Print Options

(1) Where a non-resident taxpayer fails to pay tax on the due date or the Commissioner-General believes on reasonable grounds that a non-resident taxpayer will not pay tax on the due date, the Commissioner- General may, by notice in writing, require a person who is in possession of an asset owned by the non-resident taxpayer to pay tax on behalf of the taxpayer.

(2) A person served with a notice under subsection (1) is required to pay tax up to the market value of the asset but not exceeding the amount of the unpaid tax.

(3) For purposes of this section

(a) a taxpayer who charters an aircraft or ship under a charter for a period of more than three years is treated as owning the aircraft or ship during that period;

(b) the captain of an aircraft or ship is treated as being in possession of the aircraft or ship;

(c) a trustee is treated as being in possession of trust assets; and

(d) trust assets are treated as jointly owned by the beneficiaries of the trust.

(4) The Commissioner-General may, by service of a notice in writing, require a resident partnership or a resident partner to pay tax due or that may become due by a non-resident partner.

(5) A resident partnership and a resident partner are jointly and severally liable to pay the tax up to the amount of the share of the non-resident partner in the net assets of the partnership.

(6) An amount payable to the Commissioner-General by an agent, resident partnership or resident partner under this section is a personal tax liability of the agent, resident partnership or resident partner.

(7) Where a person, including a resident partnership, makes a payment to the Commissioner-General in compliance with a notice under subsection (1) or (4)

(a) the person may recover the payment from the non-resident taxpayer or non-resident partner and may retain out of any assets of the non-resident taxpayer or non-resident partner in, or coming into, the possession of that person, an amount not exceeding the payment; and

(b) the non-resident taxpayer, non-resident partner or any other person shall not have a claim against the person with respect to the retention.