Entertainment Tax Cap 479 - as Plain Text by MWakili

LAWS OF KENYA ENTERTAINMENTS TAX ACT CHAPTER 479 Revised Edition 2012 [1990] Published by the National Council for Law Reporting with the Authority of the Attorney-General www.kenyalaw.org [Rev.

2012] CAP.

479 Entertainments Tax CHAPTER 479 ENTERTAINMENTS TAX ACT ARRANGEMENT OF SECTIONS Section 1.

Short title.

2.

Interpretation.

3.

Tax on admission to entertainments.

4.

Method of payment of tax.

5.

Penalty for admission of person without payment of tax.

6.

Tax chargeable in respect of each person.

7.

Tax on admission by subscription.

8.

Recovery of tax.

9.

Exemption of certain entertainments.

10.

Regulations.

11.

Power of entry and inspection.

12.

Power to waive tax.

13.

Tax to be revenue of Government.

14.

Repeal.

SCHEDULE DELETED 3 [Issue 1] [Rev.

2012] CAP.

479 Entertainments Tax CHAPTER 479 ENTERTAINMENTS TAX ACT [Date of assent: 27th December, 1950.] [Date of commencement: 1st January, 1951.] An Act of Parliament to make provision for the imposition and recovery of a tax in respect of entertainments, and for matters incidental thereto and connected therewith [Act No.

63 of 1950; Act No.

14 of 1957, Act No.

50 of 1958, Act No.

39 of 1959, Act No.

28 of 1961, L.N.

624/1963, L.N.

2/1964, L.N.

193/1965, Act No.

10 of 1972, Act No.

11 of 1976, Act No.

13 of 1979, Act No.

6 of 1981, Act No.

10 of 1988, Act No.

8 of 1991.] 1.

Short title This Act may be cited as the Entertainments Tax Act.

2.

Interpretation In this Act, except where the context otherwise requires admission means admission as a spectator or one of an audience and includes an admission to a ball or dance; admission to an entertainment includes admission to a place in which the entertainment is held; amateur sport deleted by Act No.

14 of 1957; collector means a District Commissioner, a Revenue Officer or any person appointed in writing by a District Commissioner to be a collector for the purposes of this Act; entertainment includes an exhibition, performance or amusement to which persons are admitted for payment, but does not include the following (a) entertainment offered by persons registered for value added tax purposes by the Commissioner of Value Added Tax under the Value Added Tax Act, 1989 (No.

7 of 1989); (b) stage plays and performances which are conducted by educational institutions approved by the Minister for the time being responsible for Education as part of learning; or (c) sports, games or cultural performances conducted under the auspices of the Ministry of Culture and Social Services; payment for admission includes any payment by a person who, having been admitted to one part of a place of entertainment, is subsequently admitted to another part thereof for admission to which a payment involving tax or more tax is required; proprietor in relation to an entertainment includes a person responsible for the management thereof and a person on whose behalf payments for admission to an entertainment are received.

[Act No.

14 of 1957, s.

2, Act No.

50 of 1958, s.

2, Act No.

39 of 1959, s.

2, L.N.

624/1963, s.

2, L.N.

193/1965, s.

2, Act No.

6 of 1981, s.

6, Act No.

10 of 1988, s.

40, Act No.

8 of 1991, s.

80.] 5 [Issue 1] CAP.

479 [Rev.

2012] Entertainments Tax 3.

Tax on admission to entertainments Except as otherwise provided in this Act, there shall be charged, levied and paid on all payments for admission to an entertainment a tax (in this Act referred to as entertainments tax) at the rate of eighteen per centum.

[L.N.

193/1965, s.

2, Act No.

8 of 1991, s.

80.] 4.

Method of payment of tax No person shall be admitted for payment to an entertainment in respect of which the payment is subject to entertainments tax except (a) with a ticket stamped with an entertainments tax stamp denoting that the appropriate entertainments tax has been paid; or (b) with a ticket purchased from a collector, denoting the appropriate entertainments tax payable thereon; or (c) in special cases with the approval of a collector, through a barrier which or by means of a mechanical contrivance which, automatically registers the number of persons admitted, unless the proprietor of the entertainment has made arrangements approved by a collector for furnishing returns of the payments for admission to the entertainment and has given security up to an amount and in a manner approved by a collector for the payment of entertainments tax.

