By Hilary Mare
GOVERNMENT has announced the implementation of a second, and last, tax arrears recovery incentive programme.
The incentive program to recover outstanding tax debt will seek to collect arrears owed to the Receiver of Revenue, and will offer limited-time relief to taxpayers with outstanding tax balances, to settle their capital amounts in full and pay only part of their interest charges.
It will also allow for all persons, especially business owners who have failed to register as taxpayers, to do so, in order to benefit from the incentive programme.
This Tax Arrear Recovery Incentive Programme will commence on 11 September and run until the 11 March 2018, and shall apply to all taxes administered by Inland Revenue Department, which are income tax, value-added tax (VAT), vat import tax, employee’s tax, stamp duty tax, non-resident’s shareholders tax (NRST) and tax on royalties .
The Ministry of Finance will waive the penalties levied on tax payments and the submission of tax returns, and write off 70 percent of the interest on all tax accounts for taxpayers, who pay the capital tax amount in full and 30 percent of their interest balance. There shall be no write-off of any capital amount.
Permanent Secretary in the Ministry of Finance, Ericah Shafudah, highlighted that taxpayers who intend to participate in the tax incentive programme are encouraged to register during the months of September and October and settle their debt, before benefiting from the programme.
“Any taxpayer, who intends to make a once-off settlement of the debt payable, should do so during the month of September or October 2017. Further, any taxpayer who is unable to settle the balance by making only one payment, is required to pay the first instalment that will be agreed upon with Inland Revenue Department in the month of registration, and thereafter pay monthly instalments, until the debt is settled within the tax incentive period,” she said.
Government also noted that any taxpayer who fails to honour the instalment arrangement may be disqualified from benefiting from the incentive programme, unless a good cause is shown in writing, before any payment becomes due and payable.
“Taxpayers are encouraged to update all their respective tax accounts, by filing all the tax returns at offices where their accounts are registered, and obtain the most recent statements of their account, with the correct balance,” Shafudah added.
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