S.L. 123.198 Art. 8The tax on the excess. Cap. 372. Cap. 372.

(1) The deduction allowable against the excess portion is an amount equivalent to the difference between the total deductions allowable in respect of the assignment in question in terms of rule 4 and the deduction allowable in accordance with rule 7(1). PROMISE OF SALE AGREEMENT

(2) The excess portion, after the deduction mentioned in sub-rule (1), shall form part of the assignor’s chargeable income for the year of assessment in question and shall be subject to tax at the appropriate rate or rates in terms of article 56 of the Act. It shall represent income to which article 4(1)(a) of the Act applies and shall be disclosed as such by the assignor in a return filed in accordance with the provisions of the Income Tax Management Act together with his other income.

(3) An amount equivalent to seven percent (7%) of the excess portion after the deduction mentioned in sub-rule (1) shall be payable by the assignor by way of provisional tax on account of the tax chargeable in accordance with this rule. The said provisional tax shall be paid to the notary or advocate who authenticates the relative agreement in writing in addition to the tax payable on the final tax portion.

(4) The said notary or advocate shall remit the provisional tax collected in accordance with sub-rule (3) to the Commissioner within twenty-one (21) days of the relative assignment together with the tax collected in accordance with rule 5 and, in default, shall be liable for the tax jointly and severally with the assignor:

Provided that the liability of the said notary or advocate in terms of this rule shall be limited to the amount of tax chargeable by reference to the information provided by the parties as recorded in the notice of the assignment.

(5) The provisions of article 43(4)(b) of the Income Tax Management Act shall apply to provisional tax paid in accordance with this rule.