INCOME TAX ACT 1967 (ACT 53)
PART VI - ASSESSMENTS AND APPEALS
Chapter I - Assessments
Section 96A. Composite assessment.
(1) Without prejudice to section 91, where a person -
[Am. Act A1069:s.7]
(a) makes default in furnishing a return in accordance with subsection 77(1) or 77 (1A);
[Am. Act A1069:s.7]
(b) fails to give notice of chargeability in accordance with subsection 77(2) or (3);for any year or years of assessment (that year or those years being referred to in this section as the relevant year or relevant years), the Director General and that person may come to an agreement in writing as to the payment by that person of a sum of money (in this section referred to as the total amount) being-
(c) makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return on behalf of himself or another person; or
(d) gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person,
(i) the amount of tax which has been undercharged or not charged for that relevant year or those relevant years in consequence of such default in furnishing a return or failure to give notice of chargeability or making an incorrect return or giving any incorrect information; and(2) Where the Director General and a person have come to an agreement pursuant to subsection (1), the Director General may make a composite assessment in respect of that person in the total amount.
(ii) the amount of any penalty or penalties which that person may be required to pay for that relevant year or those relevant years pursuant to subsection 112(3) or section 113(2) or both (or where such penalty is abated or remitted under subsection 124(3) so much, if any, of the penalty which has not been abated or remitted).
(3) As soon as may be after a composite assessment has been made, the Director General shall cause a notice of composite assessment to be served on the person in respect of whom the composite assessment was made.
(4) A notice served under subsection (3) shall be in the prescribed form and shall indicate in addition to any other material included therein-
(a) the relevant year or relevant years;(5) The total amount shall be collected as if it were part of the tax payable by the person in respect of whom the composite assessment has been made but shall not be treated as tax so payable for the purposes of the provisions of this Act other than sections 103 to 106.
(b) the amount or aggregate amount of tax undercharged or not charged in the relevant year or relevant years;
(c) the amount or aggregate amount of any penalty imposed by virtue of subsection 112(3) or 113(2) or both (or where such penalty is abated or remitted under subsection 124(3) so much, if any, of the penalty which has not been abated or remitted); and
(d) the place at which payment of the total amount is to be made.
(6) Notwithstanding any other provision of this Act-
(a) a composite assessment made under this section shall be final and conclusive for the purposes of this Act; and(7) For the purposes of this section, references to sections of this Act in subsections (1), (4) and (5) shall be deemed to include references to the corresponding sections of the repealed laws, and references to year of assessment in subsection (1) shall be deemed to include a reference to pre-year of assessment; the repealed laws and pre-year of assessment having the same meaning as in subparagraph 1 (1) of Part I of Schedule 9.
(b) no appeal shall lie against a composite assessment.
_____________________________________________ [Shall have effect for the year of assessement 2004 and subsequent years of assessment.]
(1) Without prejudice to section 91, where -
(a) makes default in furnishing a return in accordance with section 77 or 77A (1);
[Am. Act A1151:s.14]
(b) fails to give notice of chargeability in accordance with section 77 (3);
[Am. Act A1151:s.14]
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