[Act No.

50 of 1958, s.

3, L.N.

193/1965, s.

2.] 5.

Penalty for admission of person without payment of tax If a person is admitted for payment to a place of entertainment and section 4 is not complied with, the proprietor of the entertainment to which he is admitted shall be guilty of an offence and liable to a fine not exceeding two thousand shillings or to imprisonment for a term not exceeding six months, and shall, in addition, be liable to pay any entertainments tax which should have been paid.

[L.N.

193/1965, s.

2.] 6.

Tax chargeable in respect of each person Entertainments tax shall be charged in respect of each person admitted for payment and, in the case of admission by stamped ticket or by a ticket purchased from a collector, shall be paid by means of the stamp on the ticket or by the purchase of the ticket, as the case may be, and in the case of admission otherwise than by stamped ticket or ticket, purchased shall be calculated and paid on the number of admissions.

[Act No.

50 of 1958, s.

4, L.N.

193/1965, s.

2.] 7.

Tax on admission by subscription Entertainments tax, in the case of admission otherwise than by stamped ticket purchased from the collector, shall be recoverable from the proprietor as a civil debt.

[Act No.

50 of 1958, s.

4, L.N.

193/1965, s.

2.] 8.

Recovery of tax Where the payment for admission is made by means of a lump sum paid as a subscription or contribution to a club, association or society, or is for a season [Issue 1] 6 [Rev.

2012] CAP.

479 Entertainments Tax ticket or for the right of admission to a series of entertainments or to an entertainment during a certain period of time, the entertainments tax shall be paid on the amount of the lump sum: Provided that, where a collector is satisfied that the payment of a lump sum or a payment for a ticket represents payment for privileges, rights or purposes other than the admission to the entertainment, entertainments tax shall be charged on such an amount as appears to a collector to represent the right of admission to entertainments in respect of which entertainments tax is payable.

[Act No.

50 of 1958, s.

4, L.N.

193/1965, s.

2.] 9.

Exemption of certain entertainments (1) Entertainments tax shall not be charged on payment for admission to an entertainment in respect of which a District Commissioner is satisfied, on application made to him in writing before the date of the entertainment (a) that the net proceeds thereof will be applied to public purposes of a charitable, philanthropic, educational, medical, scientific or cultural nature; or (b) that the entertainment is organized by a society which is not established or conducted for profit, and that the objects of the society are of a charitable, philanthropic, educational, medical, scientific or cultural nature, and that the entertainment is in furtherance of those objects.

(2) For the purposes of subsection (1)(a), net proceeds means either the gross proceeds less the expenses of promoting the entertainment, or one-half of the gross proceeds, whichever is the greater.

(3) Every exemption under this section shall be certified in writing by a District Commissioner.

(4) In granting a certificate under this section, a District Commissioner may impose such conditions, to be specified in the certificate, as he may think proper, and a breach of any such condition shall render the certificate void.

[Act No.

50 of 1958, s.

5, L.N.

624/1963, s.

4, L.N.

193/1965, s.

2.] 10.

Regulations (1) The Minister may make regulations generally for carrying into effect the provisions of this Act.

(2) Regulations made under subsection (1) may, without prejudice to the generality of the powers thereby conferred, provide for (a) securing the payment of entertainments tax; (b) the supply and use of stamps, of stamped tickets and of tickets referred to in section 4(b), or for the stamping of tickets sent to be stamped; (c) securing the defacement of stamps, when used; (d) the use of tickets covering the admission of more than one person and the calculation of the entertainments tax thereon; (e) the payment of entertainments tax on the transfer from one part of a place of entertainment to another; 7 [Issue 1] CAP.

479 [Rev.

2012] Entertainments Tax (f) controlling the use of barriers or mechanical contrivances (including the use of the same barrier or mechanical contrivance for payments of a different amount), and for securing proper records of admission by means of barriers or mechanical contrivances.

