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Organization : Inland Revenue Department
Type of Facility : IRD Tax Refund Certificate
Country: Barbados

Website : https://www.gov.bb/

Barbados Tax Refund Certificate

A person due a repayment of tax under sections 68 and 68A of the Income Tax Act may opt to have the full value of the amount to be repaid issued to him by way of a tax refund certificate.

Related : IRD Registration of New Employer for PAYE : www.statusin.org/7283.html

Where the certificate by virtue of its denomination is not for the full value of the amount to be repaid, the excess shall be repaid to that person (in cash) (Sect. 69A).

The Treasury Bills and Tax Certificates Act 1987 was passed to give effect to the above (Sect.69A).

Provided here are the specifics of the TAX REFUND CERTIFICATES:-
Specifics:
1. Government assigned securities. (Treasury Bills and Tax Certificates Act )
2. Provide investment opportunities for person entitled to income tax refunds
3. Interest accrues at present at 4.5% per annum.
4. Rate of interest specified by Minister of Finance.
5. Interest is tax free.
5. Where the certificate is cashed within six months of the date of issue, no interest is payable.
6. Certificates are issued by C.I.R. in full or part payment of tax refunds as opted for on return filed
7. Available in $100, $500, $1,000, or $5 000 denominations.
8. Matures five years after date of issue
9. May be redeemed at any time by the registered holder(s) at any of the commercial banks operating in Barbados.
10. Principal plus interest accrued to date of surrender is payable on encashment.
11. No interest accrues after the certificate is cashed or matures.
12. Individuals may obtain their refunds by way of cheque or part cheque and part certificates.

Benefits:
1. They offer a higher rate of interest than is at present given by commercial banks on savings or fixed deposit accounts.
2. They offer a higher rate of return than other non government securities presently available.
3. Interest is tax exempt.
4. Government guaranteed investment.
5. Initial investment plus accrued interest available from any commercial bank on demand.

Transfers:
Tax Refund Certificates are not transferable except on the death of the holder, under the following circumstances-
The Commissioner upon application made to him and on being satisfied as to –
a the death of the holder of the certificate
b the grant of legal representation to the applicant
The Commissioner may then endorse on the certificate the name of the person entitled thereto under the will or intestacy of the holder and make the appropriate alteration in the register and from the date of endorsement and alteration, the person entitled under the will or intestacy of the holder is the holder for all purposes, of the certificate

Loss of Certificate

It is a requirement that in the event of loss of certificate the following procedure be followed leading to the issuance of a replacement certificate –
i. an affidavit has to be sworn out testifying to the loss of the certificate;
ii. details of the lost certificate to be published twice in a daily Newspaper at two (2) weeks interval;
iii. a clipping of the publications to be submitted to the Central Bank..
iv. duplicate of lost Certificate held at Central Bank will be cancelled.
v. Governor of the Central Bank will instruct Commissioner to issue replacement Certificate. Date of issue and maturity date of original certificate will be retained.

Current Year Filing:
Where a person files a return on or before April 30 of the relevant year in accordance with Section 52 and has opted for repayment of tax by way of tax refund certificates then the date of issue for that certificate shall be the 1st May of the year of filing

If the current year return is filed after April 30 the date of issue for opted certificates shall be 1st of the month following the month in which the return was filed

Prior Year Filing:
Where a person has filed a prior year return and has opted for payment of refund by way of a Tax Refund Certificate, the date of issue for the certificate shall be the first of the month, following the month in which the return was filed.