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11_2_Tax recovery & repayment - s

11_2_Tax recovery & repayment - s - Unit 11-2...

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Unit 11-2 Payment, Recovery & Repayment of Tax
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2 LEARNING OBJECTIVES Explain the duty of a taxpayer in respect of payment of tax State alternative actions available to the CIR in respect of tax under dispute by a valid objective or appeal Explain the powers of the IRD to recover tax Explain how a taxpayer can claim repayment of tax
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3 Meaning of tax Tax, for the purposes of payment and recovery, includes: surcharges, fines, penalties (e.g. s.82A additional tax), fees and interest payable upon settlement of objection or appeal.
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4 Payment of tax (s.71) Tax shall be paid in the specified manner on or before the due date: s.71(1) CIR may accept payment by installments but surcharge may be added Tax not so paid is deemed to be in default ( )
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5 Surcharge ( ) for tax in default In case of delay or late in payment, 5% surcharge will be added to the total tax in default (including first and second instalments) In case of delay or late in payment for over 6 months, 10% surcharge is will be added to total tax in default (including the 5% surcharge imposed earlier) If the 1st instalment is outstanding, the 2nd instalment will become immediately due.
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6 Recovery ( ) of tax Civil action in district court: s.75 From debtor: s.76 Departure prevention direction: s.77 Impounding ( ) ships or aircraft: s.77A
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7 From taxpayer (s.75) As a civil debt through the District Court Debt is evidenced by certificate signed by CIR showing Name of defaulter Last known postal address of defaulter Particulars of tax due The court is not concerned with the accuracy of the assessments The court can give judgment for a lesser sum for s.51(4B)(a) penalties
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8 From debtors of defaulter (s.76) “debtor” include any third party who: owes or is about to pay money to defaulter e.g. employer or customer holds money for or on account of defaulter holds money for or on account of some other persons for payment to defaulter has authority from some other persons to pay money to defaulter CIR often issues the notice to employers and bankers
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9 S.76(1) notice CIR gives written notice to the debtor, a copy of which is sent to the defaulter
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