Finance Ministry extends grace period for default tax payers
Defaulting tax payers have been given a life line by the country’s Finance Ministry with an extension of the Tax Arrears Recovery Incentive Programme up until 3 April.
This was announced this week by Finance Ministry, Permanent Secretary, Ericah Shafuda in a statement
The second Tax Arrears Recovery Incentive Programme which was introduced by the Ministry began in September 2017 and was supposed to run until 11 March 2018.
Shafuda said the programme is applicable to all taxes administered by Inland Revenue Department which are Income Tax, Value Added Tax (VAT), VAT Import, Employee’s Tax Stamp Duty, Non-resident’s Shareholders Tax and Tax on Royalties.
“The Ministry will waive the penalties levied on tax payments and submission of tax returns, and write off 70 percent of the interest balance on all tax accounts for taxpayers who pay the capital tax amount in full and 30 percent of the interest balance. There shall be no write off of any capital amount,” she said.
Meanwhile Shafuda said that taxpayers who choose not to partake in this Incentive Programme shall become liable for the full payment of taxes and interests owing to the Receiver of Revenue.