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Income Tax (Standard Deduction for Individuals) Amendment Act 2020

COOK ISLANDS

Income Tax (Standard Deduction for Individuals) Amendment Act 2020

2020, No. 17

Contents

1 Title
2 Commencement
3 Principal Act amended

Part 1
Amendments in force 1 January 2020

4 Section 44 amended
5 Schedule 2A substituted
6 2020 income year

Part 2
Amendments in force 1 January 2021

7 Section 44 amended
8 Schedule 2A substituted

Schedule 1
Schedule 2A substituted
PAYE Schedule from 1 January 2020
Schedule 2
Schedule 2A substituted

An Act to amend the Income Tax Act 1997 to incrementally increase the standard deduction for individuals under the Act.

The Parliament of the Cook Islands enacts as follows—

1. Title

This Act is the Income Tax (Standard Deduction for Individuals) Amendment Act 2020.

2. Commencement

(1) This Act, except for Part 2, is deemed to have come into force on 1 January 2020.
(2) Part 2 comes into force on 1 January 2021.

3. Principal Act amended

This Act amends the Income Tax Act 1997 (the principal Act).

Part 1

Amendments in force 1 January 2020

4. Section 44 amended

(1) In section 44(1)(a)(ii), omit “$11,000” in each place where it appears and substitute “$12,800”.
(2) In section 44(1)(b), item a of the formula, omit “$11,000” in each place where it appears and substitute “$12,800”.

5. Schedule 2A substituted

Schedule 2A is repealed and the Schedule 2A set out in Schedule 1 of this Act is substituted.

6. 2020 income year

(1) A tax deduction or payment of income tax made in accordance with the principal Act before this Act is passed is lawfully made.
(2) The Collector must refund any tax that a person pays in the 2020 income year that is in excess of the amounts required by—

• (a) section 44 of the principal Act as amended by section 4 of this Act; and
• (b) Schedule 2A of the principal Act as substituted by section 5 of this Act.

(3) A person’s refund under subsection (2) must be made during the person’s tax assessment for the 2020 income year after the person has furnished an annual return to the Collector for that year.
(4) If the Collector is satisfied that a person has already been assessed for income tax for the 2020 income year, the Collector must—

• (a) amend the relevant assessments for the 2020 income year to reflect the amendments referred to in subsection (2); and
• (b) refund any excess of the amounts that must be paid for the 2020 income year.

Part 2

Amendments in force 1 January 2021

7. Section 44 amended

(1) In section 44(1)(a)(ii), omit “$12,800” in each place where it appears and substitute “$14,600”.
(2) In section 44(1)(b), item a, omit “$12,800” in each place where it appears and substitute “$14,600”.

8. Schedule 2A substituted

Schedule 2A is repealed and the Schedule 2A set out in Schedule 2 of this Act is substituted.

s 5

Schedule 1

Schedule 2A substituted
PAYE Schedule from 1 January 2020

s 7

Schedule 2

Schedule 2A substituted
PAYE Schedule from 1 January 2021