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02/04/2015

THE GAMING AND POOL BETTING
(CONTROL AND
TAXATION) ACT.
Arrangement of Sections.
Section
1. Interpretation.
2. Prohibition on promoting
gaming and pools without
licence.
3. Licences.
4. Tax on gaming and pool bets.
5. Penalty for late payment of
tax.
6. Recovery of tax and penalty.
7. Orders under sections 3 and 4
to be laid before Parliament.
8. Prohibition on advertising
unauthorised gaming and pools.
9. Examination of books, etc.
10. Offences and penalties.
11. Regulations.
CHAPTER 292
THE GAMING AND POOL BETTING
(CONTROL AND
TAXATION) ACT.
Commencement: 1 September,
1968.
An Act to make provision for the
licensing of and the imposition of
a
tax on gaming and pool betting
and for other matters incidental
thereto and connected therewith.
1. Interpretation.
In this Act, except where the
context otherwise requires—
(a) “coupon” includes any printed
or written document connected
with or designed to assist in the
making of a pool bet;
(b) “gaming” means the playing
of a game of chance for winnings
in
money or money’s worth;
(c) “pool” means any competition
organised for the gain of the
promoter in which for a monetary
or other material regard the
public are invited to foretell the
result of any game, race or event,
and includes a pool operated on
the system known as a fixed
odds
betting pool on the result of any
such game, race or event;
(d) “pool bet” means any stake
or wager in a pool, whether in
money
or money’s worth, and includes
any portion of such stake or
wager;
(e) “prescribe” means prescribed
by regulations made under this
Act;
(f) “promoter” means any person
who promotes a pool;
(g) “Treasury” means the
Minister responsible for finance
or any
public officer deputed by the
Minister to exercise powers and
to
perform duties and functions
under this Act;
(h) “unauthorised pool” in
respect of pool—
(i) “promoted within Uganda”
means any pool promoted by a
person who is not the holder of a
valid promoters licence
issued under section 3;
(ii) “promoted outside Uganda”
means any pool promoted by
a person who has not within
Uganda an agent or
representative holding a valid
principal agents licence
issued under section 3.
2. Prohibition on promoting
gaming and pools without
licence.
(1) No person shall promote
gaming and pools within Uganda
unless
he or she is the holder of a
promoters licence authorising
him or her so to act,
which is for the time being in
force; and if any person acts as a
promoter in
contravention of this subsection,
he or she commits an offence and
is liable
to a fine not exceeding ten
thousand shillings or to a term of
imprisonment
not exceeding one year or to
both.
(2) No person shall, in
furtherance of any gaming and
pool or on
behalf of any promoter or his or
her agent, receive or negotiate
gaming and
pool bets or otherwise act as an
agent of any promoter unless he
or she is the
holder of an agents or principal
agents licence authorising him or
her so to
act, which is for the time being in
force; and if any person acts as
an agent or
principal’s agent in contravention
of this subsection, he or she
commits an
offence and is liable to a fine not
exceeding five thousand shillings
or to a
term of imprisonment not
exceeding six months or to both.
(3) Notwithstanding any other
written law, when a person is
charged
with an offence under this
section, and the court is of the
opinion that he or
she is not guilty of the offence
with which he or she is charged
but that he or
she is guilty of another offence
under this section, it may convict
him or her
of the other offence although he
or she was not charged with it.
3. Licences.
(1) The Treasury may, subject to
any regulations made under this
Act, upon such terms and
conditions and for such period as
it may think fit,
issue any of the following
licences—
(a) a promoters licence
authorising the holder to
promote gaming
and pools within Uganda;
(b) a principal agents licence,
authorising the holder to act as
the
principal agent in Uganda of a
promoter of gaming and pools
promoted outside Uganda;
(c) an agents licence authorising
the holder to act as an agent of
a
promoter of gaming and pools
within Uganda or of a principal
agent of a promoter of gaming
and pools promoted outside
Uganda.
(2) The Minister may, by
statutory order, prescribe annual
fees to be
paid for any licence issued under
this section and may provide for
a
proportion of the fees to be paid
where the licence is for a period
of less than
one year.
