THE GENERAL Consumption Tax (GCT) Act is to be amended to empower the Commissioner of Taxpayer Audit and Assessment to determine when taxable activities commence and to assess the taxes.
According to the Bill's "Memorandum of Objects and Reasons", the GCT Act obliges the Commissioner to register a person who is liable to become a registered taxpayer but has failed to apply for registration.
Under existing provisions, the Commissioner has no power, where he initiates the person's registration, to make an assessment of tax in respect of such a person who has been registered as a taxpayer.
"The absence of such a provision appears to provide a loophole for such persons to engage in taxable activities outside of the purview of the Act. A decision has been taken to rectify this situation," it said.
Consequently, the Act seeks to amend the GCT Act to empower the Commissioner to determine the date on which such a person commenced a taxable activity and to make an assessment of tax in respect of that person, for the period from that date to the date on which the person is registered.
The Bill was tabled by Minister of State in the Ministry of Finance and Planning, Michael Peart, in the absence of the Minister, Dr. Omar Davies.
