(1) Where a taxpayer does not comply with the provisions of this Act with an intention of evading payment of ¹[tax], an Officer of VAT may, under orders from the Commissioner conduct supervised supply, observation and keep surveillance, in a prescribed manner, at any place relating to his economic activities subject to ¹[tax] to determine the actual tax liability of such taxpayer.

(2) Such officer of VAT shall, specifying all information necessary to determine tax liability of such taxpayer, submit report to the Commissioner.

(3) The Commissioner may, after giving the taxpayer an opportunity of being heard, determine the actual tax liability of such taxpayer on the basis of the report submitted under subsection (2) and any other information gathered under this Act or the rules made thereunder.