Final position statement from the Income Tax Department in conjunction with the Belize Tourism Board as follow up to the income tax consultative session spearheaded by the Belize Tourism Industry Association on behalf of its membership along with wider tourism stakeholders on march 27, 2014. It is the official position of the income tax department, in reference and follow up to the tax consultation held with BTIA members and the wider tourism industry held on March 27, 2014, that the income tax department agrees not to tax service charge for accommodations registered under the Belize Tourism Board service charge scheme and restaurants that that operate under the license of duly licensed accommodation properties. This final determination is made in consideration of the fact that the Belize Tourism Board is mandated to provide oversight and management of the service charge scheme.The tax exempt treatment would only apply to service charge schemes that are duly registered with the BTB as required by the hotels and tourist accommodation act. The Belize Tourism Board fully acknowledges its oversight role in the management of the service charge scheme and advises the industry that it will enhance its monitoring and compliance programs which includes more robust auditing of those registered under the scheme. The income tax department notes that the service charge collected is considered a conduit fund specifically. The department highlights and points out that any evidence showing or found that indicates the proceeds of such funds collected under this scheme that is not passed to the final beneficiary the employee, equitably, as is the intent and purpose of all service charge schemes, will be treated as revenue for such respective establishments and accordingly assessed and taxed by the income tax department.
Posted on: Sat, 12 Jul 2014 00:09:12 +0000
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