SPECIAL DEVELOPMENT AREAS ACT, 1996 – 21

1. Short title
2. Interpretation
3. Special Development Areas
4. Approve developer
5. Compliance
6. Exemption from income tax
7. Exemption from other taxes
8. Incentives
9. Industrial building allowances
10. Commercial building allowances
11. No annual allowance to an approved developer
12. Rules in respect of allowances
13. Non-entitlement to claims
14. Regulations

ENACTED by the Parliament of Barbados as follows:

1. This Act may be cited as the Special Development Areas Act, 1996.

2. (1) In this Act

(2) For the purposes of this Act,

whether or not such building or structure is provided by the person carrying on such trade or undertaking for the welfare of workers employed in that trade or undertaking and in use for that purpose.

(3) For die purpose of subsection (2), and industrial building or structure does not include any building or structure in use as a dwelling-house or part of a dwelling-house, retail shop, premises used for making repairs, showroom, hotel or office, or for any purpose ancillary to the purposes for which a dwelling-house, retail shop, premises used for making repairs, showroom, hotel or office is used.

(4) In determining whether a building or structure is an industrial building or structure

3. (1) For the purposes of this Act, the area specified in the First Schedule are special development areas.

(2) The activities listed in the Second Schedule may be carried on in special development areas.

4. (1) A person who wishes to be an approved developer may make application to the Minister for the purpose.

(2) The Minister may approve the application referred to in subsection (1), either unconditionally or subject to such conditions as he thinks fit; or may refuse the application.

(3) The approval of a person as an approved developer shall be published in the Official Gazette.

6. Where an investor makes a loan to an approved developer of any sum of money raised for the purpose of financing any improvement works during the development period, the amount of interest received by the investor in respect of that loan shall be exempt from income tax.

7. An approved developer shall, during the development period, be exempt from the payment of the taxes and duties specified in the Third Schedule.

8. Notwithstanding the Income Tax Act an approved developer

9. (1) Notwithstanding the Income Tax Act, where an approved developer carrying on a business in an income year has made a capital expenditure in that year on an industrial building or structure, used or to be used in that business for some purpose other than resale, then in calculating the assessable income of that person for that income year there shall be deducted as an initial allowance in respect of that income year an amount equal to 40 per cent of the capital expenditure on an industrial building or structure,

(2) Notwithstanding the Income Tax Act, where an approved developer carrying on a business has made a capital expenditure on an industrial building or structure used or to be used in that business for some purpose other than resale, referred to as depreciable property, then in calculating the assessable income of the approved developer for an income year, an amount may, at the option of the approved developer be deducted as an annual allowance equal to 6 percent of that capital expenditure after deducting therefrom the amount of any rehabilitation grant made to the approved developer in respect of that industrial building or structure.

10. (1) For the purposes of this section "commercial building" means a building other than a building describes in section 12B or 85(4) of the income Tax Act or an hotel under section 2 of the Hotel Aids Act that is in use or is purchased, constructed, reconstructed, altered or adapted to be used for commercial purposes including use as offices or a warehouse or for any trade, but does not include a building let out as a dwelling-house.

(2) Notwithstanding the Income Tax Act, where an approved developer has in an income year made a capital expenditure on a commercial building then in calculating the assessable income of that person for that income year

11 Notwithstanding section 9(2) and section 10(2)(b) no annual allowance shall be made to an approved developer for an income year in respect of the property referred to in sections 9 and 10 if the total amount of the initial and annual allowances made to that person in the preceding years exceeds the capital expenditure made by that person.

12. Subsections (3) to (9) of section 13 of the Income Tax Act shall apply, mutatis mutandis, to annual allowances referred to in sections 9 and 10 in the calculation of assessable income; and any reference in those subsections to "a person" shall be construed as a reference to "an approved developer".

13. Notwithstanding any provision of this Act, an approved developer is not entitled to claim an allowance under the Income Tax Act where a claim is made under this Act in respect of the same property.

