Preamble
[Coat of Arms: UNITY FREEDOM JUSTICE]
SIERRA LEONE GOVERNMENT
FINANCE ACT,
2017
BEING AN ACT TO PROVIDE FOR THE
IMPOSITION AND ALTERATION OF TAXES
FOR THE YEAR 2017 AND FOR OTHER
RELATED MATTERS.
ACT
Supplement to the Sierra Leone Gazette Vol. CXLVIII, No. 30
dated 8th June, 2017
SIGNED this 1st day of June, 2017.
DR. ERNEST BAI KOROMA,
President.
(LS)
No. 1 [Coat of Arms] 2017
Sierra Leone
THE FINANCE ACT, 2017 [Margin: Short title.]
Being an Act to provide for the imposition and alteration of taxes for the year 2017 and for other related matters.
[ ] [Margin: Date of commencement.]
ENACTED by the President and Members of Parliament in this present Parliament assembled.
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[Margin: commencement.] 1. This Act shall commence on the 1st day of January 2017.
CONTROL OF BETTING AND LOTTERIES ACT, 1969
[Margin: Amendment of section 3A of Act No.3. of 1969.] 2. Section 3A of the Control of Betting and Lotteries Act, 1969 is amended by deleting that section and substituting the following new section-
[Margin: "Tax on lottery winnings.] 3A (1) A person who receives prize winning money of at least Le 500,000 that is paid in accordance with this Act shall be liable to pay income tax on that prize winning money.
(2) The person or body making a payment of prize winning money under subsection (1), shall withhold tax as follows–
(a) for prize winning money up to Le10,000,000 – at the rate of 10%of the prize-winning amount; or
(b) for prize winning money above Le 10,000,000 at the rate of 20% of the amount
Provided that the withholding tax under this subsection shall be final.
(3) The deadline for the withholding of any monies under subsection (2) shall be not later than fifteen days after the end of the month in which the draw is made or such monies are paid.
(4) Section 129 of the Income Tax Act, 2000 shall apply to the failure to withhold the tax imposed by subsection (2).
(5) A withholding agent of any prize- winning money shall submit to the Commissioner-General the following particulars in respect of every person to whom any prize winning money is paid, namely–
No. 1 Finance Act 2017 3
(a) name and contact address of that person;
(b) total prize money won;
(c) total tax withheld;
(d) tax winnings for the month."
[Margin: Insertion of new section in Act No 3 of 1969.] 3. The Control of Betting and Lottories Act 1969, is amended by imserting the following new section immediately after section 3A-
[Margin: * Tax on gaming and lottory products] 3B A royalty tax of 0.25% on gross revenue from sales of all gaming and lotteries products shall be paid by all gaming and lottry companies
PAY-ROLL TAX ACT, 1972
[Margin: Amendment of section 2 of Act No. 16 of 1972.] 4. Section 2 of the Pay-Roll Tax Act, 1972 is amended by deleting subparagraphs (i) and (ii) and substituting the following new subparagraphs–
"(i) for each employee, who is a citizen of an ECOWAS country – Le1,500,000.
(ii) for each employee, who is a citizen of a Non-ECOWAS country – Le 5,000,000".
FOREIGN TRAVEL (TICKET) TAX ACT, 1975
[Margin: Amendment of section 3 of Act No. 14 of 1975.] 5. Section 3 of the Foreign Travel (Ticket) Tax 1975 is amended by deleting that section and substituting the following new section-
[Margin: Imposition of tax on persons liable to pay.] 3. "(1) Subject to this Act every person departing from Sierra Leone by ship, aircraft or any other means of transport shall pay on or before the date of his departure a foreign travel ticket tax calculated at the rates specified in the Schedule, irrespective of whether such ticket is purchased, obtained, issued or received in Sierra Leone."
4 No. 1 Finance Act 2017
(2) The tax shall be paid by the person departing from Sierra Leone to the owner or to any other person issuing the travel ticket or from whom the travel ticket is purchased or obtained and the owner or any other such person, as the case may be, shall on or before issuing or delivering the travel ticket or granting accommodation to the travel ticket holder–
(a) collect the tax thereon; and
(b) provide the travel ticket holder with a written statement in duplicate certifying that the tax has been fully paid and collected by him.
