Section 2: The Income Tax Act, 2000 is amended–

(a) by the insertion of the following immediately after section 97 thereof :– 97A. Any person who fails to file a return of income without reasonable excuse, as determined by the Commissioner- General, shall be liable on conviction to a fine not exceeding Le5,000,000 or to imprisonment for a term not exceeding 2 years or to both". (b) by the repeal and replacement of section 100 by the following:– 100 (1) Upon application in writing by the tax-payer filed by the due date for a return, the Commissioner-General may extend the period in which a return of income is to be made by a maximum period of sixty days upon payment of a fee of Le5,000,000. (2) A taxpayer who fails to file a return within the maximum period of sixty days prescribed in subsection (1), shall be liable to a surcharge consisting of the average treasury bill rate plus 3% both of the fee for every day that the failure continues. (3) The granting of an extension of time under subsection (1) does not affect the due date for the payment of income tax under section 105". (c) In the First Schedule, by the substitution for the rates in Part I thereof of the following:– 2 3 of Act No. 8 of 2000. “If chargeable income is: The tax is:” Not over Le 1,800,000 Nil Over Le 1,800,000 but not over 3,600,000 15% Over Le 3,600,000 but not over 9,000,000 25% Over Le 9,000,000 30%” (d) in paragraph 12 of the Ninth Schedule, by the substitution for the penalties prescribed therein of the following:– (i) "section 154, tax evasion - Le 50,000,000 section 155, impeding tax administration - Le 50,000,000 section 156, failure to preserve secrecy - Le 50,000,000 section 157, contempt of Board - Le 40,000,000 section 158, making false statement - Le 50,000,000 section 160, failure to comply with notice or information requested - Le 40,000,000 section 161, aiding and abetting any offence mentioned herein - Le 40,000,000 section 162, offence by tax official - Le 50,000,000 “Extention of time to file returns. “Failure to file a return of income. No. 12 Finance Act 2011 No. 12 Finance Act 20114 5 (ii) each of the fines prescribed in subparagraph (i) is subject to the following qualification:- "rising by the average treasury bond rate compounded annually". (e) in subsection (1) of section 159 thereof, by the substitution for the words "ten percent of the taxpayer's chargeable income from that source" of the following:- "the higher of ten percent of the annual turnover from that source and Le 50,000,000 or imprisonment for a term not exceeding one year or both".