14. The Minister may make regulations generally for giving effect to the provisions of this Act.

1. Carlisle Bay Re-development Area in the parish of St. Michael.
2. Speightstown in the parish of St. Peter.
3. St. Lawrence Gap in the parish of Christ Church.
4. The Conservation Area as defined in section 2 of the Soil Conservation (Scotland District) Act, Cap. 396 and more particularly describes in the First Schedule thereto.

3. Land Tax on the improved value of land.

Hotel Aids

[8th June, 1967]

1. This Act may be cited as the Hotel Aids Act.

2. (1) For the purposes of this Act, the expression

(2) For the purposes of this Act, an hotel, subject to

subsection (3), means

(3) Where any building is reserved for use as a club then, notwithstanding that such building forms part of an hotel as defined in subsection (2) or is a building which but for its use as a club is otherwise within the meaning of an hotel as defined in that subsection, such building shall not for the purposes of this Act be deemed to be an hotel.

(4) Where the Cabinet is satisfied that any building or group of buildings about to be constructed, extended, altered or re-constructed or in the course of construction, extension, alteration or re-construction will be, on being constructed, extended, altered or re-constructed, as the case may be, a building or group of buildings within the meaning of an hotel as defined in subsection (2), it may, by notice published in the Official Gazette, declare that such building or group of buildings shall be deemed to be an hotel for the purposes of this Act prior to the completion of the work of constructing, extending, altering or re-constructing such building or group of buildings and as from the date of publication of such notice such building or- group of buildings shall be an hotel for the purposes of this Act.

(5) No application for a declaration under subsection (4) shall be granted unless the applicant furnishes to the Cabinet certificates from the Commissioner of Inland Revenue, Commissioner of Land Tax and the Director of National Insurance, referred to in this Act as the appropriate authorities, stating that all liabilities for the payment of tax and national insurance contributions in respect of the premises to which the declaration relates, have been discharged.

2A. (1) No claim for any benefit under this Act may be accepted unless the claimant submits at the time of making the claim, the certificates describes in section 2(5) from the appropriate authorities stating that all liabilities for the payment of tax and national insurance contributions in respect of the premises to which the claim relates, have been discharged.

(2) The appropriate authorities may issue the certificates referred to in section 2(5) if they are satisfied that the claimant has paid, in respect of the hotel or premises of the hotel referred to in the application, and in respect of any other hotel premises owned or operated by the applicant, all taxes due and owing under the Income Tax Act, the Hotels and Restaurants (Sales Tax) Act, the Land Tax Act and all contributions under the National Insurance and Social Security Act.

(2) Where the amount of any expenditure incurred by any person specified in subsection (1) for any purpose mentioned in section 5 is such that it cannot wholly be deducted from or set-off against income arising or accruing to such person in the same year in which such expenditure was incurred by him and derived from the source specified in subsection (1), the amount of such expenditure shall, subject to this Act, to the extent to which it is not allowed against that income, be carried forward and shall be deducted from or set-off against income derived from the same source as aforesaid which but for such deduction or set-off being made would otherwise have been such person's chargeable income for the purposes of income tax for the next nine years in succession; but the amount of any such expenditure allowed to be deducted from or set-off against such otherwise chargeable income shall not be deducted from or set off against any such income for any other year.

(3) For the purposes of subsections (1) and (2) and of section 4, where under a lease or an agreement for a lease the owner of an hotel lets an hotel owned by him to another person, any sum received by such owner by way of rent paid under the terms of any such lease or agreement for a lease during such time as the premises let are being used as an hotel shall, if such owner incurs or has incurred in respect of the hotel expenditure for any purposes specified in section 5, be deemed to be profits or gains arising or accruing to him of or in respect of or from the hotel, and such owner shall be deemed to be a person on whose behalf the hotel is managed.

(4) Where the interest or any part of the interest in any hotel of any person, being a person entitled to a deduction or set-off pursuant to this section or to section 4 passes, by a disposition inter vivos made without valuable consideration by that person or under his will or on intestacy, to the husband or the wife or any ancestor or lineal descendant of that person, the person to whom such interest or part thereof so passes shall, for the purposes of this section and of section 4, be treated as if he were the person from whom the interest passed; but where such interest or part thereof so passes to more than one such person, each such person may deduct or set-off such part only of the expenditure which the person by whom the interest passed would have been entitled to deduct or set-off as the Commissioner considers bears proportion to the extent of the interest so passing to him.

