Section 10, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

(1) The holder of a rehabilitation fund shall be exemptedfrom tax for the following- (a) the receipt of contributions to the fund that are deductible for a mineral right holder under paragraph (d) of subsection (1) of section 7; (b) amounts (including interest) accumulated in or withdrawn from the fund. (2) Where there is a surplus in a rehabilitation fund and the person conducting the relevant separate mineral operation– (a) completes rehabilitation in accordance with the approved rehabilitation plan so as to be entitled to receive the surplus; or Rehabilitation funds. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 201816 (5) Any excess financial cost for which a deduction is not available under subsection (3) shall be carried forward and treated as a financial cost incurred in the following year of assessment and paragraphs (b) and (c) of section 8 of this Act and section 88 of the Income Tax Act, 2000 shall apply to restrict the carry forward of that excess. (6) Expenditure referred to in subparagraphs (i) and (ii) of paragraph (b) of subsection (1) that– (a) is not expensed in the person’s financial accounts in accordance with generally accepted accounting principles; and (b) does not otherwise fall to be included in the adjusted cost base of an asset, is not deductible and shall be treated as the cost of a depreciable asset for which capital allowances are granted with respect to a separate mineral operation in accordance with paragraph 6 of the First Schedule. (7) The Minister responsible for finance, in consultation with the Minister responsible for mines and mineral resources, may by statutory instrument- (a) make further provision for the deduction of amounts in calculating income from mineral operations; and (b) where goods or services are supplied to a mineral right holder by an associated person, limit the deduction for any amount incurred by the right holder to the no profit amount referred to in subsection (8). (8) The no profit amount shall be the actual costs incurred by the associated person in the provision of the goods or services, but shall exclude any cost incurred in favour of another associated person. 8. Paragraph (c) of subsection (1) of section 32 and section 32A of the Income Tax Act ,2000 shall apply to allowable losses of a person from a separate mineral operation with the following modifications- (a) tax payable may be reduced to 15 percent of the tax that would be due if losses were not carried forward; (b) a loss may not be carried forward after the latter of the following– (i) the tenth year of assessment from the year of assessment in which the loss was incurred; and (ii) the tenth year of assessment from the year of assessment in which commercial mining production commenced; (c) losses shall be used in the order in which they are incurred; and (d) losses from a separate mineral operation may be deducted only in calculating future chargeable income from that operation and not chargeable income from any other mineral operations or non-mineral operations or activities. 9. (1) Where a company that holds a mineral right suffers a 25 percent or more change in its underlying ownership or control the company shall be treated as disposing of a proportionate interest in its mineral right and immediately reacquiring that interest. (2) Where subsection (1) applies, the company shall be treated as– Losses fr om mineral operations. Indirect disposal of mineral rights No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 (iv) production or profit sharing arrangements, including expected distributions, the policy on which distributions are to be based and the order of priority between distributions and other payments (especially interest and repayment of debt); (v) taxes and other revenues to become payable to the Government of Sierra Leone and the manner in which those amounts are calculated; and (vi) any other information as the Minister responsible for finance may prescribe; (b) use an appropriate template provided by the Minister responsible for finance in making the forecasts referred to in paragraph (a); and (c) have appointed, at all times, by written notification to the Minister responsible for finance, an officer- (i) of sufficient seniority to be able to access the information referred to in paragraph (a); and (ii) who shall liaise with the Ministry of Finance regarding matters prescribed by this section. (2) Forecasts under paragraph (a) of subsection (1) shall be prepared twice each year, stating the forecasts at dates and forwarded to the Minister responsible for finance by dates specified by statutory instrument. (3) Upon receiving forecasts under subsection (2), the Minister responsible for finance may, where the Minister considers it necessary, by notice in writing, require the licence holder to provide further and better particulars as to the forecasts and the licence holder shall provide those particulars within 10 working days of receiving the notice. (4) If a relevant licence holder becomes aware of facts that make the most recent forecasts referred to in paragraph (a) of subsection (1) inaccurate in a material particular, then the licence holder shall immediately notify the Minister responsible for finance and provide updated information. (5) A licence holder who fails to comply with the requirements of this section shall be deemed to be impeding the administration of this Act for the purposes of section 155 of the Income Tax Act, 2000 (applied by section 47). (6) Information received under this section may be used within the Ministry of Finance for revenue forecasting and public financial management purposes, but such information is otherwise subject to the requirements of section 165 of the Income Tax Act, 2000 with any necessary adaptations. (7) In administering this section, the Ministry of Finance shall coordinate with the National Mineral Agency and the Petroleum Directorate. (8) In this section, “relevant licence holder” means the holder of a– (a) mining exploration licence, where the Minister responsible for finance has notified the holder in writing that this section applies; (b) large-scale mining licence; or (c) petroleum licence. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 (3) Upon service of a notice under subsection (2), a lien on the minerals and petroleum shall arise in favour of the Commissioner- General in accordance with section 107 of the Income Tax Act, 2000. (4) The Commissioner-General may enforce payment of the amount referred to in subsection (1), by issuing distress proceedings under section 109 of the Income Tax Act, 2000 against the minerals and petroleum referred to in subsection (2). (5) Where a holder of a mineral or petroleum right has minerals or petroleum seized by reason of tax due or pays tax due by a joint holder of that right, the holder may recover any loss from the joint holder as a debt due. (6) A person who, without reasonable excuse, fails to comply with a notice issued under subsection (2) shall be treated as wilfully evading tax for the purposes of section 154 of the Income Tax Act, 2000. 50. (1) A relevant licence holder shall - (a) on each of the occasions referred to in subsection (2) and for each year of the projected life of the licence (including any potential for extension) prepare forecasts of– (i) amounts, sources, methods, terms and conditions of financing of operations under the licence; (ii) exploration, development and operating costs as well as additional capital costs incurred after the commencement of commercial production; (iii) production volumes and expected conditions of sale, particularly with respect to price; Financial Forecasts PART VI –AMENDMENTS AND TRANSITIONAL PROVISIONS 51. The Mines and Minerals Acts, No. 12 of 2009 is amended as set out in the Third Schedule herein. 52. (1) For the purpose of imposing mineral resource rent tax a separate mineral operation shall not have accumulated net expenditure for a year of assessment prior to the commencement year of this Act but expenditures referred to in subsection (2) may be claimed. (2) For the purposes of imposing mineral resource rent tax, expenditure for a separate mineral operation shall include the following - (a) for the commencement year of this Act, 40 percent of the relevant depreciated historic cost and losses; (b) for the first year of assessment after the commencement year of this Act- (i) 20 percent of the relevant depreciated historic cost and losses; plus (ii) the uplift specified in paragraph 8 of the First Schedule for one year applied to the 20 percent amount referred to in subparagraph (i); (c) for the second year of assessment after the commencement year of this Act– (i) 20 percent of the relevant depreciated historic cost and losses; plus Consequential Amendments. Transitional Mineral No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 (b) breaches an approved rehabilitation plan, the surplus shall be included in calculating the chargeable income of the person from the separate mineral operation for the year of assessment in which the event referred to in paragraph (a) or (b) occurs. (3) In addition to the consequences referred to in subsection (2), the person may be liable for mineral resource rent tax with respect to the surplus.