(3) The Treasury may refuse to
issue any licence under this
section
without assigning any reason for
the refusal, and may revoke any
licence
issued under this section if it is
satisfied that any of the terms
and conditions
upon which it was granted has
been contravened.
(4) The Treasury may in its
discretion, in any case where it
has
revoked a licence under
subsection (3), make a refund of
part or all of any
fees paid in connection with the
licence.
4. Tax on gaming and pool bets.
(1) Every promoter of gaming and
pools promoted within Uganda
and a principal agent of every
promoter of gaming and pools
promoted
outside Uganda shall pay a tax
of such amount as may, from
time to time by
statutory order, be fixed by the
Minister responsible for finance.
(2) The tax charged and levied
under subsection (1) shall be
paid
within such periods or at such
intervals and in such manner as
the Minister
may by regulations prescribe.
(3) The Minister may, by
statutory order, exempt any
specified
gaming and pool bet or any
specific class of gaming and pool
bets, whether
relating to a particular gaming
and pool or not, from the
payment of the tax
fixed under this section.
(4) For the purposes of
subsection (1), where a promoter,
principal
agent or agent holding any
money or credit on account of
any person,
appropriates any part of the
money or credit to a gaming and
pool bet, the
promoter, principal agent or
agent shall upon making that
appropriation be
deemed to have received a
gaming and pool bet.
5. Penalty for late payment of
tax.
Any person who fails to pay the
whole of the tax due from him or
her within
such periods or at such intervals
as may be prescribed shall be
liable to pay,
in addition to the amount in
default, a penalty equal to 1
percent of the
amount for each week or part of
a week during which the default
continues.
6. Recovery of tax and penalty.
The tax, and any penalty in
respect of the tax, shall be a civil
debt due to the
Government and may be
recovered summarily or sued for
under the Debts
(Summary Recovery) Act.
7. Orders under sections 3 and 4
to be laid before Parliament.
An order made under section 3(2)
or section 4(1)—
(a) shall come into operation on
a day specified in the order;
(b) shall be laid as soon as may
be before Parliament, or if
Parliament is not sitting at the
date of its publication, not later
than at the next meeting of
Parliament after the date of its
publication,
and shall be subject to
annulment by Parliament and
when so annulled shall
cease to have effect from the
date of the annulment but
without prejudice to
anything done under the order
while the order was in force or
the making of
a further order.
8. Prohibition on advertising
unauthorised gaming and pools.
(1) Subject to subsection (2), no
person shall print, publish or
cause
to be printed or published—
(a) any advertisement or other
notice of or relating to an
unauthorised gaming and pool,
or of or relating to the issue of
any coupon or the amount of any
dividend connected with any
such gaming and pool; or
(b) any advertisement or other
notice of or relating to any
gaming
and pool promoted outside
Uganda, or of or relating to the
issue
of any coupon or the amount of
any dividend connected with
such a gaming and pool without
specifying in the advertisement
or notice the name and address
of the principal agent in Uganda
of the promoter of the gaming
and pool,
and if any person acts in
contravention of this subsection,
he or she commits
an offence and is liable on
conviction to a fine not exceeding
one thousand
shillings.
(2) The publication of an
advertisement or notice in a
newspaper
printed outside, and normally
circulating within Uganda, shall
not be an
offence if the gaming and pool to
which the advertisement or notice
refers is
promoted outside Uganda.
(3) Any person who sends or
gives to any person any coupon
relating
to an unauthorised gaming and
pool commits an offence and is
liable to a fine
not exceeding one thousand
shillings.
9. Examination of books, etc.
(1) The Treasury may, by notice
in writing, require any person
licensed under this Act to
produce before it for examination
any books,
accounts and documents relating
to any gaming and pool or to
gaming and
pool betting, and may require
that person to render such
explanation or to
give such information relating to
the books, accounts or
documents as it
deems fit.
