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GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO
BOARD OF INLAND REVENUE (B.I.R.)
INSTRUCTIONS
2005
PARTNERSHIPS, JOINT VENTURES, TRUSTS
FORM 1D
AND ESTATES OF DECEASED PERSONS
PLEASE READ THESE INSTRUCTIONS CAREFULLY
The Tax Return for 2005 is due on 30th April, 2006. A penalty of $100.00 is imposed on the members of partnerships,
Joint Ventures, Trusts and Estate of Deceased Persons if the return is filed after 31 st October, 2006 and thereafter
for every six months or part thereof that the tax return remains outstanding.
Please note that the return must be completed for a period not exceeding twelve (12) months except in the case of
cessation of business.
GENERAL 13. The following particulars should be supplied in respect of
1. Complete all sections of the Form and supply all information claims for Bad Debts:
required. Write “not applicable” in sections where appropriate. (a) The name and address of the Debtor;
2. Attach audited Balance Sheet, Manufacturing, Trading and (b) The amount of the Debt;
Profit and Loss Account, and Appropriation Account. Enclose a (c) The nature of the Debt;
reconciliation of Fixed Assets, Reserves and Provisions. (d) The date on which the Debt was incurred;
Where more than one activity is carried on, departmental (e) The reason for write-off;
accounts should also be submitted. (f) Details of attempts made to collect the Debt.
3. Where schedule space is insufficient use separate schedules in
14. Where a specific provision is made for doubtful debts the
the format indicated.
particulars indicated above should be furnished.
4. Attach a copy of Will after probate, Letters of Administration
15. Attach a statement showing particulars of Bad Debts
or Trust Instrument if this is the first Income Tax Return of the
recovered during the year and the total must be included on Page 2,
Estate of deceased person or of the Trust.
Schedule A, Line 9.
5. If this is the first Partnership Return, please attach a
statement with the following information: SCHEDULES
(a) Opening Balance Sheet; 16. Schedule A—Computation of Net Income or Loss. Please
(b) Copies of all agreements regarding the acquisition of the complete in the format indicated.
business of any proprietorship, partnership or Company; A preference dividend paid by a resident Co mpany to a
(c) Copy of Partnership Agreement, or if there is no written partnership is subject to tax at source at fifteen per cent (15%) and the
agreement, full particulars of the verbal agreement; dividend so paid is deemed not to be income of the partnership. The
(d) Completed Form P.II (to obtain a file number). partnership may however elect to treat the dividend as its income
6. Form P.II is obtainable from the Inland Revenue Division, where the tax on the partner’s chargeable income inclusive of the
St. Vincent Street, Port-of-Spain, or the South Regional Office, Cipero dividend is less than the tax deducted at source on the dividend.
Street, San Fernando or the East Regional Office, No. 6 Prince Street, 17. Schedule B—Apportionment of Net Income.
Arima or the Tobago Regional Office, Co-op. Building, Sangster’s Hill (a) Column 5 shows each partner’s share of Income/Loss for
Road, Scarborough, Tobago. the year. This is to be reported on Form 1A, Page 3, Lines
7. All accounts and returns should be stated in Trinidad and 1, 3, 4 and 5 as applicable.
Tobago currency. (b) Column 6 shows each partner’s share of short-term capital
8. Sign the General Declaration on Page 1. Gain/Loss for the year. This is to be reported on Form 1A,
9. The principal business activity is the activity, which accounts Page 5, Schedule G.
for the largest percentage of gross receipts. (c) Where a partnership invests in shares in a Venture
10. Submit a statement of interest received from mortgages, loans, Capital Company, the tax credit is to be apportioned
bank accounts, de bentures, bo nds and other so urces sho wing among partners in column 8 using their Profit/Loss
separately: sharing ratio. Enter on Form 1A, Page 2, Section D,
Line 1.
(a) Tax exempt interest. (Enter on Page 3, Schedule E).
(b) Dividends from Building Societies. 18. Schedule C—Cost of Sales or Operations.
(a) Costs of Sales—If the production, manufacture, purchase
11. Rents received.
or sale of merchandise is an income-determining factor in
Submit a statement showing the following: the trade or business, stocks or merchandise on hand
(a) Situation of the property; s houl d be take n a t th e b eginni ng and end o f th e
(b) Gross rents received; accounting period, and may be valued at cost or market
(c) Amo unt cl aim ed as Tax Exempt Incom e from value whichever is lower.
property. (Enter on page 3 Schedule E); (b) A method of stock valuation once properly adopted is
(d) Year of completion of each property from which binding until permission to change is obtained from the
income is exempt. Board. Application for permission to change a method of
stock valuation must be made in writing and filed with
12. Also include on statement— the Board of Inland Revenue within ninety (90) days after
(a) a description of all repairs carried out and the cost of each job; the beginning of the income year in which it is desired to
(b) expenses incurred in respect of rates and taxes, fire effect a change.
insurance premiums; (c) In case the stocks reported in this Schedule do not agree
(c) interest on mortgage or loan, stating full names and with the Balance Sheet, attach a statement explaining the
addresses of persons to whom such interest was paid. difference.
