Section 6: The Income Tax Act, 2000 is amended–

(a) in section 21 thereof, by the substitution for the word “`1994” of “2009”; (b) in section 31 thereof– (i) by the insertion immediately after “oilpalm” appearing in paragraphs (f) and (g) thereof, of the words “poultry, livestock and ruminants”; (ii) by renumbering the section as subsection (1) and inserting the following as subsection 2:- “ (2) The exemption in paragraphs (f) and (g) of subsection (1) shall apply– (a) in the case of a foreign investor– (i) if he intends to irrigate, at least, 500 hectares of agricultural land or to cultivate, at least 2,500 hectares of such land not irrigated; or (ii) if he intends to invest at least US$ 1 million in livestock production or processing; and (b) in the case of a national– (i) if he intends to irrigate, at least, 100 hectares of agricultural land or to cultivate, at least, 500 hectares of such land irrigated or (ii) if he intends to invest, at least US$500,000 in livestock production or processing. (c) in subsection (2) of section 32 thereof– (i) by inserting immediately after paragraph (a) thereof, the following new paragraph:– “(aa) cash and capital items, at their fair market values as determined by the Commissioner-General, given or donated by the taxpayer in the course of generating chargeable income or in deriving sales or promoting the activities of the business to the extent of 50% of the market value or values so determined;”; (ii) by the repeal of paragraph (b); (iii) by the substitution of a semi-colon for the full-stop at the end thereof and inserting the following as paragraph (d):- “(d) at the rate of one hundred and twenty five percent– (i) any expenses on training of staff in an approved training programme; (ii) any expenses on social services such as building of schools and hospitals and any investments outside the scope of the original investment that would also be available to the general public for use free of charge; (iii) expenses which are aimed at promoting exports and the supply of goods overseas; (iv) freight charges from the quay to a factory or processing site not located within Freetown; (v) expenditure incurred promoting an export quality standard Sierra Leonean owned product”. 4 5 “Application of Act No. 16 of 1972. of Act No. 8 of 2000. (d) in section 37 thereof, by the insertion immediately after the world “deduction” appearing in subsection (1) thereof, of the words “of 125%”; (e) in section 95 thereof, by the substitution for the word “taxpayers”, wherever it occurs in subsection (1), of the word “persons”; (f) by the insertion of the following new section:- 30A (1) Where a withholding agent– (a) fails to file the statement required by section 128; (b) fails to withhold tax as required by this Act; (c) fails to pay to the Commissioner-General any tax that has been withheld; or (d) has filed the statement required by section 128 and the Commissioner-General is of the opinion that the information provided in the statement does not correctly disclose the amount of the tax that should have been withheld, the Commissioner-General may, according to his best judgment, determine the amount of the tax payable and may make an assessment accordingly. (2) A withholding agent may file with the Commissioner- General an objection to any assessment made by the Commissioner- General under subsection (1) and the provisions of Part XVII relating to objections and appeals shall, with the necessary modifications, apply to the determination of the objection filed”. (g) (i) by the repeal and replacement of section 154 by the following:– 154. A person who willfully evades or defeats or attempts to evade or defeat tax imposed by this Act either by, among other things, physically or otherwise preventing the tax officer from access to tax information or the business premises of the taxpayer during normal working hours or the payment and collection of such tax, commits an offence and, in addition to any penalty otherwise provided, shall be liable, on conviction, to a fine not exceeding the amount specified in paragraph 12 of the Ninth Schedule or to a term of imprisonment not exceeding five years, or both.”. (ii) in paragraph 12 of the Ninth Schedule, for the fine of “Le1,000,000” specified in relation to section 154, substitute the fine of “Le10,000,000.” (h) in the Sixth Schedule– (i) by the repeal and replacement of paragraph 1 by the following:– “1. The rate of tax applicable to companies under section 21 for the year of assessment commencing after 1st January, 2010 shall be thirty percent, subject to any additional tax on profits agreed between the Ministry resposible for mineral resources and the company concerned”; (ii) in paragraph 3 (a), for “residents” substitute “affiliates”; (iii) in paragraph 3 (b), for “non-residents” substitute “non-affiliates” and for “15 per cent”, substitute “5 percent”; (iv) in paragraph 3(h), insert immediately after the word “contractors” the words “who are not party to a double taxation avoidance agreement with the Government of Sierra Leone”; and for “10 percent” substitute “5 percent”; (v) insert a new paragraph 3(j) as follows:- “3(j) on payments to non-resident contractors who are party to a double taxation avoidance agreement with the Government of Sierra Leone, 10 percent.”. (vi) paragraph 4 is deleted and replaced by the following:– “ Commissioner- General may reassess tax withheld “Ta x evasion. 6 7 (c) the nature (but not the content) of any document or information obtained by order of the Minister and the reason for ordering its production.”, (h) in the Ninth Schedule– (i) by the repeal of paragraph 3; (ii) in paragraph 6, by the substitution for “five percent” appearing therein of ‘twenty percent”.