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Advance Tax-Conditions and Procedures Rules

The Income Tax (Advance Tax) (Conditions and Procedures) Rules, 2012 

LEGAL NOTICE NO. 52 14th June 2012
IN EXERCISE of the powers conferred by sections 12A (2) of the Income Tax Act, the Commissioner-General makes the following Regulations

Citation 

1. The Rules may be cited as the Income Tax (Advance Tax) (Conditions and Procedures) Rules, 2012.

Interpretation. 

2. In these Rules, unless the context otherwise requires-
“advance tax” means tax payable under section 12A of this Act;
"owner of a commercial vehicle” means the registered owner as indicated in the registration certificate issued by the Registrar of motor vehicles.

Payment of advance tax 

3. (1) Any person who owns a commercial vehicle shall be liable to pay advance tax.
(2) Advance tax shall be payable for each year of income at the rates specified under paragraph 8 of the Third Schedule tothe Act.
(3) Advance tax shall be due and payable to the Commissioner on or before the twentieth day of the first month of the year of income, or in cases of transfer of ownership of the commercial vehicle, before the new owner is registered as such.
(4) The Commissioner shall assess the amount of advance tax payable under these Rules in accordance with paragraph 8 of the Third Schedule to the Act.
(5) A person liable to pay advance tax shall submit to the Commissioner the payment accompanied by the prescribed form.
(6) The Commissioner shall issue, to every person who pays advance tax under these Rules, a receipt which shall be the proof of payment of advance tax.

Maintenance of records 

4. Any person who is liable to pay advance tax shall keep records necessary for the determining and ascertaining advance tax, including registration certificates, vehicle inspection reports, previous advance tax receipts and such other document or record as the Commissioner may from time to time direct.

Filing of returns 

5. (1) A person who pays advance tax shall submit to the Commissioner a return of income in accordance with section 52B of the Act.
(2) A person who fails to file a return of income in accordance with paragraph (1) shall be liable to pay additional tax as provided under section 72 of the Act.

Licensing and inspection 

6. A government agency shall for the purposes of the registration or transfer of ownership, licensing or inspection of a commercial vehicle, require the owner of the commercial vehicle to furnish such agency with evidence of payment of advance tax or income tax exemption certificate, where applicable.

Dispute in calculation of advance 

7. Any dispute arising from the administration of these Rules relating to the assessment to tax shall be dealt with in accordance with section 84 of the Act.

Inspection of records 

8. (1) For purposes of obtaining information necessary for the verification of advance tax paid, the Commissioner may by notice require a person liable to pay advance tax to-

  • (a) produce all accounts, books of accounts, documents and other records relating to the payment of advance tax in respect of such period as may be specified by the Commissioner; 
  • (b) produce the commercial vehicle or a Vehicle Inspection Report prepared by a recognised Government agency or agent; or
  • (c) avail themselves for interview at such time and place as may be specified in the notice. 

(2) The Commissioner may, upon undertaking an inspection under this rule, demand from the person, based on the information obtained from the inspection-

  • (a) the tax which appears from the documents and records produced by that person, would have been payable under rule 3 for the period covered by the inspection had that person complied with these Rules; or 
  • (b) the outstanding tax and penalties. 

Penalties and interest 

9. (1) Any person who fails to pay the advance tax due shall, in addition to the payment of the unpaid tax, be liable to pay a penalty and interest on the unpaid tax in accordance with section 72D and Section 94 of this Act respectively.
(2) The provisions of the Act that relate to the collection and recovery of tax shall apply for the purposes of collection and recovery of unpaid advance tax.
Made on the 14th June, 2012 JOHN NJIRAINI, Commissioner-General



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