Please note that where property is used rent-free by the occupier as a residence, (d) Stock lists should be retained by the Partnership or Joint
loan interest limited to $18,000 is allowable provided that the Lands and
Venture for a period of six (6) years after the end of the
Buildings Taxes for 2005 were paid. Submit the Lands and Buildings Taxes
receipts as evidence of payment. relevant accounting period.
Lines 2, 3 and 4 must be completed by stating the amount or by Schedule I—Part II—To be completed where assets were purchased
indicating “not applicable”. after 1/1/95. See Seventh Schedule of the ITA Chap.75:01 for rates,
descriptions and classes of assets.
19. Schedule D—Statement of Foreign Income.
(a) Enter particulars of Foreign Income and where different 25. Schedule J—Balancing Allowances and Charges.
types of income are subject to different rates of tax in any (a) Where an asset is sold or disposed of, a Balancing
foreign country show separately under columns 2, 3, 4 and 5. Allowance or Balancing Charge may arise.
(b) Certificates of Assessment must be supplied. (b) The Balancing Allowance or Charge is the difference of
20. Schedule E—Tax Exempt Income. columns 5 and 7. The Balancing Charge however is
restricted to the Wear and Tear actually granted in
All tax exempt income must be entered in this Schedule.
respect of the assets.
Attach separate schedules wherever applicable. Enter total (c) On disposal of private motor vehicles where the written-
on Page 2, Schedule A, Line 11. down value or cost was limited to $100,000, the proceeds
of disposal shall be deemed to be as follows:
21. Schedule F—Short-term Capital Gains (Assets held for not
more than 12 months). Proceeds from disposal
x 100,000.
(a) Apportion current year’s net gain or allowable loss on Actual value or cost
Page 2, Sche dule B, co lum n 6 using Partners hip’s
Profit/Loss sharing ratio. Gain or loss is then to be 26. Schedule K—Employment Allowance.
transferred to Form 1A, Page 5, Schedule G. An employment allowance, computed in accordance with the
(b) Do not include assets in respect of which no chargeable Eighth Schedule (Income Tax Act, Chap. 75:01) is to be granted to a
gains or allowable losses accrue on disposal. person engaged in any trade in respect of every additional worker
whom he employs during the year of income, for wages not exceeding
22. Schedule G—Gross Payments—Complete Parts I and II. $4,000 per month. The allowance is equal to 200 per cent of the salary
In ascertaining the chargeable income of any person for any year or wages actually paid to each additional worker for the duration of
of income, no deduction shall be allowed from the income in respect of his unbroken employment not exceeding 12 consecutive months.
rental payments incurred for the purpose of the production of income
Note: A person engaged under a contract for services, i.e., an independent
unless information relating to such payments and to the payee is
contractor is not a worker for employment allowance purposes.
furnished to the Board in a form approved by the Board. Please
complete Schedule G, Part II found on Page 4 of the Return. Schedule K1 — Apprenticeship Allowance.
23. Schedule H—Promotional Expenses. An Apprenticeship Allowance, computed in accordance with the
Complete Schedule H on Page 4 of the Return. Ninth Schedule of Income Tax Act, (ITA) Chap. 75:01 is to be granted
to a person engaged in any trade in respect of every apprentice hired
A person claiming this expense must be engaged in a trade or on or after 1st January, 2005 for a period not exceeding six months
business including commercial farming carried out on an approved under an apprenticeship programme registered with the National
agricultural holding. Training Agency.
Promotional Expenses are allowable where they were wholly and
exclusively incurred in order to create or promote the expansion of 27. Schedule L—Venture Capital Credit.
foreign markets for the export of: A person who invests in shares in a Venture Capital Company
(a) architectural engineering, design, quantity surveying or will be entitled to a tax credit equivalent to the marginal rate of tax of
contracting services in connection with the building the amount received by the Venture Capital Company for those shares
industry; or for the year of income. The tax credit is allowed only to the original
(b) goods and agricultural produce manufactured or produced purchaser of the shares. Where the amount of the tax credit cannot be
in Trinidad and Tobago and shipped in commercial wholly set off in the year of income, the amount of the unclaimed tax
quantities. credit may be carried forward and set off against the tax assessed for
succeeding years of income.
