The object of this Bill is to amend the Income Tax Act so as to—
(a) revise the definition of farming;
(b) introduce penalties on late payments of presumptive and withholding
taxes;
(c) exempt interest payable to banks and financial institutions from
withholding tax;
(d) reduce withholding tax on interest payment on Government securities
to non residents from twenty percent to fifteen percent;
(e) extend the determination of actual conditions for transactions relating
to two or more associated persons on their commercial or financial
relations;
(f) broaden the scope of related or associated persons to capture other
related transactions;
(g) clarify in relation to transfer pricing that a tax credit claim may be
made on transactions involving both resident and non resident
taxpayers;
(h) provide for the adjustment of the reference price to take into account
premium prices for the purposes of the determination of taxable
income;
(i) reduce the capital allowances claimed by mining companies from
twenty-five percent to twenty percent; and
(j) provide for matters connected with, or incidental to, the foregoing.