Dormant Accounts

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 or whose license has been revoked, withdrawn or otherwise be- ing dissolved.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.

 

Frequentky Asked Questions

Are monies automatically transferable to TCIG after seven (7) years of dormancy?

No, the account providers are required to un dertake several actions including notifying dormant account holders and publishing the names in Gazette, newspapers, etc.

Monies will not be transferred if the dormant account holder effects a transaction on his/her account. These transactions may include: de posits, withdrawals, passbook updating, etc.

REMINDERS & TIPS