which it is payable under section 111Z, he shall be liable to pay to the Director-General, in addition to the levy – (a) a penalty of 10 per cent of the amount of levy remaining unpaid; and (b) interest at the rate of one per cent per month or part of the month during which the levy remains unpaid. (2) Any employer who, in relation to section 111Z, makes a false declaration or gives a statement which is false or misleading in any material particular shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 2 years. 111ZB.Anti-avoidance provisions The anti-avoidance provisions of Part VII shall apply in all respect to the levy payable under section 111Z. 30 Acts 2020 (d) in section 131AA – (i) in subsection (1), by deleting the words “section 93, 111K or 123B (5)” and replacing them by the words “section 93, 111K, 111Z (5) or 123B (5)”; (ii) by repealing subsection (3) and replacing it by the following subsection – (3) Where an employer who has made an objection under subsection (1) has not, for the relevant year, submitted the Return of Employees, return under section 112, 116 or 119 or statement, as the case may be, he shall, within 28 days of the date of the claim, submit the Return of Employees, return or state the words “section 93, 111K or 123B (5)” and replacing them by the words “section 93, 111K, 111Z (5) or 123B (5)”; (ii) by repealing subsection (3) and replacing it by the following subsection – (3) Where an employer who has made an objection under subsection (1) has not, for the relevant year, submitted the Return of Employees, return under section 112, 116 or 119 or statement, as the case may be, he shall, within 28 days of the date of the claim, submit the Return of Employees, return or statement, as the case may be. (iii) in subsection (7), by deleting the words “the penalty” and replacing them by the words “the levy and penalty”; (e) in section 131B, in subsection (8A)(a), by deleting the words “penalty charged under section 93, 111K or 123B (3)” and replacing them by the words “levy or penalty charged under section 93, 111K, 111Z (5) or 123B (3)”; (f) by inserting, after Part XIIA, the following new Parts – PART XIIB – WAGE ASSISTANCE SCHEME 15OB.Wage Assistance Scheme (1) In this section – “COVID-19” means the disease caused by the virus known as novel coronavirus (2019-nCoV); “eligible employee” – (a) means an employee employed on a part-time or full- time basis – (i) by an employer deriving gross income from business; Acts 2020 31 (ii) by a charitable institution approved by the Director-General or registered under the Registration of Associations Act, charitable trust or charitable foundation; or (iii) by such other category of employer as may be prescribed; and (iv) whose basic salary or wage for the month of March 2020, April 2020, May 2020 or such other month as may be prescribed, does not exceed 50,000 rupees; but (b) does not include – (i) an employee employed by a Ministry, a Government department, a local authority, a statutory body or the Rodrigues Regional Assembly; (ii) an employee employed by such category of employer as may be prescribed; or (iii) such category of employees as may be prescribed; “export manufacturing enterprise” has the same meaning as in the National Savings Fund Act. (2) Subject to this Part, the Director-General shall, in respect of every eligible employee, pay to his employer – (a) an allowance equivalent to 50 per cent of the basic salary or wage of that employee for the month of March 2020; (b) an allowance equivalent to the basic salary or wage of that employee for the month of April 2020 where the main business activities of the employer are carried out in the Island of Mauritius; 32 Acts 2020 (c) an allowance equivalent to 50 per cent of the basic salary or wage of that employee for the month of April 2020 where the main business activities of the employer are carried out in the Island of Rodrigues or Island of Agaléga; (d) an allowance equivalent to the basic salary or wage of that employee for the month of May 2020 where the main business activities of the employer are carried out in the Island of Mauritius; (e) such other allowance, and for such other month, and for such categories of employers or employees, as may be prescribed. (3) The maximum allowance payable under subsection (2) in respect of every eligible employee shall – (a) for the month of March 2020, be 12,500 rupees; (b) for the month of April 2020 – (i) be 25,000 rupees, where the employee is employed in the Island of Mauritius; or (ii) be 12,500 rupees, where the employee is employed in the Island of Rodrigues or the Island of Agaléga; (c) for the month of May 2020, be 25,000 rupees; (d) for such other period as may be pre r employees, as may be prescribed. (3) The maximum allowance payable under subsection (2) in respect of every eligible employee shall – (a) for the month of March 2020, be 12,500 rupees; (b) for the month of April 2020 – (i) be 25,000 rupees, where the employee is employed in the Island of Mauritius; or (ii) be 12,500 rupees, where the employee is employed in the Island of Rodrigues or the Island of Agaléga; (c) for the month of May 2020, be 25,000 rupees; (d) for such other period as may be prescribed, be such amount as may be prescribed. Acts 2020 33 (4) An application for the allowance under subsection (2), in respect of each month, shall be made electronically to the Director- General, which shall be accompanied by the following information – (a) the number of eligible employees; (b) the aggregate basic wage or salary of all eligible employees; (c) the amount of allowance to be paid in respect of all eligible employees; (d) such other information as he may require. (5) An application under subsection (4) shall be made – (a) within a period of 3 months from the end of the month to which it is related; or (b) within a period of 2 months from the date the COVID-19 period lapses, whichever is earlier. (6) The Director-General may make – (a) a provisional payment of the allowance payable under subsection (2) on the basis of the information provided by the employer in his application under subsection (4) and the return submitted by him under section 17AA of the National Pensions Act for the month of January 2020; and (b) an additional payment of the allowance payable