4. (1) Where a person by whom or on whose behalf an hotel is managed incurs any expenditure in respect of such hotel for any purpose specified in section 5, then, subject to this Act, in computing the taxable income of such person for any financial year, there shall be deducted from or set-off against the profits or gains of or in respect of or from such hotel in the year preceding the financial year all expenditure so incurred by him in such year.

(2) Where the amount of expenditure incurred by any person specified in subsection (1) for any purpose mentioned in section 5 is such that it cannot wholly be deducted from or set-off against the profits or gains of or in respect of or from the hotel for the same year in which such expenditure was incurred, the amount of such expenditure shall, subject to this Act, to the extent to which it is not allowed against those profits or gains, be carried forward and shall be deducted from or set-off against profits or gains of or in respect of or from such hotel for the next nine years in succession; but the amount of any such expenditure allowed to be deducted from or set-off against the profits or gains of or in respect of or from an hotel shall not be deducted from or set-off against the profits or gains of or in respect of or from such hotel for an other year.

5. (1) The purposes mentioned in this section shall be the purposes for which any sum expended shall be deducted or set off pursuant to sections 3 and 4, that is to say any sum expended-

(2) References in this section to expenditure incurred on the construction or purchase of a building, amenity, groyne, or sea-wall referred to in this section do not include any expenditure incurred on the acquisition of, or rights in or over, any land.

(2) For the purposes of this section all the property which is purchased in pursuance of one bargain shall be deemed to be purchased together, notwithstanding that separate prices are or purport to be agreed for separate items of that property or that there are or purport to be separate purchases of separate items of that property.

(3) This Act shall have effect as if any reference therein (including any reference in subsections (1) and (2) to the purchase of any property included a reference to the exchange of any property, and in the case of a leasehold interest also included a surrender thereof for valuable consideration, and any provisions of this Act referring to purchases shall have effect accordingly with the necessary adaptations and in particular with the adaptations that references to the purchase price shall be taken to include the consideration for the exchange or surrender and references to capital sums included in the price shall be taken to include so much of the consideration as would have been a capital sum if it had taken the form of a money payment.

7. (1) Where, on the purchase of a building or amenity in respect of which any person would be entitled to or has been granted a deduction or set-off pursuant to section 3 or section 4 on the letting of any such building by the owner thereof, the Commissioner is satisfied that the buyer or lessee, as the case may be, is a person over whom the seller or lessor has control, or the seller or lessor, as the case may be, is a person over whom he buyer or lessee has control or both the seller and buyer or, as the case may be, lessor and lessee are persons and some other person has control over both of them, he may, at his discretion-

(2) Where, on the purchase of a building or amenity in respect of which any person would be entitled to or has been granted a deductioner set-off pursuant to section 3 or section 4 or on the letting of any such building by the owner thereof, the Commissioner is satisfied that, with respect to the purchase or with respect to the transaction of which the purchase forms part or with respect to the letting, the sole or main benefit which might have been expected to accrue to the parties to such purchase or, as the case may be, the parties to such lease or any of them, vas the obtaining of a deduction or set-off under section 3 or section 4, he shall-

(3) Where any building or amenity in respect of which any person would be entitled to or has been granted a deduction or set-off pursuant to section 3 or section 4 is at any time thereafter sold, any deduction or set-off or, as the case may be, any subsequent deduction or set-off which, pursuant to those sections, may be made to the seller of such building or amenity shall be reduced by the amount of the proceeds of sale derived by such seller from the sale of such building or amenity.

(4) Where any building or amenity in respect of which any person would be entitled to or has been granted a deduction or set-off pursuant to section 3 or section 4 is at any time thereafter sold, any deduction or set-off or, as the case may be, any subsequent deduction or set-off which, pursuant to those sections, may be made to the buyer in respect of the expenditure incurred on the purchase of the same shall be reduced by the amount of any deduction or set-off made pursuant to those sections to any other person in respect of that building or amenity.