The Services at (a) must be performed by a person resident in
Trinidad and Tobago for a recipient who is outside of Trinidad and Attach tax credit certificate in support of claim. Complete
Tobago. Schedule L on Page 6.
The amount allowed as a deduction is equivalent to one hundred (a) Schedule L1—Production Company Allowance
and fifty per cent (150%) of the amount actually expended. An allowance computed in accordance with section 10K of
the Corporation Tax Act, (CTA), Chap. 75:02 is to be
24. Sch edule I —Part I —Wear and Tear Allowance—To be
granted in computing the Chargeable Profits of a company
completed where assets were purchased prior to 1 / 1 /95.
for a year of income. This allowance is equal to 150% of
(a) When claiming Wear and Tear, please complete this
the actu al expense s incurred up to a ma xi mum o f
Schedule.
$1,000,000. The expenditure must be in respect of the
(b) Wear and Tear Allowance will not be granted unless company’s own audio, visual or video productions, for
Lands and Building Taxes for 2005 were paid.
educational purposes or promoting or reflecting local
Submit a list of all the properties housing the plant and entertainment or local culture for radio or television. In
machinery and copies of the Lands and Buildings Taxes accordance with section 10N this allowance shall not be
receipts for 2005 as evidence of payment of Lands and
granted in the absence of Certification from the Minister.
Buildings Taxes.
(b) Schedule L 2 —Art and Culture/Sportsmen, Sporting
(c) Items that have been disposed of should be entered on this
Activity/Audio, Visual or Video Production Allowance
Schedule as well as on Schedule J.
(d) Wear and Tear Allowance is to be calculated on the Art and Culture
Written-down Value of assets at the beginning of each
An Art and Culture Allowance, computed in accordance
accounting period.
with section 10G of the CTA, Chap. 75:02 is to be granted
(e) For the purpose of calculating Wear and Tear on private in computing the chargeable profits of a company for a
motor cars the value is limited to a maximum of $100,000
year of income. The allowance is equal to 150 per cent of
in respect of the Written-down Value as at 1/1/93 or the
the actual expenses incurred. The allowance must not
purchase price on or after 1/1/93.
exceed $1,000,000.
Sportsmen/Sporting Activity 28. Schedule M—Balance Sheet. Please submit details in the
An allowance granted in accordance with section 10I of format indicated.
the CTA, Chap 75:02 in computing the chargeable profits
of a company for a year of income. The allowance is equal 29. Schedule N—Approved Commercial Farming.
to 150 per cent of the actual e xpenses incurred in In accordance with section 14 of the ITA Chap, 75:01
promoting or sponsoring sportsmen, sporting activities or
Please complete Schedule N on Page 8 and attach a copy of the
events. The allowance shall not exceed $1,000,000.
approval from the Minister of Agriculture, and a Statement of Income
N.B: The deduction shall only be granted in respect of
and Expenditure.
Nationals of Trinidad and Tobago.
The period of exemption cannot exceed ten years from the date of
Audio, Visual or Video Production approval of the agricultural holding.
An allowance computed in accordance with section 10J of
the CTA, Chap. 75:02 to companies sponsoring audio, 30. Schedu le O—Hu man Resource Development/Training
visual or video productions for the purpose of local Allowance.
education or local entertainment or reflecting local In accordance with section 10B of the ITA Chap, 75:01 and section
culture for radio or television. This allowance shall be 10E of the CTA, Chap, 75:02.
equivalent to 150% of the actual expenditure incurred
limited to $1,000,000. In accordance with section 10N of Please complete Schedule O on Page 8.
the CTA, this allowance shall not be granted in the
absence of Certification from the Minister. 31. Schedule P—Green Fund Levy Liability.
Please complete Schedule P on Page 8.
Schedule L3 — Aggregate Allowances/Deductions
Please complete Schedule L3 where applicable. Green Fund Levy is payable at the rate of 0.1% on the Gross
Sales or Receipts of a company carrying on business in Trinidad and
Where allowances are granted in respect of (1) Prodution
Tobago, whether or not such business is exempt from the Business
Com pa ny Allo wance, (2 ) Traini ng Allo wa nce , (3 )
Scholarship Allowance, (4) Sponsorship of Art and Levy.
Culture,Sportsmen, Sporting Activities, Audio, Visual or
Video Production and (5) Covenant Donations, the PLEASE NOTE: FOR THE PURPOSE OF GREEN FUND LEVY
aggregate allowance shall not exceed $1,000,000. THE WORD “COMPANY” INCLUDES A PARTNERSHIP.
32. Schedule Q—Instalments paid in respect of Green Fund Levy.
Please complete Schedule Q on Page 8.
G.P., TR./TO.—W 800—20,000— /06
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