Income Tax (Amendment)Act, 2010

2. Section two of the principal Act is amended by the insertion in the appropriate places of the following new definitions: Amendment of section 2 " electronic communications network " has the meaning assigned to it in the Information and Communication Technologies Act, 2009; Act No. 15 of 2009 " electronic communications service " has the meaning assigned to it in the Information and Communication Technologies Act, 2009; and " licensee" has the meaning assigned to it in the Information and Communication Technologies Act, 2009;.

3. Section twenty-one of the principal Act is amended in subsection (5) by the deletion of the words "twenty-five million kwacha" and the substitution therefor of the words "thirty-five million kwacha". Act No. 15 of2009 Act No. 15 of 2009 Amendment of section 21 Single copies of this Act may be obtained from the Government Printer P. 0. Box 30136. 10101 Lusaka. Price K2,000 each 714 No. 49 of2010] Income Tax (Amendment) Repeal of section 43C Amendment of section 56

4. The principal Act is amended by the repeal of sectionforty- three C.

5. Section fifty-six of the principal Act is amended by­ (a) the deletion of subsection (2); and (b) the re-numbering of subsections (3), (4), (5) and (6) as (2), (3), (4) and (5) respectively. Amendment of section 100

6. ( 1) Section one hundred of the principal Act is amended by the deletion of subsection (I) and the substitution therefor of the following subsection: ( 1) A person who negligently, fraudulently or through wilful default- (a) fails to furnish a return of income in accordance with the requirements of subsection (2) of section forty-six; (b) fails to furnish a provisional return of income and tax in accordance with the requirements of section forty-six A; (c) makes an incorrect return by omitting or understating any income of which the person is required by this Act to mak� a return; (d) gives any incorrect information in relation to any matter affecting the person's own liability to tax or the liability to tax of any other person; or (e) submits any ·incorrect balance sheet, account, or other document; shall pay a penalty equal to- (i) in relation to a person liable to pay mineral royalty under the Mines and Minerals Development Act, 2008- (A) in the case of negligence, one point five percent of the gross value or norm value; (B) in the case of fraud, four point five percent of the gross value or norm value; and (C) in the case of wilful default, three percent of the gross value or norm value; omitted or understated, in consequence of such failure, incorrect return, information or submission; and Income Tax (Amendment) [No. 49 of 2010 715 (ii) in any other case-- (A) in the case of negligence, seventeen point five percent of the amount; (B) in the case of fraud, fifty-two point five percent of the amount; and (C) in the case of wilful default thirty- five percent of the amount; of any income omitted or understated, or any expenses overstated, in consequence of such failure, incorrect return, information or submission.

7. The principal Act is amended by the deletion of the words "Direct Taxes Division" wherever they appear and the substitution therefor of the words "Domestic Taxes Division". Amendment of principal Act

8. The Fifth Schedule of the principal Act is amended in paragraph 22 by the deletion of subparagraph (8) and the substitution therefor of the following new subparagraph: Amendment of Fifth Schedule (4) A deduction shall be allowed in ascertaining gains or profits of a person involved in mining operations in respect of actual costs incurred by way of restoration and rehabilitation works or amounts paid into the Environmental Protection Fund pursuant to section one hundred and twenty-two of the Mines and Minerals Development Act, 2008.

9. The Charging Schedule of the principal Act is amended- (a) in subparagraph (I) of paragraph I, by the deletion in clause (b) of the words "one million, nine hundred and twenty thousand kwacha" and the substitution therefor of the words "three million kwacha"; (b) in subparagraph (I) of paragraph 2 by- Act No. 7 of 2008 Amendment of Charging Schedule (i) (ii) the deletion in clause (c), of the words "nine million, six hundred thousand kwacha" and the substitution therefor of the words "twelve million kwacha"; the deletion in clause (d), of the words "nine million, six hundred thousand kwacha" and "sixteen million and twenty thousand kwacha" and the substitution therefor of the words "twelve million kwacha" and "twenty million, eight hundred and twenty thousand kwacha" respectively; 716 No. 49 of 2010] Income Tax (Amendment) (iii) (iv) the deletion in clause (e), of the words "sixteen million and twenty thousand kwacha" and "forty­ nine million, two hundred thousand kwacha" and the substitution therefor of the words "twenty million, eight hundred and twenty thousand kwacha" and "fifty million, four hundred thousand kwacha" respectively; and the deletion in clause (!), of the words "forty­ nine million, two hundred thousand kwacha" and the substitution thereforofthe words "fifty million, four hundred thousand kwacha"; and (c) in paragraph 3 by- (i) (ii) (iii) the insertion immediately before the words "Subject to" of the figure "{I)"; the insertion in clauses (b), (c) and (d), immediately after the word "bank", of the words "or electronic communications network or service licensee"; the insertion, immediately after clause (e), of the following new clause: (/) where the income from mining operations exceeds eight percent of the gross sales at the rate determined in accordance with the following formula: Y=30% + [a-(ab/c)J Where Y= the tax rate to be applied per annum; ( a=15% b=8%;and c= the percentage ratio of the assessable income to gross sales; the re-numbering of clause (f) as clause (g); and the insertion, immediately after clause (g), of the following new subparagraph: (2) Clause (f) of subparagraph (!) shall have effect from !st April, 2009. (iv) (v)