Section 11, The Income Tax (Deductions Citation

(I) Mter the appellant has given an address for serviceit shall be sufficient if, in lieu of serving him personally with any document intended for him, such document is sent by registered letter addressed to him at such address. (2) An appellant may change his address for service by giving notice of his new address for service to the secretary and to the Commissioner. (3) Service on the Commissioner shall be effected either personally or by registered letter addressed to him at his office. DOUBLE TAXATION RELIEF ORDERS made by the Governor in Council under the section formerly numbered 32A and now renumbered 35. P.N. THE UNITED KINGDOM.22 of 1948. INCOME TAX (DOUBLE TAXATION RELIEF) (UNITED KINGDOM) ORDER. 1. This Order may be cited as the Income Tax (Double Taxation Relief) (United Kingdom) Order in Council, I948. Double Taxation Relief (United Kingdom) [Cap. 273 2. It 1s hereby declaredset out in the Schedule to this Order have been made with the Government of the United Kingdom with a view to affording relief from double taxation in relation to tax and any tax of a similar character imposed by tne laws of the United Kingdom; and (b) That it 1s expedient that those arrangements should Arrangements between Her Majesty's G£vernment in the United Kingdom and the Government of Sierra Leone for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. 1. The taxes which are the t~ubject of this Arrangement are- The income tax (including sur-tax) and the profits tax (hereinafter referred to as " United Kingdom Tax "). . The income tax, the duty on profits charged under the Conces- Cap. 121. sions Ordinance, the diamond industry profit tax, and the profits tax charged under the Tonkolili Agreement Ordinance (hereinafter Cap. 202. referred to as " Colonial tax"). This Arrangement shall also apply to any other taxes of a substantially similar character imposed in the United Kingdom or Sierra Leone after this Arrangement has come into force. 2. (1) In this Arrangement, unless the context otherwise requires- (a) The term "United Kingdom" means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man. (b) The term "the Colony" means the Colony and Protectorate of (c) The term " one of the territories" and " the other territory" mean the United Kingdom or the Colony, as the context requires. (d) The term " tax " means United Kingdom tax or Colonial tax, as the context requires. (j) The term "company" includes any body corporate. (g) The terms "resident of the United Kingdom" and" resident of the Colony " mean respectively any person who is resident in the United Kingdom for the purposes of the United Kingdom tax and not resident in the Colony for the purposes of Colonial tax and any person who is resident in the Colony for the purposes of Colonial tax and not resident in the United Kingdom for the purposes of the United Kingdom tax; and a company shall be regarded as resident in the United Kingdom if its'business is managed and controlled in the United Kingdom and as resident in the Colony if its business is managed and controlled in the Colony. (h) The terms " resident of one of the territories" and "resident of the other territory " mean a person who is a resident of the United Kin~dom or a person who is a resident of the Colony, as the context reqmres. • (i) The terms "United Kingdom enterprise" and "Colonial resident of the Colony; and the terms" enterprise of one of the territories" prise or a Colonial enterprise, as the context requires. {j) The term " inddstrial or commercial profits " includes rentals in respect of cinematograph films. (k) The term "permanent establishment", when used with respect to an enterprise of one of the territories, means a branch, management or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf. An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker or general commission agent acting in the ordinary course of his business as such. The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise. The fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which is engaged in trade or business in that other territory (whether constitute that subsidiary company a permanent establishment of its parent company. (2) Where under this Arrangement any income is exempt from tax in one of the territories if (with or without other conditions) it is subject to tax in the other territory, and that income is subject to tax in that other territory by reference to the amount thereof which is remitted to or received in that other territory, the exemption to be allowed under this Arrangement in the firstmentioned territory shall apply only to the amount so remitted or received. (3) In the application of the provisions of this Arrangement by the United Kingdom or the Colony, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of the United Kingdom, or, as the case may be, the Colony, relating to the taxes which are the subject of this Arrangement. 3. (1) The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Colonial tax unless the enterprise is engaged in trade or business in the Colony through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by the Double Taxation Relief (United Kingdom) [Cap. 273 Colony but only on so much of them as is attributable to that permanent , (2) The industrial or commercial profits of a Colonial enterprise shall not be subject to United Kingdom tax unless the enterprise is engaged in trade or business in the United Kingdom through a permanent establishment situated therein. If it is so engaged, tax may b'e imposed on those profits by • the United Kingdom, but only on so much of them as is attributable to that permanent establishment: Provided that nothing in this paragraph shall effect any provisions of the law of the United Kingdom regarding the imposition of excess profits tax and profits tax in the case of inter-connected companies. (3) Where an enterprise of one of the territories is engaged in trade or therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it mighJ; be expected to derive from its activites in that other territory if it were an independent enterprise engaged dealing at arm's length with the enterprise of which it is a permanent establishment. (4) No portion of any profits arising from the sale of goods or merchandise by an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase and transportation of the goods or merchandise within that other territory, and the mere purchase and transportation of goods or merchandise outside that other territory shall not prevent the attribution to the permanent establishment of the whole profits arising from the sale of the goods or merchandise through the permanent establishment. 4. Where- (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises, then any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly. 5. Notwithstanding the provisions of paragraphs 3 and 4, profits which 6. (1) Dividends paid by a company resident in one of the territories to a territory through a permanent establishment situated therein, shall be exemp~ 2148 Cap. 273] Income Tax that other territory shall not impose any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of an undistributed profits tax on undistributed profits of the 7. (1) Any royalty derived from sources within one of the territories by a resident of the other territory, who is subject to tax in that other territory in respect thereof and is not engaged in trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory; but no exemption shall be allowed under this paragraph in respect of so much of any royalty as exceeds an amount which represents a fair and reasonable consideration for the rights for which the royalty is paid. (2) In this paragraph the term " royalty " means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade-mark or other like property, but does not include a royalty or other amount paid in respect of the operation of a mine or quarry or of other extraction of natural resources. 8. (1) Remuneration, including pensions, paid by the Government of one of the territories to any individual for services rendered to that Government in the discharge of governmental functions shall be exempt from tax in the other territory if the individual is not ordinarily resident in that other territory or (where the remuneration is not a pension) is ordinarily resident in that other territory solely for the purpose of rendering those services. (2) The provisions of this paragraph shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Governments for purposes of profit. 9. (1) An individual who is a resident of the United Kingdom shall be exempt from Colonial tax on profits or remuneration in respect of personal (including professional) services performed within the Colony in any year of (a) he is present within the Colony for a period or periods not in the United Kingdom, and (c) the profits or remuneration are subject to United Kingdom tax. (2) An individual who is a resident of the Colony shall be exempt from any year of assessment if- , (a) he is present within the United Kingdom for a period or periods in the Colony, and (c) the profits or remuneration are subject to Colonial tax. Double Taxation Relit:{ (United Kingdom) [Cap. 273 10. (1) Any pension (other than a pension paid by the Government of the Colony for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within the Colony by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Colonial tax. (2) Any pension (other than a pension paid by the Government of the United Kingdom for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of the Colony and subject to Colonial tax in respect thereof, shall be exempt from United Kingdom tax. (3) The term " annuity " means a stated sum payable periodically at 11. The remuneration derived by a professor or teacher who is ordinarily