FOURTH REPUBLIC
Act 700
THE SEVEN HUNDRED
ACT
OF THE
PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
INTERNAL REVENUE (AMENDMENT) ACT, 2006
(ACT 700 )
AN ACT to amend the
Internal Revenue Act, 2001 (Act 592).
DATE OF ASSENT:
23rd March, 2006.
ENACTED by the
President and Parliament as follows:
Section 10 of
Act 592 amended
1.
The Internal
Revenue Act, 200 I (Act 592) referred to in this Act
as the "principal enactment" is amended in section
10 by the insertion after paragraph (g) of
subsection (1) of the following new paragraph:
"(gg) the dividend
of a venture capital financing company that
satisfies the eligibility requirements for funding
under the Venture Capital Trust Fund Act, 2004 (Act
680) for a period of five years of assessment
commencing from and including the year in which the
basis period of the company ends, being the period
in which operations commenced".
Section 11 of
Act 592 amended
2.
The principal
enactment is amended in section 11
(a)
by the substitution
for subsection (5) of the following:
"(5) the income of
a venture capital financing company that satisfies
the eligibility requirements for funding under the
Venture Capital Trust Fund Act, 2004 (Act 680) is
exempt from tax for the period of five years of
assessment commencing from and including the year in
which the basis period of the company ends, being
the period in which operations commenced",
(b)
by the insertion in
subsection (6) of "or letting" after "sale"
appearing in line 2.
(c)
by the substitution
for "fifteen years" appearing in subsection (8) of
"twenty years".
Section 19A
inserted
3.
The principal
enactment is amended by the insertion after section
19 of the following new section.
"Deduction in
relation to Venture Capital Companies
19A. For the
purposes of ascertaining the income of a financial
institution which invests in a venture capital
financing company there shall be deducted an amount
equal to the full amount of the investment in a year
of assessment"
Section 14
of
Act 592 amended
4.
The principal
enactment is amended in section 14 as follows:
(a) by the insertion of"(1)" before "Subject".
(b)
by the insertion of
a new subsection (2) as follows:
"(2) For the
purposes of ascertaining the income of an individual
for a period from any business, employment or
investment there shall be deducted any interest
incurred during the period in respect of a borrowing
employed in constructing or acquiring residential
premises".
Section 22 of
Act 592 amended
5.
The principal
enactment is amended in section 22 (1) as follows:
(a)
by the insertion of
agro processing, tourism, information and
communication technology between "from" and "a
farming" appearing in line 2.
(b)
by the insertion of
paragraph (1a) after paragraph 1 as follows:
"(1 a)
A loss incurred
by a venture capital financing company from the
disposal of share invested in a venture capital
subsidiary company under the Venture Capital Trust
Fund Act, 2004 (Act 684) during the period of tax
exemption granted under section 11 (5) shall be
carried forward for a period of5 years of assessment
following the end of the exemption period".
(c)
by the substitution
for subsection (6) of the following new subsection:
"( 6) For the purposes of this section
(a)
"manufacturing
business" means a business that manufactures mainly
for export.
(b)
"tourism business"
means an operator of a tourism business registered
with the Ghana Tourist Board.
(c) "an
information technology business" means an ICT
business that is engaged in software development".
Section 38 of Act
592 amended
6. The principal
enactment is amended in section 38 by the
substitution for "chargeable income" of "assessable
income".
Section 1 01 of Act
592 amended
7. The principal
enactment is amended in section 101 by the insertion
after paragraph (f) of subsection (1) of the
following new paragraph:
"(g)
capital gains
accruing to or derived by a venture capital
financing company that satisfies the eligibility
requirements of the Venture Capital Trust Fund Act
2004 (Act 684) for a period offive years of
assessment commencing from and including the year
in which the basis period of the company ends, being
the period in which operations of the subsidiary
company commenced".
Section 118 of Act
592 amended
8. The principal
enactment is amended in section 118 (7) by the
substitution for "1973" of" 1963".
Section 127 of Act
592 amended
9. The principal
enactment is amended in section 127 (3) by the
substitution for "(2)" and "(3)" appearing in line 2
of"( 1)" and "(2)".
Section 131 of Act
592 amended
10. The principal
enactment is amended in section 131 by the
substitution for subsection (1) of the following new
subsection:
"( 1) Where a
person has lodged a notice of objection to a notice
of assessment under section 128 an amount of thirty
per centum of the amount payable as contained in the
notice of assessment shall be paid pending the
determination of the objection and an appeal.
Date of Gazette
notification: 24th March, 2006.
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