CAF-2 · Chapter 17 · Question 15 of 15
To force undocumented businesses into the tax net, the government introduced Section 14AC. If a person is liable to be registered but fails to do so after receiving three separate show-cause notices, what is the immediate enforcement measure taken against them?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Intermittent suspensions of their bank account operations (each suspension lasting 3 working days, up to 3 times).
Explanation
Under Section 14AC, after failed responses to notices, the enforcement measure is intermittent suspensions of bank account operations (each suspension lasts 3 working days, up to 3 times, with a gap of at least 1 week between suspensions). Only after continuous non-compliance does this escalate to a permanent bar on bank accounts or property transfers.
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