(5) Where, in any year of assessment or, as the case may be, in any financial year, the amount of the reduction to be made, pursuant to subsection (3), to any deduction or set-off to be made pursuant to section 3 or section 4 to a seller, exceeds the amount of such deduction or set-off, the balance thereof shall be carried forward and shall be taken into account for the purpose of reducing any such subsequent deduction or set-off to be made to the seller; but the amount by which in any year of assessment or, as the case may be, in any financial year any such deduction or set-off is so reduced shall not be taken into account in calculating any such deduction or set-off to be made to the seller in any other year of assessment or in any other financial year, as the case may be.

(6) For the purposes of this section, the expression "control" in relation to a body corporate means the power of a person to secure, by means of holding shares or the possession of voting power in or in relation to that or any other body corporate or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person, and, in relation to a partnership, means the right to a share of more than one-half of the assets or more than one-half of the income of partnership.

(7) For the purposes of this section and of section 6, any reference to "the Commissioner" shall, so far as it concerns any matter connected with the computation of trade tax payable under the Local Government Act be deemed to be a reference to the Interim Commissioner for Local Government in exercise of his functions in relation to a local government area.

8. For the purposes of this Act, the date at which capital expenditure is incurred shall be the date at which the sum in capital question is payable.

9. Wherever by this Act a discretion is conferred on the Commissioner the discretion may be exercised on appeal under section 59 of the Income Tax Act by the Income Tax Appeal Board established by section 58 of that Act and on appeal under section 60 of that Act by the High Court.

10. (1) Where the proprietor of any hotel in respect of which any person is entitled to a deduction or set-off pursuant to section 3 or section 4 is convicted of an offence in relation to such hotel under section 8 of the Shops Act, then, notwithstanding anything contained in this Act, the person entitled to such deduction or set-off shall, as from the date of conviction of any such proprietor, cease to be so entitled unless the Cabinet shall permit such person to continue to be so entitled.

(2) Notwithstanding anything contained in this Act, a person shall not be entitled to any deduction or set-off pursuant to section 3 or section 4 in respect of any expenditure incurred by him for any purpose mentioned in section 5 if such expenditure was incurred by him at any time within the period of 2 years next following the date of conviction for an offence under section 8 of the Shops Act committed in relation to the hotel for which such expenditure was incurred by any person who at the time of commission of the offence was a proprietor of such hotel unless the Cabinet shall permit such person to be so entitled.

10A. (1) The proprietor of an hotel who is in receipt of any benefit under the Act shall, on, or before the 31st of January 1984 and in every year following until the benefit ceases, submit to the Cabinet in respect of that hotel the certificates referred to in section 2(5).

(2) Where the proprietor of an hotel fails to submit any of the certificates referred to in subsection (1) within the time specified in that subsection or within such longer time as the Cabinet allows not being more than 90 days, the Cabinet may by notice in the Official Gazette revoke the declaration made under section 2(4) in relation to that hotel.

11. (1) Subject to this section, a licence to import

(2) Subject to section 13, every licence granted under subsection (1) shall be in such form and subject to such terms and conditions as may be prescribes.

(3) The Comptroller shall not grant a licence under subsection (1) in respect of any building materials or other items

(4) For the purposes of this section, the expression

12. Every application for the grant of a licence under section 11 shall be in such form and contain such information and be accompanied by such documents as may be prescribes.

13. (1) Subject to this section, the holder of a licence granted under section 11 may upon the production of his licence to the proper customs officer import into the Island in accordance with the terms thereof free of all customs duties and package tax such building materials or other items as may be specified therein.

(2) Where any of the items specified in the licence is an item set out in the Third Schedule it shall before importation be marked as clearly and indelibly as is practicable with the name of the hotel within which it is to be used:

Provided that the Comptroller may, in the case of any item within heads 1, 2 or 4 of the said Schedule, permit such item to be marked in the Island if he is satisfied that the supplier of the item had been instructed in good time to mark the item.

(2) No refund shall be made under this section unless-

(3) The Comptroller may require any application for a refund under this section to be supported by such evidence as he may require and in any case where the Comptroller is satisfied that customs duty or package tax has been paid in respect of building materials or other items but is not satisfied as to the amount of the customs duty or package tax so paid, he shall grant the refund at the lowest possible rate at which they could have been imported.

(4) For the purposes of this section, the expressions " newly erected hotel and " new extension to an existing hotel have the meanings respectively assigned to them in subsection (4) of section 11, subject to the adaptation that wherever reference is made in either of such definitions to " the grant of a licence under this section " such reference shall be deemed to be and construed as a reference to the grant of a licence under section 15.

(5) Nothing in subsection (3) of section 6 shall be taken to apply to this section.

15. (1) Subject to this section, the Comptroller may grant a licence to any person applying therefor authorizing the purchase of building materials or any of the items specified in the Fourth Schedule with a view to the refund of any package tax or customs duty paid in respect of such building materials or items and every licence under this section shall be in such or customs form and subject to such terms and conditions as may be prescribes.

(2) Every application for the grant of a licence under this section shall be in such form and contain such information and be accompanied by such documents as may be prescribes.

(3) Subjection (3) of section 11 shall apply in respect of the grant of a licence under subsection (1) as it applies in respect of the grant of a licence under subsection (1) of that section.

16. (1) No building materials or other items imported the Island free of package tax or customs duty under this Act, or in respect of which a refund of package tax or customs duty has been made under this Act shall be sold, exchanged, rented, given away or exported from the Island or applied to any purpose other than that for which they were imported or bought, as the case may be, except-

(2) Every hotel proprietor for the time being of an hotel in respect of which any building materials or other items have been imported free of customs duty or package tax under this Act or in respect of which any refund of package tax or customs duty has been made under this Act, who contravenes any of the provisions of this section is guilty of an offence and liable on conviction thereof by a court of summary jurisdiction to a penalty of three times the value of the building materials or other items in respect of the disposal of which he contravenes such provision, and in default of payment thereof to be imprisoned for a term of twelve months.

(3) Any reference in this section to the expression " this Act " shall be read and construed as including a reference to any Act repealed by this Act. ¹

17. (1) Where any articles have been imported into the Island under this Act free of package tax or customs duty or where package tax or customs duty paid in respect of any article as been refunded under this Act, the Comptroller may, at any time during the period of five years from the date of importation of any such articles into the Island or until the disposition of the same in accordance with subsection (1) of section 16, whichever is the shorter period, require any person for the time being having immediate control over the management of the hotel in respect of which, such articles have been imported or bought, as the case may be, to-

(2) Any person for the time being having immediate control over the management of an hotel who contravenes this section or willfully delays, hinders or obstructs the Comptroller or any person authorized by him in writing in the exercise of any of his powers under this section is guilty of an offence and liable on conviction thereof by a court of summary jurisdiction to a fine of $200.

(3) Subsection (3) of section 16 shall apply in respect of references in this section to the expression "this Act".

17A. Notwithstanding the provisions of this Act, the Comptroller shall not grant a licence to any person applying therefor in respect of an hotel unless the Comptroller is satisfied that certificates from the appropriate authorities have been issued in respect of that hotel.

18. (1) No building or group of buildings in respect of which a declaration is published under subsection (4) of section 2 shall, without the prior written approval of the Cabinet, be used any time within 10 years of the relevant date for any purpose other than that of an hotel.

(2) For the purposes of this section, the relevant date is the date of the publication in the Official Gazette of the notice under section 2 whereby it is declared that the said building or group of buildings shall be or, as the case may be, deemed to be an hotel for the purposes of this Act.

(3) Any person who uses any building or group of buildings referred to in this section in contravention of this section is guilty of an offence and liable on conviction thereof by a court of summary jurisdiction to a fine of $500 and in the case of a continuing offence to a further fine of $250 for each day during which the offence continues.

19. (1) Subject to this section, no hotel in respect of which any benefit conferred by section 13 or section 14 has been received shall, without the prior written approval of the Cabinet, be used any time within 7 years of the relevant date for any purpose other than that of an hotel.

