Nov 2016 Q2 b.

• Where a person who is the owner of land or buildings situated in Ghana fails to pay tax when it is due and payable, the Commissioner-General may, by notice in writing, notify that person of the intention to apply to the Chief Registrar of Lands, for the land or buildings to be the subject of security for tax as specified in the notice.
• If a person on whom a notice has been served as above fails to make payment of the whole of the amount of the tax specified in the notice within thirty days of the date of service of the notice, the Commissioner-General may, by notice in writing, referred to as a “notice of direction”, direct the Chief Registrar that the land or buildings of that person, to the extent of the interest of that person in the land or buildings, be the subject of security for unpaid tax in the amount specified in the notice.
• Where a notice of direction is served on the Chief Registrar, the Chief Registrar shall, without fee, register the direction as if it were an instrument or mortgage over, or charge on, the land or buildings and the registration shall, subject to any prior mortgage or charge, operate in all respects as a legal mortgage over or charge on the land or building to secure the amount of the unpaid tax.
• Upon receipt of the whole of the amount of tax secured under the landed property for tax unpaid, the Commissioner-General shall serve notice on the Chief Registrar cancelling the notice of direction and the Chief Registrar shall, without fee, record the cancellation at which time the direction shall cease to have effect.
  

Where a person, referred to as the “tax debtor”, has not paid tax which is due, the Commissioner-General may, by notice in writing, require any other person:

• Owing or who may owe money to the tax debtor,
• Holding or who may subsequently hold money for, or on account of, the tax debtor,
• Holding or who may subsequently hold money on account of a third person for payment to the tax debtor, or
• Having authority from a third person to pay money to the tax debtor, to pay the money to the Commissioner-General on the date set out in the notice, up to the amount of tax due.
• The Commissioner-General may only issue a notice as indicated above with respect to tax which is due but not currently payable where the Commissioner-General reasonably believes that the tax debtor will not pay the tax by the date on which it becomes payable.
• The date specified in the notice given above shall not be a date before the money becomes due to the tax debtor, or is held on behalf of the tax debtor.
• At the same time that notice is served as above, the Commissioner-General shall also serve a copy of the notice on the tax debtor.
• Where a person served with a notice as above is unable to comply with the notice by reason of lack of moneys owing to or held for the tax debtor, that person shall, as soon as is practicable and in any event not later than the payment date specified in the notice, notify the Commissioner-General accordingly in writing setting out the reasons for the inability to comply.
• Where a notice is served on the Commissioner-General from the person owing the tax payer, the Commissioner-General may, by notice in writing,
• Accept the notification and cancel or amend the notice issued or
• Reject the notification.
• A person dissatisfied with a decision above may only challenge the decision under the objection and appeal procedure.
• A person making a payment pursuant to a notice from the Commissioner is deemed to have been acting under the authority of the tax debtor and of all other persons concerned and is hereby indemnified in respect of the payment against all proceedings, civil or criminal, and all processes, judicial or extra-judicial, notwithstanding any provisions to the contrary in any written law, contract, or agreement.             (Any 5 points)