S.L. 372.14 Art. 3Completion sad submission of payee status declaration form.

(1) A payee in receipt of emoluments, being emoluments as defined under rule 2(i) and (iii), shall be required to complete the prescribed Payee Status Declaration publicly available on the appropriate website or in such manner as the Commissioner may require and forward the said form in triplicate to the payer by the 1st January, 1998, and thereafter within seven days from the commencement of a new source giving rise to such emoluments or upon any change in the information required to be given in Part B, C or D thereof.

(2) Failure on the part of the payee to comply with the provisions of sub-rule (1) shall render any emoluments due to be paid to him subject to tax deduction at a rate equal to the maximum rate of tax provided under article 56(1) of the Income Tax Act.

Such rate of deduction shall remain applicable for the period during which the default continues.

(3) A payer to whom a Payee Status Declaration form has been forwarded as aforesaid by the payee shall be required to complete the Payer’s parts of such form. The payer shall submit to the Commissioner the original copy of such form by the last working day of the month following that during which the said form was forwarded to him, retain the payer’s copy for the purposes of any inspection which may be carried out from time to time in terms of rule 31, and forward the remaining copy to the payee.

(4) Where the form referred to in this rule has not been forwarded by the payee, the payer shall nevertheless complete to the best of his knowledge of the said form and submit it to the Commissioner for the purposes of sub-rule (3).

(5) Where the payer submits to the Commissioner the form referred to in this rule in accordance with sub-rule (4), the provisions of sub-rule (2) shall still apply.

(6) A payer who, without reasonable excuse, provides incomplete or incorrect information on the form required to be submitted under sub-rules (3) or (4), or who fails to submit such form to the Commissioner shall, in addition to the corresponding additional tax prescribed in Schedule C, be liable to the payment of any underdeduction of tax, consequent to such default made in respect of emoluments paid by him to any payee unless such amount of tax is otherwise recovered by the Commissioner by the 31st December of the year in respect of which the deduction should have been made.

(7) Where the form required to be submitted under paragraph

(3) hereof is, for any reason, not considered acceptable by the Commissioner due to any default on the part of the payee, it shall be returned to the payer for correction, and unless the payee effects the necessary corrections in time for the payer to resubmit the form within fourteen days, the payer shall deduct tax, from any emoluments subsequently due to be paid to the payee, at a rate equal to the maximum rate of tax provided under article 56(1) of the Income Tax Act and such rate of tax deduction shall remain applicable until the Commissioner otherwise directs.

(8) Where, due to the operation of sub-rules (2) and (7), any tax has been deducted from emoluments payable to the payee, it shall be set off against the tax charged on the payee or refunded to him, as the case may be, in accordance with article 23(2) of the Act.

Payer’s Registration