[Margin: Amendment of section 4 of Act No 14 of 1975.] 6. Section 4 of the Foreign Travel (Ticket) Tax 1975 is amended by deleting that section.
[Margin: Amendment section 5 of of Act No 14 of 1975.] 7. Section 5 of the Foreign Travel (Ticket) Tax 1975 is amended by–
(a) renumbering that section as section 4 and sections 6 to 16 are renumbered accordingly;
(b) deleting the word "and 4" in line 7 of subsection (1); and
(c) deleting sub-section (2) and substituting the following new subsection -
"(2) For the purpose of subsection (1) a person shall be liable to pay the tax or additional tax, as the case may be, on the ticket from Sierra Leone to a destination beyond that originally declared by such person prior to his departure from Sierra Leone where it appears to the Commissioner General that such person travelled beyond his
No. 1 Finance Act 2017 5
declared destination or returned to Sierra Leone from a place other than the originally declared destination or was in that destination in transit only from the date of his arrival in the said place; the tax payable shall in such event be determined on the ticket from Sierra Leone to the ultimate destination as if the ticket was purchased, obtained, issued or received in Sierra Leone prior to his departure."
[Margin: Amendment of section 14 of Act No 4 of 1975.] 8. Section 14 of the Foreign Travel (Ticket) Tax, 1975 is amended by deleting the words "five hundred Leones" and substituting the words "Five thousand United States dollars or it equivalent in leones".
[Margin: Amendment of section 16 of Act No 14 of 1975.] 9. Section 16 of the Foreign Travel (Ticket) Tax, 1975 is amended by inserting immediately after that section the following Schedule–
SCHEDULE
| | Economy | Business | First Class |
|---|---|---|---|
| | $ | $ | $ |
| Departing to an ECOWAS country | 25 | 50 | 75 |
| Departing to a non-ECOWAS country | 55 | 170 | 250 |
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CUSTOMS TARIFF ACT, 1978
[Margin: Amendment of Section 7 of Act No. 16 of 1978.] 10. Section 7 of the Customs Tariff Act, 1978 is amended by inserting immediately after section 7 the following new section–
[Margin: *Exemption from import duty.] "7A (1) Section 7 shall not apply to institutions registered as non-governmental organization with the Ministry of Finance unless the import duty on their imports have been paid into an escrow account established by the Minister for that purpose and then subsequently reclaimed on proof of exemption from import duty under Second Schedule to the Customs Tariff Act, 1978.
(2) Where import duty has been paid as reffered to under sub section (1), the Ministry of Finance shall refund the paid import duty within 60 days failing which the refund shall be made with interest at the Commercial Bank lending rate".
[Margin: Amendment of First Schedule to Act No. 16 of 1978.] 11. The First Schedule to the Customs Tariff Act, 1978 is amended by –
(a) deleting Heading 11.01 and substituting the following new Heading–
| HEADING | H.S. CODE | STIC | DESCRIPTION | TARIFF |
|---|---|---|---|---|
| 11.01 | 1101.00 | 046.1 | Wheat or meslin flour | 20% |
(b) deleting Heading 20.09 and substituting the following new Heading –
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(c) deleting Headings 22.01, 22.02 and 22.03 respectively and substituting the following new Headings -
| HEADING | H.S. CODE | STIC | DESCRIPTION | TARIFF |
|---|---|---|---|---|
| 22.01 | | | Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow. | |
| | 2201.10 | 111.01 | -Mineral waters and aerated waters | 30% |
| | 2201.90 | 111.01 | -Other | 30% |
| 22.02 | | | Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09 | |
| | 2202.10 | 111.02 | -Waters, including mineral and aerated waters, containing added sugar or other sweetening matter or flavoured | 30% |
| | | | -Other: | |
| | 2202.91 | 111.02 | - - Non-alcoholic beer | 30% |
| | 2202.99 | 111.02 | - - Other | 30% |
| 22.03 | 2203.00 | 112.3 | Beer made from malt | 30% |
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(d) deleting Headings 24.01, 24.02 and 24.03 respectively and substituting the following new Headings -
| HEADING | H.S. CODE | STIC | DESCRIPTION | TARIFF |
|---|---|---|---|---|
| 24.01 | | | Unmanufactured tobacco; tobacco refuse. | |
