Home | Databases | WorldLII | Search | Feedback Tonga Sessional Legislation

  Download original PDF

Foreign Exchange Levy Act 1992

TONGA

FOREIGN EXCHANGE LEVY ACT

No. 6 of 1992

I assent,

TAUFA'AHAU TUPOU IV

1st July, 1992.

AN ACT
TO IMPOSE A FOREIGN EXCHANGE LEVY

[24th June, 1992]

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

Short Title

1. This Act may be cited as the Foreign Exchange Levy Act 1992.

Interpretation

2. In this Act, unless the context otherwise requires:-

"bank" means any person or body carrying on in Tonga the business of banking or purchasing or selling foreign currency;

"Commissioner" means the Commissioner of Inland Revenue and includes any person for the time being authorised to exercise or perform any of the powers or functions of the Commissioner;

"Department" means the Inland Revenue Department;

"foreign currency" means the bank notes or other currency of any country other than Tonga, and includes postal notes, money orders, promissory notes, bill of exchange, and any other negotiable instruments payable otherwise than in the currency of Tonga;

"levy" means the foreign exchange levy imposed by this Act;

"Minister" means the Minister of Finance;

"purchase or sale of foreign currency" includes any dealing or transaction having the effect of a purchase or sale or exchange of foreign currency.

Foreign exchange levy imposed

3. (1) On the date this Act comes into force, every bank shall pay a levy to be known as the foreign exchange levy.

(2) The levy imposed by this Act shall be payable in respect of every purchase and sale of foreign currency in Tonga except upon purchases and sales of foreign exchange from one bank to another bank and from or to Government. Provided that the payment of dividends to a shareholding Bank will not be exempted from the levy.

(3) The levy shall be payable monthly to the Commissioner on the due date.

(4) For the purposes of this Act the due date shall be the fifth working day of every month in respect of the levy payable on the purchase or sale of foreign currency during the preceding month.

Rate of levy

4. The levy shall be assessed and paid at the rate of seven tenths of one percent of the pa'anga value of every purchase and sale of foreign currency.

Penalty payable on unpaid levy

5. (1) Any bank failing to pay the levy within 7 days after the due date on unpaid levy shall be chargeable, by way of penalty, with additional levy of 10 percent of the amount of the unpaid levy.

(2) Any penalty charged under subsection (1) shall be added to and deemed part of the levy payable and recoverable in accordance with this Act.

Relief from additional levy

6. On application for relief made in writing by or on behalf of any bank, the Commissioner, if having regard to the circumstances of the case thinks it equitable so to do may, with the approval of Cabinet, grant relief to the bank, by the remission or refund the whole or part of the additional levy.

Recovery of levy

7. The levy payable on this Act shall be recoverable by the Commissioner by legal action as a debt due to the Government.

Furnishing of information and returns

8. Notwithstanding anything in any other Act, the Commissioner or any member of the Department authorised by the Commissioner may from time to time direct any bank to furnish, within such period shall be specified in the direction, all such information or returns relating to that bank's dealings in or purchases or sales of foreign currency as the Commissioner may require for the purposes of this Act, and it shall be the duty of such bank to comply with the direction within that period.

Powers of entry and inspection.

9. For the purpose of verifying the correctness of any information or return furnished by any bank under this Act, or for the purpose of securing compliance with the provisions of this Act or of any directions issued pursuant to this Act, the Commissioner or any member of the Department authorised by the Commissioner may, not withstanding anything in any other Act:

(a) Enter any building or place used by the bank for the purpose of its business; and

(b) Inspect and take copies of such documents or records as are kept by the bank in relation to its dealings in or purchases or sales of foreign currency.

Offences

10. Any bank:

(a) Which contravenes or fails to comply with any provision of this Act or any lawful directions given under or pursuant to this Act; or

(b) Which furnishes any false information or false return to, or obstructs any person exercising, performing or discharging any power, duty or function under or pursuant to this Act,

commits an offence and shall, on conviction, be liable to a fine not exceeding $5,000.

Act to be in addition to and not in derogation of currency and exchange control legislation

11. This Act shall be in addition to and not in derogation of the provisions of the Foreign Exchange Control Act (Cap. 103) and the regulations made under that Act, and the National Reserve Bank of Tonga Act (Cap. 102).

Regulations

12. His Majesty in Council may from time to time make regulations for all or any of the following purposes:

(a) Prescribing the form of returns to be made under this Act, the particulars to be set forth in such returns, the persons by whom and the times when or within which such returns are to be made, and the forms of assessments, notices and other documents necessary in order to give effect to the provisions of this Act; and

(b) Providing for such other matters as are contemplated by or necessary for giving effect to the provisions of this Act and for its due administration.

Administration

13. This Act is administered in the Inland Revenue Department.

Passed in the Legislative Assembly this 24th day of June, 1992.

-------------------------------------