(2) The Treasury or a police
officer of or above the rank of
assistant
inspector may enter without
warrant and inspect any premises
in which the
Treasury or the police officer has
reason to believe that an offence
against
this Act has been or is about to
be committed, and having
entered—
(a) may examine and take copies
of any books, accounts and
documents relating to or
appearing to relate to any
gaming and
pool or to gaming and pool
betting;
(b) may seize, remove and detain
any books, accounts or document
which he or she has reasonable
cause to suppose will afford
evidence of any offence against
this Act;
(c) may require any occupant of
the premises to render such
explanation and to give such
information relating to any
gaming
and pool or gaming and pool
betting as may reasonably be
required.
(3) The powers conferred by
subsection (2) shall be exercised
without a warrant only if there is
reasonable cause to believe that
the delay
occasioned in obtaining a search
warrant would seriously hinder
the officer
concerned in the performance of
his or her duties or would tend to
defeat the
purposes of this section.
(4) Any person who—
(a) fails to comply with any
requisition made under
subsection (1);
(b) on any requisition made
under subsection (2)—
(i) withholds any information; or
(ii) renders any explanation, or
gives any information knowing
or having reason to believe it to
be false or misleading; or
(c) obstructs or hinders any
person acting in exercise of the
powers
conferred by this section,
commits an offence and is liable
to a fine not exceeding five
thousand
shillings or to imprisonment for a
term not exceeding six months or
to both.
(5) Before removing any article
under subsection (2)(b), the
officer
removing it shall furnish the
person in whose custody or
possession the
article is at the time of removal
with a written receipt for the
article.
10. Offences and penalties.
Any person—
(a) other than the holder of a
valid principal agents licence,
who
sends out of Uganda, whether by
post or otherwise, money or
money’s worth or any coupon in
connection with or for the
purpose of making a gaming and
pool bet;
(b) who knowingly or recklessly
keeps any book, record or
account,
required to be kept by any
regulation made under this Act,
which
is false in a material particular,
or makes or causes to be made in
any such book, record or account
or in any return to the Treasury
any entry which is false in a
material particular; or
(c) who knowingly is concerned
in, or in the doing or attempting
of,
any act with a view to the
fraudulent evasion of any tax,
penalty
or licence fee payable under this
Act,
commits an offence and is liable
—
(d) in the case of an offence
under paragraph (a) or (b), to a
fine not
exceeding two thousand
shillings; and
(e) in the case of an offence
under paragraph (c), to a fine not
exceeding ten thousand shillings
or to imprisonment for a term
not exceeding one year or to
both.
11. Regulations.
The Minister may, by statutory
instrument, make regulations
generally for
better carrying out the purposes
of this Act and, without prejudice
to the
generality of the foregoing, the
regulations may provide for—
(a) securing the payment of
licence fees, tax and penalties
and the
manner and time of payment of
licence fees, tax and penalties;
(b) the keeping of books, records
and accounts, and the
submission
of returns;
(c) the audit of books, records,
accounts and returns in such
manner,
and by such persons or classes
of persons, as may be prescribed;
(d) the form of licences, and any
conditions to be inserted in the
licences.
History:Act 3/1968; Act
22/1968; S.I. 134/1968; Statute
9/1996, s. 26.
Cross Reference
Debts (Summary Recovery) Act,
Cap. 74.

02/04/2015

Taxation of Domestic Profits –
Companies – Thin Capitalisation
Rules – Uganda.
Thin capitalisation rules that
affect deductibility of interest
payments only apply in respect of
loans extended by foreign
companies to their connected
Ugandan companies, referred to
as a “controlled debt”. These
rules do not apply to branches of
foreign companies. The two
companies are connected when
the lender directly or indirectly
owns at least 50 per cent of the
Ugandan borrower’s share
capital. Indirect holding is
calculated by multiplying
participations in intermediary
companies. Alternatively, the
companies are connected where
a debt is owed to a Ugandan
affiliate of that foreign
shareholder, or where that foreign
shareholder or its Ugandan
affiliate provides security for the
debt. It has been suggested that
where the foreign shareholder
guarantees a debt owed by its
subsidiary to an independent
bank, the two companies are not
deemed connected, and no thin
capitalisation rules apply.
