Section 111Z: Liability to COVID-19 levy

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 31 December 2020, and starting on 1 May 2021 and ending on 31 December 2021, the levy shall be payable in respect of the year of assessment commencing on 1 July 2020 and 1 July 2021;or (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 be equivalent to – (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. (iii) 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 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. (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 applicab 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 DirectorGeneral may, within a period of 3 years from the date the levy is payable, issue a claim to him 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.