51. Insertion of new sections 144A and 144B in the principal enactment

The following new sections are hereby inserted immediately after the section 144 of the principal enactment, and shall have effect as section 144A and section 144B of that enactment —

144A. Any tax in default under this Chapter shall not be recoverable as provided in Chapter

XXII after expiry or a period of sixty months from the end of the month in which such tax went into default, notwithstanding anything contained in this Act or any other written law, but subject to the provisions of section 162A.

144B. Where any person, including a director or a principal officer of a company or a partner of a partnership or a member or an office-bearer of an un-incorporated body, in respect of income tax payable by such person, including a company, partnership or other un-incorporated body respectively, has defaulted in the payment of such tax due and where such default commences on or after April 1, 2004, and continues for a period exceeding thirty six months, the Commissioner-General shall submit to the Magistrate a certificate containing relevant particulars, including the amount of tax in default, the period of default and accrued penalty and interest. Such person, including a director, principal officer, partner, a member or an office bearer, as the case may be, shall be liable, on conviction after summary trial before a Magistrate, to a period of imprisonment of either description not exceeding three months :

“Time limits for recovery of income tax.

Punishment for tax default.

Inland Revenue (Amendment)

Provided that in the case of a director or a principal officer of a company, the Magistrate may allow such person to show cause that he is not responsible for such default or that he has taken all necessary steps within his power to avoid the non-payment of such tax :

Provided further that any written agreement between the Commissioner-General or any other officer appointed under this Act who is authorized by the Commissioner General to exercise any powers under Chapter XXII for the recovery of tax, and the defaulter, to pay the tax in default in installments within the period of time stipulated in section 144A for the recovery of tax in default, shall be taken into consideration before acting under this section, if such defaulter has honoured such agreement.”.