NATIONAL RECONSTRUCTION LEVY ACT - 2001 (ACT 597)

• Section - 1 - Levy Applicable To Exempted Companies.

  • (1) For the avoidance of doubt, the levy imposed under section 1 shall, subject to subsection (2), apply to all companies notwithstanding any provision to the contrary in any enactment relating to a tax holiday or exemption from direct or indirect tax applicable to a company.
    
    (2) The levy imposed under section 1 shall not apply to rural or community banks. [As inserted by National Reconstruction Levy (Amendment) Act, 2002 (Act 619), s.1].

• Section - 1 - Imposition Of Levy On Profits Before Tax Of Companies.

  • There is imposed by this Act on the profits before tax of all companies other than those specified in section 2 a levy of "1.5%" for national reconstruction. [As substituted by National Reconstruction Levy (Amendment) Act, 2005 (Act 687) s. 1].

• Section - 2 - Imposition Of Levy On Specified Institutions

  • There is imposed on the profits before tax on the institutions
    
    (a) specified in Part A of the Schedule to this Act a levy of "7 1/2 %",
    
    (b) specified in Part B of the Schedule to this Act a levy of "5%".
    
    (c) specified in Part C of the Schedule to this Act, a levy of "3.5%". [As inserted by the National Reconstruction Levy (Amendment) (No.2) Act, 2003 (Act 648), s.(a) and further amended by National Reconstruction Levy (Amendment) Act, 2005 (Act 687) s. 2].

• Section - 3 - Levy Not Deductible Expense.

  • The levy payable under this Act shall not be an allowable deduction for the purpose of ascertaining the income of any person under the Internal Revenue Act, 2000 (Act 592).

• Section - 4 - Profits Affected.

  • The levy imposed by this Act shall be payable in respect of profits before tax for the years 2001, 2002, 2003, 2004 and 2005. [As substituted by the National Reconstruction Levy (Amendment) Act, 2003 (Act 637), s.1].

• Section - 4 - Assessment Of Levy Payable.

  • (1) The Commissioner may as soon as practicable after the commencement of the years referred to in section 4, proceed to make provisional assessment computed to the best of the Commissioner's judgement of the levy payable by companies or institutions liable to pay the levy imposed under this Act.
    
    (2) The Commissioner shall in arriving at the levy payable under subsection(1) have regard to the profits before tax of the company or institution for the two preceding years of assessment before the current year of assessment.
    
    (3) Where the company or institution
    
    (a) has not been assessed to tax in the two preceding years of assessment; or
    
    (b) has not furnished a return or an estimate
    
    in accordance with section 72 or 78 of the Internal Revenue Act, 2000 (Act 592) the Commissioner may proceed to make a provisional assessment of the levy payable under this Act by that company or institution to the best of the Commissioner's judgement. [As inserted by the National Reconstruction Levy (Amendment) Act, 2003 (Act 637), s.2].

• Section - 5 - Time Of Payment.

  • The levy imposed by this Act shall be payable quarterly starting from the end of March 2001.

• Section - 6 - Authority To Collect Levy.

  • The levy imposed by this Act shall be collected by the Internal Revenue Service.

• Section - 7 - Payment Into Consolidated Fund.

  • The Commissioner of Internal Revenue shall pay all levies collected into the Consolidated Fund.

• Section - 8 - Recovery Of Levy

  • For the purpose of enforcing the recovery of the levy imposed by this Act the provisions of the Internal Revenue Act, 2000 (Act 592) relating to collection, refund, enforcement and penalties shall apply to the collection of the levy under this Act as if the levy is collected under Act 592. [As amended by the National Reconstruction Levy (Amendment) Act, 2003 (Act 637), s.3].

• Section - 9 - Amendment Of Schedule.

  • The Minister for Finance may by legislative instrument amend the Schedule.