MOF-BUDGET Jun. 2016 | Page 389

Fiscal Measures | Fiscal Year 2016/2017 cont’d May 26, 2016 DESCRIPTION EXISTING RATE PROPOSED RATE 28 days after the end of the month 21 days after the end of month with effect from 1 January 2017 Amend Stamp Tax Act so that “Transaction Values” are taken into account. The transaction value being defined as the value the property would fetch on the open market in a sale. In the event of the dispute then the Treasurer should be able to use the transaction value of an adjoining property, which has been sold in the last year. In the case of force sale (foreclosure or court ordered sales), the value derived from the sale would be accepted. For a transaction between related parties the transaction would be determined by an independent assessment of value by a licenced appraiser. These rules must also be placed in the VAT rules for Real Estate. 90 Adjust the date for the submission of VAT payments. 91 Allow for the wavier of Stamp Tax and VAT on Deed of Exchange because of an error in property description. 92 Amend Item 12 on the First Schedule of the Stamp Tax Act as it pertains to marina slips. 93 ENABLING LEGISLATION Stamp Tax and VAT Acts AGENCY RESPONSIBLE Department of Inland Revenue COMMENTS Annex D ITEM NO. 89 Department of Inland Revenue Stamp Tax and VAT Acts 10% 2.5% Department of Inland Revenue Stamp Tax Act Department of Inland Revenue Amend the Stamp Tax Act to eliminate and adjust fees Stamp Tax Act Ministry of Finance 94 Allow for a 90 day amnesty for the penalty for late stamping of documents. The amnesty will end on 1st September, 2016 and thereafter the penalty will be 10%. Stamp Tax Act Ministry of Finance 95 Put in place a framework to allow the Minister of Finance to take steps through the Tariff Act to protect Bahamian agriculture and manufactured products Customs Management Act /Regulations Ministry of Finance 96 Put in place a framework for the licensing of couriers. Customs Department [389] To make this consistent with the other stamp tax on conveyance See strategy attached at Annex III 2016/2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE