Section 61 — Power to distrain

(1) Where an assessment has become final and conclusive and a demand notice has been served on a person or company, or on the person or company in whose name that person is chargeable and the payment of the tax is not made within the time specified by the demand notice, the relevant tax authority may in the prescribed form, for the purpose of enforcing payment of the tax due—

(a) distrain that person or corporate body by their goods, chattels, bonds or other securities; or

(b) distrain any land, premises, place or any asset in respect of which that person or corporate body is the owner, and recover the amount of tax due.

(2) The authority to distrain under this section shall be in the form contained in the Third Schedule to this Act and such authority shall be sufficient warrant and authority to levy by distrain the amount of any tax due.

(3) Assets distrained by the Service under this section may, at the cost of that person or corporate body, be kept for 14 days and at the end of that time if the amount due in respect of the tax, cost and charges incidental to the distrain are not paid, they may, subject to subsection (5), be sold only with an order of the High Court subject to subsection (6).

(4) Without prejudice to subsection (4), assets distrained by any other relevant tax authority under this section may at the cost of that person or corporate body, be kept for 14 days and at the end of that time if the amount due in respect of the tax, cost and charges incidental to the distrain are not paid, they may, subject to subsection (6), be sold, only with an order of the High Court subject to subsection (7).

(5) Where there is a sale in accordance with the provisions of subsection (4), a part of the proceeds of such sale shall, in the first instance, be used to pay the cost of keeping and all expenses incidental to the sale of the asset so distrained, the amount due in respect of the tax shall be paid.

(6) The balance of the proceeds, if any, shall be refunded to that person with or without a demand made within 90 days of the date of the sale.

(7) The provision of this section shall not be construed to authorise the sale of any immovable property without an order of a High Court or as prescribed by the rules of court.

(8) In exercise of the powers of distrain conferred by this section, the person to whom the authority is granted under subsection (3) may distrain all assets, goods, chattels and effects belonging to the debtor wherever the same may be found.

(9) This provision shall also apply in the case of recovery relating to tax evasion and proceeds of crime where the offender cannot be found.