Sales Tax Act 2018 · Updated to 1 Jan 2025 · Part VI · Exemption, Refund, Drawback, Remission and Deduction
38. Payment of sales tax, etc., short paid or erroneously refunded
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the whole or any part of any sales tax due and payable, surcharge accrued, or penalty, fee or other money payable, under this Act has not been paid by a person; or
the whole or any part of any sales tax due and payable, surcharge accrued, or penalty, fee or other money payable, after having been paid, has been erroneously refunded to a person, the Director General shall demand from the person to pay the sales tax, surcharge, penalty, fee or other money, or the deficient sales tax, surcharge, penalty, fee or other money, or to repay the refund erroneously paid to him.
The demand under subsection (1) shall be made within six years from the date on which—
the sales tax, surcharge, penalty, fee or other money was payable, or the deficient sales tax, surcharge, penalty, fee or other money was paid; or
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the refund was made.
Upon receipt of the demand under subsection (1), the person shall—
pay the sales tax, surcharge, penalty, fee or other money, or the deficient sales tax, surcharge, penalty, fee or other money; or
repay the refund erroneously paid to him.
Without prejudice to subsection (1), any goods belonging to the person referred to in subsection (1), which may be in customs control or excise control or at a place specified in the registration under section 13, may be seized until the sales tax, surcharge, penalty, fee or other money, or the deficient sales tax, surcharge, penalty, fee or other money, are paid, or the refund erroneously paid to him is repaid.
If the sales tax, surcharge, penalty, fee or other money or the deficient sales tax, surcharge, penalty, fee or other money, or the refund to be repaid remains unpaid, as the case maybe, the
Director General may sell such goods seized under subsection (4)—
Director General
“Director General” means the Director General of Customs and Excise appointed under subsection 3(1) of the Customs Act 1967;
after giving not less than thirty days’ notice in writing to the person or his agent if the name and address of such person or agent is known to the Director General; or
after giving due notice in the Gazette if the name and address of such person or his agent is not known to the
Director General.
The proceeds of the sale of any goods seized under subsection (4) shall be applied to the payment of—
sale
“sale” includes barter, disposal of goods with a right of purchase or on terms providing that the seller retains an interest in the goods, and delivery of goods under any conditions as to future payment;
the sales tax, surcharge, penalty, fee or other money;
the deficient sales tax, surcharge, penalty, fee or other money;
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the refund erroneously paid; or
the recovery of the amount due or other charges which may be due in respect of selling off such goods, and the surplus, if any, shall be paid to the person, and if the person cannot be found within one month of the sale, such surplus shall be paid into the Consolidated Fund.
If at the sale of any goods seized under subsection (4) no sufficient bid is forthcoming to defray the sales tax, surcharge, penalty, fee or other money payable or the deficient sales tax, surcharge, penalty, fee or other money payable or the refund erroneously paid, as the case may be, the goods shall be forfeited to the Government and shall be disposed of in such manner as the
Director General may direct.
Every auction sales of any goods seized under subsection (4)
shall be conducted by or in the presence of a senior officer of sales tax.
senior officer of sales tax
“senior officer of sales tax” means any senior officer of customs as defined in subsection 2(1) of the Customs Act 1967;