Section 3, The Finance Act, 2013

Section 4 of the Income Tax Act, 2000 is amended by therepeal and replacement of subsections (2) and (3) respectively, by the following new subsections– “(2) Where the turnover of a business not being a company specified under Part III of the First Schedule excluding income from property is less than Le 350,000,000 but not less than Le10,000,000 the income tax payable shall at the option of such a business, be a percentage of the turnover as specified in part V of the First Schedule and – (a) no deduction shall be allowed under this Act for expenses incurred to derive business income; (b) no claims for withholding tax shall be allowed; (c) the tax shall be a final tax on the business of the taxpayer but if a business does not opt to pay taxes under this subsection it shall be subject to a tax under section 69. (3) Subject to section 150, a taxpayer under Small Medium Enterprise (SME) regime who fails to file an income tax return on the due date commits an offence and shall be liable upon conviction to a fine the greater of Le 1,000,000.00 or 10% of the Tax due for the period to which the tax returns relate or to imprisonment for a term not exceeding one year or to both such fine and imprisonment.”