Penalty for failure to make
return
94A. —(*1) Any person who fails or neglects
without reasonable excuse to comply with any provision of section
62 or 71 shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $1,000 and in default of payment
to imprisonment for a term not exceeding 6 months.
*Subsections (1), (2) and (3) will be amended as set out in
section 39 (a) of the Income Tax (Amendment No. 2) Act
2007 (Act 53 of 2007) from the year of assessment 2009.
(*2) Where any person has been convicted of an offence —
(a) for failing to comply with section 62 (3) and such
conviction is subsequent to a conviction for an offence for failing
to comply with section 62 (1);
(b) for failing to comply with any provision of section 62 or 71
and such conviction is a second or subsequent conviction; or
(c) for failing to comply with any provision of section 71 and
such conviction is subsequent to a conviction for an offence for
failing to comply with any provision of section 62,
in respect of the same year of assessment, he shall be liable to
a further penalty of $50 for every day during which the offence is
continued after such conviction.
*Subsections (1), (2) and (3) will be amended as set out in
section 39 (a) of the Income Tax (Amendment No. 2) Act
2007 (Act 53 of 2007) from the year of assessment 2009.
(*3) Any person who fails or neglects without reasonable excuse
to comply with section 62 or 71 in respect of any year of
assessment for 2 years or more shall be guilty of an offence and
shall be liable on conviction to —
(a) a penalty equal to double the amount of tax which the
Comptroller assesses him to be liable for that year of assessment
after determining, to the best of the Comptroller"s judgment, the
amount of his chargeable income; and
(b) a fine not exceeding $1,000,
and in default of payment to imprisonment for a term not
exceeding 6 months.
*Subsections (1), (2) and (3) will be amended as set out in
section 39 (a) of the Income Tax (Amendment No. 2) Act
2007 (Act 53 of 2007) from the year of assessment 2009.
(4) Except in the
case of a notice published in the Gazette under section 62
(1), no person shall be liable to prosecution for an offence under
this section in respect of failure to comply with the terms of any
notice issued under the provisions of this Act unless the notice
has been served on him personally or by registered post.
(5) The Comptroller may compound any offence punishable under
this section.
Penalty for incorrect
return
95. —(1) Subject to the provisions of Part XVIII,
every person who —
(a) makes an incorrect return by omitting or understating any
income of which he is required by this Act to make a return; or
(b) gives any incorrect information in relation to any matter
affecting his own liability to tax or the liability of any other
person or of a partnership,
shall be guilty of an offence for which, on conviction, he shall
pay a penalty equal to the amount of tax which has been
undercharged in consequence of such incorrect return or
information, or which would have been so undercharged if the return
or information had been accepted as correct.
(2) Every person who without reasonable excuse or through
negligence —
(a) makes an incorrect return by omitting or understating any
income of which he is required by this Act to make a return; or
(b) gives any incorrect information in relation to any matter
affecting his own liability to tax or the liability of any other
person or of a partnership,
shall be guilty of an offence for which, on conviction, he shall
pay a penalty equal to double the amount of tax which has been
undercharged in consequence of such incorrect return or
information, or which would have been so undercharged if the return
or information had been accepted as correct, and shall also be
liable to a fine not exceeding $5,000 or to imprisonment for a term
not exceeding 3 years or to both.
(3) The Comptroller may compound any offence punishable under
subsection (1) or (2), and may before judgment stay or compound any
proceedings thereunder.
Tax
evasion
96. —(1) Any person who wilfully with intent to
evade or to assist any other person to evade tax —
(a) omits from a return made under this Act any income which
should be included;
(b) makes any false statement or entry in any return made under
this Act; or
(c) gives any false answer, whether verbally or in writing, to
any question or request for information asked or made in accordance
with the provisions of this Act,
shall be guilty of an offence for which, on conviction, he shall
pay a penalty of treble the amount of tax which has been
undercharged in consequence of the offence or which would have been
undercharged if the offence had not been detected, and shall also
be liable to a fine not exceeding $10,000 or to imprisonment for a
term not exceeding 3 years or to both.
(2) Where an individual has been convicted for —
(a) 3 or more offences under this section; or
(b) one offence under this section and one offence under section
96A,
the imprisonment he shall be liable to shall not be less than 6
months.
(3) Whenever in any proceedings under this section it is proved
that any false statement or entry is made in any return furnished
under this Act by or on behalf of any person, that person shall be
presumed, until the contrary is proved, to have made that false
statement or entry with intent to evade tax.
(4) The Comptroller may compound any offence under this section
and may before judgment stay or compound any proceedings
thereunder.
