The Internal Revenue Commission (IRC) has announced a tax amnesty as part of the Government’s 100-Day
Commissioner-General Betty Palaso said this means that penalties that would normally be imposed by the IRC on late lodgement of annual tax returns and late payments would not be applied in the next two months.
This was an opportunity for all taxpayers to bring their tax affairs up to date without the normally imposed penalties.
Palaso said the amnesty would provide relief from penalties that would normally apply to the late lodgement of annual income tax returns and the late payment of taxes assessed, or those penalties normally imposed on monthly withholding tax returns such as goods and services tax, salaries and wages tax and other forms of withholding taxes (effective from Nov 1-Dec 31.)
Specifically, this means:
- No late lodgement penalty imposed on annual income tax returns lodged late from Nov 1 to Dec 31;
- late payment penalty on annual income tax assessed and monthly taxes remitted in full on the condition the base tax is paid in full within
Nov 1 to Dec 31; and,
- All annual and monthly lodgements are up-to-date to Dec 31.
Palaso emphasised that the amnesty on the imposition of the late payment penalty did not apply to outstanding income and monthly taxes that had payment arrangements in place. However, the late payment penalty would be remitted in full provided that the base tax was paid in full during the amnesty period or within the already agreed payment period.
Taxpayers are reminded that the normal lodgement and payment dates outside of the amnesty are:
- Goods and services tax on the 21st of the month;
- salary and wages tax on the 7th of the month; and,
- Company income tax and personal income Tax – Feb 28 after the close of the financial year and payment of tax assessed within 30 days after notice of assessment or as directed by IRC.