ST. LUCIA INLAND REVENUE DEPARTMENT ISSUES GUIDELINES ON CAPITAL ALLOWANCES AND PRIVATE RECORDS
The Inland Revenue Department (IRD) has issued guidelines for self-employed individuals on the importance of keeping accurate records and claiming capital allowances.
What are Capital Allowances?
Capital expenditure is incurred on the acquisition of fixed assets required for use in a business or that increases the earning capacity of existing fixed assets. While capital expenditure is not an allowable deduction, it may attract capital allowances, which are treated as a trading expense and deducted from trading income.
Types of Capital Allowances
- Building
- Plant and Machinery
- Agricultural Expenditure
The Income Tax Act makes provision for capital allowances to be made available in respect of these expenditures. Additionally, the act allows for an initial allowance of one-fifth of the cost of the asset, as well as any amount to which the individual is entitled under the Second Schedule.
Keeping Private Records
It is essential to keep private records, including:
- Bank account records
- Business records
These records should be kept for at least 12 months and may be required during an audit. The IRD emphasizes the importance of maintaining accurate and detailed records to ensure compliance with tax regulations.
Fringe Benefits Guidelines
The IRD has also issued guidelines on fringe benefits, including:
- Fees
- Discounts
- Commissions
- Accommodation
- Motor vehicles
- Entertainment
- Other benefits
Seeking Further Information
Individuals are encouraged to seek further information on these matters by contacting the IRD’s head office in Castries or its sub-offices in Vieux-Fort and Soufriere. The IRD’s website, www.irdstlucia.gov.lc, is also a valuable resource for tax-related information.
Contact Information
- Head Office: Castries
- Telephone: 1 758 468 4730/35/66
- Fax: 1 758 453 6072
- Tax Service Center: Vieux-Fort
- Telephone: 1 758 468 4961
- Fax: 1 758 454 9218
- Soufriere Sub-Office:
- Telephone: 1 758 459 7036
- Fax: 1 758 457 1596
Note: The above information is based on the provided raw article text.