conjunto sector privado excluido el sector de energfa y agua

NINTH SCHEDULE

MISCELLANEOUS PROVISIONS

1. Motor Vehicle Benefit

The amount to be included in employment income as a motor vehicle benefit under paragraph (a) of subsection (2) of section 23 shall be—

(C + R) x P where

C is twenty percent of the cost to the employer of purchasing the vehicle, or the full cost of leasing the vehicle;

R is the running costs of the vehicle in the year ultimately borne by the employer;

P is the proportion the employee’s non-business use of the vehicle bears to its total use in the year.

2. Redundancy and termination payment

The maximum redundancy or termination payment which is to be excluded from employment income under paragraph (h) of subsection (3) of section 23 shall be Le20,000.000.00.³⁸

38 Item 2 was repealed and replaced in 2005 by the Income Tax (Amendment) Act, 2005 (No. 8), which came into operation on 1 January 2005. The new Item 2 increased the maximum redundancy or termination payment from Le10,000,000 to Le20,000,000. Item 2 formerly read as follows: “The maximum redundancy or termination payment which is to be excluded from employment income under paragraph (h) of subsection (3) of section 23 shall be Le10,000,000.”

Item 2 was repealed and replaced in 2004 by the Income Tax (Amendment) Act, 2004 (No. 6). The new Item 2 increased the maximum redundancy or termination payment to Le10,000,000.00. Item 2 formerly read as follows:“The maximum redundancy or

3. Interest Proportion

The proportion of interest costs deductible in ascertaining chargeable income under subsection (2) of section 35 shall be eighty percent.

4. Pension and annuity deductions

In the absence of actuarial tables accepted by the Commissioner, the non-taxable element of each pension or annuity receipt under

subsection (3) of section 38 shall be ninety-five percent in the first year of receipt, ninety percent in the second year of receipt, reducing by five percent in each successive year of receipt until a maximum of fifty percent of the receipt is taxed as income in each year.

5. Capital allowance pool

The maximum balance of a capital allowance pool which may at the end of the year of assessment be deducted from chargeable income under subsection (9) of section 39 shall be Le100,000.

6. Investment allowance

The amount of investment allowance to be deducted from business income under section 40 is five percent of the cost of the relevant asset.

termination payment which is to be excluded from employment income under paragraph (h) of subsection (3) of section 23 shall be Le4,000,000.”

7. Business investment relief

The maximum relevant amount of business investment relief available to an individual under section 44 is fifty percent of qualifying

investments totalling not more than Le3,000,000 in any year of assessment.

8. Requirement to account on accrual basis

The amount which under subsection (3) of section 48 is to trigger the requirement to account for business income on an accrual basis shall be either—

(a) a turnover of or exceeding Le10,000,000; or (b) chargeable business income of or exceeding

Le1,000,000.

9. Indexation of adjusted cost base

(a) The indexation of the adjusted cost base of an asset under subsections (6) and (7) of section 58 shall be computed from the first day of the month following the date of acquisition of the asset to the first day of the month following the date of disposal of the asset.

(b) A leone indexation table shall be published by the Commissioner based on a comparison of the value of the leone to the average value of the French franc, the German deutschemark, the Japanese yen, the United Kingdom pound sterling and the United States of America dollar, as supplied to the

Commissioner by the Bank of Sierra Leone for the first day of each calendar month or first working day thereafter.

(c) Where each of the adjusted cost base, the disposal proceeds and any income arising from the asset during the period of ownership was in leones, the indexation shall be in accordance with the leone indexation table.

(d) Where any of the adjusted cost base, the disposal proceeds and any income arising from the asset during the period of ownership was in a currency other than leones, the indexation shall be the lower of the leone indexation table and the index computed by comparing each such currency to the average values computed for the leone indexation table.

10. Remission of liability

The limit of remission referred to in section 112 is Le1,000,000 for each year of assessment for each taxpayer.

11. Late Appeal

The fee payable on filing a late objection under paragraph (a) of subsection (7) of section 137 is Le10,000.

12. Maximum fines for prosecuted offences

The maximum fines imposed under the following sections are—

section 150 Le50,000 section 154 Le1,000,000 section 155 Le500,000 section 156 Le100,000 section 157 Le100,000 section 158 Le1,000,000

section 160 Le50,000 section 162 Le1,000,000 13. Private Ruling

(a) Where a taxpayer applies for a private ruling under section 168 his application shall—

(i) be in writing;

(ii) specify that a private ruling is requested;

(iii) disclose completely and accurately all issues material to the ruling;

(iv) state the precise question on which the ruling is sought; and

(v) be accompanied by a fee of Le 200,000.

(b) The Commissioner may seek further information before issuing a ruling.

14. Tax Clearance Certificate Fee

The fee to be paid under section 174 shall be—

(a) for a tax clearance certificate—

(i) in the case of a student Le200;

(ii) in the case of an unemployed person Le300;

(iii) in the case of an employee Le500;

(iv) in the case of an unincorporated business Le1,500;

(v) in the case of a company Le2,000; and (vi) in any other case Le1,000.

(b) for a written statement for the purposes of business registration—

(i) in the case of a company Le4,000; and (ii) in any other case Le2,000.

TENTH SCHEDULE (Section 109(1))

THE INCOME TAX ACT, 2000³⁹