§ 17 — Payment of tax and penalty

17.—(1) The tax for an emissions year must be paid —(a)

against an assessment pursuant to section 21(1) or (2), by the later of —(i)

30 September of the year immediately following the emissions year; or[Act 37 of 2022 wef 01/01/2024]

(ii)

30 days after the date of service on the registered person of the notice of assessment; and

(b)

against any other assessment, within 30 days after the date of service on the registered person of the notice of assessment.[Act 37 of 2022 wef 01/01/2024]

(2) The payment under subsection (1) must be made —(a)

subject to subsection (3A), by the surrender of fixed‑price carbon credits; or[Act 37 of 2022 wef 01/01/2024]

(b)

if, at the time of payment, the FPCC registry account for the taxable facility in relation to which the tax is charged is suspended or closed, in the form and manner required by the Agency.[Act 37 of 2022 wef 01/01/2024]

(3) Subject to subsection (3A), the number of fixed‑price carbon credits that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of tax charged.[Act 37 of 2022 wef 01/01/2024]

(3A) Despite subsections (2)(a) and (3) and subject to section 33B, one eligible international carbon credit may be surrendered in place of one fixed-price carbon credit, in respect of such tax for such emissions year as may be prescribed.[Act 37 of 2022 wef 01/01/2024]

(3B) Where any tax is required to be paid pursuant to a revision of an assessment under section 23 —(a)

the number of fixed-price carbon credits (at the carbon price applicable to the year in which they are to be purchased for the payment) that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of the tax, rounded down to the nearest whole number of such fixed‑price carbon credits; and

(b)

subsection (3A) does not apply except in the circumstances and to the extent prescribed.[Act 37 of 2022 wef 01/01/2024]

(4) If a registered person fails to make full payment of the tax in accordance with subsection (2) within the time specified under subsection (1) —(a)

a financial penalty of 5% of the amount of tax assessed and remaining unpaid, is payable in addition to the tax that remains unpaid;

(b)

the Agency must serve a demand note on the registered person and if payment is not made within 30 days after the date of the service of the demand note, the Agency may proceed to enforce payment of the tax and penalty under this Act; and

(c)

despite paragraphs (a) and (b), if the amount of tax remaining unpaid is not paid within 60 days after the imposition of the financial penalty under paragraph (a), an additional financial penalty of 1% of the amount of tax remaining unpaid is payable for each completed month that the tax remains unpaid, but not exceeding triple the amount of tax remaining unpaid in total.

(5) The amount of tax remaining unpaid and any financial penalty must be paid to the Agency in the form and manner required by the Agency.

—(1) The tax for an emissions year must be paid —(a)

against an assessment pursuant to section 21(1) or (2), by the later of —(i)

30 September of the year immediately following the emissions year; or[Act 37 of 2022 wef 01/01/2024]

(ii)

30 days after the date of service on the registered person of the notice of assessment; and

(b)

against any other assessment, within 30 days after the date of service on the registered person of the notice of assessment.[Act 37 of 2022 wef 01/01/2024]

(2) The payment under subsection (1) must be made —(a)

subject to subsection (3A), by the surrender of fixed‑price carbon credits; or[Act 37 of 2022 wef 01/01/2024]

(b)

if, at the time of payment, the FPCC registry account for the taxable facility in relation to which the tax is charged is suspended or closed, in the form and manner required by the Agency.[Act 37 of 2022 wef 01/01/2024]

(3) Subject to subsection (3A), the number of fixed‑price carbon credits that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of tax charged.[Act 37 of 2022 wef 01/01/2024]

(3A) Despite subsections (2)(a) and (3) and subject to section 33B, one eligible international carbon credit may be surrendered in place of one fixed-price carbon credit, in respect of such tax for such emissions year as may be prescribed.[Act 37 of 2022 wef 01/01/2024]

(3B) Where any tax is required to be paid pursuant to a revision of an assessment under section 23 —(a)

the number of fixed-price carbon credits (at the carbon price applicable to the year in which they are to be purchased for the payment) that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of the tax, rounded down to the nearest whole number of such fixed‑price carbon credits; and

(b)

subsection (3A) does not apply except in the circumstances and to the extent prescribed.[Act 37 of 2022 wef 01/01/2024]

(4) If a registered person fails to make full payment of the tax in accordance with subsection (2) within the time specified under subsection (1) —(a)

a financial penalty of 5% of the amount of tax assessed and remaining unpaid, is payable in addition to the tax that remains unpaid;

(b)

the Agency must serve a demand note on the registered person and if payment is not made within 30 days after the date of the service of the demand note, the Agency may proceed to enforce payment of the tax and penalty under this Act; and

(c)

despite paragraphs (a) and (b), if the amount of tax remaining unpaid is not paid within 60 days after the imposition of the financial penalty under paragraph (a), an additional financial penalty of 1% of the amount of tax remaining unpaid is payable for each completed month that the tax remains unpaid, but not exceeding triple the amount of tax remaining unpaid in total.

(5) The amount of tax remaining unpaid and any financial penalty must be paid to the Agency in the form and manner required by the Agency.