[Act No.

28 of 1961, Sch., L.N.

624/1963, s.

5, L.N.

193/1965, s.

2.] 11.

Power of entry and inspection (1) A police officer not below the rank of Assistant Inspector, a collector and a person authorized in writing for the purpose by a collector may enter any place of entertainment while an entertainment is proceeding, and may enter a place ordinarily used as a place of entertainment at any reasonable time, for the purpose of ascertaining whether or not the provisions of this Act and of any regulations made under this Act are being complied with.

(2) A person who prevents or obstructs the entry of a police officer or other person duly authorized shall be guilty of an offence and liable to a fine not exceeding one thousand shillings or to imprisonment for a term not exceeding six months.

[Act No.

50 of 1958, s.

6, L.N.

193/1965, s.

2.] 12.

Power to waive tax The Treasury may waive the payment of entertainments tax on payment for admission to an entertainment to which section 9 is not applicable.

[Act No.

50 of 1958, s.

7, L.N.

624/1963, s.

6, L.N.

193/1965, s.

2.] 13.

Tax to be revenue of Government All entertainments tax collected or levied under this Act shall be revenue of the Government.

[L.N.

193/1965, s.

3.] 14.

Repeal The Entertainments Tax Act is repealed.

SCHEDULE Deleted by Act No.

8 of 1991, s.

80.

[Act No.

39 of 1959, s.

3, L.N.

193/1965, s.

2, Act No.

10 of 1972, s.

2, Act No.

11 of 1976, s.

4, Act No.

13 of 1979, s.

8, Act No.

10 of 1988, s.

40.] [Issue 1] 8 [Rev.

2012] CAP.

479 Entertainments Tax [Subsidiary] CHAPTER 479 ENTERTAINMENTS TAX ACT SUBSIDIARY LEGISLATION List of Subsidiary Legislation Page 1.

Entertainments Tax Regulations.

11 9 [Issue 1] [Rev.

2012] CAP.

479 Entertainments Tax [Subsidiary] ENTERTAINMENTS TAX REGULATIONS REGULATIONS UNDER SECTION 10 [G.N.

587 of 1951, L.N.

682/1961, L.N.

624/1963.] 1.

These Regulations may be cited as the Entertainments Tax Regulations.

2.

In these Regulations Commissioner deleted by L.N.

682/1961, s.

2; Government ticket means a ticket of admission supplied by a collector to a proprietor upon payment therefor, upon which is indicated the appropriate entertainments tax payable.

[L.N.

682/1961, s.

2.] 3.

A proprietor wishing to make payment of entertainments tax otherwise than by means of stamps or Government tickets shall apply to a collector, stating the period for which he wishes so to make payment and the amount of the tax he estimates will fall due for payment during that period.

[L.N.

682/1961, s.

3.] 4.

Each application shall reach a collector not later than fourteen days before the commencement of the period for which payment is to be made.

[L.N.

682/1961, s.

3.] 5.

A collector, having satisfied himself that the system of accounting employed by the applicant is such as to afford a proper check of the numbers and prices of tickets sold, shall stipulate the security which in his opinion is necessary, and upon the giving of such security shall agree to payment of the tax upon production of returns after the expiration of the period agreed upon.

[L.N.

682/1961, s.

3.] 6.

The returns to be furnished shall set out the numbers and prices of the tickets actually sold and the tax payable thereon, and shall be accompanied by the amount of the tax.

7.

The returns shall reach a collector not later than fourteen days after the expiration of the period agreed upon.

[L.N.

682/1961, s.

3.] 8.

It shall be a condition of application to make payment under the arrangement set forth in regulations 3 to 7 that the applicants books of account shall at any reasonable date and time be open to audit by a collector and the Controller and Auditor-General, in so far as is necessary to check the numbers and prices of the tickets sold.

[L.N.

682/1961, s.

3.] 9.

In all cases other than those provided for in regulations 3 to 8, tickets for entertainments liable to entertainments tax shall be numbered consecutively having printed on each the price of admission and clearly stating whether such price is inclusive or exclusive of the tax.

10.

