Lien

(1) If a taxpayer fails to pay a tax by the due date, a lien in favour of the Director General is created in the amount owing, together with interest, penalty, and costs of collection that may accrue, on all property belonging to the taxpayer, and has priority as against all other rights, except as otherwise provided in this section. Tax Administration and Procedure CAP. 51 61 (2) The lien described in sub-section (2) arises at midnight at the end of the due date and continues until the liability is satisfied or becomes unenforceable by reason of lapse of time. (3) The Director General may file notice of a lien at any time after a taxpayer is determined to be in default pursuant to section 53. (4) At least fifteen days prior to registering a lien with the Land Registry, the Director General shall send notice of the intention to register the lien to the taxpayer. (5) Sub-section (4) does not apply if the Director General believes that the ability to collect tax is in jeopardy. (6) The Director General may file an action in the Supreme Court to enforce the lien imposed by this section. (7) An affected person may apply to the Director General for a release of the lien on the person’s property. (8) A lien may be appealed to the Supreme Court if the Director General refuses to release a lien after application for release under sub-section (7). (9) A lien imposed by this section is not valid against the interest of a person who is a purchaser from the taxpayer or a holder of a security interest granted by the taxpayer, if the interest arises– (a) before the person has actual knowledge of the lien; or (b) before notice of the lien has been duly registered by the Registrar of lands, whichever first occurs.