The principal permitted ratio of
controlled debt to the borrower’s
equity (its net asset value) is
1:1. Where that ratio is exceeded,
the excess interest is deemed to
be disallowed unless a tax treaty
applies.
Thin capitalisation rules apply
indiscriminately without taking
into consideration business
relationship between parties to
the transaction and without
considering commercial motives
for their decision.

29/03/2015

THE LOCAL GOVERNMENTS (AMENDMENT) (No. 2)
ACT, 2008.
An Act to amend the Local Governments Act to provide for additional taxes to be levied, collected and charged by local governments in order to provide new sources of revenue for local governments, and for related purposes.
DATE OF ASSENT: 24th June, 2008.
Date of Commencement: 7th July, 2008.
BE IT ENACTED by Parliament as follows—
1. Amendment of section 80 of the Local Governments Act
Section 80 of the Local Governments Act, in this Act referred to as the principal Act, is amended by inserting immediately after subsection (1) the following—
“(1a) The taxes that local governments may levy, charge and collect shall include the following—
(a) local government hotel tax to be charged on all hotel
and lodge room occupants and to be collected and paid by hotel owners; and
(b) local service tax to be levied on all persons in gainful
employment or who are practising any profession or on business persons and commercial farmers producing on a large scale.
Act 8 Local Governments (Amendment) (No. 2) Act 2008
(1b) The local government hotel tax shall be collected by the management of the hotels or lodges who shall remit the tax to the relevant local governments.
(1c) The local service tax shall be spent on basic local services such as sanitation, education, health, construction and maintenance of roads in the area of jurisdiction of the local government.
(1d) The Fifth Schedule shall apply to the taxes imposed under subsection 1(a).”
2. Amendment of Fifth Schedule to principal Act.
The Fifth Schedule to the principal Act is amended by inserting
immediately after Part I of that Schedule the following—
“PART II
RATES FOR THE LOCAL GOVERNMENT HOTEL TAX AND LOCAL SERVICE TAX
1. Rates of local government hotel tax.
The local government hotel tax shall be levied on the room occupants as follows—
Hotel Category Rate of local government hotel tax per room occupied (in Shs)
1 Five and four star hotel US$2 per room or its equivalent in shillings
2 Three and two star hotel and other hotels charging above Shs 50,000/= per room Shs 2,000/= per room
3 Hotels, lodges and guest houses charging Shs 10,000/= up to Shs 50,000/= per room. Shs 1,000/= per room
4 Hotels, lodges and guest houses charging less than Shs 10,000/= per room. Shs 500/= per room


2. Local service tax.
(1) The local service tax shall be levied on the wealth and income of the following categories of people and the assessment shall be fair, equitable and not regressive—
(a) persons in gainful employment;
(b) self employed and practising professionals (medical and
veterinary doctors, engineers, accountants, consultants, technicians, lawyers, dentists, pharmacists, architects, scientists, surveyors, valuers, ICT specialists and any other self employed professionals not mentioned.);
(c) self employed artisans (craftsmen, plumbers, builders,
electricians, masons, carpenters, mechanics, blacksmiths, painters, welders, bakers, furniture makers, florists, tailors, radio and television repairers, hair dressers, semi¬skilled artisans and any other artisans not mentioned excluding sole petty artisans and jua kalis, who are not fully established and not business entities;
(d) businessmen and businesswomen (owners of shops, fuel
stations, restaurants, bars, furniture workshops, directors and shareholders of business companies, printery workshops, food vendors, commission agents, insurance brokers, butchers, real estate service providers, owners of road construction firms, outside - catering service providers, coffee millers, maize millers, fish mongers, timber merchants, garage owners and shoe makers and any other businessmen and business women not mentioned);
(e) commercial farmers.
(2) Salaries of the following are exempted from the payment of local service tax—
(a) members of the Uganda People’s Defence Force;
(b) members of the Uganda Police Force;
(c) members of the Uganda Prisons Service;
Act 8 Local Governments (Amendment) (No. 2) Act 2008
(d) members of the local defence forces; and
(e) members of the diplomatic missions accredited to Uganda.
