THE FINANCE ACT, 2010 - Tanzania Revenue …

1 PARTIPARTllPARTlYPARTVPARTIXPARTXTHEFINA NCEACT, 2010 ARRANGEMENTOFPARTSPRELIMINARYPROVISIONSA MENDMENTOFTHECASHEWNUTINDUSTRYACT,( )AMENDMENTOFTHEEXCISE(MANAGEMENTANDTARIF F)ACT,( )AMENDMENTOFTHEGAMINGACT,( )AMENDMENTOFTHEINCOMETAXACT,( )AMENDMENTOFTHELOCALGOVERNMENTFINANCESAC T,( )AMENDMENTOFTHEMOTORVEIllCLES(TAXONREGIS TRATIONANDTRANSFER)ACT,( )AMENDMENTOFTHEPUBLICFINANCEACT,( )AMENDMENTOFTHEPUBLICAUDITACT,( )AMENDMENTOFTHETANZANIAINVESTMENTACT,( )AMENDMENTOFTHEURBANAUTHORITIES(RATING)A CT,( )AMENDMENTOFTHEVALUEADDEDTAXACT,( )..~.., ~~~.J~l.~~..AnActto imposeanda1t~rcertaintaxes,duties,levies ,feesandtoamendcertainwrittenlawsrelatin gtothecollectionandmanagementof havecomeintooperationonthe1Sl dayof July, THECASHEWNUTINDUSTRYAcr,( ) ,hereinafterreferredto as the"principalAct".Additionof amendedbyaddingimmediatelyaftersection17 thefollowingnewsection:" (1)Apersonwhoexportsraw_~exportcashewnut sshallpayanexportlevytobe.

2 !I('!Y~QmputedandcollectedbytheTanzaniaR evenueAuthorityat theTateof15 percentumof theFOBv~eor theamountequivalentto USdollarsonehU~sixtypermetrictone,whiche verishigher.(2)Thetotalamountof exportlevycollectedundersubsection(1)sha llbedistributed,in suchamannerthat:(a)65%wouldberemittedto theCashewnutsIndustryDevelopmentTrustFun d;and(b)35%wouldberemittedto theConsolidatedFund.(3)TheMinistershall, in consultationwithstakeholders,makeregulat ionsprescribingamechanismfordistribution anduseof thelevycollectedintermsofsubparagraph(a) amongstcashewnutsstakeholders."PARTIDAME NDMENTOFTHEEXCISE(MANAGEMENTANDTARIFF)AC T,( ) (ManagementandTariff)Act,hereinafterrefe rredto as the"principalAct". amendedin section2, by insertinginitsappropriatealphabeticalord erthefollowingnewdefinition:"Minister"me anstheMinisterresponsibleforfinance;" amendedin section122(1),bydeletingtheword"authorit y"andsubstitutingforit theword"Minister".)

3 Amendedin section124(3),bydeletingthephrase"mobile phoneservices"andsubstitutingforit theword"airtime". theprincipalActis amendedbydeletingtheratesofexcisedutyspe cifiedin theFifthColumnwhicharecurrentlyimposedon itemsspecifiedin theThirdColumnandsubstitutingforthemther atesspecifiedintheSixthColumn:" ,includingmineralwatersandaeratedwaters, containingaddedsugarorothersweeteningmat terorOavoured,andothernon-0alcoholicbeve rages,notincludingfruitorvegetablejuices of , ,containingaddedsugarorothersweeteningma tteror - ,Lincludingfortifiedwines;grapemustother thanthatof , ,223perlitreperlitre- Otherwine; , ,223orarrestedbytheadditionperDtreperUtr eof alcohol:-0 In containersholding2 Ior , , , ,223perUtreperlitre , , ;or lI1" In containersholding2 Ior , , , , (forexample,cider,perry,mead);mixturesof fermentedbeveragesandmixturesoffermented beveragesandnon-aicohoUcbeverages,notels ewherespecifiedor -Beermadefrom100% lessthan80%vol;spirits, , , , , , , , , , , ,678per1,812pelitrerlitre- ( , , ,UgandaWaragi)perlitre1, , , ,cheroots,cigarillosIandcigarettes,of tobaccoorof ~ , ,289exceediDl!

