Penalties
Failure to file an
Income Tax Return
The Inland Revenue Department
shall impose a penalty
not exceeding 5% of tax
charged where a taxpayer
does not file an Income
Tax Return within the
prescribed time or any
extended time granted.
Failure to produce
Books & Records
If the Inland Revenue
Department requests a
taxpayer to produce books
and records and he does
not comply, a penalty
not exceeding $500.00
shall be imposed, he can,
on summary conviction,
be fined $1,000.00 and
can be imprisoned for 1
year.
False statements,
Declarations or Records
Any person who knowingly
gives false information
to the Inland Revenue
Department or who wilfully
seeks to evade assessment
or liability to tax is
guilty of an offense,
and can, on summary conviction
be fined $2,000.00 or
be imprisonment of 2 years.
Failure to Deduct
Tax
Inland Revenue shall
impose a penalty of 10%
of the tax which should
be deducted, where a taxpayer
fails to deduct or account
for tax which should have
been deducted. This
is in addition to any
interest charges which
have accrued.
Failure to Deduct
Withholding Tax &
Tax from Payments to Contractors
Any person who fails
to deduct withholding
tax or tax from payment
to a contractor is guilty
of an offence and can
on summary conviction,
be fined $1,000.00 or
imprisonment of 1 year.
Failure to Furnish
Correct Return of Income
Where any person fails
to furnish a correct return
of income for any year
of income by reason of:-
- his failure to disclose
any assessable income
accrued to him from
any source;
- the deduction or set
off by him of any amount
which is not allowable
as a deduction or set
off;
- the claim by him
of any expenditure or
loss of any amount which
was not expended or
lost; or
- his failure to disclose
any fact, the disclosure
of which would result
in an increase in his
liability to tax,
he shall be liable to
any penalty in accordance
with the following paragraphs.
Where the incorrectness
of the return of income
or the information was
attributable to:-
- Neglect or carelessness,
he shall be liable to
a penalty not exceeding
the amount of tax which
would have been lost
if he had been assessed
on the basis of the
incorrect return or
information furnished
by him; or
- Fraud or wilful default,
he shall be liable to
a penalty not exceeding
twice the amount of
tax which would have
been lost if he had
been assessed on the
basis of the incorrect
return or information
furnished by him.
If, any year of income,
determination of chargeable
income of any person results
in an assessed loss, and
the amount of such a loss
is less than it would
have been if it had been
calculated on the basis
of the return of income
or information furnished
by him by reason of any
of the circumstances specified
in subsection (1) and
such incorrectness of
the specified information
was due to neglect, carelessness,
fraud or wilful default,
he shall be liable to
a penalty not exceeding
10% of the difference
between those amounts.
Failure to Pay Tax
by Due Date
Inland Revenue shall
impose a penalty of 10%
of tax which is due, where
a taxpayer fails to pay
the whole or part of an
instalment of tax which
is due, or the balance
of any tax to which he
is liable. This
is in addition to any
interest charges which
have accrued.
Failure to comply
with notice to give information
produce documents or give
evidence to the Comptroller
Any persons who fail
to comply within specified
period of time with a
notice issued by the Inland
Revenue Department to
produce books of accounts,
or documents, furnish
returns or information
on behalf of himself or
any other person shall
be liable to a penalty
of not exceeding $500.00.
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