CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
afterwards applied in paying up the share capital shall be treated as new
consideration also for that share capital.
(12) A distribution shall be treated under this section as made, or
consideration as provided, out of assets of a company if the cost falls on
the company.
(13) The following kinds of expenditure when paid by a close company to
a participator shall be treated as distributions -
(a) interest, or other consideration paid or given by the company to
a participator who is also a director (other than a whole-time
service director) or an associate of such participator for the use of
money advanced by any person, or to a person who is an associate
of such director for the use of money so advanced;
(b) any annuity or other annual payment other than interest;
(c) any rent, royalty or other consideration paid for the use of
property other than money.
(14) For the purposes of subsection (13)(c) in the case of tangible property
or copyrights, the excess only over what the Board may consider to be
reasonable consideration therefor shall be treated as a distribution.
50. (1) There shall be levied and paid income tax, in this Act referred to as
withholding tax, at the rate set out in Part II of the Third Schedule Rates of withholding tax
Third Schedule
(a) on any distribution made to any person not resident in Trinidad
and Tobago and to every non-resident company;
(b) on any payment made to any person not resident in Trinidad
and Tobago or to any person on behalf of such non-resident
person, and to every non-resident company (where such person or
company is not engaged in trade or business in Trinidad and
Tobago), so however that in the case of a payment arising outside
Trinidad and Tobago to such a person or company withholding tax
shall not be payable.
(1A) Subsection (1) shall not apply to –
(a)
any distribution made by the Export Import Bank to any
non-resident company or non-resident international
agency for a period of ten years commencing from the
date of the initial injection of private sector funds into
the Export Import Bank;
BIR Mac Edition 91/01 Page 82