Section 2: Interpretation.

In this Act, unless the context otherwise requires— “adjusted cost base” means the cost base of an asset increased by— a) indirect expenses, including commissions and legal fees incurred in respect of the acquisition, production or construction of an asset; b) interest and taxes incurred during the acquisition, production and construction period of an asset; c) customs duties incurred in respect of the importation of an asset; or d) the cost of improvements and other costs properly added to capital accounts in respect of the asset (other than an amount allowed as a deduction); “assessment” includes an amended assessment, a deemed assessment, a provisional assessment and a special “associate” in relation to a person means any other person who is not at arms-length with the person or who acts or is likely to act in accordance with the directions, requests, suggestions or wishes of the person whether or not the directions, requests, suggestions or wishes are communicated to that other person; “bad debt” means a debt in respect of which the taxpayer has taken all reasonable steps to the satisfaction of the Commissioner to pursue payment and which the taxpayer reasonably believes will not be satisfied; “branch” means a place where a person carries on business and includes— a) a place where a person is carrying on business through an agent, other than a general agent of independent status acting in the ordinary course of business as such; b) a place where a person has, is using or is installing substantial equipment or substantial machinery; or c) a place where a person is engaged in a construction, assembly or installation project for a period of more than six months; “business” includes a trade, profession, vocation and an isolated transaction with a business character, but does not include employment; “business asset” means an asset held for the production of assessable income and which is used in a business or is held for sale in a business; “chargeable business income” in respect of a taxpayer means the taxpayer’s assessable business income less any allowable deductions for expenses incurred to derive that income; “Commissioner” means the Commissioner of Income tax and, except for the purpose of section 153, includes a Deputy Commissioner or an Assistant Commissioner; “company” means a body corporate or unincorporate, whether created or recognised by or under any law in force in Sierra Leone or otherwise, and includes a superannuation fund, a friendly society and a provident fund but does not include a partnership or trust; “complying retirement fund” means a retirement fund that has received notification from the Commissioner that it complies with the requirements of the Third Schedule; “debt claim" means a right to receive payment or repayment of money or property from another person and includes deposits in banks and other financial institutions, accounts receivable, notes, bills of exchange and bonds; “debt obligation" means the obligation to make payment or repayment of money or property to another person and includes the things falling under a debt claim; “depreciable asset" means tangible or intangible property which is wholly or partly used in the production of assessable income and which is likely to lose value because of wear and tear, obsolescence or the passage of time; "disposal” in relation to an asset, means— a) the sale, exchange. redemption or distribution of the asset; b) the transfer of the asset as a gift or at death; or c) the destruction, loss or extinction of the asset, and includes the disposal of a part of the asset; “dividend” means a distribution by a company to a shareholder in the company as shareholder and includes any distribution upon redemption or cancellation of a share or in the course of liquidation, other than a distribution described in subsection (2) of section 86; "employee'' means an individual who receives employment income and includes any individual engaged for short-term or part-time work other than an individual acting as an agent; “employer” means a person who employs or remunerates an employee; “employment" means— a) the position of an individual in the employ of another person; b) a directorship of a company; c) a position entitling the holder to a fixed or ascertainable remuneration and includes a public office; “interest " includes— a) an amount paid or accrued under a debt obligation which is not a return of principal; and b) any gain realised. by way of a discount, premium, swap payment or similar payment on a loan; “investment asset" m an asset other than— a) a business asset, or b) an asset that does not produce assessable income and that is held primarily for personal use by the taxpayer; “market value" means the price which an asset or service might reasonably be expected to command on the open market; "minor" means an individual who is under eighteen of age at the end of the year of assessment; “natural resource payment means— a) a rent, toll, royalty or other like payment payable under a lease or agreement which relates wholly or in part to the mining and working of minerals or a living or non-living resource of the land; or b) a payment calculated in whole or in part by reference to the quantity or value of minerals or living or non-living resource taken from the land; "paid" includes credited; “payment” includes an amount payable, the transfer of property and any other means of conferring value or benefit on a person; "person” includes a partnership, a company, a government, a political subdivision of a government and a public international organisation; "rent” includes— a) any premium paid in connection with a lease or rental agreement; and b) any payment made in connection with or for the use of or the right to use industrial, commercial or scientific equipment; “retirement fund" means a pension, provident or superannuation fund or society; “royalty” means a payment for— a) the use of or the right to use a copyright, patent, design, model, plan, secret formula or process, trademark or other intangible property or right; b) the supply of know-how; c) the use of or the right to use a cinematographic film, video tape, sound recording or any like medium; d) the supply of assistance ancillary to a matter referred to in paragraphs (a) to (c); or e) a total or partial forbearance with respect to a matter referred to in paragraphs (a) to (d); “shareholder” in relation to a company, includes a holder of an equity interest in the company. “substituted year of assessment” means the year of assessment used by a taxpayer pursuant to subsection (2) of section 46; “tax-free threshold” means the amount of income to which a nil rate of tax is applied in Parts I.II and III of the First Schedule; “taxpayer" means a person who is subject to tax imposed this Act or who derives income assessable under this Act; “trading stock” includes goods sold or intended to be sold by a taxpayer in the ordinary course of business, work in progress on such goods and inventories of materials to be incorporated into such goods; "trust” includes the estate of a deceased person but does not include a grantor trust or qualified beneficiary trust referred to in section 78; “trustee” includes— a) an executor, administrator, tutor or curator; b) a liquidator or judicial manager; c) a person having or taking on the administration or control of property subject to a trust; d) a person acting in a fiduciary capacity; and e) a person having the possession, control or management of the property of a person under a legal disability; “turnover” in respect of a year of assessment means the value of the total gross receipts or amounts receivable in money or money’s worth which give rise to business income for the year of assessment— a) reduced by that part of the gross receipts for the year of assessment or a previous year of assessment that are bad debt claims; and b) increased by any amounts recovered in respect of bad debt claims that arose in previous years of “underlying ownership or control” in relation to a company means ownership interests held or control exercised directly or indirectly through interposed entities; “whole-time service director” means a director of a company who is required to devote substantially the whole of his or her time to the service of the company in a managerial or technical capacity; “withholding agent” means a person required to withhold tax under sections 116 to 123. P ART II – IMPOSITION OF INCOME TAX I MPOSITION OF I NCOME TAX