(3) The following persons are exempt from the payment of local service tax—
(a) unemployed persons and peasants
(b) a person engaged in subsistence or occasional economic
activities;
(c) petty food vendors;
(d) boda-boda cyclists;
(e) sole petty artisans and jua kalis, who are not fully established
and are not business entities; and
(f) people living in poverty who are unable to earn a minimum
income to access basic necessities of life.
(4) For the purposes of this regulation, “peasants” include people who produce for their own subsistence and have nothing or very little to sell to the market.
3. Rates of local service tax in respect of persons in gainful employment and earning a monthly take-home salary
(1) The local service tax on persons in gainful employment and earning a monthly take-home salary shall be levied as follows—
Amount of monthly income earned (in Shs) Rate of local service tax (in Shs) per year
1 Exceeding 100,000= but not exceeding 200,000= 5,000=
2 Exceeding 200,000= but not exceeding 300,000= 10,000=
3 Exceeding 300,000= but not exceeding 400,000= 20,000=
4 Exceeding 400,000= but not exceeding 500,000= 30,000=
5 Exceeding 500,000= but not exceeding 600,000= 40,000=
6 Exceeding 600,000= but not exceeding 700,000= 60,000=
7 Exceeding 700,000= but not exceeding 800,000= 70,000=
8 Exceeding 800,000= but not exceeding 900,000= 80,000=
9 Exceeding 900,000= but not exceeding 1,000,000= 90,000=
10 Exceeding 1,000,000= on wards 100,000=


(2) In this regulation, “take-home salary” means gross salary after deducting income tax in the form of Pay as You Earn (PAYE).
4. Rates of local service tax in respect of self employed professionals
The local service tax on self-employed professionals shall be levied as follows—
Professionals who are self employed and consultants in various fields Amount of monthly income earned (in Shs) Rate of local service tax (in Shs) per year
Medical and veterinary doctors, engineers, accountants, consultants, technicians, lawyers, dentists, pharmacists, architects, scientists, surveyors, valuers, ICT specialists and any other self-employed professionals not mentioned. 1,000,000/=
onwards 100,000/=
Exceeding 500,000/= but not exceeding 900,000/= 50,000/=

5. Rates of local service tax in respect of self employed artisans
(1) The local service tax on self employed artisans shall be levied as follows—
Artisans who are self¬employed Amount of monthly income earned (in Shs) Rate of local service tax (in Shs) per year
Craftsmen, plumbers, builders, electricians, masons, carpenters, mechanics, blacksmiths, painters, welders, bakers, furniture makers, florists, tailors, radio and TV repairers, hair dressers, semi-skilled artisans and any other artisans not mentioned. Exceeding 100,000/= but not exceeding 200,000/= 5,000/=
200,000/= but not exceeding 300,000/= 10,000/=
exceeding 300,000/= onwards 20,000/=

(2) For the avoidance of doubt, all the professionals, technicians, consultants and artisans who are in gainful employment and earn a monthly salary shall pay local service tax according to their monthly salary.
