Guest Contributor | Jun 2, 2022 | 0
Six month breather for delinquent tax payers
The Ministry of Finance will write off some of the debt and penalties incurred on any type of outstanding tax, through an Incentive Programme, only if the outstanding tax and some of the interest levied is paid between the period of 1 February and 31 July.
According to the Ministry, payments can be made in instalments over a maximum period of 6 months and only once the full principal tax amount and 20% of interest are paid, will the remaining 80% portion of interest and all penalties be waived.
“Taxpayers with delinquent accounts and individuals and companies that qualify to register for any type of tax but did not do so are offered this once off opportunity to become compliant with tax laws,” the the Minister of Finance, Calle Schlettwein said in a statement.
“The incentive is only liable to those that have not filed for tax and those that have not registered for taxes or paid taxes previously,” Schlettwein said, adding that taxpayers who are currently on a deferred payment plan can still apply to participate in the tax incentive.
The Ministry said that taxpayers who fail to apply to have a portion of the interest written off during the period allocated will forfeit this benefit when the incentive program lapses.
“The Ministry of Finance will then enforce its collection mandate against taxpayers with outstanding balances on their tax accounts as if the programme was never introduced,” he added.
Meanwhile, to determine the correct amount of tax due, participating taxpayers must file all outstanding tax returns with the Inland Revenue Department into a separate bank account to keep track of payments.
“All individuals and other business entities with outstanding debt on their tax account/s may apply
for the Incentive Programme. Application forms for the Incentive Programme will be available at all Regional Revenue Offices countrywide and must be duly completed and submitted to nearest Receiver of Revenue Office,” the statement read.