The tax amnesty scheme launched by the Commissioner of Inland Revenue allowing defaulting taxpayers to regularize their tax position, particularly in relation to outstanding tax payments and tax returns, has been extended by another year.
In 2010 the scheme allowed taxpayers with pending tax balances until year of assessment 1998 a 25% reduction of the penalties that would have been payable. Taxpayers who had pending balances for years of assessment 1999 to 2009 were entitled to an 85% reduction of the penalties and interests due. The reductions were available to taxpayers who settled their balances in full by 30th November 2010. This deadline has now been extended to 30th November 2011 and the tax returns must be submitted by 30th September 2011. Where a taxpayer opts to settle the payment in installments, the Department must be notified by 31st October 2011. In this case, the entitlement is for a 75% reduction and 30% of the total due after the reduction is payable by the 30th November 2011.