6. Rates of local service tax in respect of businessmen and
business women
The local service tax on businessmen and business women including owners of shops, fuel stations, restaurants, bars, furniture workshops, printery workshops, directors and shareholders of business companies, food vendors, commission agents, insurance brokers, butchers, real estate service providers, owners of road construction firms, outside-catering service providers, coffee millers, maize millers, fish mongers, timber merchants, garage owners and shoe makers and any other businessmen and business women not mentioned shall be levied as follows—
Monthly turnover (in Shs) Rate of local service tax (in Shs) per year
1 500,000/= but not exceeding 1,000,000/= 5,000/=
2 Exceeding 1,000,000/= but not exceeding 2,000,000/= 10,000/=
3 Exceeding 2,000,000/= but not exceeding 3,000,000/= 20,000/=
4 Exceeding 3,000,000/= but not exceeding 4,000,000/= 30,000/=
5 Exceeding 4,000,000/= but not exceeding 5,000,000/= 40,000/=
6 Exceeding 5,000,000/= but not exceeding 6,000,000/= 50,000/=
7 Exceeding 6,000,000/= but not exceeding 7,000,000/= 60,000/=
8 Exceeding 7,000,000/= but not exceeding 8,000,000/= 70,000/=
9 Exceeding 8,000,000/= but not exceeding 9,000,000/= 80,000/=
10 Exceeding 9,000,000/= but not exceeding 10,000,000/= 90,000/=
11 Exceeding 10,000,000/= onwards 100,000/=


PART III—GENERAL PROVISIONS RELATING TO LOCAL GOVERNMENT HOTEL TAX AND LOCAL SERVICE TAX
DIVISION I—GENERAL PROVISIONS RELATING TO LOCAL GOVERNMENT
HOTEL TAX
7. Local government hotel tax.
(1) The local government hotel tax shall be levied on hotel and lodge accommodation per room per night and the tax shall be paid by room occupants.
(2) The tax shall be collected by the management of the hotel, which shall remit the tax to the relevant local council on a monthly basis.
(3) In these Regulations, a hotel is a house intended for accommodating travellers or visitors for payment.
8. Enforcement.
(1) Where the local government hotel tax is collected and any part of it remains un-remitted to the respective local government at the end of the financial year, the local government shall notify the hotel liable, requiring it to pay the outstanding tax together with a surcharge of 40%, within two months after notification.
(2) A district or urban local council may sue a hotel for failure to collect the tax or failure to remit the tax collected.
DIVISION II—GENERAL PROVISIONS RELATING TO LOCAL SERVICE TAX
9. General provisions relating to local service tax
(1) Every district or urban local council shall levy an annual tax to be known as local service tax on every person in gainful employment, practising professionals, business persons and commercial farmers.
(2) The salaried employees shall pay the tax in four equal instalments during the financial year.
(3) The rest of the taxpayers shall pay the tax once in full.
7
(4) The payment of the tax shall be completed within the first four months of the financial year for which it was assessed.
(5) The tax on salaried employees shall be collected by the employer and remitted to the respective local governments.
(6) Local service tax shall be payable to the district, municipality or town council where the person liable to pay the tax resides.
(7) A person liable to pay local service tax shall register with the nearest tax office of a local government in the area where he or she resides.
(8) Local service tax shall be paid on the basis of an assessment and each local service tax payer shall keep evidence of his or her assessment.
(9) The businessmen and businesswomen shall pay the tax at the time of paying for their annual trading and operational licences at their respective local governments.
(10) Where a commercial farmer produces more than one agricultural produce the assessment committee shall only assess him or her for local service tax based on the main dominant agricultural product he or she is producing.
(11) In these Regulations, a commercial farmer is a person producing farm produce on a large scale for the market.
(12) For the purposes of these Regulations, “residence” means continuous residence for at least six months in a city, municipality, town, district or other local government, and continuity of residence shall be deemed not to have been broken by reason of any absence of less than five weeks.
10. Tax enumeration committee.
A subcounty chief, an assistant town clerk and a town clerk shall respectively appoint a tax enumeration committee for a subcounty, city division or municipal division and town council, composed of technical officers with a chairperson of a village or ward, where the enumeration is taking place, as an ex-officio member to carry out enumeration of sources of income of persons to feed into the work of the tax assessment committee.
11. Tax assessment committee.
(1) Local service tax payable under this Part by a person resident in a subcounty shall be assessed under these Regulations by a tax assessment committee appointed by the subcounty council.
(2) Local service tax payable under this Part by a person resident in the area of jurisdiction of an urban council shall be assessed by a tax assessment committee appointed by the city or municipal division council or town council as the case may be.
12. Assessment of taxes by the tax assessment committee.
(1) Where a person satisfies the assessment committee or person appointed to do the assessment that he or she is unable to speak or to understand the language used by the tax assessment committee, the committee carrying out the assessment shall be assisted by an interpreter who understands the language of the person to be assessed.
