Income Tax Act
(Chapter 134, Section 7)
Deduction of Income Tax (Employments) Rules
R 2
G.N. No. S 63/1966

(25th March 1992)
[1st January 1966]
1.  These Rules may be cited as the Deduction of Income Tax (Employments) Rules.
2.  In these Rules, unless the context otherwise requires —
“deduction period” means the period during which tax is to be deducted in pursuance of a direction;
“direction” means a direction issued to an employer by the Comptroller under section 91 of the Act requiring him to deduct tax payable by an employee;
“emoluments” means income from any source specified in section 10 (1) (b) and (e) of the Act;
“employee” means any person in receipt of emoluments;
“employer” means any person paying emoluments, whether on his own account or on behalf of another person.
Employer to deduct tax on direction of Comptroller
3.—(1)  Where an employee is chargeable to tax and his employer for the time being is required by the Comptroller by means of a direction issued in that behalf to deduct the tax, or any part of the tax, from any emoluments which he pays to the employee, the employer shall deduct such tax in accordance with these Rules.
(2)  Where the employee is a married woman, the tax charged in respect of her emoluments may be included in a direction to her employer as if she were assessable and chargeable, or had been assessed and charged, to tax in her own name, whether or not such is in fact the case, and these Rules shall have effect accordingly.
(3)  Any employee whose tax is to be deducted by his employer in pursuance of a direction shall be informed to that effect in such manner as the Comptroller may direct.
Particulars of deduction by Comptroller
4.  A direction shall specify the name of the employee, the amount of tax which the employer is required to deduct, and the deduction period; but, except as aforesaid, it shall not disclose any particulars whatever relating to the income of the employee, or to the reliefs from tax to which he is entitled.
Employer to deduct tax according to method therein
5.  Upon receipt of a direction, the employer shall deduct the tax specified in the direction, in such instalments as may be specified therein, from the emoluments which he pays to the employee during the deduction period.
Comptroller may vary deduction
6.  The Comptroller may, at any time before the expiration of a deduction period, vary the direction relating to such deduction period. Any such variation shall be effected by a further direction.
Repayment of tax to be paid to employee
7.  Any repayment due of tax overpaid by an employee, whether by way of deduction or otherwise, shall be made to the employee by the Comptroller.
Time limit for employer to pay to Comptroller
8.—(1)  Not later than the tenth day of every month the employer shall pay to the Comptroller all amounts of tax which he has deducted under these Rules during the preceding month in pursuance of a direction.
(2)  The Comptroller shall give the employer a receipt on the prescribed form for the total amount so paid.
(3)  Any amount of tax which an employer is required or liable to pay to the Comptroller under these Rules shall be a debt due from him to the Government which, without prejudice to any other method of recovery, shall also be recoverable by suit by the Comptroller in the same manner as if the employer were the person charged therewith, and section 90 of the Act shall apply accordingly.
Consequences of failure by employer to deduct tax
9.  If an employer fails without reasonable excuse to deduct any amount of tax which he is directed to deduct, he shall nevertheless remain liable to pay the amount to the Comptroller as if he had deducted it, and rule 8 shall, with the necessary modifications, apply to the payment and recovery of and the giving of a receipt for any such amount.
Employer to furnish a return to Comptroller
10.  Not later than the tenth day of the month following the expiration of a deduction period, the employer shall render a return to the Comptroller showing, in regard to each employee from whose emoluments he has been directed to deduct tax, the total amount of tax deducted during the deduction period and the amount, if any, which he has not deducted, together with the reason for his failure to deduct such amount.
Receipt from Comptroller
11.  After the expiration of any deduction period, the employee may obtain, on application to the Comptroller, a receipt for the tax which has been deducted from his emoluments during that deduction period.
Return to be rendered in event of death of employer
12.  In the event of the death of an employer, any return which the deceased would have been liable to render under rule 10 shall be rendered —
(a)in the case of an employer paying emoluments on his own account, by the personal representative of the deceased; and
(b)in the case of an employer paying emoluments on behalf of another person, by the person succeeding him, or if there is no person succeeding him, by the person on whose behalf the deceased paid the emoluments.
Priority of sums due under direction
13.—(1)  All sums which an employer has deducted or should have deducted, in pursuance of a direction, from payments of emoluments made within the period of 12 months next before the relevant date, and which the employer is liable to pay but has not paid to the Comptroller shall be included among the debts which are entitled, from the date of the accruing thereof, to a preference of payment over all debts or claims of every kind, whether specialities or on simple contract, which, subsequent to such date, are contracted or incurred by, or become due from, such employer to any other person whomsoever.
(2)  For the purpose of this rule, “relevant date” means —
(a)in relation to bankruptcy, the date of the receiving order; and
(b)in relation to companies, the date of the order or effective resolution for winding up or of the appointment of the receiver or the taking possession of the property of the company, as the case may be.
14.  Nothing in these Rules shall affect the collection or recovery in the manner provided by the Act of any tax with which an employee is chargeable and which is not deductible in pursuance of a direction.
Employee to remain liable in certain circumstances
15.  Except where the employer is liable therefor under rule 9, any amount of tax which should, in pursuance of a direction, have been deducted from emoluments paid to the employee but has not been so deducted shall be deemed to be due and payable by the employee and may be recovered from the employee in the manner provided by the Act.
Service of direction
16.  A direction shall be served on the employer to whom it is addressed and section 8 of the Act shall apply to such service in like manner as to service of notices.
[G. N. No. S 63/66]