Section 36

Cancellation of registration 

(1) A registered person who ceases to make taxable supplies shall apply in writing to the Commissioner, for the cancellation of the person’s registration, within thirty days of the date on which the person ceases to make taxable supplies.

(2) A registered person who continues to make taxable supplies whose annual value does not exceed the registration threshold may apply in writing to the Commissioner, for cancellation of the person’s registration.

(3) The Commissioner shall, by notice in writing, cancel the registration of a person if –

• (a) the person has applied for cancellation under subsection (1) and the Commissioner is satisfied that the person has ceased to make taxable supplies; or 
• (b) the person has not applied for cancellation but the Commissioner is satisfied that the person has ceased to make taxable supplies and is not otherwise required to be registered. 

(4) Where a person applies for cancellation of registration under subsection (2) and the Commissioner is satisfied that the person is not required to be registered –

• (a) the Commissioner shall, if the person has been registered for a period of more than twelve months, by notice in writing, cancel the registration; or 
• (b) the Commissioner may, if the person has been registered for a period of twelve months or less, by notice in writing, cancel the registration. 

(5) The Commissioner may, by notice in writing, cancel the registration of a person who is no longer required to be registered, if the Commissioner is satisfied that the person has not–

• (a) kept proper tax records; 
• (b) furnished regular and reliable returns; or 
• (c) complied with obligations under other revenue laws, and there are reasonable grounds to believe that the person will not keep proper records or furnish regular and reliable returns. 

(6) The cancellation of a person’s registration shall take effect from the date specified in the notice of cancellation.

(7) Where a person’s registration is cancelled under this section, the person shall–

• (a) immediately cease to hold out that the person is a registered person, including on any documentation used by the person;
• (b) submit a final return and pay all tax due, including the tax due under subsection (9),within fifteen days after the date of cancellation of the person’s registration. 

(8) Notwithstanding the cancellation of registration of a person under this section, the person shall be liable for any act done or omitted to be done while registered.

(9) A person whose registration is cancelled shall be deemed to have made a taxable supply of any trading stock on hand at the time the registration is cancelled if the person was allowed an input tax credit for the acquisition or import of the stock, or in respect of the acquisition or import of goods that have been subsumed into that stock.

Finance Act, 2016Effective 1st July 2016 
(10) The taxable supply under subsection (1) subsection (9) shall be deemed to have been made by the person immediately before the person’s registration is cancelled and the person shall be liable for an amount of output tax in respect of the supply equal to the amount of the input tax credit allowed to the person on acquisition or import of the stock.

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