News/Updates - Tax Tips - Green Fund Levy
Green Fund Levy
Introduction
The Green Fund Levy (GFL) was introduced with effect from January 01 2001. It is imposed under the Miscellaneous Taxes Act Chapter 77:01 Section 6(1).
Purpose of the Green Fund
The purposes of the Fund are as follows:-
-
to enable grants to be made to community groups and organizations primarily engaged in activities related to the remediation, reforestation and conservation of the environment;
-
to undertake or do all such things as are incidental or conducive to the attainment of the purpose referred to at paragraph (i).
Who pays the Green Fund Levy?
The Green Fund Levy (GFL) is paid by any company carrying on business in Trinidad and Tobago, "whether or not such business is exempt from the payment of Business Levy".
'Company' is specially defined in this legislation to include Partnerships. Therefore both companies and partnerships are responsible for paying Green Fund Levy. The levy does not apply to individuals i.e. Self-employed/employees.
Rate of Green Fund Levy and when payable.
Green Fund Lev is due and payable to the Board of Inland Revenue at the rate of 0.1% on the Gross Sales or Receipts of a company for each quarter (March 31, June 30, September 30, December 31) in each year of income.
In ascertaining the gross sales or receipts of a quarter, a company may estimate the sales of the last 1-3 days of the quarter. Where an estimation is made and the actual sales of that quarter exceed the estimated figure, the short payment must be paid by the end of the quarter immediately following that quarter in which the sales or receipts were estimated.
Interest on short payments or late payments
Where a company which is liable to the quarterly payment of the Green Fund Levy, pays less than 90% of its liability at the end of the quarter; interest is charged at the rate of 20% per annum on the difference between the 90% of the liability and the amount paid.
This interest shall accrue from the end of the quarter in which the liability occurred to the date of payment.
N.B. In ascertaining the Chargeable Profits of a company, no Deduction is allowed for any payments made in respect of the Green Fund Levy.
Overpayment of the Green Fund Levy
Where the Board of Inland Revenue is satisfied that a company has overpaid the Levy in any quarter, the company is entitled to a refund of the excess tax paid.
However, instead of making a refund, the Board may otherwise choose to apply the excess tax against any future liability and notify the company accordingly.
N.B. “Company” means an incorporated body, unincorporated association and includes a partnership. The Partnership must therefore pay this levy using the Partnership’s BIR Number.