under subsection (2) on the basis of the information provided by the employer in his application under 34 Acts 2020 subsection (4) and the return submitted by the employer under section 17AA of the National Pensions Act for the month of March 2020, April 2020, May 2020 or such other month as may be prescribed. (7) The Director-General may determine the allowance payable under subsection (2) on the basis of the information provided by the employer in the return submitted, on or before 23 March 2020, under section 17AA of the National Pensions Act for the month of January 2020, where – (a) an amended return has been submitted after 23 March 2020, under section 17AA of the National Pensions Act for the month of January 2020; or (b) the return submitted for the months of March 2020, April 2020, May 2020 or such other months as may be prescribed includes an eligible employee who was not included in the return for the month of January 2020 submitted before 23 March 2020 or shows, with respect to an employee, a different basic salary or wage as compared to that in the return for the month of January 2020 submitted on or before 23 March 2020. (8) (a) Where an employee – (i) is a citizen of Mauritius; (ii) is employed in an export manufacturing enterprise; (iii) is employed on a full-time basis; and (iv) whose basic salary or wage as declared by his employer in the Acts 2020 35 return submitted under section 17AA of the National Pensions Act does not exceed 9,000 rupees, the allowance payable under subsection (2) shall be calculated on the basis of the National Minimum Wage of 9,000 rupees. (b) Where an employer is not required to include an employee in the return submitted under section 17AA of the National Pensions Act, the Director-General may pay the allowance payable under subsection (2) on the basis of any other information available to him. (9) (a) The Director-General may, not under section 17AA of the National Pensions Act does not exceed 9,000 rupees, the allowance payable under subsection (2) shall be calculated on the basis of the National Minimum Wage of 9,000 rupees. (b) Where an employer is not required to include an employee in the return submitted under section 17AA of the National Pensions Act, the Director-General may pay the allowance payable under subsection (2) on the basis of any other information available to him. (9) (a) The Director-General may, not later than one year after payment of an allowance is made under this Part, request any information or document from the employer or any employee to ascertain correctness of the information provided under subsection (4). (b) The employer or any employee to whom a request is made under paragraph (a) shall provide the Director-General with such information and document as he may require. (10) (a) Where an employer has benefited from an allowance – (i) for the period starting on 16 March 2020 and ending on 31 March 2020 and, during that period, terminates the employment of an eligible employee, the employer shall not be entitled to any allowance in any subsequent month; (ii) for the month of April 2020 and, during that month, terminates the employment of an eligible employee, the employer shall not be entitled to any allowance in any subsequent month; 36 Acts 2020 (iii) for the month of May 2020 and, during that month, terminates the employment of an eligible employee, the employer shall not be entitled to any allowance in any subsequent month; or (iv) in such month as may be prescribed and, during that month, terminates the employment of an eligible employee, the employer shall not be entitled to any allowance in any subsequent month. (b) Where an employer has benefited from an allowance – (i) for the period starting on 16 March 2020 and ending on 31 March 2020 and, during that period, has failed to pay the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has not been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (ii) for the month of April 2020 and, during that month, has failed to pay the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has not been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; Acts 2020 37 (iii) for the month of May 2020 and, during that month, has failed to pay the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has not been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (iv) in such month as may be prescribed and, during that month, has failed to pay the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has not been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month. (c) Where an employer has benefited from an allowance – (i) for the period starting on 16 March 2020 and ending on 31 March 2020 and, during that period, has reduced the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (ii) t eligible employee and the employer shall not be entitled to any allowance in any subsequent month. (c) Where an employer has benefited from an allowance – (i) for the period starting on 16 March 2020 and ending on 31 March 2020 and, during that period, has reduced the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (ii) for the month of April 2020 and, during that month, has reduced the basic wage or salary of an eligible employee, the employer shall be 38 Acts 2020 liable to refund the allowance that has been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (iii) for the month of May 2020 and, during that month, has reduced the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month; (iv) in such month as may be prescribed and, during that month, has reduced the basic wage or salary of an eligible employee, the employer shall be liable to refund the allowance that has been paid to that eligible employee and the employer shall not be entitled to any allowance in any subsequent month. (11) Where an employer has benefited from an allowance in excess of the amount to which he is entitled under this Part or acts in breach of subsection (10)(a), (b) or (c), the Director-General may, by virtue of the powers conferred upon him under the Mauritius Revenue Authority Act, recover the excess amount or allowance, as the case may be. (12) Where an employer or his employee or any other person – (a) makes a false declaration to the DirectorGeneral to unduly benefit from an allowance under this Part; or Acts 2020 39 (b) refuses to give information under subsection (9) or gives false information under this Part, he shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees and to imprisonment for a term not exceeding 2 years. (13) The secrecy provision under section 154 shall not apply to enable exchange of information with Ministries, Government departments and other Government agencies. (14) (a) The Minister may, for the purposes of this Part, make such regulations as he thinks fit. (b) Any regulations made under paragraph (a) may provide for anything connected, consequential or incidental thereto. PART XIIC – SELF-EMPLOYED ASSISTANCE SCHEME 150C.Self-Employed Assistance Scheme (1) In this section – “passive income” means income derived from rent, dividends, interests and such other income as may be prescribed; “self-employed” – (a) means an individual – (i) who is a citizen of Mauritius and is resident in Mauritius; (ii) who is above the age of 18; (iii) who is not employed, as at 1 March 2020, by any employer, whether on a full-time or part-time basis; and 40 Acts 2020 (iv) who has been in business on his own account or is a tradesperson carrying out activities such as mason, cabinet maker, plumber, hairdresser, artist or other similar activities for a period of at least 3 months prior to the start of the COVID-19 period; but (b) does not include – (i) an individual who derives exclusively passive income; (ii) an individual who was not carrying out any income earning activity prior to the start of the COVID-1 on a full-time or part-time basis; and 40 Acts 2020 (iv) who has been in business on his own account or is a tradesperson carrying out activities such as mason, cabinet maker, plumber, hairdresser, artist or other similar activities for a period of at least 3 months prior to the start of the COVID-19 period; but (b) does not include – (i) an individual who derives exclusively passive income; (ii) an individual who was not carrying out any income earning activity prior to the start of the COVID-19 period; (iii) an individual who falls under such category as may be prescribed. (2) Subject to this Part, the Director-General shall pay to every self-employed – (a) an allowance of 5,100 rupees for the period 16 March 2020 to 15 April 2020; (b) an allowance of 2,550 rupees for the period 16 April 2020 to 30 April 2020 where the main business activities of the self-employed are carried out in the Island of Mauritius; (c) an allowance of 5,100 rupees for the month of May 2020 where the main business activities of the self- employed are carried out in the Island of Mauritius; and (d) such other amount, for such other period, and to such category of self-employed, as may be prescribed. Acts 2020 41 (3) No allowance under subsection (2) shall be payable to a self-employed where – (a) he is eligible to receive social benefits, including basic retirement pension or widows pension, under the National Pensions Act; (b) he is pursuing higher studies on a full-time basis; (c) he is a dependent spouse; (d) his monthly income, when aggregated to that of his spouse, exceeds 50,000 rupees; (e) he is a registered fisherman; or (f) he meets such other criteria as may be prescribed. (4) Every self-employed person who is entitled to the allowance under subsection (2) shall make an application electronically to the Director-General, which shall be accompanied by the following information – (a) his monthly income; (b) his residential address; (c) his bank details; and (d) such other information as the DirectorGeneral may require. (5) An application under subsection (4) shall be made – (a) within a period of 3 months from the end of the months to which it is related; or (b) within a period of 2 months from the date the COVID-19 period lapses, whichever is earlier. (6) The Director-General shall make payment of the allowance payable under subsection (2) on the basis of the information provided under subsection (4) and any other information available to him. 42 Acts 2020 (7) (a) The Director-General may, not later than one year after payment of an allowance is made under this Part, request any information or document from a person to ascertain the correctness of the information provided under subsection (4) and the eligibility of the person to the allowance payable under subsection (2). (b) The person to whom a request is made under paragraph (a) shall provide the Director-General with such information and document as he may require. (8) Where a person – (a) who is not entitled to an allowance has benefited from an allowance in breach of subsection (1) or (3); or (b) has benefited from an allowance in excess of the amount to which he is entitled under this Part, the Director-General may, by virtue of the powers conferred on him under the Mauritius Revenue Authority Act, recover the excess amount or allowance, as the case may be. (9) Where a person – (a) makes a false declaration to the Director-General to unduly benefit from an allowance under this Part; or (b) refus d to an allowance has benefited from an allowance in breach of subsection (1) or (3); or (b) has benefited from an allowance in excess of the amount to which he is entitled under this Part, the Director-General may, by virtue of the powers conferred on him under the Mauritius Revenue Authority Act, recover the excess amount or allowance, as the case may be. (9) Where a person – (a) makes a false declaration to the Director-General to unduly benefit from an allowance under this Part; or (b) refuses to give information under subsection (7) or gives false information under this Part, he shall commit an offence and shall, on conviction, be liable to a fine not exceeding 10,000 rupees and to imprisonment for a term not exceeding 6 months. (10) The secrecy provision under section 154 shall not apply to enable exchange of information with Ministries, Government departments and other Government agencies. Acts 2020 43 (11) (a) The Minister may, for the purposes of this Part, make such regulations as he thinks fit. (b) Any regulations made under paragraph (a) may provide for anything connected, consequential or incidental thereto. (g) in section 161A, in subsection (63), by deleting the words “31 March 2020” wherever they appear and replacing them by the words “26 June 2020”.