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‘REPRIEVE’ FOR OLD TAX DEBTS ENDING SOON

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MBABANE – Old debts for all tax types excluding customs duties should be settled by the end of next month before they start attracting penalties.


To cushion taxpayers from the impact of the coronavirus pandemic, penalties and interest that have already accrued to old debt were waived on condition the principal amount would be settled in full by the end of next month.


Announced 


The measures were announced by the Minister of Finance Neal, Rijkenberg, back in March this year.
Taxpayers were encouraged to pay in full the principal portion of their old debt with effect from April 1 up to September 30, 2020.
Meanwhile, other relief measures include the payment of provisional tax. This refers to provisional tax payments for the periods June 2020 and December 2020. 
SRA Commissioner General Dumsile Masilela   had to issue estimates for provisional tax based on previous year financial performance, as per the standard practice.


However, taxpayers were still expected to make their own estimates informed by the latest financial performance outlook and  forward  them  to  the  commissioner  general  together  with  payment (where applicable)
“Taxpayers are  still  expected  to  present  reasonable  estimates  for  the  projected performance  of  their  businesses.   
“The SRA reserves the right to call  for  more information and conduct other activities to verify the declarations,” reads the issued correspondence in part.
There were also announcements made regarding the filing of annual income tax returns.


Returns


This relates to filing for the 2020 tax year. Tax returns for prior years will not qualify under this concession. There  was an extension  of  returns  filing  deadlines  by  three  months  before  penalties kicked in.
However, taxpayers  in  a  position  to  file  early  (in  terms  of  the  current  filing dates)  were  encouraged to do so.


Regarding payment arrangements for income tax relating to 2019 tax year, it was announced that debt arrangements for such debts were only would be considered on a case by case basis upon submission of cash flow constraints.

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