| | 2401.10 | 121.1 | -Tobacco, not stemmed/stripped | 25% |
| | 2401.20 | 121.2 | -Tobacco, not partly or wholly stemmed/stripped | 25% |
| | 2401.30 | 121.3 | -Tobacco refuse | 25% |
| 24.02 | | | Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. | |
| | 2402.10 | 122.1 | -Cigars, cheroots and cigarillos, containing tobacc | 25% |
| | 2402.20 | 122.2 | -Cigarettes containing tobacco | 20% |
| | 2402.90 | 122.31 | -Other | 20% |
| 24.03 | | | Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" or "reconstituted" tobacco; tobacco extracts and essences. | |
| | | | -Smoking tobacco, whether or not containing tobacco substitutes in any proportion: | |
| | 2403.11 | 122.32 | - - Water pipe tobacco specified in Subheading Note 1 to this Chapter | 20% |
| | 2403.19 | 122.32 | - - Other | 20% |
| | | | -Other: | |
| | 2403.91 | 122.39 | --"Homogenised or reconstituted" tobacco | 20% |
| | 2403.99 | 122.39 | - - Other | 20% |
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EXCISE ACT, 1982
[Margin: Amendment of Section 2 of Act No.6 of 1982] 12. Section 2 of the Excise Act 1982 is amended by inserting immediately after the definition "excisable goods" the following new definition -
"excisable services" mean all services specified in the Third Schedule.
[Margin: Amendment of Section 3 of Act No.6 of 1982.] 13. Section 3 of the Excise Act 1982 is amended by deleting that section and substituting the following new section–
[Margin: Goods and Services in First Schedule] " 3. Except as otherwise provided for in this Act, excise duty shall be levied on any goods and services specified in the First Schedule and Third Schedule.
[Margin: Insertion of new section 3A in Act No. 6 of 1982.] 14. The Excise Duty Act 1982, is amended by inserting the following new section immediately after section 3.
[Margin: Luxury vehicles] " 3A An excise duty rate of 20% shall be imposed on luxury vehicles valued at least US$25,000 or its equivalent in leones.
[Margin: Amendment of Section 5 of Act No. 6 of 1982.] 15. Section 5 of the Excise Act 1982 is amended in paragraph (c) of subsection (1) by deleting the words "from a member State"
[Margin: Amendment of First Schedule to Act No. 6 of 1982.] 16. The First Schedule to the Excise Act 1982 is amended by-
(a) deleting the tariff item No.22.03, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate-
No. 1 Finance Act 2017 11
| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| | 2203 | Beer Made from Malt | | | |
| 1 | | 220300.10.000 | Stout & Porter | <10 | US$0.04 per cl or US$4 per litre |
| 2 | | 220300.20.000 | Beer | <10 | US$0.04 per cl or US$4 per litre |
| 3 | | | Non-alcoholic not >0.5% | <10 | US$0.04 per cl or US$4 per litre |
| 4 | | 220300.90.000 | Other Forms of Beer | <10 | US$0.04 per cl or US$4 per litre |
(b) inserting the following tariff item No. 2204, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate immediately after tariff item 2203
| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| | 2204 | Wine of Fresh Grapes including fortified grapes; grape must not of Heading 20.09 | | | |
| 1 | | 220410.10.000 | Sparkling wine | <10 | US$0.04 per cl or US$4 per litre |
| 2 | | 220410.90.000 | Sparkling wine> 10%p.v.a. | >10 | US$0.06 per cl or US$6 per litre |
| 3 | | 220421.10.000 | Other wine; Grape must <10% | <10 | or US$4 per litre or US$4 per litre |
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| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| 4 | | 220421.50.000 | " | <10 | US$0.04 per cl or US$4 per litre |
| 5. | | 220429.10.000 | >10%p.v.a. in 2ltrs or less | >10 | US$0.06 per cl or US$6 per litre |
| 6. | | 220429.50.000 | | >10 | US$0.06 per cl or US$6 per litre |
| 7. | | 220430.10.000 | Other Grape must | <10 | US$0.04 per cl or US$4 per litre |
| 8. | | 220430.90.000 | in containers >2ltrs | >10 | US$0.06 per cl or US$6 per litre |
(c) inserting the following tariff item No. 2205, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate immediately after tariff item 2204
| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| | 2205 | Vermouth & Other wine of Fresh Grapes | | | |
| 9. | | 220510.10.000 | Wine of Fresh Grapes | >10 | US$0.06 per cl or US$6 per litre |
| 10. | | 220590.10.000 | | >10 | US$0.06 per cl or US$6 per litre |
