Withholding tax on gross contract payments

(1) There shall be levied on all gross contract payments a withholding tax at the rate of three per centum of such payments. (2) The amount levied under sub-section (1) of this section, shall operate as a credit against the tax due from the contractor. (3) For the purpose of this section“contract” means a contract awarded to or to be performed by a self-employed person, professional or entity for the carrying out of works or services, or for the supply of labour or materials, or for such other works or services as the Minister may by Order published in the Gazette prescribe; “gross contract payment” means the total contract price without any deduction whatsoever. (4) Where the gross contract payment is less than three thousand dollars the provisions of this section shall not apply. (5) Every person who makes or is liable to make any gross contract payment to any person, professional or entity, shall deduct therefrom the amount specified under sub-section (1) of this section and shall within fifteen days following the end of every month, render an account and remit the amount so deducted to the Commissioner, and in the event of failure to deduct the amount or render an account as aforesaid, every such amount shall be deemed to be a debt owing from such person to the Government and shall be recoverable as such, together with a penalty of $100.00 or 10% of the tax due and payable, which ever is greater. 92 (6) Whoever fails or neglects to withhold the amount payable under this section shall, without prejudice to any other remedy available to the Commissioner, be guilty of an offence and shall be liable on summary conviction to a fine not exceeding one thousand dollars and in default of payment of the fine to imprisonment for a term not exceeding six months and in addition shall be liable to penalty of ten per centum of the amount not so withheld and remitted to the Commissioner. taxes.