(2) Where within one year after the making of an assessment by an assessment committee, the council concerned discovers in the assessment, an error or miscalculation, the council shall order the amendment of the assessment, and a fresh certificate of assessment shall accordingly be issued.
(3) Any amendment under subregulation (2) resulting in a higher tax shall not be made without affording a hearing to the taxpayer, and the taxpayer shall have the right to appeal against the amended assessment.
(4) Where an amendment under subregulation (2) results in a lower tax, a taxpayer shall be credited with the balance in his or her favour for the tax of the following year.
13. Appeal against assessment.
(1) There shall be a tax assessment appeals tribunal in every subcounty or urban council which shall be constituted in the manner prescribed by the Minister by statutory instrument.
(2) Any person—
(a) assessed to pay local service tax for which he or she is not liable under these Regulations;
Act 8 Local Governments (Amendment) (No. 2) Act 2008
(b) assessed to pay a rate of local service tax higher than the
standard rate of tax;
(c) refused exemption from the payment of local service tax; or
(d) whose complete exemption or partial exemption from the
payment of local service tax has been revoked or varied by a tax assessment committee,
may appeal to the tax assessment appeals tribunal, and the tax assessment appeals tribunal may confirm or vary the decision.
(3) Where a chief in charge of a subcounty or town clerk in an urban council in which any person resides is satisfied that a person—
(a) has not been required to pay local service tax for which he or
she is liable under these Regulations;
(b) has been required to pay local service tax at a lower rate than
he or she should pay; or
(c) has been granted partial or complete exemption from the
payment of local service tax unreasonably,
that officer may appeal to the tribunal, and the appeals tribunal may confirm or vary the decision appealed against.
(4) Any appeal under this regulation shall be brought within thirty days after the decision of the assessment committee has been made known to the taxpayer and the subcounty chief, the assistant town clerk or town clerk respectively of the subcounty, city division or municipal division or town council, as the case may be.
(5) Any person aggrieved by the decision of the tax assessment appeals tribunal may appeal to the Minister.
14. Attendance before committee, etc.
(1) A tax assessment committee or a tax assessment appeals tribunal may require any person, other than a person who agrees in writing to pay the maximum rate of local service tax, to attend before it when his or her case is being considered; and that person or the employer of that person shall furnish the committee, officer or tribunal with the information that may be required of him or her to enable the committee, officer or tribunal to reach a proper decision.
(2) Any person who wilfully neglects or refuses to attend or when attending wilfully refuses to furnish information lawfully required of him or her commits an offence and is liable on conviction to a fine not exceeding half a currency point or imprisonment not exceeding one month or both.
15. Recovery of tax and penalty for non payment.
(1) Where the local service tax payable or any part of it remains unpaid at the end of the first four months of the financial year, there shall be a surcharge of 50 percent of the amount remaining unpaid.
(2) The provisions relating to the collection and enforcement of tax shall apply to the collection and enforcement of surcharges.
(3) Subject to this regulation, any person who without lawful excuse, the proof of which shall lie on him or her, refuses, neglects or fails to pay the tax to which he or she is liable under these Regulations, four months from the date the tax is due, commits an offence and is liable on conviction to imprisonment for a term not exceeding one month or to a fine not exceeding double the amount of the tax due.
(4) Notwithstanding any other provision of this regulation, a taxpayer may be sued by a district or urban council for the recovery of the local service tax due.
(5) For the purposes of this regulation, local service tax due includes local service tax due and payable during the two years immediately preceding the year in which proceedings are instituted.”
3. Amendment of section 175 of principal Act.
Section 175 of the principal Act is amended by inserting immediately after subsection (3) the following—
“(3 a) Regulations shall be made by the Minister under this section with the approval of Parliament prescribing the rates of local service tax in respect of commercial farmers under the Fifth Schedule”.
4. Transitional Provision.
Notwithstanding the provisions of this Act, Government shall continue to contribute the amount of at least shillings Forty five billion to local governments per year for a continuous period of three years to compensate for the vacuum created by the abolished Graduated tax.

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