Requests - Statements of Indebtedness
PUBLIC SERVANTS
Prior to the payment of Gratuity to members of the Public Service, Trinidad and Tobago Defence Force, Teaching Service or other contract workers a STATEMENT OF INDEBTEDNESS IS REQUESTED from the Inland Revenue Division. This statement indicates the level of an individual's indebtedness to the Division. The request is made either by the Comptroller of Accounts or the Ministry/organization making the termination payment.
Declaration Form
OBTAINING A STATEMENT OF INDEBTEDNESS
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To obtain a Statement of Indebtedness an individual must submit all outstanding tax returns and pay all outstanding taxes.
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Employees in receipt of emolument income only can complete the declaration form indicating that his income was derived solely from employment.
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Where an individual is indebted to the Division he may elect to pay all outstanding sums or request a Garnishee Order be issued to the Comptroller of Accts or Ministry responsible for making the payment.
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Where a Garnishee is issued, the outstanding taxes are first deducted from the gratuity and paid over to the BIR, the remaining sums are paid to the individual taxpayer.
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The statement is issued to the Department making the request.
CONTRACT WORKERS - Statement of Indebtedness
Most persons employed on Contract become eligible for a Contract Gratuity at the end of the contract. Prior to the payment of this gratuity a statement of indebtedness is requested from the Inland Revenue Division. This statement indicates the individual's level of indebtedness to the Division
Where is it available?
This service is available at the following locations
OBTAINING A STATEMENT OF INDEBTEDNESS FOR CONTRACT GRATUITY
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To obtain a Statement of Indebtedness an individual must submit all outstanding tax returns and pay all outstanding taxes.
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Employees in receipt of emolument income only can complete the declaration form indicating that his income was derived solely from employment.
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Where an individual is indebted to the Division he may elect to pay all outstanding sums or request a Garnishee Order be issued to the Comptroller of Accts or Ministry responsible for making the payment.
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Where a Garnishee is issued, the outstanding taxes are first deducted from the gratuity and paid over to the BIR, the remaining sums are paid to the individual taxpayer.
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The statement is issued to the Department making the request.
h3>REQUEST FOR STATEMENT OF INDEBTEDNESS - CONTRACT WORKERS
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An approved TD1 declaring Income payable for the year of Income and all allowable deductions and credits.
PRIVATE SECTOR EMPLOYEES - SEVERANCE PAY
MAKING A SEVERANCE PAYMENT
Prior to making payment which can be considered as severance or connected with the termination of holding of office or employment the PAYE Section, Board of Inland Revenue, Corner Queen and Edward Streets must be supplied with the following information:-
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the name and income tax file number of the employee to whom the payment is due;
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the reason for the termination of the employment; (e.g. whether its ill-health, redundancy or compulsory retirement);
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the amount payable to each employee; in the case of retirement on grounds of ill-health, an original medical report from a Medical Practitioner registered with the Medical Board of Trinidad and Tobago or such other body outside of T&T as the Board may accept;
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with respect to payments connected with termination of employment or office which would not otherwise be chargeable to tax: where payments are to be made to a spouse, relative or dependant, the names of the spouse/relative/dependant and the circumstances under which the payment is to be made to him/her;
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and where payment is in the form of a valuable consideration other than money, details of the consideration, the date it is to be given and evidence of its value at the date.
For tax purposes "Severance Pay" is any payment (including any payment in lieu of notice) made under a contract of employment to any employee in relation to past services either -
(a) upon termination of employment by reason of redundancy of the position held by the employee; or
(b) upon compulsory retirement (60years); or
(c) other termination of the employment by reason of ill-health where the Board is satisfied, on such evidence as it may require, that ill-health is the reason for termination of the employment.
It is to be noted that payments made to an employee by reason of voluntary resignation or any other reason other than redundancy of the position or ill-health would not qualify as Severance Pay.