(2) For the purposes of this section, the relevant date is

(3) This section shall not apply to any building or group of buildings in respect of which a declaration is published under subsection (4) of section 2 until such time as such building or group of buildings is first used as an hotel.

(4) Any person who uses any hotel in contravention of this section is guilty of an offence and liable on conviction thereof by a court of summary jurisdiction to a fine of $500 and in the case of a continuing offence to a further fine of $250 for each day during which the offence continues.

20. The Cabinet may, as a condition of the grant of any approval pursuant to subsection (1) of section 18 or subsection (1) of section 19, require that there shall be paid to the Comptroller all the sums or, in its discretion, any part of the sums, which pursuant to this Act have not been paid or have been refunded by way of customs duty or package tax on the importation or purchase, as the case may be, of any building materials or other items used in the construction, extension, alteration, re-construction or equipping of the hotel to which the said approval relates or of any building forming part of such hotel.

21. (1) Subject to subsections (2) and (3), where an hotel that is owned by the Crown is leased or otherwise assigned by the Crown to

(2) Subject to subsections (3) and (4), where any income which is exempt from income tax pursuant to subsection (1) is in the opinion of the Commissioner chargeable with Commonwealth income tax or foreign tax¹ such income may be assessed to income tax.

(3) Where any income has been assessed to income tax pursuant to subsection (2) and the Commissioner is satisfied that such income has been charged with Commonwealth income tax or foreign tax, the assessment shall be revised and such income shall be assessed to income tax at the rate or rates at which such Commonwealth income tax or foreign tax has been charged and income tax shall be paid thereon accordingly, but such rate or rates shall not exceed the rate of payment under any enactment relating to income tax for the time being in force.

(4) Subsections (2) and (3) do not apply to any income in respect of which relief from double taxation cannot be claimed under the provisions of any enactment relating to income tax for the time being in force.

(5) For the purpose of this section the expression " Commonwealth income tax " has the meaning assigned in the Income Tax Act² and "foreign tax" the meaning assigned in the Income Tax Regulations, 1969.

22. (1) The Cabinet may from time to time by order published in the Official Gazette, revoke or amend any of the Schedules or substitute new Schedules therefor.

(2) The Minister may from time to time by order published in the Official Gazette amend the Second Schedule in the light of the development of local industries.

23. The Cabinet may make regulations for carrying this Act into effect and, in particular, for-

24. Nothing in the foregoing provisions, save and except section 21 shall apply to an hotel that is owned by the Crown.

1. The provision of or improvements to lavatories, toilets and bathing facilities inclusive of plumbing.
2. The construction of a swimming pool or the improvement of any bathing facility provided for the convenience of guests residing at the hotel.
3. The construction of tennis courts, bowling greens, squash courts or other sporting facilities of a like nature for the use of guests residing at the hotel.
4. The provision of play room or nursery facilities for children of guests residing at the hotel.
5. The provision of internal telephone communications.
6. The widening of access roads to the hotel or conversion of access roads to the hotel from water-bound roads to oil-bound or concrete-surfaced roads.
7. Additions to or improvements in kitchen equipment of the hotel.
8. The provision of a room or rooms for indoor recreation and sporting facilities for the use of guests residing at the hotel.
9. The provision of a car park for the use of guests residing at the hotel.
10. The provision of improvement of refreshment counters, otherwise known as bars.

1. Furniture, made wholly or mainly of metal, other than wrought iron or aluminum furniture.

For the purpose of this head-

" aluminum furniture " does not include anodized aluminum furniture.

2. Wash-basins, baths, showers, sanitary fixtures and bathroom fittings and fixtures generally.

3. Electrical machinery, equipment, fixtures and fittings including electric light, bell and telephone equipment and appliances but excluding electric light bulbs.

4. Air-conditioning and refrigerating machinery, fixtures and appliances, including deep-freeze and ice-making machines.

8. Water pumps, water-heating apparatus, water boilers and tanks.

9. Fire-fighting equipment.

10. Electric fans.

11. Musical instruments, radios and equipment for sports, games and pastimes.

13. Crockery, cutlery, silver and plated table-ware and table glassware.