(d) inserting the following tariff item No. 2206, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate immediately after tariff item 2205
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| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| | 2206 | Other Fermented Beverages (Cider, Perry etc); Mixture of fermented beverages and non-alcholic beverages, NES | | | |
| 11. | | 220600.10.000 | Cider, Perry & Mead | <10 | US$0.04 per cl or US$4 per litre |
| 12. | | 220600.20.000 | of alcohol<10% | <10 | US$0.04 per cl or US$4 per litre |
| 13. | | 220600.30.000 | of alcohol>10% | >10 | US$0.06 per cl or US$6 per litre |
| 14. | | 220600.40.000 | Rasin wine | <10 | US$0.04 per cl or US$4 per litre |
| 15. | | 220600.50.000 | Rice wine | <10 | US$0.04 per cl or US$4 per litre |
| 16. | | 220600.60.000 | Palm wine | <10 | US$0.04 per cl or US$4 per litre |
| 17. | | 220600.70.000 | Mixture of fruit juice with alc. | <10 | US$0.06 per cl or US$6 per litre |
| 18. | | 220600.80.000 | Mixture of fruit juice with alc. | >10 | US$0.06 per cl or US$6 per litre |
| 19. | | 220600.10.000 | of alc.<10% | <10 | US$0.04 per cl or US$4 per litre |
| 20. | | 220600.20.000 | Others | >10 | US$0.06 per cl or US$6 per litre |
(e) inserting the following tariff item No. 2208, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate immediately after tariff item 2206
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| No. | HS Heading | HS Code | Description /Goods Specification | Alcohol Content per volume(%) | Rates of Excise |
|---|---|---|---|---|---|
| | 2208 | Ethyl Acohol with less than 80%; Spirits and Spirituous Beverages | | | |
| 21. | | 220820.10.000 | Brandy | >10 | US$0.06 per cl or US$6 per litre |
| 22. | | 220820.90.000 | Others | >10 | US$0.06 per cl or US$6 per litre |
| 23. | | 220830.00.000 | Whiskies | >10 | US$0.06 per cl or US$6 per litre |
| 24. | | 220840.00.000 | Rum and other Spirits | >10 | US$0.06 per cl or US$6 per litre |
| 25. | | 220850.00.000 | Gin & Cordials | >10 | US$0.06 per cl or US$6 per litre |
| 26. | | 220860.00.000 | Vodka | >10 | US$0.06 per cl or US$6 per litre |
| 27. | | 220870.90.000 | Liqueurs &Cordials | >10 | US$0.06 per cl or US$6 per litre |
| 28. | | 220890.10.000 | Other Forms of Spirituous beverages | >10 | US$0.06 per cl or US$6 per litre |
| 29. | | 220890.20.000 | Schnapps | >10 | US$0.06 per cl or US$6 per litre |
| 30. | | 220890.50.000 | Alcohol de menthe | >10 | US$0.06 per cl or US$6 per litre |
| 31. | | 220890.90.000 | Others | >10 | US$0.06 per cl or US$6 per litre |
No. 1 Finance Act 2017 15
(f) deleting the tariff item No.24.02, the corresponding description in column 2 and the corresponding rates in column 3 and substituting it with the following tariff item number, description and rate-
| Tariff Item No. | Description | Rate |
|---|---|---|
| 24.02 | Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes | 30% on sales |
(g) inserting the following new tariff item number, description and rate immediately after tariff item 24.02-
| Tariff Item No. | Description | Rate |
|---|---|---|
| 24.03 | Other manufactured tobacco and manufactured tobacco substitutes, including water pipe tobacco; "homogenised" or "reconstituted" tobacco; tobacco extracts and essences | 30% on sales |
INCOME TAX ACT, 2000
17. Section 32 of the Income Tax Act 2000 is amended by
(a) deleting that section and substituting the following new section-
32. (1) For the purpose of ascertaining the chargeable income derived by a taxpayer during a year of assessment, there shall be deducted-
16 No. 1 Finance Act 2017
(a) all outgoings and expenses incurred by the taxpayer during the year of assessment to the extent that expenses or outgoings were incurred in the production of assessable income;
(b) 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;
(c) allowable losses in accordance with section 32 A
(d) losses suffered on the disposal of business assets other than trading stock as determined in accordance with sections 57 and 61;
(e) at the rate of one hundred 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;
No. 1 Finance Act 2017 17
(iv) freight charges from the quay to a factory or processing site not locked within Freetown;
(v) expenditure incurred promoting an export quality standard Sierra Leonean owned product;
(f) donations to good causes.
