The Public Entertainment Tax is a 10% Government tax levied on the admission to several forms of entertainment. In Anguilla, there are many events that are held strictly for entertainment and for which an admission fee is charged. This entertainment may include but is not limited to:-
a) cinematograph (motion-picture films / cinema) entertainment; b) theatrical performance, variety entertainment or conjuror’s entertainment (magician, juggler); c) boxing or wrestling contest; d) horse or donkey race; e) circus; f) public dance; and g) other form of amusement or entertainment, whether similar to any of the above or not, to which persons are admitted for payment but shall not include cricket, football or boat racing.
The Public Entertainment Tax is 10% of the cost of every ticket that would be sold or provided at point of entry for any of the above types of events.
For those who plan and execute entertainment events, there is a clear process that must be followed to pay this tax. The first step is an application to hold the event being made to the Comptroller of the Inland Revenue Department. From this application a written agreement signed by both the Comptroller, or someone on his behalf, and the proprietor of the entertainment event, will be produced with the specific requirements of the promoter. The application to hold the event MUST be made at least one month before the proposed date. This means that if a proprietor is planning to have an event, a visit to the Inland Revenue will be required prior to its holding.
There are different types and classes of entertainment and each written agreement may be slightly different, but all will make provisions for certain conditions and requirements. The agreement will likely include that persons must not be admitted for payment except by ticket, that tickets must be stamped, embossed or otherwise marked in such manner as may be specified, and that persons must be admitted for payment through a barrier or by means of a mechanical device which automatically registers the number of persons admitted at any rate of payment. The agreement will also include other pertinent information such as the manner in which the amount for entertainment tax will be determined and checked, the form in which the return must be made and the time and manner of payment for the entertainment tax.
It shall be within the discretion of the Comptroller to decline or approve any proposed arrangements, or to cancel any arrangements made, unless he is satisfied that they provide adequately for ascertaining, checking and payment of the entertainment tax. The production of a copy of any arrangement shall be clear proof of the existence and terms of the arrangement.
The second step for the proprietor for any form of entertainment, for which the Public Entertainment Tax is payable, is to arrange for payment of the tax. All returns shall be signed by, or on behalf of, the proprietor – and shall be declared by the proprietor to the Comptroller at the Inland Revenue Department within seven days after the entertainment has occurred. Payment is required when the return is made.
The Public Entertainment Tax will be levied on the non-government Summer Festival and other holiday events unless an exemption for the event is granted. Organisers or promoters of these events, and several other forms of entertainment, should also be aware that they are required to have event licences (either annual or per event). Temporary Work Permits will also be required for overseas artists and bands.
Liquor Licences (per event) are required for vendors selling alcohol during entertainment. A special liquor licence can be obtained from the Inland Revenue Department for a fee of EC$25 a day.
All persons handling food and beverages, during an entertainment event, should also have a Food Handlers Permit. A Food Handlers Permit is EC$100. Persons applying for a food handlers permit must take a stool test and undertake a physical (by a doctor), and take an educational food hygiene session. The Food Handlers Permit is valid for 2 years. Persons interested in obtaining a Food Handlers Permit should visit the Department of Health Protection, Environmental Health Unit, or call at 497-2631. Liquor licences and Food Handlers Permits help to ensure the safety of those in our community during events.
Moving forward, the Public Entertainment Tax will be enforced. If a proprietor accepts payment and entry for an event without making any arrangement or agreement to pay the public entertainment tax in full, the proprietor of the entertainment is guilty of an offence and is liable on summary conviction in respect of each offence to a fine of EC $1,250. In addition, the proprietor is liable to pay double the entertainment tax which should have been paid.
There are other circumstances which would lead to penalties. For example, a proprietor who fails or neglects to render a return or falsifies a return is guilty of an offence and is liable on summary conviction to a fine of EC$1,250.
Finally, as a means of enforcing the Public Entertainment Act, the Royal Anguilla Police Force (RAPF), and any person generally or specially authorized in writing by the Comptroller to exercise the powers discussed, may enter any place where any entertainment is being held, or is about to be held, with a view to ascertain whether the provisions of this Act, and any rules and arrangements made, are being complied with. Any person who obstructs or refuses admission to a Police Officer, or an authorized person by the Comptroller is guilty of an offence against this Act and is liable on summary conviction to a fine of EC$1,250.
The Governor in Council may make exemptions from Public Entertainment Tax for some forms of entertainment. These include:
a) entertainment when the net proceeds are not intended to be for private gain or profit
but are to be devoted wholly to philanthropic, charitable, religious or educational
purposes or to the aid of sports, or partly to one of the above purposes and partly to
another or others;
b) the entertainment is of wholly educational character; or
c) the entertainment is intended for the amusement of children.
IRD wishes to encourage voluntary compliance. As with all taxes levied, IRD hopes that those who organize or promote various forms of entertainment will pay the Public Entertainment Tax voluntarily. The Department encourages all to remember that taxes are an integral aspect of any modern society and are required to pay for essential services in Anguilla.
All questions or concerns should be directed to the Department of Inland Revenue located in the former National Bank of Anguilla (NBA) building. Persons can also contact the Department at 497-8334 or email inlandrevenue@gov.ai. Please also like IRD’s Facebook page @AnguillaIRD for updates shared by the Inland Revenue Department.
