Section 108 : Recovery of tax from recipient

1) Each recipient has to give a notice of the matter to the Department no later than fifteen days of the date of appointment to the post of recipient or the date of having possession of the property situated in Nepal, whichever is earlier.

2) The Department has to give a written notice to the person in arrear of tax on the amount to be paid.

3) On receipt of the notice referred to in sub-section (1), the recipient has to do as follows:

a) To set aside the amount notified by the Department under sub-section (2) after making payment of the loan, if any, which is preferential to the tax payable pursuant to sub-section (2), subject to clause (c) of sub-section (2) of Section 103, from the proceeds of the sale of the required portion of the property which have come under the possession of the recipient, and

b) To pay to the Department the amount so set aside for his tax liability on behalf of the person in arrear of tax.

4) It shall be the personal liability of the recipient to pay to the Department the amount equal to the tax liability payable by such person in arrear of tax to the extent that no amount has been set aside by the recipient pursuant to sub-section (3).

5) Provided that the recipient may recover from the person in arrear of tax the amount of tax paid.

Explanation: For purposes of this Section,-

(a) “Recipient” means any of the following persons:

(1) A liquidator,

(2) A person appointed from outside or by a court as a recipient in respect of any property or entity,

(3) A person possessing a property by mortgage,

(4) Heir apparent, administrator or manager of the property belonging to a deceased natural person, or

(5) A person looking after the affairs of an incapacitated natural person.

(b) “Person in arrear of tax” means the person whose property has come under possession of the recipient.