INCOME TAX ACT 1967 (ACT 53) PART VII - COLLECTION AND RECOVERY OF TAX
Section 107C. Estimate of tax payable and payment by instalments for companies.
(1) Every company shall for each year of assessment furnish to the Director General an estimate of its tax payable.
(2) Except as provided in paragraph (4)(a), the estimate of tax payable for a year of assessment shall be made in the prescribed form and furnished to the Director General not later than thirty days before the beginning of the basis period for that year of assessment.
(3) The estimate of tax payable for a year of assessment shall not be less than the revised estimate of tax payable for the immediately preceding year of assessment or if no revised estimate is furnished, the estimate of tax payable for the immediately preceding year of assessment.
(4) Where a company first commences operation in a year of assessment -
(a) the estimate of its tax payable for that year of assessment shall be made in the prescribed form and furnished to the Director General within three months from the date of commencement of operations; and
(b) subsections (2) and (3) shall apply to the company beginning from the second year of assessment.
(5) Where an estimate of tax payable for a year of assessment has been furnished in accordance with subsection (2), that amount shall be paid to the Director General in equal monthly instalments determined according to the number of months in the basis period and each instalment shall be paid by the due date beginning from the second month of the basis period for the year of assessment in respect of which that estimate has been furnished.
(6) Where an estimate of tax payable for a year of assessment has been furnished in accordance with subsection (4)(a), that amount shall be paid to the Director General in equal monthly instalments determined according to the number of months in the basis period and each instalment shall be paid by the due date beginning from the sixth month of the basis period for the year of assessment in respect of which that estimate has been furnished.
(7) A company may in the sixth month of the basis period for a year of assessment furnish to the Director General a revised estimate of its tax payable for that year in the prescribed form and -
(a) where the revised estimate exceeds the amount of instalments which is payable in that year prior to that revised estimate, the difference shall be payable in the remaining instalments in equal proportion; or
[Am. Act A 1151:s.20]
(b) where the amount of instalments which is payable in that year prior to that revised estimate, exceeds the revised estimate, the remaining instalments shall cease immediately.
[Am. Act A 1151:s.20]
(8) Notwithstanding subsections (1), (3), (5), (6) and (7), the Director General may direct any company to make payment by instalments on account of tax which is or may be payable by that company for a year of assessment at such times and in such amounts as the Director General may direct.
(9) Where any instalment amount due and payable has not been paid by the due date or on the date specified by the Director General, the amount unpaid shall, without any further notice being served, be increased by a sum equal to ten per cent of the amount unpaid, and the amount unpaid and the increase on the amount unpaid shall be recoverable as if it were tax due and payable under this Act.
[Am. Act A1093: s.14]
(10) Where the tax payable under an assessment for a year of assessment exceeds the revised estimate of tax payable for that year of assessment or if no revised estimate is furnished, the estimate of tax payable for that year of assessment, by an amount of more than thirty per cent of the tax payable under the assessment, then, without any further notice being served, the difference between that amount and thirty per cent of the tax payable under the assessment shall be increased by a sum equal to ten per cent of the amount of that difference, and that sum shall be recoverable as if it were tax due and payable under this Act.
(11) Notwithstanding the foregoing subsections, where the estimate of tax payable for a year of assessment is increased by a sum under subsection (9) or (10), the Director General may in his discretion for any good cause shown remit the whole or any part of that sum and, where the amount remitted has been paid, the Director General shall repay the same.
(11A) Nothing in this section shall prevent the collection of any tax from a person to whom this section applies in accordance with section 103 or the payment of that tax being enforced in accordance with section 106.
[ Ins.Act A 1151:s.20]
(12) For the purposes of this section, "due date" means the tenth day of a calendar month.
[Shall have effect for the year of assessement 2004 and subsequent years of assessment.]
(1) Every company, trust body or co-operative society shall for each year of assessment furnish to the Director General an estimate of its tax payable.
(4) Where a company, trust body or co-operative society first commences operation in a year of assessment -
(a) -
(b) subsections (2) and (3) shall apply to the company, trust body or co-operative society beginning from the second year of assessment.
(7) A company,trust body or co-operative society may in the sixth month of the basis period for a year of assessment furnish to the Director General a revised estimate of its tax payable for that year in the prescribed form and -
(8) Notwithstanding subsections (1), (3), (5), (6) and (7), the Director General may direct any company trust body or co-operative society to make payment by instalments on account of tax which is or may be payable by that company for a year of assessment at such times and in such amounts as the Director General may direct.
