Tax newsletter - Industrial Training Fund (Amendment) Act 2011 : Comments on the Official Gazette
This Tax alert is an update to issue 3/2011 which reviewed the Industrial Training Fund (Amendment) Act 2011. The amendment has since been published in the Federal Government’s Official Gazette.
The Industrial Training Fund (ITF) was established in 1971 to promote the acquisition of skills in industry and commerce with a view of generating a pool of indigenously trained manpower sufficient for the country’s needs.
Highlights of the Amendment Act include the expansion of the use of the contributions to the fund, reduction of the maximum refund allowable, stiffer penalties for non-compliance and the removal of ambiguity by the definition of payroll cost amongst other changes.
Although the enforcement and implementation mechanism was weak under the Principal act, the Amendment Act has made the penalty for non-compliance to be substantial. The revenue base of the Fund has also been expanded and a more coordinated administrative structure put in place.