Section 21: Tax Recovery

1) If the tax due by any taxpayer is not paid within the specified period, the Tax Officer may, with the pre-approval of the Director General, collect the tax by using any or all of the following methods:

(a) By deducting the amount, if any, to be refunded to the taxpayer;

(b) By seizing movable and immovable property of the taxpayer;

(c) By selling through auction all or any of the taxpayer’s property at a time or in a series of auctions,

(d) By causing to deduct amounts from the taxpayer’s bank account or other financial institutions;

(e) By causing to deduct amounts due to the taxpayer by the Government of Nepal, or a body corporate owned by the Government of Nepal, or at the local level,

(f) By claiming the amount payable by a third party to the taxpayer,

(g) By withholding imports, exports, and other transactions of the taxpayer.

(h) By preventing him or her from going outside Nepal.

(i) By publication or broadcasting or publishing in the website of the Department of the name of taxpayer not paying leviable tax within the time limit.

2) The information on action taken by the tax officer pursuant to sub-section (1) shall be provided to the Director General within twenty-four hours.

3) A sum that is less than One Rupee shall not be counted in recovering or refunding the tax.