(1) Subject to subsections (2) and (13), a taxable person who ceases to carry on taxable activities shall notify the Comptroller of that fact within 5 working days of the date of such cessation, and the Comptroller is required to cancel the registration of that person with effect from the last calendar day of the tax period during which all such taxable activities ceased, or from such other date as the Comptroller may determine.
(2) The Comptroller shall not cancel the registration of a taxable person under subsection (1) where the Comptroller has reasonable grounds to believe that the person will carry on any taxable activity at any time within 12 months from the date of cessation.
(3) A notification under subsection (1) must be made in writing and state the date upon which that person ceased to carry on taxable activities, and whether or not that person intends to carry on any taxable activity within 12 months from that date.
(4) If the Comptroller is satisfied that a taxable person —
(a) is not carrying on a taxable activity; or
(b) was not required or entitled to apply for registration; and
(i) has no fixed place of abode or business,
(ii) has not kept proper accounting records relating to any business activity carried on by that person,
(iii) has not submitted regular and reliable tax returns as required by section 37, or
(iv) has not complied with his or her obligations under the laws relating to tax, including any laws relating to customs; or
(c) was required to register under section 12 and ceases to satisfy the registration requirements under section 12; or (Amended by Act 5 of 2016)
(d) has not complied with the requirements of any law administered by the Inland Revenue Department, (Inserted by Act 5 of 2016)
the Comptroller may cancel the registration of that person, and the cancellation shall take effect from the last day of the tax period during which the Comptroller becomes so satisfied or from such other date as the Comptroller may determine, and the Comptroller shall give written notice to the taxable person of the date on which cancellation takes effect.
(Substituted by Act 10 of 2012)
(5) A date determined by the Comptroller for the cancellation of registration under subsection (4) may be retrospective to a date not earlier than —
(a) the last day of the tax period during which taxable activity carried on by the person ceased; or
(b) the date on which the person was registered under this Act, if the Comptroller is satisfied that the person did not, from that date, carry on any taxable activity.
(6) Subject to subsection (7) or (8), a taxable person may apply in writing to the Comptroller to have the person's registration cancelled where, at any time, the value of that person's taxable supplies —
(a) in the past 12 months has not been; or
(b) in the period of 12 months then beginning will not be more than the amount specified under section 12(1).
(7) A person —
(a) required to register under section 12(1), (9) or (10) who ceases to satisfy the criteria under section 12(1), (9) or (10); or (Substituted by Act 10 of 2012)
(b) registered as a result of an application under section 12(5),
may apply for cancellation of the registration only after the expiration of 2 years from the date the registration took effect.
(8) Subsection (6) does not apply to an auctioneer, the State, or a Constituency Council.
(9) Where the Comptroller is satisfied that a taxable person who has made an application under subsection (6) or (7) is entitled to have a registration cancelled, the Comptroller is required to cancel that person's registration with effect from the end of the tax period unless the Comptroller orders the cancellation to take effect at an earlier date.
(10) Any obligation or liability under this Act, including the obligation to pay tax and to file returns, of any person in respect of anything done or omitted to be done by that person while the person is a taxable person, is not affected by cancellation of the person's registration.
(11) Where the registration of a person is cancelled, the Comptroller shall remove the person's name and details from the register described in section 13(10).
(12) A person dissatisfied with a decision of the Comptroller under this section to cancel or not to cancel the person's registration may challenge the decision under Part 9 of this Act.
(13) A taxable person who sells a going concern or engages in a similar transaction, such as a merger, shall notify the Comptroller of that fact at least 5 working days before the earliest of the date —
(a) the sale closes;
(b) the purchaser acquires any legal interest in the assets to be acquired; or
(c) the assets of the going concern are transferred.