As the year 2020 approaches, the Inland Revenue Department (IRD) would like to encourage all persons carrying on any trade, business, occupation or profession to ensure they renew and pay for an annual business licence on or before the due date of 31stJanuary, 2020. Liquor licences should also be renewed at the beginning of the year. A liquor licence is compulsory for persons and/or establishments (Restauranteurs, Bar Owners and Vendors) selling or keeping for sale any liquor. It is an offence to operate a business in Anguilla or to sell liquor without a licence.
Sittings for the special magistrate’s court for new and renewal liquor licences are held on the 2nd day of the first month of each quarter or on the first workday immediately following. The next sitting will be held on January 2nd, 2020. For a temporary liquor licence, you will be required to apply at the Inland Revenue Department. All businesses are encouraged to meet their legal requirement to have a valid liquor licence during 2020.
It is important to highlight a few changes to the process of obtaining a business licence in 2020. Firstly, before a business licence is issued, businesses will be required to apply for the Anguilla Fire and Rescue Service Certificate of Compliance. This is an official certification that a business will receive to show that its has taken all reasonable precautions and measures as outlined in the Fire Services Act to firstly prevent and/or to ensure safety of life and property in the event of a fire. Further information about the Certificate of Compliance can be obtained from the Anguilla Fire and Rescue Service Fire Prevention Unit. The Inland Revenue Department will be collecting the fee for the Certificate of Compliance and Business Licences.
Secondly, the Inland Revenue Department is undertaking an initiative to update the business licence registration information. During the business licence process, the Department will be collecting and updating information on all businesses in their database. This is the first step as the Department prepares to implement a new and more efficient and effective Information Technology system in January 2021.
Business owners will receive a cover letter in the mail with the business licence renewal form for 2020. The letter will explain the additional fields that will need to be updated. There will also be a checklist outlining the documents that the customer will be required to bring to the Department to renew his or her business. Information required will include two forms of ID for business owners, directors and representatives of the business. If the business is a company, company documents will also be requested.
The Department asks that customers are compliant and patient with the officers of the Inland Revenue Department during the business licence renewal process. Customers are also asked to remember that these changes to modernize the system and store relevant information more efficiently will ultimately make the service the Department provides better and more convenient.
For persons applying for a business licence for the first time, application forms should be submitted in duplicate to the Permanent Secretary of Finance.
It is important to note the following three points when it comes to obtaining a business licence. Firstly, where different places of business, stores, shops or other premises are operated in the name of one person or firm, a separate business licence shall be obtained for each place of business, store, shop or any other premises. Secondly, where a different trade, business, occupation or profession is carried on by the same person at one premise, a separate licence shall be obtained for each trade, business, occupation or profession that is carried on. Thirdly, business licences are not transferable. Every business person must obtain his or her own licence to carry out a trade, business, occupation or profession.
Fees for business licences are clearly laid out and calculated based on categories and a fee schedule. The Licence fee payable for a Business Licence depends on two primary factors. They are, the type of business and whether the person applying is a belonger or a non-belonger. For the Trades, Business, Occupations and Professions Licensing Act, a trade, business, occupation or profession is carried on by:
1) a belonger, if the trade, business, occupation or profession is at least 51% owned by one or more belongers; and
2) a non-belonger, if the trade, business, occupation or profession is at least 51% owned by one or more non-belongers.
Once an application has been properly made and the correct fee tendered, and where necessary a Fire and Rescue Service Certificate of Compliance has been issued, the Permanent Secretary shall within 15 days of any application, grant a business licence unless:
1) the applicant is a non-belonger who is not the holder of a work permit under the Immigration and Passport Act; or
2) the applicant is, under the provisions of this or any other law, disqualified from holding the licence sought.
Proof of an approved Certificate of Compliance and business license should be presented by the Business Owner to the IRD for payment and processing. Once payment has been made, a Business Licence certificate is issued. The Business Licence should always be prominently displayed on the premises of the business.
If any business that is currently holding a business licence closes, they are required to inform the IRD in writing and complete an application for closure form. This will enable the IRD to put a hold on revenue charges, so the business will not incur any further charges on the account.
It is also possible for a business to forfeit their licence. If a licensee under this Act is convicted of any offence in connection with the conduct of the business, the court may order the licence to be forfeited and that the licensee be disqualified from applying for a new licence for a period of 3 years. No part of the licence fee which has been paid will be refundable.
There are some exemptions from the requirements of having a Business Licence. The Trades, Businesses, Occupations and Professions Licencing Act does not apply in the following situations:
1) Any trade, business, occupation, or profession licensed to be carried on as such under any other law without reference to this Act for the carrying on of which an annual licence fee is paid or payable under such other law. For example, Car Rental Operators do not require a Business Licence as they pay a different fee under a different Act.
2) the sale of fish, milk, meat, fruit or agricultural products by the producers thereof.
3) any corporation or body certified by the Permanent Secretary as having been formed for the purposes of social or public welfare, education, religion, charity, art or sciences and which applies its income or profits solely for promoting such purposes.
Where business licences are required, there are penalties for those who act in contradiction to the Act. Anyone committing any of the actions below is guilty of an offence and is liable on summary conviction to a fine of $2,500 or to imprisonment for a term of 3 months. In the case of a continuing offence a further fine of $250 will be payable in respect of each day the offence continues.
a) Anyone who willfully makes a false or inaccurate representation to the Permanent Secretary;
b) Carries on or attempts to carry on without a licence a trade, business, occupation or profession which is required to be licence under this Act; or
c) Carries on or attempts to carry on any trade, business, occupations or profession for which a licence has been granted in contravention of any condition or restriction contained in such licence.
The IRD encourages those in the General Public to comply and apply for or renew their business licences for 2020. Thanks, is extended to all the law-abiding citizens who renew their business licence annually.
For further information about business licences and liquor licences, please visit the Inland Revenue Department at the former National Bank of Anguilla (NBA) Building or contact the Department at 497-8334 or email inlandrevenue@gov.ai. Please also follow the Department on Facebook at Anguilla Inland Revenue Department for relevant information and updates.
As the year ends, IRD takes this opportunity to thank The Anguillian newspaper and our readers. On behalf of the entire Inland Revenue Department, do have a Merry Christmas and a bright and prosperous New Year.
