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Can tax relief be claimed for multiple places of abode?
An individual is only entitled to a deduction of amount paid as Interest on one property at a time. The section states that a deduction will be granted by way of mortgage interest for the acquisition or improvement to an owner occupied residential property. The key words to note are:
- Interest paid:- There must be an expenditure of interest
- Owner: The property must be owned by the taxpayer with legal documentary evidence. (Certificate of title). The revenue department will allow the deduction to the taxpayer where the property is owned by the spouse of the taxpayer and the spouse has indicated, in writing, to permit the deduction
- Occupier: The taxpayer must be occupying the property during the basis period for the year of assessment
If however, a husband and wife own two houses, either jointly or individual, and there is proof that both houses are being occupied regularly, they each can claim the interest for separate property
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I have made donations to the Church and other non profit organizations. Can these be Claimed?
Donations can only be allowed if the institution is listed on the approved list by cabinet. The most recent update to that list is S.R.O 47 of 2007. It includes the following institutions:
- Alpha centre
- Dominica Infirmary
- List of Approved Donations
- Education Trust Fund
- National Development Foundation of Dominica
- Council of Legal Education
- Scholarship through the Ministry of Education for secondary school or college within Dominica or University of the West Indies
- Princess Margaret Hospital Trust Fund
- Community Hostels Incorporated
- Carnival Organising Committee (not less than $1,000 but not more than $20,000)
- National Services Development Council
- Alpha Centre
- Dominica Infirmary
- Grotto Home
- Dominica Save the Children
- President’s Charities Foundation Inc
- Private Sector Foundation for Health
- Reaching Elderly Abandoned Citizens Housebound (REACH)
- Compassionate Hearts
- Dominica Fundamental Independent Baptist Fellowship
- Go Girls Inc
- Audaciously Ambitious Inc
- CARE of the Elderly Organisation
- Castle Bruce District Committee Development Corporation
- Committee of Concerned Women
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I understand that my sick leave benefit from social security is none taxable. Is this true?
That's true. All benefit received as Social Security benefits is exempt from Income Tax. However, you can only claim where the benefits that you were entitled to was paid to your employer as reimbursement for making the payment on behalf of the Social Security. In most instances the amounts received from your employer are taxed together with your employment Income. Therefore you are required to make the claim when filing your Tax Return so that you can be refunded.
Yes you can claim for previous years, but up to a maximum of six years.
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Is my travelling allowance taxable?
Travelling allowance is taxable according to the tax act. However, the act makes provision to exempt the travelling allowance paid to public officials.
Effective 2008, the nation budget proposed to exempt travelling allowance in the amount equal to that paid to public officials. The exemption is only allowed where the Comptroller is satisfied that the taxpayer is required to travel for the job.
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What document am I required to submit in order to claim student loan interest?
Any individual wishing to claim student loan relief as a deduction must submit to the Inland Revenue a copy of the interest statement from the Financial Institution where the loan was taken, indicating the amount of interest paid or payable to them during the calendar year. For each year that a claim is being made a letter of enrollment from the EDUCATIONAL INSTUTION attended by the student must be provided. This letter must state that the student is enrolled for the current semester and the courses due to complete.
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What evidence is needed when claiming for mortgage interest deduction?
A copy of the certificate of title for the first claims is required. This is required whether they are filing their income tax return or making a claim for tax adjustment. A statement of interest from the financial institution bearing the name of the applicant and amount of interest paid or payable must be submitted together with Certificate of Title must be provided to make such a mortgage claim.
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What qualifies me to claim student loan relief?
Student loan relief is granted to the individual who repays interest to financial institution in respect of the student loan. The individual is permitted to claim a maximum of $5000.00 in interest per student until the loan(s) is amortized. If however the student has completed studies and has not returned to the Commonwealth of Dominica, there is no entitlement to such tax relief.