This alert outlines the measures in the Unity Budget and amendments arising from the COVID-19 measures in the three later Budgets.
The Ministry of Finance has released a draft Income Tax (Amendment) Bill on 20 July 2020 for public consultation. Responses are requested by 7 August 2020.
As expected, the draft Bill proposes legislation to implement the measures announced in the Unity Budget on 18 February 2020, as well as amendments arising from the COVID-19 crisis measures in the three later Budgets.
In addition, there are 12 proposals that are not derived from the 2020 Budgets. The biggest and most important is in relation to legislation to counteract tax avoidance, where a 50% surcharge has been proposed on tax adjustments made. In other words, where anti-avoidance legislation is applied to increase an income tax liability, there will be an additional 50% surcharge payable.
There is also another noteworthy amendment proposed in relation to the business of investing in immovable property. Under this proposal, non-owners of properties will be excluded from applying section 10E.
