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Room Tax Act 1992

TONGA

ROOM TAX ACT 1992

No. 5 of 1992

I assent,

TAUFA'AHAU TUPOU IV
1st July, 1992.

AN ACT
TO IMPOSE A ROOM TAX ON ACCOMMODATION

[24th June, 1992]

BE IT ENACTED by the King and Legislative Assembly of Tonga in the Legislature of the Kingdom as follows:

1. This Act may be cited as the Room Tax Act 1992.

2. In this act, unless the context otherwise requires,

"accommodation" means and includes hotels, motels, boarding houses, guest houses used to provide board and or lodgings for tourists and members of the public.

"accommodation sales" means all sums or amounts received or receivable for the use of a room in the accommodation.

"Commissioner" means the Commissioner of Inland Revenue.

"Minister" means the Minister for Finance.

"tax" means the Room Tax imposed by Section 3 of this Act.

3. (1) Subject to the provisions of this Act there shall be levied and imposed on all accommodation sales a tax at the rate of 2.5 seniti for each one pa'anga or part thereof.

(2) The person liable for the tax shall be the person using the room in the accommodation.

(3) The tax shall be paid by and recoverable from the manager or proprietor of the accommodation notwithstanding the provisions of subsection (2) of this section.

(4) Any tax payable under the provisions of this section by the manager or proprietor of the accommodation may be recovered by such manager or proprietor from the person liable for the whole or part of the customer's bill.

4. (1) The manager or proprietor of accommodation shall pay to the Commissioner, within 28 days after the last day of each month the amount of the tax payable in respect of that month and at the same time the manager or proprietor of such accommodation shall sign and send to the Commissioner a return setting out the total amount of the accommodation sales during the period in respect of which the tax paid relates.

(2) Any manager or proprietor of an accommodation in respect of which tax is not paid to the Commissioner in accordance with the provisions of subsection (1) of this section shall be liable to a penalty of 30 per cent of the amount of the unpaid tax.

(3) Any manager and or proprietor of an accommodation who wilfully fails to make or cause to be made a return within the period specified in subsection (1) of this section or wilfully furnishes or causes to be furnished a return that is false or incorrect in any material particular, shall be liable on conviction to a fine not exceeding $500 or imprisonment not exceeding 6 months.

5. (1) The Commissioner may approve the form of the return to be furnished under the provisions of subsection (1) of Section 4.

(2) The Commissioner may require the manager and or the proprietor of an accommodation to keep adequate records and accounts relating to the accommodation sales.

(3) The Commissioner or any person authorised in writing by him may require the manager or proprietor of an accommodation to produce any books or records that relate to its accommodation sales or the payment of tax under this Act.

(4) Any manager and or proprietor of an accommodation who wilfully fails to comply with any requirement made by the Commissioner under the provisions subsection (2) or subsection (3) of this section commits an offence and shall be liable on conviction to a fine not exceeding $100.

6. The Minister, may with the consent of His Majesty in Council, from time to time make such rules or regulations as are in His opinion necessary or expedient for giving effect to the provisions of this Act and the due administration thereof.

Passed in the Legislative Assembly this 24th day of June, 1992.

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