Enforcement & Debt Management Process – Enforcement & Debt Management strategies guide officers in ensuring that taxpayers adhere to their tax obligations. Enforcement actions are generally taken on defaulters (non-filers and non-payers). Enforcement procedures involve
- The sending of reminders
- Raising of assessments including penalty and interest for late or non-filing and late or non-payment of tax
- Issuing demand notices (a request for immediate payment of outstanding tax liabilities)
Debt Management is the administrative and legal processes taken to recover overdue taxes from persistent defaulters. The process includes
- Recovery of tax from third parties (persons holding money on behalf of a taxpayer)
- Collection by distress and sale. This is where a tax collector is appointed and mandated by the Commissioner General to enter the taxpayer’s premises, identify asset(s), which will be put on auction after 14 days (perishables 1 day) if a taxpayer fails to honour his/her tax liability.
- Seizure of goods – this is where the taxpayer’s goods are seized and sold by public auction to recover the outstanding tax liability.
- Temporary closure of business – this is where the taxpayer’s business premises is closed for not more than 14 days for non-payment of tax. A banner is displayed at the entrance of the business premises with the message ‘Closed for non-payment of taxes under section 215 of the Income & VAT Act 2012’
- Departure prohibition notice – this is where a taxpayer is lawfully restricted from leaving the country without the payment of the tax liabilities due.
- Court action – this is where the taxpayer is prosecuted for defaulting.