4 :75% , ,649exceediDl!:75% - 24,633per26, ;"homogenised"or"reconstituted"tobacco; ,whetherornotcontainingtoba , , ,otherthancrude;preparationsnotelsewhere specifiedorincluded,containingby weight70%ormoreof petroleumoilsor ofoilsobtained~bituminousminerals,theseo ilsbeingthebasicconstituentsoftheprepara tion (marine,furnaceandsimilarfueloils)ofa Kinematicviscosityof (marine,furnaceandsimilarfueloils)ofa Kinematicof (marine,furnaceandsimilarfueloils)ofa Kinematicviscosityof 280centistrokesPARTIVAMENDMENTOFTHEGAMIN GAcr,( ) " readas onewiththeGamingAct,hereinafterreferredt o as the"principalAct". amendedin theSecondSchedule,by-(a)deletingfigure"1 6000/="appearingin column2 of itemI andsubstitutingforit figure"32,000/=";and(b)addingimmediately afteritem2 thefollowingnewitem:" "machinessitePARTVAMENDMENTOFTHEINCOMETA XACT,( ) onewiththeIncomeTaxAct,ctionhereinafterr eferredto as the"principalAct".

5 Amendedin section11,by-(a)insertingimmediatelyafte rsubsection(3)thefollowingnewsubsection: "(4)Inthecaseofminingoperation,wheresepa rateanddistinctminingoperationsarecarrie donbythesamepersonin differentmininglicenceareas,theminesshal lbetreatedas separateminingoperations.";(b)renumberin gsubsection(4)as subsection(5);(c)deletingtheword"or"appe aringat theendof sub-paragraph(d);(d)deletinga ''fullstop"appearingat theendof sub-paragraph(e)andsubstitutingforit a word",or";and(e)addingimmediatelyaftersu b-paragraph(e)ofsubsection(5)asrenumbere dthefollowingnewsubparagraph:"(f)"mining operation"shallnotincludeexplorationacti vitiesconductedoutsidethemininglicencear eawhichshallbeaccumulatedandallowedwhent hecommercialoperationscommence." amendedin section12bydeletingsubsections(2)and(3)a ndsubstitutingforthemthefollowingnewsubs ection-"(2)Thetotalamountof interestthatan exempt-controlledresidententitymaydeduct in accordancewithsection11(2)fora yearof incomeshallnotexceedthesumof interestequivalentto debt-to-equityratioof 70 to 30.

6 " amendedbyaddingimmediatelyaftersection80 thefollowingnewsection:" (l)A personwhoreceivesanypaymentofanamountoff ivethousandshillingsormorein respectofgoodssoldorservicesrenderedbyhi min theordinarycourseof hisbusinessshall,notwithstandinganycusto minanytradeor anyprovisionto thecontraryin thisActoranyotherwrittenlawor anagreementbetweenthepartiesto a saleor a contractof services,as thecasemaybe,issuea receiptto (2)A personissuingthereceiptshallberequiredto enteror causeto be enteredin thereceiptandits duplicatecopythefollowingparticulars:(a) thedateon whichthepaymentis made;(b)fullnameandaddressof thepersonwhosoldthegoodsor renderedtheservices,as thecasemaybe;(c)fulldescriptionof thegoodssoldortheservicesrenderedanda statementof thequantityandvalueof thegoodsor,in thecaseofservices,theamountchargedin respectof theservicesrendered;(d)fullnameandaddres sof thepersonto whomthegoodsweresoldortowhomtheservicesw ererendered,as thecasemaybe;(e)a TaxIdentificationNumber(TIN);and(f)sucho therparticularsas theCommissionermay,bynoticein writing,specifyfromtimeto timeforthepurposesof thissection".

7 (3)Everypersonwhoissuesa receiptin accordancewithprecedingprovisionsof thissectionshallbe requiredto retainin hisrecordstheduplicatecopyof everyreceiptissuedbyhimandshan,unlessthe Commissionerdirectsotherwise,preservetha tcopyfora periodof notlessthanfiveyearsaftertheyearof incometo whichthereceiptrelates." amendedin section83A,bydeletingtheword"Government" whereverit appearinthatsectionandsubstitutingforit theword"Corporation". amendedin section98,byaddingimmediatelyaftersubsec tion(2)thefollowingnewsubsection:"(3)Any personwhoreceivesanypaymentandfailstoiss uea receiptin accordancewiththerequirementof section80A,commitsanoffenceandshall,upon conviction,beliableto a finenotexceedingtwomillionshillingsor to imprisonmentfora termnotexceedingtwelvemonthsor to both." amendedin section100(1),byaddingimmediatelyafterth ephrase"statutoryrate",thephrase"plus5%p erannum"appearingthethirdline.

