Section 11

Where an assessment is made under subsection 6(2), (3)

or (4), or where an assessment is increased under subsection 101(2) of the Income Tax Act 1967, the tax payable under the assessment or increased assessment shall, on the

Labuan Business Activity Tax (Amendment) (No. 2)

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service of the notice of assessment or increased assessment, as the case may be, be due and payable on the person assessed at the place specified in that notice whether or not that person appeals against the assessment or increased assessment.

Subject to subsection (5), where any tax due and payable under subsection (1) has not been paid by the due date, so much of the tax as is unpaid upon the expiration of that date shall, without any further notice being served, be increased by a sum equal to ten per cent of the tax so unpaid, and that sum shall be recoverable as if it were tax due and payable under this Act.

Subject to subsection (5), where any tax due and payable under subsection (2) has not been paid within a period of thirty days after the service of the notice, so much of the tax as is unpaid upon the expiration of that period shall, without any further notice being served, be increased by a sum equal to ten per cent of the tax so unpaid, and that sum shall be recoverable as if it were tax due and payable under this Act.

Where any tax is payable in accordance with subsection (1) or (2), the Director General may allow the tax to be paid by instalments in such amounts and on such dates as he may determine and in the event of default in payment of any one instalment on the date specified for payment, the balance of the tax then outstanding shall be due and payable on that date and shall, without any further notice being served, be increased by a sum equal to ten per cent of that balance, and that sum shall be recoverable as if it were tax due and payable under this Act.

Notwithstanding the foregoing subsections, the Director General may in his discretion for any good cause shown remit the whole or any part of that increased sum under subsection (3), (4) or (5) and, where the amount remitted has been paid, the Director General shall repay that amount.

For the purposes of this section, “due date” means the last day of the seventh month from the date following the close of the accounting period which constitutes the basis period for the year of assessment.”.

Deletion of section 13