Every proprietor shall cause to be securely affixed to each such ticket an entertainments tax stamp of the Government purchased from a collector to the value of the tax payable.

[L.N.

682/1961, s.

3, L.N.

624/1963, s.

7.] 11 [Issue 1] CAP.

479 [Rev.

2012] Entertainments Tax [Subsidiary] 11.

(1) Subject to the provisions of these Regulations, no proprietor shall deface, cut, tear or diminish a Government ticket before it is issued to the person paying for admission, or an adhesive stamp before the ticket to which it is affixed is so issued, or admit any person to an entertainment with a Government ticket, or a ticket bearing an adhesive stamp, which has been defaced, cut, torn or diminished.

(2) No person being the holder of a Government ticket, or of a ticket to which an adhesive stamp is affixed, issued for the purpose of authorizing admission to an entertainment, shall deface, cut, tear or diminish the ticket or stamp, as the case may be.

(3) The proprietor shall cause to be collected the tickets of all persons about to be admitted to an entertainment with a Government ticket or a ticket bearing an adhesive stamp, and every person about to be so admitted with such a ticket shall immediately before admission to the entertainment deliver the ticket to the person collecting the tickets.

(4) When the ticket is so collected the person collecting the tickets shall forthwith deface the stamp on the ticket by tearing the ticket into two portions across the stamp, and shall return one portion of the ticket to the person to be admitted to the entertainment, and the proprietor shall retain the other portion thereof until it is removed by a collector or a person appointed by him in that behalf, or until midday on the day following the conclusion of the entertainment.

(5) The proprietor shall keep the portions of tickets used each day separate from those used on previous days.

[L.N.

682/1961, s.

3.] 12.

(1) Where a proprietor issues a ticket purporting or intended to authorize the admission to an entertainment of more than one person, he shall cause the ticket to be clearly marked with the number of persons so authorized to be admitted and the total price charged for the ticket, and he shall not admit to the entertainment by virtue of that ticket a greater number of persons than that marked on the ticket.

(2) For the purpose of calculating the entertainments tax charge-able in such a case, there shall be deemed to be as many payments for admission as there are persons authorized to be admitted under the ticket, and each of those payments shall be deemed to be equal in amount to the total price charged for the ticket divided by the total number of persons so authorized.

13.

(1) After an entertainment in respect of which entertainments tax has been paid, a refund of the tax paid on unsold tickets and unused stamps may be claimed from a collector.

(2) No refund will be made in respect of defaced, cut, torn or diminished stamps, or stamped tickets.

(3) Every application for repayment of entertainments tax shall be made in such form as a collector may require, and the applicant shall truly furnish to a collector all particulars required by him in relation to such application.

[L.N.

682/1961, s.

3.] 14.

(1) Where entertainments tax is calculated and paid on a lump sum for a season ticket or for a ticket authorizing admission to an entertainment during a certain period of time, the proprietor shall before issuing the ticket mark it with the name of the person to whom it is to be issued, and shall not admit to the entertainment by virtue of that ticket any person other than the person named on the ticket, and no person other than the person named on the ticket shall obtain, or attempt to obtain, admission to the entertainment by virtue of that ticket.

(2) Unless the proprietor of an entertainment has made arrangements approved by a collector for furnishing returns of payments for admission and has given security to a collectors satisfaction for the payment of entertainments tax, he shall before issuing any [Issue 1] 12 [Rev.

2012] CAP.

479 Entertainments Tax [Subsidiary] such ticket affix thereto an adhesive stamp denoting the proper amount of duty chargeable thereon and shall deface the stamp by writing in ink on the face thereof the date of issue of the ticket, and any such stamp shall not be required to be defaced at the time of admission to the entertainment in the manner prescribed in regulation 11 (4).

[L.N.

682/1961, s.

3.] 15.

(1) In all cases in which admission to an entertainment or entertainments is obtained by means of life membership of, or periodical subscription to, a club, association or society, the proprietor shall furnish a collector with true periodical returns of life members and subscribers; and in the case of life members, the returns shall be furnished not later than the 30th September in each year, and in the case of subscribers not later than one month from the date upon which the period covered by the subscription commences.

