12 No.

Finance Act 2009 ACT

(e) fifty percent to the Civil Aviation Authority,
Sierra Leone Maritime Administration,
Pharmacy Board and Telecommunications
Commission respectively; and
SIGNED this day of , 2009
(f) fifty percent shall be paid into the
Consolidated Fund.
DR. ERNEST BAI KOROMA,
President.

Passed in Parliament this day of , in the year of our Lord two thousand
and Nine.

VICTOR A. KAMARA,
Clerk of Parliament.

THIS PRINTED IMPRESSION has been carefully compared by me with the Bill
LS
No. 2009
which has passed Parliament and found by me to be a true and correct printed copy
of the said Bill.

Sierra Leone
VICTOR A. KAMARA,
Clerk of Parliament.

THE FINANCE ACT, 2009. Short title.

Being an Act to provide for the imposition and alteration of

taxation for the year 2009 and for other related matters.

[1st January, 2009] Date of com-

mencement.
PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTING DEPARTMENT, SIERRA LEONE. ENACTED by the President and Members of Parliament in this
present Parliament assembled.
2 No. Finance Act 2009 No. Finance Act 2009 3

Commence- 1. Unless otherwise provided, this Act shall be deemed to (c) sites, drilling equipment or ships used for
ment.
have come into operation on the 1st January, 2009. prospecting for natural resources as well as
the exercise of supervisory activities
Amendment 2. The Excise Act, 1982 is amended in the First Schedule, connected with such facilities;
of Act No. 6
of 1982.
Tariff Item No. 22.09; for Alcoholic Beverages -
(d) a place used by a non-resident individual for
A: of alcoholic content of 10%, or less, rate of excise duty is 30% .
business activity”.
B: of alcoholic content of greater than 10%, rate of excise duty is 35%
(c) in section 32 thereof–
Amendment 3. The Income Tax Act, 2000 is amended- (i) in subsection (3) by substituting a semi-colon for
of Act No. 8 the full-stop at the end of paragraph (s) thereof,
of 2000.
(a) in section 13, by renumbering the existing section as and inserting immediately thereafter the follo-
subsection (1) thereof and inserting immediately there- wing:-
after the following:-
“(t) donations towards good causes.”; and
“(2) A permanent establishment of a non-resident person
in Sierra Leone shall be treated as a resident legal person with respect (ii) inserting after subsection (4) thereof the
to the business carried out by that permanent establishment in Sierra following:-
Leone.
“(5) In paragraph (t) of subsection (3), the expression
(3) For the purposes of subsection (2), the permanent
“donations towards good causes” refers to
establishment of a non-resident person in Sierra Leone is, unless
donations made in respect of community
otherwise stated, the establishment through which it carries out
business activities in full or in part, including activities carried out development programmes, charitable giving and
through an agent, for a period of no less than 182 days during the tax sponsorship of sports, educational and health
year.”; programmes”;

(b) by inserting in section 2 thereof the following (d) by the repeal and replacement of section 97 thereof
definition:- by the following:-

“permanent establishment” includes the following:- “Filing of 97. (1) Subject to section 98, a taxpayer or nominated
return of
income.
officer of a partnership or trust, shall file a return of
(a) a branch office of a non-resident legal person; income for each year of assessment and make
arrangements to pay any balance of tax thereon not
(b) construction sites, assembly or batching
later than ninety days after the end of that year.
facilities and the exercise of supervisory
activities connected with such facilities;
4 No. Finance Act 2009 No. Finance Act 2009 5

