the
Certificate plus accumulated interest. Where, exceptionally, Commissioner agrees to hold over collection of tax without condition, interest will be charged on any part of the tax which is eventually found to be payable.
HOLDOVER OF PROVISIONAL SALARIES TAX
1
er
over.
Such
If his net chargeable income is likely to be less than the amount which has been provisionally assessed and the reduction of income is likely to be more than 10%, the taxpayer can apply in writing to the Assessor to have a proportionate part of
of the provisional tax held application, however, must be lodged with the Department not later than 14 days before the due date. No interest is payable on provisional tax held over.
19.
PAYMENT OF FINAL AND PROVISIONAL SALARIES TAX
Salaries Tax must be paid on or before the due date as specified in the notice of assessment. A taxpayer is normally allowed to settle his tax liability in two instalments, (usually about 3 months apart, for example January and April) as stipulated in the notice of assessment. Notices for payment of tax carry a warning that if the first instalment is not paid by the due date, the second instalment will automatically become due immediately.
This
In addition to both instalments becoming immediately payable together where tax is not paid by the date specified in the notice, the Commissioner may order that
added surcharge of 5% be a
to the total tax unpaid. additional
will also then be immediately due for payment. It is emphasised that
who wishes any taxpayer
the advantage of instalments shown on the demand notice must ensure that the first payment is made by the due date shown on his notice.
sum
to take
two
20. TAX RESERVE CERTIFICATES
Tax Reserve Certificates can be purchased and used to pay tax when it becomes due. These Certificates bear tax-free interest at rates prescribed from time to time. Many prudent taxpayers purchase these monthly through standing
instructions with their Bank.
21.
OBLIGATIONS OF EMPLOYEES
The obligations of a taxpayer who is chargeable to Salaries Tax are quite
He must observe the following points particularly
onerous.
his
to declare correctly his Own and An employee has wife's income from all sources including part-time employment in his Salaries Tax Return, which is issued annually on the first working day of May.
- 9