Cap. 406 Art. 63Security for tax due on supplies.

(1) If, in any particular case, the Commissioner has reason to believe that tax due by a person might not be recoverable at the time when that tax becomes payable in terms of this Act, he may by a notice served on that person, demand the payment of the tax within such time as may be specified in that notice and the tax shall thereupon become payable within that time notwithstanding any other provision of this Act.

(2) When a payment has been demanded from a person in accordance with sub-article (1), that person may, instead of making the said payment, furnish such security for the tax payable as may be acceptable to the Commissioner.

(3) The co-contracting party of the person liable to pay the tax shall be held jointly and severally liable for the payment of the tax.

(4) The provisions of sub-article (3) shall not apply to an operation referred to in article 20(1) when and to the extent that the co-contracting party proves that he has paid the price and the related tax due to the supplier.

(5) Where it appears to the Commissioner that it is necessary for the protection of Government revenue, he may, at any time, under conditions approved by the Minister, require a taxable person, as a condition for that person to supply goods or services, to give such security, or further security, for that amount and in such manner as the Commissioner may determine, for the payment of any tax that is or may become due by him under this Act.