(2) The return of income shall – “Ordinary 101 (1) Subject to subsection (2) and section 104A,
deemed and where a taxpayer has filed a return of income and the
special assess- Commissioner-General has decided not to determine
(a) be in the form; ments.
the amount of income in accordance with section
(b) state the information; and 70, the Commissioner-General shall make an ordinary
assessment of the tax payable and notify the taxpayer
of any amount owned or overpaid”;
(c) be filed,
as prescribed by the Commissioner-General. (g) by the insertion immediately after section 104
thereof of the following new section:-
(3) The return of income shall be accompanied by–
“Self-assess- 104A (1) A taxpayer makes a self-assessment of
(a) in the case of a person carrying on business ment.
income where, in any year of assessment, the
in Sierra Leone with annual turnover of not Commissioner-General decides to use the return of
less than three hundred million leones, a set income filed by him as notice of his tax liability for
of accounts certified by a firm of chartered that year of assessment.
accountants recognized by the Institute of
Chartered Accountants of Sierra Leone and (2) Where a taxpayer has filed a self-assessment return of
accepted by the Commissioner-General; income for a year of assessment, the Commissioner-General shall be
deemed to have made an assessment of the chargeable income of the
(b) in the case of a non-governmental taxpayer and the tax payable on that chargeable income for that year
organization (NGO) or an exempt organization shall be the amounts shown respectively in the return.
under section 9, annual accounts and
withholding tax compliance returns; (3) Where subsection (2) applies, the taxpayer’s return of
income is treated as a notice of an assessment served on the taxpayer
(c) in the case of a person carrying on business by the Commissioner-General on the due date for filing the return or
in Sierra Leone with annual turnover of less on the actual date the return was filed, whichever is the later.
than three hundred million leones but not less
than two hundred million leones, copies of (4) Notwithstanding subsection (2), the Commissioner-
the annual accounts.”. General may make an assessment under section 101 on a taxpayer in
any case in which the Commissioner-General considers necessary.
(e) by the insertion immediately after subsection (6) of
section 117 thereof, of the following:- (5) Where the Commissioner-General makes an assessment in
accordance with subsection (4), the Commissioner-General shall
“(7) Non-governmental organizations shall file annual include with the assessment a statement of reasons as to why the
withholding tax returns showing their full compliance Commissioner-General considered it necessary to make such an
with this section.”; assessment”;

(f) in section 101, by the repeal and replacement of sub- (h) in section 137 thereof, by the repeal and replacement
section (1) thereof by the following:– of subsection (6) thereof by the following:–
6 No. Finance Act 2009 No. Finance Act 2009 7

“(6) Where an objection decision has not been made offence and is liable on conviction to a fine of not less than
by the Commissioner-General within ninety days Le10,000,000 or to a term of imprisonment not exceeding one year or
after the taxpayer has filed the objection with the to both”;
Commissioner-General, the taxpayer may, by notice
in writing to the Commissioner-General, elect to treat (k) in section 150, by the repeal and replacement of para-
the Commissioner-General as having made a decision graph (a) of subsection (1) thereof by the following:-
to allow the objection.
“(a) Le2,000,000, plus”;
(6A) Where a taxpayer has filed an objection and
the Commissioner-General has made an objection (l) in the Ninth Schedule–
decision to allow the objection, the Commissioner-
General shall amend such assessment in accordance (a) in paragraph 11, by the repeal and replace-
with the objection decision made”. ment of Le10,000 by Le1,000,000;

(i) in Part I of the First Schedule, by the substitution for the (b) in paragraph 12, by the deletion of section
150 and the maximum fine of Le50,000, stated
amount of Le1,500,000 per annum, the amount of
in relation thereto.
Le1,800,000 per annum as the non-taxable threshold.
4. The National Revenue Authority Act, 2002 is amended in Amendment
(j) by the repeal and replacement of section 155A by the section 12– of Act No. 11
following:– of 2002.
(a) by the insertion immediately after paragraph
155A (1) Where a person liable to income tax fails to (a) of subsection (2) thereof of the following:-
“Breaking
pay such tax within the time required, the
sealed
premises. Commissioner-General may, instead of issuing the “(aa) to take over–
warrant referred to in subsection (1) of section 109,
seal the business premises of that person and, (i) the collection of the revenues or other
thereafter, the goods or chattels in those premises moneys, not derived from taxation,
shall be deemed to be attached and at the disposal raised or received for the purpose of, or
of the Commissioner-General. on behalf of, the Government,
hereinafter referred to as “non-tax
(2) The Commissioner-General or any person revenue”, and required by subsection
designated by him in that behalf, may make an inventory of all goods (1) of section 111 of the Constitution to
and other property in the premises attached under subsection (1). be paid into the Consolidated Fund,
including but not limited to fees, fines
(3) Any person who without the authority of the and royalties payable under the
Commissioner-General breaks the seal on any premises sealed under enactments set out in the Second
this section or removes any goods or chattels therefrom, commits an Schedule;
8 No. Finance Act 2009 No. Finance Act 2009 9

