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Payment of Tax in Dispute
Notwithstanding any notice of objection or
appeal lodged by a taxpayer, tax shall be paid on or before
the date(s) specified in the notice of assessment, unless the Commissioner
orders that the payment of tax or any part of it be held over pending
the result of such objection or appeal.
The Commissioner may order the holdover of payment of tax, or any
part thereof, conditional upon the person who or on whose behalf the
objection or appeal is made providing security for the payment of
the tax, or any part thereof, the payment of which is held over either:-
as the Commissioner may require.
Interest on Tax Held-over
If payment of tax was held over unconditionally or conditionally
upon the provision of a banker's undertaking pending the result
of objection or appeal, interest shall be payable on so much of
the tax held over which, upon the withdrawal or final determination
of the objection or appeal, is found to be payable, at the rate
specified in section 71(11) of the Inland Revenue Ordinance. The
rate is fixed from time to time by the Chief Justice by notice in
the Gazette under section 50 of the District Court Ordinance (Cap.
336). Interest accrues from the due date for payment of the tax
specified in the notice of assessment or the date of the order for
holdover of payment of tax, whichever is the later, up to the date
of withdrawal or final determination of the objection or appeal.
For information about the interest rate, please see Judgment
Interest Rate.
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