(2) No deduction shall be allowed under subsection (1)
for-
(a) any outgoing or expense to the extent that it is personal to the taxpayer;
(b) an amount that is included in the adjusted cost base of an asset;
(c) income tax paid or incurred to Sierra Leone or to a foreign country;
(d) any contribution to a non-complying pension, superannuation, provident or similar fund or to a complying fund in excess of the limit prescribed in section 38;
(e) any sums paid in respect of redundancy, loss of office, termination of the holding of an office or retirement and any like sum in excess of the limit prescribed in paragraph 2 of the Ninth Schedule, except to the extent that it has been taxed as employment income;
(f) any gratuity paid to an employee past, present or future or to a dependant of an employee except to the extent that it has been taxed as employment income;
(g) expenses, except cost of travel to attend board meetings incurred by a company i n respect of transport to or from any place
18 No. 1 Finance Act 2017
outside or inside Sierra Leone of a director of the company or his dependants, other than those of a whole-time service director;
(h) subject to sections 33 and 41, expenses incurred to repair, renew, alter or improve property;
(i) subject to section 34, expenses incurred to provide meals, refreshment or entertainment;
(j) subject to section 35, interest expenses incurred by a taxpayer that is not a bank;
(k) subject to section 36, losses in respect of bad debt claims;
(l) subject to section 37, research and development costs;
(m) subject to section 38, any part of the cost of acquiring a right to receive pension or annuity payments;
(n) subject to section 42, expenses incurred to acquire mineral and petroleum exploration and production rights and expenses incurred in respect of mineral and petroleum development;
(o) subject to section 43, expenses incurred in starting up a business to produce assessable income;
(p) subject to section 44, expenses incurred in acquiring an interest in a business;
(q) subject to section 54, expenses incurred to acquire trading stock or raw materials to be incorporated into trading stock;
No. 1 Finance Act 2017 19
(r) the cost of a gift made directly or indirectly to an individual if the gift is excludable from the individual's assessable income; or
(s) a fine or similar penalty paid to a government for breach of any law.
(3) In this section an outgoing or expense treated as personal to the taxpayer includes–
(a) the cost of commuting between a taxpayer's residence and work;
(b) the cost of clothing that is suitable for wearing outside work;
(c) the cost of caring for dependants; and
(d) the cost of education in such areas of study as the Minister may, after consultation with the Minister for the time being responsible for Education by statutory instrument determine.
(4) In paragraph (f) of subsection (1), the expression "donations to good causes" refers to donations made in respect of community development programmes, charitable giving and sponsorship of sports, educational and health programmes.
(b) inserting immediately after section 32 the following new section–
[Margin: "Allowable losses.]
32A (1) For the purposes of this section, "loss" means, for a year of assessment, the amount by which a taxpayer's allowable deductions exceed the taxpayer's assessable income for that year of assessment.
(2) Subject to section 88, a loss may be carried forward,
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for the purpose of a deduction under paragraph (c) of subsection (1) of section 32, for a maximum of 10 years after the year of assessment in which the loss was originally incurred.
