For the purpose of payment of corporation taxes such as Companies Income Tax (CIT), Tertiary Education Tax (TET), Capital Gains Tax (CGT), Value Added Tax (VAT) and Withholding Tax (WHT), an entity can be assessed to tax either:
• In its own name – e.g. XYZ LTD.
• In the name of any principal officer – e.g. Managing Director, CEO, etc.
• In the name of any person appointed by the entity as attorney, factor, agent or a representative.
• In the name of a receiver or liquidator.
Where there is an established tax liability against an entity or the tax liability assessed against an entity has become final and conclusive, but the entity failed to defray the tax liability, the Tax Authority can appoint any person or institution (e.g. banks) as an agent to collect the unpaid tax on its behalf from the entity.
It is important to state that; the Tax Authority does not have the right to place lien on the bank account of an entity where a tax liability is yet to be established or there is dispute over an assessed tax liability.
For the purpose of payment of personal income tax, companies or entities are regarded as agents of the relevant tax authorities saddled with the obligation for collecting tax from the salaries, wages and allowance earned or paid to employees.