“Now, in the initial phase of the amnesty or the prior one, the penalties and the interest were waived up to the income year 2021. But for this extension, it now covers the period up to December 31st, 2023.”
The Acting Comptroller emphasized that taxpayers must clearly understand that the amnesty does not exempt them from paying taxes owed during the period; it only provides relief from penalties and interest.
“That’s something that we have to make clear. The tax has to be paid. That’s for periods up to 2023. What a taxpayer gets relief on is the penalty and the interest. For periods up to 2023, there’s a 100% waiver of the penalties and interest. There’s no penalty, no interest. However, the tax amount, the raw tax, has to be settled.”
The amnesty applies to all tax types, from income to VAT. Failure to act could lead to strict enforcement measures, including salary garnishments and deductions from third parties or bank accounts.
“At the end of the amnesty period, whatever penalties and interest, including the tax that is not paid, all of that remains on the taxpayer’s account, and there’s no more relief. Efforts will be made to recover any taxes that are outstanding. But as a Department, we are just asking, again, that you take the opportunity that is there at this point to come in to settle your taxes, to pay the tax amount, and you know you don’t have to worry about the penalty and the interest for the years up to 2023.”
“Doing business with the Inland Revenue Department becomes significantly easier once obstacles such as unpaid taxes, penalties, and interest are cleared,” said the Acting Comptroller. She also encouraged taxpayers with outstanding amounts for 2024 to engage the IRD promptly to settle their obligations.
“If you’re going to settle up to 2023, I’m just encouraging all those who will be coming in to settle up to 2023 to also take that opportunity to settle the 2024. Because at the end of the day, you just want to be in a place where you’re clear.”
Taxpayers are encouraged to contact the Inland Revenue Department as soon as possible to learn more about how they can benefit from the tax amnesty before it’s too late.