Dormant Accounts Receipts

Dormant Accounts Receipts are monies held in a bank account on which no trans- actions have been effected for seven years. The monies in these accounts will be trans- ferred to the Turks and Caicos Government (TCIG) after the account provider has un- dertaken several actions. The authority for imposition and admin- istration of the receipts is the Dormant Ac- counts Ordinance, 2014.

Definitions

Account Provider - a bank, trust company and any other type of financial business which is declared to an account provider pursuant to section 19 of the Ordinance.

Dormant Account - an account on which none of the transaction as outlined in sec- tion 4 (1) of the Ordinance has been ef- fected in seven years. Dormant Account Holder - a person hav- ing a legal or beneficial interest in, or right, over, monies deemed to be held in a dormant account.

Dormancy Period - the period of seven years referred to in section 4 (1) of the Ordinance.

Special Considerations

• The Ordinance does not apply to monies held or owed at the instance of the Finan- cial Services Commission.
• Monies are not transferrable to TCIG by an account provider in receivership, liquida- tion, winding up , etc. or whose license has been revoked, withdrawn or otherwise be- ing dissolved.
• Where an account holder holds more than one accounts with an account provider, the dormancy period will not apply if transac- tions were effected on any one of the ac- counts.
• Dormancy period on fixed deposits com- mences after the fixed period has expired.
• Interest paid or account fees applied by an account provider on monies held or owed will not be regarded as a transaction under Section 4 (1) (a) of the Ordinance.

Obligations of the Account Provider

• Notify dormant account holder in writing on or before 31 July in each year on the status of his/her account and the require ment to effect a transaction on the account on or before the expiration of sixty (60) days from the date of the notice.
• Publish a notice of dormant account holders who failed to make contact with the account provider in the Ga- zette, newspaper and/or website on or before 30 November each year
• Transfer monies held in accounts to TCIG on or before 1 March each year
• Submit a report to the Permanent Sec- retary, Finance, by 1 March each year, if no dormant accounts were held.
• Submit a signed certificate of compli- ance to the Permanent Secretary, Fi- nance, not later than 1 March each year  Keep and maintain a register of dormant accounts
• Comply with Dormant Account Ordi- nance and Regulations

Obligations of the Dormant Account Holder

• Make contact with the account provid- er to confirm the status of his/her ac- counts
• Effect at least one transaction on the account to avoid dormancy
• Make a claim for monies transferred to TCIG within 6 years of the transfer.

Claims for Refunds

Applicants making a claim for monies trans- ferred to TCIG must complete the Dormant Accounts Claim Form prescribes in Regula- tions.

The Form must be completed and submitted to the Revenue Department with al support- ing document prescribed therein and may be subject to further scrutiny.

Once vetted and approved, the Revenue De- partment will authorize the Account General to issue a refund in the relevant amount.

Offences

Account Provider

• Failure to notify a dormant account holder on status of accounts held
• Failure to transfer monies in dormant accounts to TCIG
• Failure to submit a report to the Perma- nent Secretary, Finance
• Failure to submit a certificate of compli- ance
• Failure to keep and maintain a register of dormant accounts
• Obstruction of an Inspector in the exer- cise of his powers under the Ordinance
• Giving false or misleading information to an Inspector.
• Failure to comply with a request or re- quirement made by an Inspector.
• Failure to comply with a direction given by the Permanent Secretary, Finance

General

• Fraudulent claims for repayment

More details can be obtained from Dormant Accounts Brochure or contacting the Taxpayer Services of the Revenue Department.