Page:Inland Revenue Ordinance, 1947 (Cap. 112).pdf/52

No. 20]

(4) Where, upon the final determination of an appeal under Chapter XI, or upon any order made by the Commissioner any tax which has been held over under sub-section (2) becomes payable or the tax charged by the original assessment is increased, the Commissioner shall give to the appellant a notice in writing fixing a date on or before which any tax of balance of tax shall be paid. Any tax not so paid shall be deemed to be in default.

(5) Where any tax is in default, the Commissioner may in his discretion order that a sum or sums not exceeding five per centum in all of the amount in default shall be added to the tax and recovered therewith.

(6) Notwithstanding anything contained in the previous sub-sections of this section the Commissioner may agree to accept payment of Salaries Tax by instalments.

73. In the succeeding sections of this Chapter, “tax” includes any sum or sums added under section 72 (5) by reason of default, together with any fines, penalties, fees, or costs incurred.

74. (1) Save as provided in sub-section (2), tax in default shall be a first charge upon all the assets of the defaulter:

Provided that—
 * (i) such charge shall not extend to or affect any assets sold by the defaulter to a bona fide purchaser for value prior to the seizure of the same in accordance with the provisions of section 75;
 * (ii) as regards immovable property, the tax shall not rank in priority to any lease or encumbrance created bona fide for value and registered prior to the date of such seizure; and
 * (iii) as regards movable property, where tax for more than one year of assessment is in default, the tax for one year only, to be selected by the Commissioner, shall rank in priority to any lien or encumbrance created bona fide for value prior to the date of default.

(2) A receiver shall pay out of the assets under his control the tax charged or chargeable for one complete year of assessment prior to the date of the insolvency, bankruptcy,