(3) Subject to section 88, if the full amount of a loss carried forward cannot be deducted under paragraph (c) of subsection (1) of section 32, the part that is not deducted may be carried forward, for the purpose of a deduction under that section, for a maximum of 10 years after the year of assessment in which the loss was originally incurred.
(4) Subject to subsection (5), an allowable loss, for section paragraph (c) of subsection (1) of section 32, is the amount of a loss carried forward in accordance with subsections (2) and (3).
(5) The amount of allowable losses for subsection paragraph (c) of subsection (1) of section 32 shall not exceed 50% of the chargeable income for the year of assessment, calculated as if no deduction for a carried forward loss is made under paragraph (c) of subsection (1) of section 32.
[Margin: Amendment of section 57 of Act No 8 of 2000.]
18. Section 57 of the Income Tax Act, 2000 is amended in paragraph (iii) subsection (2) by deleting that paragraph and Act and substituting the following new paragraph–
"(iii) "chargeable asset" means–
(a) land and sea in Sierra Leone and s i e r r a Leone territorial waters which includes, but is not limited to -
any property attached to it, any improvement to the land and sea, and any fixtures and fittings thereon;
anything growing on the land and sea; and
No. 1 Finance Act 2017 21
any interest in the land and sea
including a right to future ownership,
lease, a right to occupy land, a right to
explore, remove or extract any mineral,
oil or gas from the land, and a right t o
grow or remove any crop on the land;
(b) a business asset, which includes,but is not
limited to–
intellectual property rights and
goodwill;
any licence issued by the
Government of SierraLeone to
explore or extract oil or gas at sea;
any licence or right to fish at sea,
or to catch or extract a marine
natural resource; and
any licence or right to operate
telecommunication services.
(c) "shares" means shares–
held by a resident in a
company resident in Sierra
Leone, including a holding
company, subsidiary or
affiliate;
held by a resident in a
company not resident in
Sierra Leone if at least 20%
of the company's sales are
derived in or from Sierra
Leone; and held directly or
indirectly by a non-resident
in a company resident in
Sierra Leone, if at least 20%
of the company's trading
22 No. 1 Finance Act 2017
activity is carried out in
Sierra Leone, or at least 20%
of the company's income is
derived from Sierra Leone.
[Margin: Amendment of section 61 Act No 8 of 2000.]
19. Section 61 of the Income Tax Act, 2000 is amended in of
in paragraph (b) of subsection (1) by deleting words "one quarter"
and substituting "75%".
[Margin: Amendment of section 97 of Act No. 8 of 2000.]
20. Section 97 of the Income Tax Act, 2000 is amended by
deleting that section and substituting the following new section–
97. (1) Subject to this section and section 98,
a taxpayer or nominated officer of a partnership or
trust shall–
(a) file a return of income for each year of
assessment; and
(b) make arrangements to pay any balance of
tax thereon, not later than four calendar
months after the end of the year of
assessment.
(2) Where the taxpayer is about to cease activity in Sierra
Leone or where the Commissioner-General otherwise considers it
appropriate, the Commissioner-General may require a taxpayer to file
a return of income covering a period of less than twelve months by
service of a notice in writing which specifies the due date for the
return of income.
(3) The Commissioner-General shall prescribe–
(a) the form of the return of income;
(b) the information required to be included on
the return of income;
(c) the method of filing the return of income,
including any automated or electronic
system; and
No. 1 Finance Act 2017 23
(d) the method of paying any balance of tax.
(4) The Commissioner-General may prescribe different
forms, information and methods for taxpayers who opt under
subsection (2) of section 4 to be taxed at the rates set out in Part V of
the First Schedule.
(5) In the case of a person who has opted to be taxed
under subsection (2) of section (4) (Small and Micro Taxpayer
Regime), a simple return completed by an agent for a fee approved
under a Domestic Tax Preparers Scheme for Small and Micro Taxpayer's
specified by the Commissioner-General.
