Occupancy tax

(1) There shall be paid by each holder of timeshare rights for each period during which such holder of timeshare rights shall be entitled to occupy a timeshare unit, a tax (to be called “occupancy tax”) at the rate of six percent of the total amount payable under the sales agreement by, or on behalf of, a purchaser under section 16(3) of this Act. (2) The occupancy tax referred to in subsection (1) of this section shall be paid by the purchaser to the escrow agent pursuant to section 16 (3)(d) of this Act. and the escrow agent shall, when making payment under section 21(4)(c) or 21(5)(b) of his Act, pay the occupancy tax to the Board, which amount shall be used for the account of the Board. (3) Every escrow agent shall prepare monthly a statement in the form prescribed for the purpose of showing the Registrar the amount of occupancy tax for which he is liable to pay to the Board under this Act, and shall furnish such monthly statement not later than the fourteenth day of the following month to the Registrar together with the amount due from him as occupancy tax. If the occupancy tax is not paid as provided herein, it shall be deemed to be in default. (4) Where by reason of the failure on the part of an escrow agent to furnish the statement referred to in subsection (3) of this subsection within the period mentioned in that subsection, or by reason of any deficiency in the information contained in such statement, the Board unable to collect the occupancy tax or the Registrar is satisfied that he has not been given a true account of the occupancy tax due, the Registrar may, after consideration of any representation or information the escrow agent may make or supply to him, assess an amount which shall be deemed to be the occupancy tax for the period. The 20 Registrar shall forthwith in writing inform the escrow agent and demand the assessed occupancy tax, and the tax shall be payable within fourteen days from the date of the demand. If the occupancy tax is not paid as provided herein it shall be deemed to be in default. (5) Where any occupancy tax is in default the escrow agent shall pay in addition to such tax, (a) a penalty of a sum equivalent to ten per centum of such tax; and (b) where such tax is not paid (together with the penalty) before the expiry of thirty days after such tax has begun to be in default, a further penalty of a sum equivalent to five per centum of such tax in respect of each further period of thirty days or part thereof during which such tax is in default. (6) The Minister may, on a request made to him in writing in that behalf, waive or reduce the amount of any such penalty payable by the defaulter under subsection (5) of this section, if such defaulter proves to the satisfaction of the Minister that the failure to pay was due to circumstances beyond his control, Provided that the defaulter shall, before making such a request, pay the amount due as occupancy tax and furnish the statement required to be furnished at the time of making such payment. (7) Default in payment of the occupancy tax shall be an offence and upon summary conviction of the escrow agent in default, on the information of the Registrar, the occupancy tax in default and the penalties due thereon in terms of this section, shall be recoverable together with the costs of the proceedings. (8) Proceedings for the recovery of the occupancy tax may be commenced at any time before the expiry of five years from the day on which it becomes payable and all occupancy taxes due from the same escrow agent may be recovered on a single complaint. (9) The order for payment of the occupancy tax in default, and all penalties and costs may be enforced by distress in the manner prescribed in the Summary Jurisdiction (Procedure) Act, Cap. 99. (10) The Minister may, by Order published in the Gazette, vary the rate of the occupancy tax.