16.     Registration

            (1) Subject to the provisions of this Act, every person who carries on a taxable activity and is not registered, becomes liable to be registered if-

     (a)     at the end of any period of 12 months the person made, during that period, taxable supplies the total value of which exceeded the amount specified in paragraph 1 of the Fifth Schedule; or

     (b)     at the beginning of any period of 12 months there are reasonable grounds to expect that the total value of taxable supplies to be made by the person during that period will exceed the amount specified in paragraph 1 of the Fifth Schedule.

            (2) In determining whether a person is liable to be registered under subsection (1)-

     (a)     the Commissioner General may have regard to the value of taxable supplies made by another person where both persons are related persons; and

     (b)     the value of the person's supplies is determined under section 9.

            (3) A person is not liable to be registered under subsection (1) where the Commissioner General is satisfied that the value of taxable supplies exceeded the amount specified under subsection (1) solely as a consequence of-

     (a)     a cessation, or substantial and permanent reduction in the size or scale, of a taxable activity carried on by the person; or

     (b)     the replacement of capital goods used in the taxable activity carried on by that person.

            (4) A person who makes, or intends to make taxable supplies, but is not liable to be registered under subsection (1), may apply to the Commissioner General for registration under this Act.

            (5) Notwithstanding subsection (1), the State or a local authority that carries on a taxable activity is liable to be registered from the date of commencement of that activity.

            (6) Notwithstanding subsection (1), a person who is an auctioneer becomes liable to be registered on the date on which the person becomes an auctioneer.

            (7) Every person liable to be registered under this section shall apply to the Commissioner General for registration within 21 days of becoming so liable.

            (8) A person who fails to apply for registration as required by subsection (7) commits an offence and is liable on conviction-

     (a)     where the failure was made knowingly or recklessly, to a fine not exceeding P10,000 or to imprisonment for a term not exceeding two years, or to both; or

     (b)     in any other case, to a fine not exceeding P5,000 or to imprisonment for a term not exceeding one year, or to both.

            (9) A person who fails to apply for registration as required by subsection (7) is liable for a penalty equal to double the amount of output tax payable from the time the person becomes liable to be registered until the person files an application for registration with the Commissioner General.

            (10) No penalty is payable under subsection (9) where the person has been convicted of an offence under subsection (8) in respect of the same act.

            (11) If a penalty under subsection (9) has been paid and the Commissioner General institutes criminal proceedings under subsection (8) in respect of the same act, the Commissioner General shall refund the amount of penalty paid, and that penalty is not payable unless the prosecution is withdrawn.

17.     Application for registration

            (1) An application for registration under section 16 shall be in the prescribed form and the applicant shall provide such further particulars as may be required.

            (2) The Commissioner General shall register a person who has applied for registration within 21 days of receipt of the application, unless the Commissioner General is satisfied that the person is not liable to be registered under section 16 or, in the case of an application under section 16(4)-

     (a)     the person has no fixed place of abode or business; or

     (b)     the Commissioner General has reasonable grounds to believe that the person-

           (i)       will not keep proper records; or

          (ii)       will not submit regular and reliable tax returns, as required under this Act.

            (3) Where a person liable to be registered under this Act fails to make an application for registration as required under section 16(7), the person shall be deemed to be registered for the purposes of this Act, other than under section 16(1), from the date specified under subsection (4)(a) or (b), or such later date as the Commissioner General may determine.

            (4) Registration takes effect, in the case of-

     (a)     a person referred to in section 16(1)(a), from the beginning of the second tax period immediately following the time when the person became liable to be registered;

     (b)     a person referred to in section 16(1)(b), 16(5), or 16(6), from the beginning of the 12 month period, the commencement of the activities, or the date the person becomes an auctioneer, respectively; or

     (c)     an application under section 16(4), from the beginning of the second tax period immediately following the period in which the person applied for registration.

            (5) The Commissioner General shall, within 21 days of receipt of an application under subsection (2), serve a notice in writing on an applicant for registration of the decision in respect of the application.

            (6) An applicant dissatisfied with a decision referred to under subsection (5) may appeal against the decision only in accordance with the provisions of Part VIII.

