4. COLLECTION OF TAX
(a) BY DIRECT PAYMENT
Professional tax on industrial, commercial and agricultural profits and on profits from the liberal professions, functions and offices is payable within two months2 of receiving the assessment notice or demand note. The Treasury is entitled to charge interest on sums due at 6 per cent per annum.
noteTaxpayers may appeal against their assessments to the provincial or district Director of Taxes.2
The Controller assesses tax on the declared income unless he deems it an incorrect figure. In this case, he may correct it on informing the taxpayer, before assessment, of the figure he proposes to substitute for the figure declared and giving the reasons for the alteration. The taxpayer is given twenty days in which to submit observations. If the parties still disagree, the dispute may be submitted to a Committee which sits in the chief town of each control area, and whose composition and functions are determined by Royal Decree.3
noteThe Committee’s opinion, with reasons for it, is notified to the taxpayer by the Controller, who also informs him of the income figure upon which he proposes to assess tax.
If this figure coincides with the opinion of the Committee, the taxpayer can only obtain a reduction by furnishing proof of the exact amount of his taxable income.
In the contrary event, the burden of proof is upon the Administration, if the income taxed is in excess of the Committee’s estimate.
The Committee must also be consulted before any ex-officio assessment is made.
(b) BY DEDUCTION AT THE SOURCE
Professional tax on the various remunerations is collected by withholding the amount due at the time of payment; the law prescribes that the persons responsible for paying the income may deduct therefrom the tax due, subject to no appeal by the beneficiaries, whatever their nationality. This deduction is effected on a scale fixed by Royal Decree;4 the tax thus withheld must be paid to the receivers of taxes within a fortnight of the end of the month in which the income was paid. The control of payments and any adjustment of the fiscal position of the taxpayers concerned are effected by means of individual forms filled up by the employer. These forms are issued to the person in receipt of the salary, wage, etc., and attached by him to his annual declaration.
noteIn the case of persons who receive professional income of different kinds, tax is computed on the total income for the previous year after deduction of any taxes collected at the time the income was paid.