TONGA

CONSUMPTION TAX (AMENDMENT) ACT 2005

Act 3 of 2005

AN ACT TO AMEND THE CONSUMPTION TAX ACT 2003

I assent,

TAUFA'AHAU TUPOU IV, 
18th July, 2005 

[29th June, 2005]

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

1. (1) This Act may be cited as the Consumption Tax (Amendment) Act 2005. 
	
	(2) In this Act, "Principal Act" means the Consumption Tax Act 2003. 

2. Section 2 of the Principal Act is amended as follows –

	(a) in the definition of "enterprise", insert in paragraph (a), the words "whether or not" before the word "undertaken"; 
	
	(b) in the definition of "Consumption Tax period", insert the words "and as from 1 October 2005, means a period of a month commencing on the first day of each month" after the word "December"; and 

(c) delete the words " "Consumption Tax" & "Consumption Tax period" " appearing before the definition of "enterprise". 

3. Section 6 of the Principal Act is amended as follows -

(a) 	insert the following subsection after subsection (2) –

"(2A) A person in receipt of a supply of services to which section 15 applies and who is not required to apply for registration under subsection (1) shall apply for registration, if –

	(a) at the beginning of any 12 month period there are reasonable grounds to expect that the total value of the services received by the person including any other taxable supplies he makes in that period will be $100,000 or more; or
	
	(b) at the end of any 12 month period the total value of services received by the person, including any other taxable supplies he makes is $100,000 or more." 

(b) insert after the words "subsection (1)" in subsection (5), a comma and "(2A)".

4. Section 7(5) of the Principal Act is amended as follows -

	(a) delete the full stop and inserting a semicolon and the word "or" after the word "certificate" in paragraph (b); and
	
	(b) 	insert the following paragraph after paragraph (b) -

"(c) in the case of an application required under section 6(2A) on the date the provisions of section 15 first apply to the person or from the date set out in the Consumption Tax registration certificate."

5. Section 9 of the Principal Act is amended a follows — 

(a) delete subsection (4); 

(b) delete the words "other than" in paragraph (a) of subsection (5) and substituted by "including"; 

(c) renumber the current subsection (5) as subsection (4). 

6. Section 11 of the Principal Act is amended by deleting subsection (4) and renumbering subsections (5), (6) and (7) as (4), (5) and (6). 

7. The Principal Act is amended by inserting the following new section after section 14 -

"14A. The Chief Commissioner may, if the value of an import of goods cannot be determined under section 14(a) or if he is satisfied that the value of an import of goods ascertained under section 14(a) is not the correct value of the goods, treat the import of goods as a supply of goods made in Tonga at the relevant time and the value shall be determined in accordance with section 3."

8. 	Section 15 of the Principal Act is amended as follows –

(a) renumber the existing section 15 as "15(1)"; and 

(b) insert the following subsection after section 15(1) -

"(2) Where the supplier of the service is the taxable person receiving the service in Tonga, such supplier shall be treated as a person other than the taxable person receiving the service and the supply shall be taken to have occurred between two separate independent persons." 

Passed in the Legislative Assembly this 29th day of June, 2005. 

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