(1) Where a person is subject to the provisions of this Part-

(a) fails to deduct or collect tax at source; or

(b) levy or collect tax at a relatively low rate or amount; or

(c) after deducting or collecting the tax at source tails to deposit it in favor of the Government of deposits in favor of the Government an amount less than the amount of tax deducted or collected; or

fails to comply with any other form.

In that case such person shall be treated as defaulting taxpayer.

(2) A person deemed to be a defaulting taxpayer under sub-section (1) shall, without prejudice to any other consequences to which he may be liable under this Act, be liable to pay the following amounts, namely:

(a) the amount not deducted or collected;

(b) the amount equal to the difference between the amount required to be deducted or collected and the amount actually deducted or collected; or

(c) an amount equal to the amount not credited to the Government after deduction or collection of tax; and

(d) not exceeding Tk. 10 (ten) lakhs in case of failure to comply with any other regulations

(3) In addition to the payment of the amount referred to in sub-section

(1), a person deemed to be a defaulting taxpayer under sub-section (1) shall pay the amount referred to in clauses (a), (b) and (c) of sub-section (2) shall be liable to pay an additional amount at the rate of 2% (two percent) per month on the basis of calculation of the additional amount given in the table below, namely:-

Table

(4) The period for computation of excess amount under sub-section

(3) shall be from the due date of deduction or collection of tax at source to the date of deposit in the Government Treasury:

Provided that such period shall not excess 24 (twenty four) months.

(5) The Deputy Commissioner of Taxes shall give the person mentioned in sub-section (1) a reasonable opportunity of being heard and take necessary steps to recover from him the additional amount mentioned in sub-section (3) including the amount payable under sub-section (2).

(6) Where the Government, Government Institution, Authority, Project, Programme, Organization, Unit or Government has financial or operational involvement in any such activity is responsible for deduction or collection tax at source-

(a) the natural person or persons responsible for authorizing or permitting the payment; or

(b) the natural person or persons responsible for issuing clearances, registrations, licences, permits, approvals or permits,

shall be jointly and severally liable for the payment of tax, penalty and excess money under this section.

(7) In cases where the Government, Government Institution, Authority, Project, Programme, Organization, Unit or any person or institution. other than any such activity having a financial or operational connection with the Government is responsible for the deduction or collection of tax at source-

(a) the person or institution itself, and

(b) the natural person or persons responsible for authorizing or permitting for the payment of money;

shall be jointly and severally liable for the payment of tax, penalty and excess amount under this section.

(8) If the person from whom the tax is leviable or deductible has already fully paid all the sums specified in sub-sections (2) and (3), shall not be taken steps to recover the sums specified in sub-sections (2) and (3).