Section 122B: Automatic tax claim in case of non-submission of return

122B. Automatic tax claim in case of non-submission of return (1) Where, in respect of a year of assessment— (a) a person deriving gross income falling under Sub-part B of Part VIII who is required to submit a return under section 112 or 113; or (b) a company which is required to submit a return under section 116, does not submit such return, the Director-General may, without prejudice to the other provisions of this Act, automatically issue a tax claim for that year of assessment to the person specifying the amount of income tax payable. (2) The amount claimed under subsection (1) shall be payable within 28 days of the date of issue of the tax claim. (3) Any person who disagrees with the amount of income tax claimed under subsection (1) shall, within the time limit specified in subsection (2)— (a) give written notice of his disagreement; and (b) at the same time— (i) submit the return of income for the relevant year of assessment; and (ii) pay the income tax in accordance with the return of income, if any; and (iii) pay the appropriate penalties. (4) Where a person complies with subsection (3), the tax claim under subsection (1) shall automatically lapse. (5) Where a person fails to comply with subsection (2) or (3), the Director-General shall proceed to— (a) enforce payment of the tax claimed under Part XI; and (b) institute legal proceedings for failure to submit a return under section 112, 113 or 116. [S. 122B inserted by s 14 (r) of Act 20 of 2002 w.e.f. the year of assessment commencing on 1 July 2002 and in respect of every subsequent year of assessment.]