General provisions

—(1) This section applies to administrative penalties under this Act or under any other tax law. (2) Procedures for the assessment, payment, collection, and dispute of a tax apply equally to penalties relating to a tax. Tax Administration and Procedure CAP. 51 81 (3) A person’s liability for a penalty under this Part is– (a) separate and distinct from the person’s liability, if any, for a penalty under another section of this Act or another tax law; and (b) in addition to interest levied under Part VII and to a criminal sanction imposed under Part X. (4) The burden of proof is on the Director General to show non-compliance with the provisions of tax laws with respect to the imposition of a penalty. (5) The Director General may make an assessment of a penalty charged as if the penalty were tax payable under this Act, and may specify the date on which the penalty is payable. (6) A notice of an assessment of a penalty shall– (a) be served on the person subject to the penalty; and (b) state the amount of the penalty payable, the provision under which it is payable, and the due date for payment. (7) On service of the notice– (a) the notice and the assessment are treated as if they were a notice and assessment of tax payable under this Act; (b) the amount of the penalty specified in the notice is treated as tax payable under this Act; and (c) the due date for payment is the date specified in the notice. 82 CAP. 51 Tax Administration and Procedure (8) A person’s liability to pay a penalty arises on the making of an assessment by the Director General under sub-section (6). (9) The limitation period for assessing a penalty is six years after the violation that causes the penalty occurs. (10) Notwithstanding sub-section (9) the limitation period for a violation under section 91shall be the same as the limitation for assessing the tax to which the penalty relates. (11) If a person liable to a penalty shows reasonable cause why the penalty should not be executed, the Director General may– (a) refrain, in whole or in part, from assessing the penalty; or (b) remit or waive, in whole or in part, a penalty that has been assessed. (12) A penalty payable for each day, month, or other period during which a particular state of affairs exists or continues, is payable in full for part of that day, month, or other period in which the state of affairs commences, continues, or ends.