S.L. 372.14 Art. 24Imposition of FSS additional tax and payer’s right to contest.

(1) Where a payer is in default regarding any of the provisions of these rules as indicated in Schedule C the

Commissioner may, without prejudice to any other action which he is empowered to take under the provisions of the Income Tax Acts, impose upon such payer the respective FSS additional tax prescribed in the said Schedule, advise the payer by means of a default notice regarding the amount of such additional tax and the reason for its imposition and require him or his representative to rectify the default and pay the said tax within ten days from the date such notice is served upon him in accordance with sub-rule (2).

(2) The notice referred to in sub-rule (1) may be served on a payer either personally or by being sent by registered post to his usual place of abode or business informing him of his rights under the provisions of sub-rule (3).

(3) If any payer feels aggrieved by a default notice served upon him under sub-rule (1), he may apply to the Commissioner by a letter of contestation within ten days from the date the default notice is served upon him by the Commissioner in accordance with sub-rule (2).

(4) Where the Commissioner refuses the contestation submitted by the payer against a default notice or where the payer has failed to contest such notice as provided in sub-rule (3), the Commissioner shall inform the payer accordingly and serve him with a demand notice advising him that unless the latter notice is contested in a court of law within fifteen days from its date of service it shall constitute an executive title in terms of article 40(1)(b) of the Act.

(5) Where the Commissioner is satisfied that the default in respect of which FSS additional tax has been imposed under sub-rule (1) was not due to any fault or neglect on the part of the payer, he shall remit the whole of the said additional tax and, in any other case, may remit such part or all of the said tax as he may think fit and, in every case he shall inform the payer accordingly.

(6) The payment by a payer of any amount of FSS additional tax imposed under sub-rule (1) shall in no way exonerate such payer from paying any outstanding amount due to the Commissioner or from submitting any documentation, in accordance with the provisions of these rules.

(7) Where, notwithstanding any action taken by the Commissioner under this rule, the FSS additional tax remains outstanding or the default in respect of which such additional tax has been imposed continues to subsist, as the case may be, the Commissioner may serve further default notices in accordance with this rule on the said payer imposing with each successive notice double the amount of the said additional tax otherwise applicable in accordance with Schedule C subject to the maximum amount provided for under article 23(5) of the Act in respect of each specific default: Provided that each such further notice shall supersede the previous notice served on the payer for the same default but any payment made in respect of that previous notice shall be taken into account accordingly.

Collection, Set-Off and Refunds