Under section 90 ICTA the “appropriate authorities” are expressly prohibited from registering any change to ownership until such time as the Commissioner of Income Tax has issued a certificate confirming that tax on any gain has been paid.
The impact of the change to section 90 is that the company secretary cannot now register a share transfer unless they receive:
- an executed and duly stamped instrument of share transfer; and
- a certificate from the Commissioner of Income tax certifying that the instalment tax has been paid.
Likewise, the Registrar of Companies will not register a transfer of the shares if evidence of payment of the tax is not produced.