S.L. 372.18 Art. 14Additional tax.

(1) When any provisional tax payable in accordance with these rules is not paid by the date when it falls due additional tax shall be charged as provided in article 44 of the Act in an amount equal to one percent of the unpaid provisional tax for each calendar month or part thereof during which such tax remains unpaid:

Provided that in respect of any period or part thereof commencing on or after 1 January 2020, the said additional tax shall be charged in an amount equal to zero point three three per cent (0.33%) for each calendar month or part thereof:

Provided further that in respect of any period or part thereof commencing on or after 1 June 2022, the said additional tax shall be charged in an amount equal to zero point six per cent (0.6%) for each calendar month or part thereof:

Provided further that where the tax for the basis period which will result from a provisional tax payer’s self-assessment is less than that resulting from the P.T. benchmark, the additional tax chargeable on this difference shall be reduced by ninety percent.

(2) No further additional tax shall be chargeable on unpaid provisional tax for any month commencing after the tax settlement date relative to the year of assessment on account of which that provisional tax was due.

(3) Notwithstanding the provisions of rule 13 the amount of provisional tax that would otherwise be available for set off in accordance with sub-rule (2) of that rule against the tax chargeable in respect of a year of assessment shall first be applied towards the discharge of additional tax, if any, due on and up to the tax settlement date corresponding to that year of assessment and the amount available for set off shall be reduced accordingly.

(4) Any additional tax on provisional tax that has not been discharged as provided in sub-rule (3) shall be deemed to be tax due for the year of assessment on account of which the said provisional tax was due and the provisions of the Income Tax Acts relating to the collection and recovery of tax shall apply to the collection and recovery of such additional tax.

(5) The foregoing provisions of this rule are without prejudice to the Commissioner’s powers to take action for the collection of any additional tax before the tax settlement date referred to in sub-rule (2).