(6) Subject to subsection (7), the return of income shall
be accompanied by–
(a) in the case of a person carrying on business
in Sierra Leone, other than a micro or small
taxpayer- a set of annual accounts certified
by a firm of chartered accountants
recognized by the Institute of Chartered
Accountants of Sierra Leone and approved
by the Commissioner-General;
(b) in the case of a person carrying on business
in Sierra Leone, other than a micro or small
taxpayer who has opted under subsection
(2) of section (4) to be taxed at the rates set
out in Part V of the First Schedule - a set of
annual accounts of the taxpayer's business;
(c) in the case of a non-governmental
organisation or an organisation whose
income is exempt under section 9 - annual
accounts, stating income from trading
activities, income from any other source, and
expenditure;
24 No. 1 Finance Act 2017
(7) If a person, to whom paragraph (a) or paragraph (b) of
subsection (6) applies, carries on business through two or more
branches, the annual accounts shall be disaggregated for each
branch and set out the information prescribed by the Commissioner-
General for branches.
(8) A certification by a chartered accountant of annual
accounts shall state–
(a) the basis upon which the accounts were
prepared; and
(b) the correctness and completeness of the
accounts.
(9) A return of income shall be signed by the taxpayer or,
if the taxpayer is legally incapacitated, by the taxpayer's legal
representative and shall contain a representation that the return is
complete and accurate.
(10) The Commissioner-General may prescribe the basis
on which a person other than a taxpayer may assist a taxpayer to
prepare and file a return of income on behalf of a taxpayer, or class of
taxpayers.
(11) A person who completes or contributes to the
completion of a return for compensation shall also sign the return
unless the person is an employee of the taxpayer.
(12) A taxpayer may file a return under this section, and
any other return required to be filed under this Act, and make payment
through the payment system including an automated system
administered by the National Revenue Authority."
[Margin: Amendment of Section 109 of Act No 8 of 2000.]
21. Section 109 of the Income Tax Act, 2000 is amended –
(a) in subsection (5) by deleting that subsection
and substituting the following new
subsection–
No. 1 Finance Act 2017 25
"(5) Property upon which distress is levied
under this section shall be kept for up to 30 days
as directed by the Commissioner-General either at
the premises where the distress was levied or at
such other place as the Commissioner-General may
consider appropriate at the cost of the taxpayer
whose tax liability is involved."
(b) in sub- sections (6) and (8) by deleting "ten
days" and substituting "30 days";
[Margin: Amendment of Section 113 of Act No 8 of 2000.]
22. Section 113 of the Income Tax Act, 2000 is amended in
subsections (1) and (2) by deleting those subsections and
substituting the following new subsections–
"(1) A taxpayer who derives or expects to derive
business income in a year of assessment shall make
an estimate of chargeable business income and
turnover for the year of assessment on or before
31st January , of the year of assessment or, for a
taxpayer using a substituted year of assessment,
on or before the end of the first month of the
substituted year of assessment.
(2) A taxpayer who derives business income in a year of
assessment may review his estimates of chargeable business income
and turnover for the year of assessment–
(a) on or before 30th April of the year of
assessment or, for a taxpayer using a
substituted year of assessment on or before
the end of the fourth month of the substituted
year of assessment.;
(b) on or before 31st October of the year of
assessment or, for a taxpayer using a
substituted year of assessment on or before
the end of the tenth month of the substituted
year of assessment."
26 No. 1 Finance Act 2017
[Margin: Amendment of Section 117 of Act No 8 of 2000.]
23. Section 117 of the Income Tax Act 2000 is amended in
paragraph (c) of subsection (2) by inserting the words "and technical"
after the word "management".
[Margin: Amendment of Section 130 of Act No 8 of 2000.]
24. Section 130 of the Income Tax Act, 2000 is amended by
inserting immediately after subsection (4) the following new
subsection–
"(4) All PAYE for expatriate staff shall be
remitted in United States Dollars."
[Margin: Amendment ofFirst Schedule Act No 8 of 2000.]
25. The First Schedule to the Income Tax Act, 2000 is amended
by –
(a) deleting the following item –
"Winnings of Le 500,000 and above from
any lottery - 10%" and substituting it
with the following new item–
"Winnings of at least Le 500,000 from a
lottery, at the rate or rates specified in
section 3A of the Control of Betting
and Lotteries Act, 1969";
(b) the repeal and replacement of Part V thereof with the
following new Part V -
"PART V
Small and Micro Tax Payer Regime (Section 4(2)