Section 140A: Proceedings for temporary closing down of business

140A. Proceedings for temporary closing down of business (1) Where a person fails to pay any amount of income tax assessed under this Act, the Director-General may notify the person in writing of his intention to close down part or the whole of the business of that person for a temporary period not exceeding 14 days, unless the person, within a period of 7 days of the date of the notice— (a) pays the amount of income tax unpaid; (b) gives security to the satisfaction of the Director-General for payment of the amount of the income tax unpaid. (2) (a) Where the person fails to comply with the notice issued under subsection (1), the Director-General may make an application under oath, in such form as may be prescribed, to a District Magistrate for an order to close down part or the whole of the business of that person for a period not exceeding 14 days. (b) Where an application under oath is made to a Magistrate in the manner specified in paragraph (a), the Magistrate may forthwith grant the application. (c) Upon granting an application under paragraph (b), the Magistrate shall issue an order to an Usher, in such form as may be prescribed, to close down the business of the person in accordance with the provisions of this section. I5 – 89 [Issue 7] Income Tax Act (3) Where an Usher executes an order under subsection (2), he shall affix in a conspicuous place on the front of the premises of the business or part of the business which has been closed, a notice duly certified by the DirectorGeneral bearing the words “CLOSED TEMPORARILY FOR NOT PAYING INCOME TAX”. (4) Where an order under subsection (2) has been executed and the person— (a) effects payment of the amount of income tax unpaid; or (b) gives security to the satisfaction of the Director-General for payment of the amount of the income tax unpaid, the order shall lapse and the Director-General shall, in writing, notify the person accordingly. (5) Any person who, contrary to the order, carries on the business or part of the business concerned or who commits any act in breach of the order under this section, shall commit an offence. [S. 140A inserted by s. 14 (z) of Act 20 of 2002 w.e.f. 1 July 2002.]