PROVISIONS RELATING TO INSTALMENT TAX (Section. 12(2))
1.(a) Except as specified under paragraph (b), instalment tax payable
by all persons under section 12 shall be reduced under the provisions of section12(4) and be payable on the due dates as required under section 92 in the
proportions specified as follows –
Proportions of the amount calculated under section 12 payable on or before the twentieth day of the following months in the accounting period of the current year of income:
(b) Where a person can satisfy the Commissioner that more than two-thirds of his income is derived from agricultural, pastoral, horticultural or similar activities, the instalment tax payable by such persons under section 12 will be reduced under the provisions of section 12(4) and be payable on the due dates as required under section 92 in the proportions specified as follows:
Proportions of the amount calculated under section 12 payable on or before the twentieth day of the following months in the accounting period of the current year of income:
(b) Where a person can satisfy the Commissioner that more than two-thirds of his income is derived from agricultural, pastoral, horticultural or similar activities, the instalment tax payable by such persons under section 12 will be reduced under the provisions of section 12(4) and be payable on the due dates as required under section 92 in the proportions specified as follows:
Proportions of the amount calculated under section 12 payable on or before the twentieth day of the following months in the current year of income:
2.
Where the instalment tax payable is calculated by reference to
subsection 2(b) of Section 12 and -
- (a) the company’s immediate preceding year consists of less than three hundred and sixty five days, the tax payable for the preceding year will be deemed to be an amount that would have been assessed had the company’s immediate preceding year been made up of three hundred and sixty five days by multiplying the ratio that three hundred and sixty five days is of the number of days in that year of income:
- (b) the company that is making payment was formed as a result of amalgamation of two or more companies, the tax assessed and payable for the immediately preceding year will be deemed to be the aggregate of the tax that would have been payable by all the predecessor companies;
- (c) the company that is making payment has had transferred to it during winding up in the year preceding the year of income all or substantially all the property from any of the companies which it controls by means of the holding of shares or possession of voting power, the company’s tax payable in the preceding year will be deemed to be the aggregate of its own tax payable together with that of the company that it controls;
- (d) the company making payment has had transferred to it by a related company in the preceding year of income all or substantially all of its property the company’s tax payable in the preceding year of income will be deemed to be the sum total of the tax payable by both the transferor and the transferee companies;
- (e) the company making payment has commenced its business in that year of income, the company’s preceding year of income will be deemed to be NIL;
- (f) "tax assessed and payable for the preceding year" shall be taken to mean the amount payable immediately before the due date for the instalment tax and shall disregard any subsequent amendments and adjustments;
- (g) where under this Act, a person has been permitted to make up the accounts of his business for a period greater than twelve months, the person shall calculate the instalment tax payable for such period in accordance with section 12 of this Act, and then multiply the result by the ratio of the number of days in the current year of income to 365 days.
The payment of instalment tax under section 12 shall be
accompanied by the following information -
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- (a) a declaration of the choice of method adopted by the person in computing the instalment tax payable;
- (b) where the tax is computed on the basis of an estimate of the current year of income, the total income of the person making the payment for that year of income including income deemed to be his under this Act which is chargeable to tax based on all information available to him at the date upon which the payment is made and which he believes to be true, and the tax chargeable on that income calculated by reference to the appropriate reliefs and rates of tax in force at the date of the payment;
- (c) where the tax is computed on the basis of the preceding year assessment, the amount of tax assessed for the preceding year; and
- (d) a declaration by the person making the payment or by the person in whose he is assessable that the instalment payment is a full and true estimate to the best of his knowledge and belief.
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