8 " amendedbyaddingimmediatelyaftersection13 4thefollowingnewsubsection:"(3)Anapprove dTaxConsultantwhoknowinglyorrecklesslyai ds,abets,concealsorinducesa taxpayertofileamisleadingor fraudulentstatementcommitsanoffenceunder thisAct". amendedin section145,byinsertingthephrase"Subjectt o theprovisionsofsection11(4),(5)(f)andsec tion12(2)"betweenthefigure"145(1)"andthe word"Partill." theprincipalActis amendedinparagraph1(l)bydeletingthetable tothatparagraphandsubstitutingforit ,620,OOO/= ,620,0001=14%of theamountin ,320,000/=of ,620,000/= ,320,000/= ,0001=plus20%of ,480,000/=amountin ,320,000/= ,480,000/= ,0001=plus25%of ,640,000/=amountin ,480,000/= ,640,000/= ,350,000/=plus30%oftheamountin ,640,000/=PARTVIAMENDMENTOFTHELOCALGOVER NMENTFINANCESACT,( ) "principalAct . theprincipalActis amendedbyof theScheduledeletingthecontentsof item1 andsubstitutingforthemthefoUowing- Cesssellers Cesson (TAXONREGISTRATIONANDTRANSFER)ACT,( ) theFirstSchedule" buyers(a)Cropcessrangingfrom3%to 5%of farmgateprice;(b)Forestproducecess-cap5% offarmgatepriceorb volumeat soprceonsalesoftimber, ,mirunda,firewood,polesandthieses(fito).

9 " (TaxonRegistrationandTransfer)Acthereina fterreferredto as the"principalAct".25 TheFirstSchedu)eto theprincipalActis amendedin paragraph1, by deleting~(a)thephrase"onehundredtwentyth ousandshillings( ,OOOI=)"appearinginsubparagraph(3),andsu bstitutingforit thephrase"onehundredfiftythousandshillin gs(150,0001=);and(b)thephrase"thirtyfive thousandshillings(35,0001=)"appearingin subparagraph(4),andsubstitutingforit thephrase''fortyfivethousandshillings(45 ,0001=).PARTVITIAMENDMENTOFTHEPuBLICFINA NCEACT,( ) amendedby-(a)insertingthephrase"LocalGov ernmentAuthority"betweenthewords"Governm ent"and"and"appearingin section7(2);(b)insertingthephrase"andoff icersappointedundersection36 of theLocalGovernmentFinancesAct"betweenthe words"General"and"and"appearingin section4 in relationto thedefinitionoftheterm"accountingofficer ." amendedin section7(2)byinsertingthephrase"LocalGov ernmentAuthority"betweenthewords"Governm ent"and"and"appearingin.

10 -( 1)TheprincipalActis amendedby -(a)insertingimmediatelyafterPartIVthefo llowingnewPart:Amendmentof section7 AdditionofnewPartVInternalAuditorGeneral Functionsof InternalAuditorGeneral" (1)ThereshallbeanInternalAuditorGeneralu ndertheMinistryresponsibleforfinance.(2) TheInternalAuditorGeneralshallbeappointe dbythePresidentfromamongstqualifiedperso nsinaccountancy,auditingorfinancialmatte rsonsuchtermsandconditionsto be specifiedin theletterof (1)TheInternalAuditorGeneralshallberespo nsibleto thePaymasterGeneralfor-(a)developinginte rnalauditpolicies,rules,standards,manual s,circularsandguidelines;(b)reviewingand appraisingcomplianceto laiddownlaws,regulations,standards,syste msandproceduresin Ministries,Departments,GovernmentInstitu tions,Regions,LocalGovernmenti\uthoritie s,executiveagenciesanddonorfundedproject s;and(c)ensuringcontrolandproperaccounta bilityofpublicmoniesandproperty.