            (7) Every registered person shall notify the Commissioner General, in writing, of-

     (a)     any change in the name, address, place of business, constitution, or nature of the principal taxable activity or activities of the person; and

     (b)     any change of address from which, or name in which, a taxable activity is carried on by the registered person, within 21 days of the change occurring.

            (8) A person who fails to notify the Commissioner General of a change in circumstances as required by subsection (7) commits an offence and is liable on conviction-

     (a)     where the failure was made knowingly or recklessly, to a fine not exceeding P10,000 or to imprisonment for a term not exceeding two years, or to both; or

     (b)     in any other case, to a fine not exceeding P5,000 or to imprisonment for a term not exceeding one year, or to both.

18.     Cancellation of registration

            (1) Subject to subsection (2) or (3), a registered person may apply in writing to the Commissioner General to have the person's registration cancelled where, at any time, the value of that person's taxable supplies in the period of 12 months then beginning will not be more than the amount specified under section 16(1)(b).

            (2) A person liable to be registered under section 16(1) who ceases to satisfy the criteria thereunder, or a person registered as a result of an application under section 16(4) may apply for cancellation of the registration only after the expiration of two years from the date the registration took effect.

            (3) Subsection (1) does not apply to the State or a local authority under section 16(5), or to an auctioneer referred to under section 16(6).

            (4) Where the Commissioner General is satisfied that a registered person who has made an application under subsection (1) ceases to be liable to be registered, the Commissioner General shall cancel the person's registration with effect from the last day of the tax period during which the Commissioner General was so satisfied, or such other date as the Commissioner General may determine.

            (5) Subject to subsection (6), a registered person who ceases to carry on all taxable activities shall notify the Commissioner General of that fact within 21 days of the date of such cessation, and the Commissioner General shall cancel the registration of that person with effect from the last day of the tax period during which all such taxable activities ceased, or from such other date as the Commissioner General may determine.

            (6) The Commissioner General shall not cancel the registration of a registered person under subsection (5) where the Commissioner General has reasonable grounds to believe that the person will carry on any taxable activity at any time within 12 months from that date of cessation.

            (7) A notification pursuant to subsection (5) shall be made in writing and shall state the date upon which that person ceased to carry on all taxable activities, and whether or not that person intends to carry on a taxable activity within 12 months from that date.

            (8) Where the Commissioner General is satisfied that a registered person is not carrying on a taxable activity, the Commissioner General may cancel that person's registration with effect from the last day of the tax period during which the Commissioner General became so satisfied, or from such other date as the Commissioner General may determine, and shall notify that person in writing of the date on which the cancellation takes effect.

            (9) A date determined by the Commissioner General for the cancellation of registration under subsection (8) may be retrospective to a date not earlier than-

     (a)     the last day of the tax period during which taxable activity carried on by the person ceased; or

     (b)     the date on which the person was registered under this Act, if the Commissioner General is satisfied that the person did not, from that date, carry on any taxable activity.

            (10) A person dissatisfied with a decision of the Commissioner General under this section, to cancel or not to cancel the person's registration, may appeal against the decision only in accordance with the provisions of Part VIII.

            (11) A person whose registration is cancelled under this section shall be deemed to have made-

     (a)     a taxable supply of any goods on hand, including capital goods and goods that were acquired before the commencement of this Act, unless input tax under section 20 (2) was denied; and

     (b)     the taxable supply at the time the registration was cancelled; and

     (c)     the taxable supply for a value equal to the fair market value of the supply.

            (12) Any obligation or liability under this Act, including the furnishing of returns, of any person in respect of anything done or omitted to be done by that person while the person is a registered person, is not affected by cancellation of the person's registration.

            (13) A person who fails to notify the Commissioner General as required by subsection (5) commits an offence and is liable on conviction-

     (a)     where the failure was made knowingly or recklessly, to a fine not exceeding P10,000 or to imprisonment for a term not exceeding two years, or to both; or

     (b)     in any other case, to a fine not exceeding P5,000 or to imprisonment for a term not exceeding one year, or to both.