Section 2, The Tonkolili Supple- Short title, A R

The Agreements and the Memorandum of Agreement set Cosfirmationout in Schedules A, Band C hereto in so far as they amend or ~en~~;;a otherwise affect the Tonkolili Agreement as amended by the Agreement. Tonkolili Supplementary Agreement are hereby ratified and confirmed and all rights and obligations purported to be conferred or imposed thereby are hereby declared valid, any law to the contrary notwithstanding, and, notwithstanding anything in any law contained, the Governo:r or the Crown Agents shall have power to do on behalf of the Crown any act which the said Agreements and the said Memorandum of Agreement may require or allow in the name of the Governor or of the Crown Agents or of the Government. * i.e. of the 1946 edition. Cap. 202. Cap. 203. *Ords. Nos. l of 1943, l of 1944, 21 of 1946 and l ofl947. Cf. section 9 (1) (q) of Cap. 273. Cap. 204] Tonkolili Agreement (1947) SCHEDULE A. This agreement is made the third day of December, one thousand nine hundred and forty-seven BETWEEN THE CROWN AGENTS FOR THE COLONIES whose office is at No. 4 Millbank in the City of Westminster for and on behalf of the Government of the Colony and Protectorate of Sierra Leone (hereinafter referred to as " the Government " which expression shall where the context so requires or permits include the Governor for the time being of the said Colony or Protectorate) of the one part and SIERRA LEONE DEVELOPMENT CoMPANY, LIMITED, whose registered office is at No. 24 Old Broad Street in the City of London (hereinafter referred to as " the Company " which expression shall where the context so requires or permits include its successors and assigns) of the other part. Whereas- (a) This Agreement is supplemental to an Agreement (hereinafter referred to as " the Principal Agreement ") dated sixteenth April one thousand nine hundred and thirty-seven and made between the Government of the one part and the Company of the other part as modified by an Agreement dated nineteenth February one thousand nine hundred and forty-four and made between the same parties whereby (inter alia) the Government agreed with the Company that it would not during the term therein mentioned impose upon the Company a tax on profits {as therein defined) made from or in respect of andjor any duty on or in respect of the exercise of any of the rights conferred by the Principal Agreement (as so amended) and any mining rights or leases issued in pursuance thereof exceeding a total amount equivalent to five per centum per annum on such profits for such year as assessed to income tax in the United Kingdom. (b) By the Tonkolili Agreement Ordinance 1937 and the Tonkolili (Supplementary) Agreement Ordinance 1944 the Principal Agreement and the <laid Agreement of nineteenth February one thousand nine hundred and forty-four were duly ratified and confirmed respectively. (c) By the Income Tax Ordinance 1943 as amended by the Income Tax (Amendment) Ordinance 1944, the Income Tax {Amendment) Ordinance 1946 and the Income Tax (Amendment) Ordinance 1947 the Government imposed income tax upon the income of persons accruing in, derived from or received in Sierra Leone in respect of the profits, gains and other matters therein referred to, but by virtue of the Principal Agreement (as so amended) and section 9 (1) (q) of the said Income Tax Ordinance 1943, the Company is exempt from income tax in respect of the income derived by it from or in respect of the exercise of any of the rights conferred by the Principal Agreement (as so amended) or from any mining rights or leases issued in pursuance thereof. (d) In order to assist the Government the Company has offered to become liable for the payment of income tax under the said Income Tax Ordinance 1943 (as so amended) on the income so derived by it as aforesaid, to the extent and upon and subject to the terms and conditions hereinafter contained and on the understanding that such offer and the Government's acceptance of it will not in any way directly or indirectly result in the Company becoming liable to pay more in the aggregate by way of taxation in Sierra Leone and the United Kingdom respectively than the Company would have been liable to pay if such offer had not been accepted, and the Government has accepted the Company's said offer. * Now included in Cap. 273. t· Tonkolili Agreement (1947) [Cap. 204 Now This Agreement Witnesseth as follows- 1. THE Company agrees that notwithstanding anything contained in the Principal Agreement (as so amended) and the said section 9 (1) (q) but subject to the provisions hereinafter contained the Government may impose income tax under the said Income Tax Ordinance 1943 (as so amended) upon the Company for the year of assessment current on the date hereof and for any subsequent year of assessment in respect of the income derived by the Company from or in respect of the exercise of any of the rights conferred by the Principal Agreement (as so amended) or any mining rights or leases issued in pursuance thereof subject to the deduction from the amount of such income tax of the amount of Tonkolili Profits Tax (as hereinafter defined) payable by the Company for any such year provided and it is hereby agreed that the Government shall grant the Company relief from the aggregate amount of Tonkolili Profits Tax and of income tax payable by the Company to the extent, if any, by which this aggregate amount exceeds the amount of credit given to the Company in respect of such aggregate amount against the amount of the United Kingdom tax payable by the Company or if no credit in respect of such aggregate amount is given against United Kingdom tax or if there shall be no liability on the Company to pay any United Kingdom tax, the relief shall extend to the whole amount of the said income tax and Tonkolili Profits Tax. The expression " Tonkolili Profits Tax " means any taxes on profits made from or in respect of andjor any duties on or in respect of the exercise of any of the rights conferred by the Principal Agreement (as so amended) and any mining rights or leases issued in pursuance thereof for the time being imposed by the Government on the Company, the total amount whereof is by virtue of clause 8 (j) of the Principal Agreement not to exceed a total amount equivalent to Five per centum per annum on such profits. 2. The said income of the Company for each year of assessment shall be computed for the purposes of assessment to the said income tax in an amount equal to- (a) the income as determined for that year for the purposes of clause 8 {j) of the Principal Agreement, and (b) the deduction, if any, made in respect of the National Defence Contribution or Profits Tax in computing such income, but after deducting (c) the amount of any loss incurred in any other trade or business carried on by the Company in Sierra Leone which the Company may be entitled to deduct or set off in computing its profits for purposes of income tax in the United Kingdom or in computing its total income from all sources under section 20 of the said Income Tax Ordinance 1943 or any section amending or replacing the same Provided that the aggregate amount of such deductions for losses under this sub-clause shall not exceed the amount of such losses.