Entertainment and Withholding Taxes Take Effect
Wednesday 2nd January, 2019-The Entertainment Tax has taken effect with the Inland Revenue Department issuing a reminder earlier today.
Implementation of the Entertainment Tax was put on hold last year by the government, since promoters and other entertainers related they had not planned their activities in 2018 with the tax in mind.
The tax will apply to all ticket sales. Additionally, the Withholding Tax also comes into effect.
Jermaine Jarvis, Deputy Commissioner of the Inland Revenue Department details the obligations party planners and promoters have to the IRD that are in accordance with law.
In a post on their social media page, the IRD advised that there are requirements that must be met for people organizing a ticketed or paid entrance event. Those people will be required to apply to the Inland Revenue Department for an event certificate, be in good standing in all relevant taxes with the department and all paper tickets must be stamped by the IRD prior to the event.
In a meeting in 2018, entertainment industry representatives proposed a 1 percent levy on tickets sold at all-inclusive fetes and a 2 percent at events that are not all-inclusive. However, that was rejected. Another proposal of 2 percent for all- inclusive events and 4 for non all-inclusive fetes was deemed inadequate.
The deputy commissioner of the Inland Revenue Department says they are prepared to ensure there is full compliance with the introduction of the Entertainment and Withholding Taxes.
Jermaine Jarvis says without enforcement of tax laws, there will be issues with compliance and he is cautioning those that may be thinking about not adhering to the laws that the IRD will take action.