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(1) This section applies where an estimate or a revised estimate oftax payable by a taxpayer with respect to chargeable income tax for a yearof assessment under section 122 of the Income Tax Act, 2015 (Act 896)is less than ninety percent of the correct amount.

(2) Where this section applies, the taxpayer is liable to pay interestfor the period from

(a) the date the first instalment for the year of assessment ispayable; until

(b) the due date by which the person files a return of incomefor the year of assessment under section 124 of the IncomeTax Act, 2015 (Act 896) .

(3) The amount of interest that a taxpayer is required to pay foreach period under subsection (2) is calculated as one hundred and twenty-fiveper cent of the statutory rate, compounded monthly, applied to thedifference between

(a) ninety percent of the total amount that would have beenpaid by way of instalments during the year of assessmentto the start of the period had the estimate of the person

equalled the correct amount; and

(b) the amount of income tax paid by instalments during theyear of assessment to the start of the period.

(4) For the purpose of calculating interest payable under subsection(3), an extension granted under section 30 or 47 or suspension undersection 42(6) or 45 (3) shall be ignored.

(5) In this section, “correct amount” means the actual incometax payable by the taxpayer for the year of assessment under the IncomeTax Act, 2015 (Act 896).