Wealth Tax Act, 1975

• Permanent Page URL

Accountable persons.

14.—(1) The following persons shall be primarily accountable for the payment of tax—

(a) if the assessable person is an individual (other than a person to whom paragraph (b) applies), the individual or his personal representative,

(b) if the assessable person is a minor child or is a person of unsound mind having a guardian or a committee, the guardian or committee, as the case may be,

(c) if the assessable person is a discretionary trust, the trustee of that trust,

(d) if the assessable person is a private non-trading company, the secretary of the company or the person who performs the duties of secretary.

(2) The following persons shall also be accountable for the payment of any amount of tax for which the persons referred to in subsection (1) are made primarily accountable—

(a) if the assessable person is an individual, every person whose property is included with that of the individual under section 4 and every trustee, guardian, committee, personal representative, agent or other person in whom any property comprised in the taxable wealth of the individual on the relevant valuation date stands vested or by whom the property is managed or the income of the property is collected on that date or within one year thereafter and every person in whom the property becomes vested by alienation or other derivative title after that valuation date, other than by a sale for full consideration in money or money's worth,

(b) if the assessable person is a discretionary trust, any person who derived directly or indirectly capital or income out of the property comprised in the trust during the year preceding the relevant valuation date or at any time thereafter and every trustee, guardian, committee, agent or other person in whom any property comprised in the taxable wealth of that trust on that date stands vested or by whom the property is managed or the income of the property is collected on that date or within one year thereafter and every person in whom the property becomes vested by alienation after that valuation date other than by a sale for full consideration in money or money's worth,

(c) if the assessable person is a private non-trading company, every director or shareholder and every trustee, guardian, committee, agent or other person in whom any property comprised in the taxable wealth of the company on the relevant valuation date stands vested or by whom the property is managed or the income of the property is collected on that date or within one year thereafter and every person in whom the property becomes vested by alienation after that valuation date other than by a sale for full consideration in money or money's worth:

Provided that none of those persons shall be liable for tax to an amount in excess of the market value of the property, or in excess of the income, as the case may be, vested in, collected or received by him or to which he is beneficially entitled in possession.

(3) Any accountable person referred to in subsection (2) who is authorised or required to pay tax in respect of any property comprised in the taxable wealth of an assessable person shall be entitled to reimbursement for any amount paid by him in respect of tax from the person primarily accountable for such amount and the person primarily accountable for the tax shall himself be entitled to reimbursement as follows—

(a) if he is an individual and if his taxable wealth includes, by virtue of section 4 (1), property of another person, from the person for the proportion of the amount of tax referable to the person's taxable wealth ascertained in accordance with section 4 (2);

(b) if he is the personal representative, guardian or committee of an individual, from the estate or assets of that individual;

(c) if he is a trustee of a discretionary trust or a person who is, by virtue of subsection (2) or (3) of section 5, deemed to be beneficially entitled in possession to property, from the trust property;

(d) if he is the secretary of a private non-trading company or the person who performs the duties of secretary, from the assets of the company.

(4) Any accountable person who is authorised or required to pay tax in respect of an interest which is a limited interest shall be entitled to reimbursement from the property in which the limited interest subsists or on which it is charged or secured or on which it is entitled to be so charged or secured and he shall, for the purpose of paying the tax, or raising the amount of the tax when already paid, have power, whether the property is or is not vested in him, to raise the amount of such tax, and any interest and expenses properly paid or incurred by him in respect thereof, by the sale or mortgage of or a terminable charge on that property or any part thereof and any other accountable person who is entitled to reimbursement under subsection (3) shall have a similar power in relation to any property in respect of which he is authorised or required to pay tax.

(5) The tax assessed or any part thereof shall be recoverable from any one or more of the persons accountable for the payment of the tax.

(6) An accountable person in possession of information relevant to the taxable wealth of an assessable person shall disclose to the Commissioners or such officer as the Commissioners may appoint such information within his possession or power as they may require in writing for the ascertainment of liability to, or the collection of, tax and shall make such disclosure within such time, not being less than 30 days, as may be specified in the requirement and any such person shall at all reasonable times make available for inspection by the Commissioners all books, accounts, documents or records in his possession or power which contain information which they may require for the ascertainment of liability to, or the collection of, tax and the Commissioners may take copies of, or extracts from, any books, accounts, documents or records made available for inspection.