(ii) the printing of all licences, certificates “SECOND SCHEDULE

and permits to be issued by departments
of Government and other public bodies; ENACTMENTS IN RELATION TO WHICH AUTHORITY IS
TO TAKE OVER COLLECTION OF NON-TAX REVENUE
(iii) the printing of all licences, certificates
and permits in respect of all non-tax Christian Marriage Act, Cap. 95
revenues”.
Mohammedan Marriage Act, Cap. 96
Civil Marriage Act, Cap. 97
(b) by the repeal and replacement of subsection
Agricultural Act, Cap. 185
(3) thereof, by the following:–
Liquor Licensing Act, Cap. 238
“(3) The Minister may, after consultation with the Trade Marks Act, Cap. 244
Patents Act, Cap. 247
Authority, amend the First and Second Schedules
Companies Act, Cap. 249
by statutory instrument.
General Registration Act, Cap. 255
(3A) For the purposes of the functions of the Registration of Instruments Act, Cap. 256
Authority under subsections (1) and (2), the State Lands Act, 1960 (Act No. 19 of 1960)
Commissioner-General shall have the power to– Consular Fees Act, 1964 (Act No. 48 of 1964)
Passports Act, 1964 (Act No. 49 of 1964)
(a) publish in the Gazette or otherwise details of Non-Citizens (Registration, Immigration and Expulsion) Act, 1965 (Act
defaulters and their debts; No. 14 of 1965)
Building Fees Act, 1973 (Act No. 23 of 1973)
(b) require security for the payment of any non- Factories Act, 1974 (Act No. 3 of 1974)
tax revenue and sue for and recover, penalties National Registration Act, 1974 (Act No. 20 of 1974)
and interest arising thereon; Births and Deaths Registration Act, 1983 (Act No. 11 of 1983)
Forestry Act, 1988 (Act No. 7 of 1988)
(c) prosecute any offences arising under Constitution of Sierra Leone, 1991 (Act No. 6 of 1991)
subsections (1) and (2); and Fisheries (Management and Development Act, 1994 (Act No. 19 of
1994)
(d) prevent any person owing any non-tax
Mines and Minerals Act, 1994 (Act No. 5 of 1994)
revenue from absconding therewith”. Standards Act, 1996 (Act No. 2 of 1996)
National Commission for Privatisation Act, 2002 (Act No. 12 of 2002)
Merchant Shipping Act, 2003 (Act No. 3 of 2003)
10 No. Finance Act 2009 No. Finance Act 2009 11

Revenue 5. (1) Notwithstanding anything in any law to the contrary, (v) the imposition of a processing fee for
stamps to with effect from ninety days after the coming into operation of this declarations processed through the
replace
postage
Act, the use of postage stamps for the authentication of any official electronic system for the maintenance
stamps on document is hereby prohibited. of the system; and
official
documents. (vi) the use of World Trade Organization
(2) With effect from the ninety days referred to in Agreement on customs valuation
subsection (1), only revenue stamps issued by the National Revenue instead of the Brussels definition of
Authority shall be used for the authentication of official documents. value; and

(3) Any person who contravenes this section commits (b) the National Revenue Authority shall ensure
an offence and shall be liable on conviction to a fine not exceeding that all penalties imposed by law for offences
Le100,000 or ten times the value of the stamps used in the and discrepancies found on declarations
contravention of this section. completed and registered with the Authority
for processing are enforced or applied, as the
Automated 6. As from the commencement of this Act– case may be.
customs
procedures.
(a) the following customs procedures shall 7. Fees, revenues or other moneys collected by the Civil Distribution
apply– Aviation Authority, Sierra Leone Maritime Administration, Pharmacy of fees, etc.

Board and the National Telecommunications Commission under the

(i) compulsory submission by all shipping following enactments:–
companies or agents of electronic
manifests within a stipulated time; Act No. 2 of (a) the Civil Aviation Act, 2008;
2008.
(ii) electronic completion and lodgment of
declarations by all declarants; Act No. 11 of (b) the Sierra Leone Maritime Administration Act,
2000. 2000;
(iii) payment of customs duties and other
customs related taxes at designated Act No. 12 (c) the Pharmacy and Drugs Act, 2001; and
banks; of 2001.

Act No. 9 of (d) the Telecommunications Act, 2006

(iv) the Port Authority to receive and 2006.
discharge goods electronically;
shall be distributed as follows:–