Section 116C: Declaration by company not in operation

116C. Declaration by company not in operation (1) Where a company – (a) has not started business; or (b) ceased business, a nd has not derived any income in an income year, it shall submit a declaration in a form approved by the Director-General within 3 months after the expiry of that income year. (2) Subsection (1) shall not apply to – (a) a company holding a Category 1 Global Business Licence under the Financial Services Act; and (b) a trust. (3) Where a company submits a declaration under subsection (1) for an income year, it shall not be required to submit a return under section 116(1) in respect of that year. (q) in section 121, in subsection (1A), by inserting, after the words “10 million rupees”, the words “or an individual who is not in business”; (r) in section 122, in subsection (1A), by inserting, after the words “10 million rupees”, the words “or an individual who is not in business”; Acts 2016 237 (s) by inserting, after section 122D, the following new section – 122DA.Penalty for loss over claimed (1) Where a person has claimed a loss in excess of the actual loss incurred or brought forward, he shall be liable to a penalty of up to 5 per cent of the loss overclaimed. (2) Any penalty charged under subsection (1) shall be offset against the amount of loss to be carried forward, where applicable. (t) in section 123A – (i) i n subsection (1), by inserting, after the words “Notwithstanding this Act,”, the words “and subject to sections 127 and 130”; (ii) i n subsection (2), by deleting the word “fraud” and replacing it by the words “fraud or non-submission of return by a person liable to tax”; (u) by inserting, after section 123B, the following new section – 1 23C. Submission of statement of assets and liabilities by individuals (1) Every person who, in an income year – (a) d erives net income and exempt income exceeding 15 million rupees; or (b) o wns assets the cost of which exceed 50 million rupees, s hall submit to the Director-General a statement of assets and liabilities at the time of submission of his return under section 112. (2) The statement of assets and liabilities shall be submitted in such form and manner as may be prescribed. 238 Acts 2016 (3) Where a person does not submit a statement of assets and liabilities under subsection (1), he shall be liable to pay to the Director-General a penalty of 2,000 rupees per month or part of the month, until the statement is submitted to the DirectorGeneral, provided that the total penalty shall not exceed 20,000 rupees. (v) in section 129A, by inserting, after subsection (1), the following new subsection – (1A) Where an assessment is made under subsection (1), the amount of additional tax claimed, excluding any penalty and interest under sections 122 and 122D, respectively, shall carry a penalty not exceeding 50 per cent of the amount of additional tax claimed. (w) in section 131A – (i) in subsection (2) – (A) b y repealing paragraph (b) and replacing it by the following paragraph, the word “and” at the end of paragraph (a) being deleted – (b) where he has not submitted for the relevant income year his APS Statement under section 50B or his Statement of Income under section 106 or his return of income under section 112, 115, 116 or 117 – (i) s ubmit, at the time of his objection, the required APS Statement, Statement of Income or return; (ii) pay, at the time of his objection, any amount of tax specified in the APS Statement, Statement of Income or return referred to in Acts e word “and” at the end of paragraph (a) being deleted – (b) where he has not submitted for the relevant income year his APS Statement under section 50B or his Statement of Income under section 106 or his return of income under section 112, 115, 116 or 117 – (i) s ubmit, at the time of his objection, the required APS Statement, Statement of Income or return; (ii) pay, at the time of his objection, any amount of tax specified in the APS Statement, Statement of Income or return referred to in Acts 2016 239 subparagraph (i), together with any penalty under sections 50F, 109, 110, 121(1), 122 and 122C and any interest under section 122D; and (iii) i n addition, at the time of his objection, pay 10 per cent of the difference between the amount claimed in the notice of assessment and the amount of tax payable under subparagraph (ii); and (B) by adding the following new paragraph – (c) w here he has submitted, prior to the assessment, the APS Statement required under section 50B, Statement of Income required under section 106 or return required under section 112, 115, 116 or 117 – (i) pay, at the time of his objection, any outstanding tax on the APS Statement, Statement of Income or return; and (ii) p ay 10 per cent of the tax claimed in the notice of assessment. (ii) i n subsection (2A), by deleting the words “(2)(b)” and replacing them by the words “(2)(b) or (c)”; (iii) i n subsection (3), by deleting the words “Subsection (2) (b)” and replacing them by the words “Subsection (2)(b) (iii) or (c)(iii)”; (x) in section 134, by inserting, after the words “131A”, the words “, 131AA(6)(b)”; 240 Acts 2016 (y) in section 145, by deleting the figure “50,000” and the words “6 months” and replacing them by the words “one million” and “8 years”, respectively; (z) in section 146A, by deleting the figures “50,000” and “2” and replacing them by the words “one million” and the figure “8”, respectively; (za) in section 152 – (i) i n subsection (2)(a) and (b), by deleting the words “date of the claim” and replacing them by the words “due date for submission of the return or the date of receipt of the claim, whichever is the later”; (ii) b y inserting, after subsection (4), the following new subsections – (4A) Where a person has claimed a refund of tax in excess of the refund he ought to have claimed, he shall be liable to a penalty of up to 25 per cent on the amount of the excess refund claimed. (4B) Any penalty charged under subsection (4A) shall be offset against the amount of refund, where applicable. (zb) in section 161A – (i) in subsection (45) – (A) by deleting the figure “2018” wherever it appears and replacing it by the figure” 2019”; (B) i n paragraph (b), by deleting the words “31 December 2019” and replacing them by the words ”30 June 2020”; Acts 2016 241 (ii) in subsection (46) – (I) i n paragraph (c), by deleting the words “30 June 2019” and replacing them by the words “31 December 2019”; (II) in paragraph (d)(ii), by deleting the figures “2018” and “4” and replacing them by the figures “2019” and “6”, respectively; (iii) in subsection (50), in paragraph (a) – (A) b y deleting the words “the Ninth Schedule” and replacing them by the words “column 1 of the Ninth Schedule”; and (B) b y deleting the words “31 December 2018” and replacing them by the words “30 June 2016”; (iv) b y inserting, after subsection (50), the following new subsection – (50A) (a) Subject to this subsection, where during the period 1 July 2016 to 30 June 2020 – (i) a company nd replacing them by the figures “2019” and “6”, respectively; (iii) in subsection (50), in paragraph (a) – (A) b y deleting the words “the Ninth Schedule” and replacing them by the words “column 1 of the Ninth Schedule”; and (B) b y deleting the words “31 December 2018” and replacing them by the words “30 June 2016”; (iv) b y inserting, after subsection (50), the following new subsection – (50A) (a) Subject to this subsection, where during the period 1 July 2016 to 30 June 2020 – (i) a company which carries on in Mauritius the business of manufacturing or producing any of the goods or products specified in the Ninth Schedule has incurred capital expenditure on new plant and machinery and such plant and machinery is used in that activity; or (ii) a company has invested in the share capital of a subsidiary company engaged primarily in the setting up and management of an accredited business incubator, 242 Acts 2016 it shall be allowed, by way of a deduction from its income tax otherwise payable in respect of the year of acquisition or investment and for each of the 2 subsequent income years, a tax credit – (A) at the rate specified in the Ninth Schedule; or (B) of an amount equal to 15 per cent of the investment in the share capital of a subsidiary company engaged primarily in the setting up and management of an accredited business incubator subject to a maximum of 3 million rupees. (b) Subject to paragraph (c), where the deduction under paragraph (a) in respect of an income year exceeds the amount of income tax otherwise payable for that income year, the excess may be carried forward to the following income year. (c) No deduction under paragraph (b) in respect of a capital expenditure shall be carried forward beyond a period of 10 consecutive income years following the income year in which the capital expenditure was incurred. (d) Where, in an income year, the plant and machinery or the shares are sold or otherwise transferred, within a period of 5 years from the date of its acquisition, the tax credit claimed shall be deemed to be income tax payable to the Director-General in that income year. Acts 2016 243 (e) In this subsection – “plant and machinery” does not include motor cars. (v) by adding the following new subsections – Obligation to Withhold PAYE for September 2016 (53) Every employer shall, for the purpose of withholding income tax in accordance with section 96 for the month of September 2016, take into account the amount of income exemption threshold claimed by the employee in his Employee Declaration Form in respect of the income year ending 30 June 2016. Excess CSR Payment (54) Where on the coming into operation of section 50L, a company has paid out its CSR Fund, a sum in excess of the amount provided for under that Fund, the excess amount referred to in the repealed section 50L(6) may be carried forward and offset in equal instalments against any amount to be remitted under section 50L(2)(a) in respect of 5 succeeding years starting as from year of assessment 2016/2017. (zc) in the Second Schedule, in Part II, in Sub-part C, by inserting, after item 11, the following new item – as from year of assessment 2016/2017. (zc) in the Second Schedule, in Part II, in Sub-part C, by inserting, after item 11, the following new item –