(2) The returns required under paragraph (1) shall set out the number of life members or subscribers, the amount paid for life membership or as subscription, the number of entertainments given or to be given during the period for which the return is made, the number of persons (if any) a life member or subscriber is entitled to admit free, the price of admission charged to the public for that class of seat or part of the place of entertainment to which life members, subscribers and their free guests are entitled to admission and whether or not the amount paid for life membership or a subscription was for any object other than that of obtaining admission to entertainments.

(3) After satisfying himself that the returns are correct, for which purpose he shall have access at any reasonable date and time to the books and accounts of the proprietor, a collector shall assess the entertainments tax payable in such manner as he may deem reasonable, having regard to all the circumstances, and the amount of the assessment shall be payable on demand.

(4) Any person aggrieved by an assessment made by a collector under paragraph (3) may, within fourteen days, appeal in writing to the Treasury.

[L.N.

682/1961, s.

3, L.N.

624/1963, s.

8.] 16.

(1) No proprietor shall admit a person to an entertainment without payment unless that person is the holder of a ticket or other document entitling him to be admitted without payment and clearly marked Complimentary or Free, or is the holder of a badge recognized by the proprietor as entitling the holder thereof so to be admitted.

(2) No person shall enter or otherwise obtain admission to an entertainment without payment unless he is the holder of such a ticket, document or badge.

17.

(1) If the proprietor of any entertainment claims that entertainments tax ought not to be charged on admission to that entertainment by reason of the provisions of section 9 of the Act, he shall, not less than fourteen days before the date on which the entertainment is to be held, make an application to a collector claiming exemption accordingly.

(2) An application for the purposes of this regulation shall be made in such form as a collector may require, and the applicant shall truly furnish to a collector all particulars which he may require in connexion with the application.

(3) Where a collector is satisfied that, having regard to the provisions of the Act, entertainments tax is not, or if certain conditions are complied with will not be, chargeable, he shall grant to the applicant a certificate in writing to that effect.

(4) Where a certificate is granted under paragraph (3), a collector may, if he thinks necessary so to do for the protection of revenue, require the proprietor to comply with any conditions specified in the certificate, and it shall be the duty of the proprietor to comply with the conditions so specified.

[L.N.

682/1961, s.

3.] 13 [Issue 1] CAP.

479 [Rev.

2012] Entertainments Tax [Subsidiary] 18.

A reference in these Regulations to admission to a place of entertainment or to a person admitted to a place of entertainment shall be deemed to include a reference to admission of that person to another part of the place of entertainment for admission to which part a payment involving duty or more duty is required, and these Regulations shall have effect accordingly.

19.

A person who has been admitted to an entertainment in respect of which the proprietor has not made arrangements approved by a collector for furnishing returns of payments for admission and given security to the satisfaction of a collector for the payment of duty shall, upon demand made during the course of or immediately before or after the entertainment, produce to a collector or a person appointed by him in that behalf the ticket, badge, card of membership, voucher or document by means of which he was admitted, or a portion of the ticket by means of which he was admitted bearing a stamp defaced in accordance with regulation 11(4).

[L.N.

682/1961, s.

3.] 20.

No person shall purchase a Government ticket or an adhesive stamp except from a collector or a person duly appointed by him in that behalf: Provided that nothing in this regulation shall operate to prevent a person purchasing a Government ticket or adhesive stamp from the proprietor of an entertainment for the purpose of being admitted to an entertainment.

[L.N.

682/1961, s.

3.] 21.

In cases where a collector has approved of the payment of tax by the furnishing of returns in accordance with regulations 3 to 8, he shall issue a certificate to this effect, which the proprietor shall display at the entrance to the entertainment.

[L.N.

682/1961, s.

3.] 22.

A collector may, if he thinks it necessary so to do for the protection of revenue, require a proprietor to keep registers of payments for admission and records of adhesive stamps and Government tickets purchased and used, in such forms as the collector may require, and to issue tickets in such form and manner as he may require, and it shall be the duty of the proprietor to comply with such requirements.

[L.N.

682/1961, s.

3.] [Issue 1] 14.