Section 157: Waiver of tax

157. Waiver of tax (1) The Minister may, in the public interest, waive Acts 2017 223 the whole or part of any income tax payable by an insurer and any of its related companies, including any amount withheld under section 93 or any amount deducted under section 111C but not remitted to the Director-General, where a special administrator has, pursuant to section 110A of the Insurance Act, been appointed to the whole or part of the business activities of the insurer and any of its related activities. (2) In this section – (cid:179)insurer(cid:180) has the same meaning as in the Insurance Act. (zm) in section 159 – (i) in subsection (3), by inserting, after the words (cid:179)shall,(cid:180), the words (cid:179)subject to subsection (3A),(cid:180)(cid:30) (ii) by inserting, after subsection (3), the following new subsection – (3A) Where the application is in respect of an issue which is the subject of an objection, representations before the Assessment Review Committee or an appeal before the Supreme Court or Judicial Committee of the Privy Council the Director-General shall not give a ruling on that issue. (zn) in section 161A – (i) in subsections (7C)(a) and (b) and (13)(c)(i) and (ii), by deleting the words (cid:179)the First Schedule(cid:180) and replacing them by the words (cid:179)Part I of the First Schedule(cid:180)(cid:30) (ii) under the heading (cid:179)Tax Arrears Settlement Scheme (TASS)(cid:180), by repealing subsection (21) and replacing it by the following subsection – (21) (a) Where tax arrears outstanding as at 224 Acts 2017 8 June 2017 are fully paid by a person on or before 31 May 2018, any penalty and interest included in the tax arrears shall be reduced by 100 per cent, provided that an application for the reduction is made to the Director-General on or before 31 March 2018. (b) In paragraph (a) – (cid:179)tax arrears(cid:180) – (a) means tax and penalty due and payable under an assessment issued or a return submitted on or before 30 June 2015(cid:30) but (b) does not include tax due under an assessment in respect of which representations are pending before the Assessment Review Committee, or an appeal is pending before the Supreme Court or Judicial Committee of the Privy Council. (iii) in subsection (50A) – (A) by repealing paragraph (a) and replacing it by the following paragraph – (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 speci(cid:191)ed in the Ninth Acts 2017 225 Schedule has incurred capital expenditure on new plant and machinery and such plant and machinery is used in that activity(cid:30) 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, 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. (B) by inserting, after paragraph (a), the following new paragraphs – (aa) Subject to paragraph (ab), the tax credit referred to in paragraph (a) shall be – (i) computed at the rate speci(cid:191)ed in the Ninth Schedule(cid:30) or (ii) an amount equal to 15 per cent of the investment in the share capital of a subsidiary company engaged primarily in the setting 226 Acts 2017 up and management of an accredited business i n or investment and for each of the 2 subsequent income years, a tax credit. (B) by inserting, after paragraph (a), the following new paragraphs – (aa) Subject to paragraph (ab), the tax credit referred to in paragraph (a) shall be – (i) computed at the rate speci(cid:191)ed in the Ninth Schedule(cid:30) or (ii) an amount equal to 15 per cent of the investment in the share capital of a subsidiary company engaged primarily in the setting 226 Acts 2017 up and management of an accredited business incubator subject to a maximum of 3 million rupees. (ab) Notwithstanding paragraph (aa), where a company referred to in paragraph (a)(i) derives gross income exclusively from the export of goods or derives gross income from the export of goods and other activities, the tax credit shall be computed in such manner as may be prescribed. (iv) in subsection (52), in paragraphs (c) and (d), by deleting the words (cid:179)section 59(b)(cid:180) and (cid:179)section 59(c)(cid:180) and replacing them by the words (cid:179)section 59(2)(cid:180) and (cid:179)section 59(3)(cid:180), respectively(cid:30) (v) by inserting, after subsection (52), the following new subsection – Taxation of income derived by individuals for the income years 2015/2016 and 2016/2017 (52A) Notwithstanding this Act and any other enactment, an individual shall be considered to be resident in Mauritius in each of the income years 2015/2016 and 2016/2017 where he – (a) has his domicile in Mauritius unless his permanent place of abode is outside Mauritius(cid:30) (b) has been present in Mauritius in each of those income years for a period of 180 days or more(cid:30) or Acts 2017 227 (c) has been present in Mauritius in each of those income years and the 2 preceding income years for an aggregate period of 225 days or more. (vi) by adding the following new subsection – (55) (a) Where, during the period 1 July 2017 to 30 June 2022, a person has incurred any qualifying expenditure directly related to his existing trade or business, he may, in the income year in which the qualifying expenditure was incurred, deduct twice the amount of the expenditure, provided the research and development is carried out in Mauritius and no deduction has been claimed under section 24. (b) Notwithstanding section 18, where, during the period 1 July 2017 to 30 June 2022, a person has incurred qualifying expenditure which is not directly related to his existing trade or business, the Director-General may allow a deduction of the expenditure in the income year in which the expenditure was incurred. (c) In this subsection – (cid:179)qualifying expenditure(cid:180)– (a) means any expenditure relating to research and development(cid:30) and (b) includes – (i) expenditure incurred on innovation, improvement or development of a process, product or service(cid:30) 228 Acts 2017 (ii) staff costs, consumable items, computer software directly used in research and development and subcontracted research and development. (zo) by repealing the First Schedule and replacing it by the First Schedule set out in the Sixth Schedule to this Act(cid:30) (zp) in the Second Schedule, in Part II – (i) in Sub-part B, by inserting, after item 3, the following new item – ing the First Schedule and replacing it by the First Schedule set out in the Sixth Schedule to this Act(cid:30) (zp) in the Second Schedule, in Part II – (i) in Sub-part B, by inserting, after item 3, the following new item –