Property Transfer Tax (Amendment) Act, 2012 (No. 13 of 2012)

(a) by the insertion, in the appropriate places, of the following new definitions: " group of companies " means a holding company together with all its subsidiaries; " holding company " means a company that- (a)holds the majority of the voting rights m another company;

(b) is a member of another company and controls a majority of the voting rights on its own or pursuant to an agreement entered into with the other members; or (c)is a member of another company and controls, and has the right to appoint or remove a majority of, the board of directors in that other company; and "mining right "has the meaning assigned to it in the Mines and Minerals Development Act, 2008;and (b) by the deletion of the definition of" property " and the Act No. 7 of substitution therefor of the following: 2008 Single Copies of this Act can be obtained from the Government Printer, PO.Box 30136. 10101 Lusaka Price K2,000 each 230 No. 13 of 2012] Property Transfer Tax (Amendment) " property " means- (a) any land in the Republic; (b) any share issued by a company incorporated in the Republic; or

(c) a mining right issued under the Mines and Minerals Development Act, 2008, or an interest therein. Act No. 7 of 3. Section four of the principal Act is amended by the deletion 2008 of subsection (2) and the substitution therefor of the following: (2) The rate of tax shall be five percent of the realised value of the land or shares and in the case ofa mining right or an interest in the mining right, ten percent of the realised value of the mining right. Amendment 4. Section.five of the principal Act is amended- of section 4 (a) by the insertion immediately after subsection (2) of the following new subsection: (3) Where the property to be valued is a mining right or an interest in a mining right, the realised value of the mining right or interest shall be the actual price ofthe mining right or interest at the time of the transfer of that mining right or interest or as determined by the Commissioner-General, whichever is higher.; and (b) by the re-numbering of subsections (3), (4) and (5) as subsections (4), (5) and (6) respectively. Amendment 5. Section nine of the principal Act is amended- of section 5 (a) by the insertion immediately after subsection (4) of the following new subsection: (5) Notwithstanding any other written law, the Minister responsible for mines, the Director of Mines or the Director of Geological Survey, as applicable, shall not approve the transfer, assignment, encumbrance or other dealing with a mining right or interest therein, if the transferor fails to pay the tax due in respect of the transfer, assignment, encumbrance or other dealing with a mining right or interest therein, under this Act; and (b) by the re-numbering of subsections (5) and (6) as subsections (6) and (7) respectively. Amendment 6. The principal Act is amended by the insertion, immediately of section 9 after section twelve of the following new section: Property Transfer Tax (Amendment) [No. 13 of2012 231 12A. (I) The P,esident may enter into an agreement, Insertion of which may have retrospective effect, with the Government new section 12A of any other country or territory for the exchange of Tax information on tax matters or for mutual assistance in tax information matters with the objective of rendering reciprocal exchange assistance in the-- agreements (a) provision of data on fraud, civil and criminal tax and mutual assistance in offences; tax matters (b) administration and collection of taxes under the property transfer tax laws of the Republic and such other country or territory; (c) carrying out of tax examinations in Zambia or abroad; and

(d) carrying out of simultaneous or joint tax examinations. (2) Any information received by a country or territory under an agreement entered into under subsection (I) shall be treated as secret in the same manner as information obtained under the domestic laws of that country or territory and shall be disclosed only to persons or authorities involved in the assessment, collection enforcement, prosecution or determination of appeals in relation to, the taxes under this Act. (3) Subsection(]) shall not be construed so as to impose on a country or territory the obligation to--- (a) carry out administrative measures at variance with the laws and administrative practices of that country or territory; (b) supply information which is not obtainable under the laws of that country or territory or under the laws of Zambia; or (c) supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy. (4) The Minister shall lay a copy ofan agreement referred to in subsection (I) before Cabinet for approval. (5) The President shall, as soon as practicable after the conclusion and approval of any agreement under this section, notify the public of the terms of the agreement by statutory instrument, 232 No. 13 of 2012) Property Transfer Tax (Amendment) and the agreement shall, from the date of commencement of the statutory instrument, have effect as if enacted under this Act as long as the agreement has the effect of law in the other country or territory.