Inland Revenue to get tough with defaulters

As at December 2007, $133 million in income tax was owed to the Inland Revenue Department, and now the tax department is ready to bring out the “big stick” of the law to get it.{{more}}

Self employed professionals head the delinquency list, resulting in a 30 per cent non compliance rate for income tax, which Comptroller of Inland Revenue Kelvin Pompey says is unacceptable.

Pompey explained that while in the past the department has gone the way of encouraging compliance, using persuasion rather than penalties, this approach has not been working.

“We are serious. We have already had meetings with the Attorney General, and we will be meeting soon with the Director of Public Prosecutions. A letter has already been drafted to send to delinquent tax payers giving them certain dates to come in,” Pompey said.

Pompey said that his department has compiled a list of the top 100 delinquents who have not only been delinquent in payment but in their general attitude towards the subject.

Pompey said that there are already arrears to the tune of $1 million since the introduction of the Value Added Tax (VAT) just about a year ago.

He said that many of the income tax offenders are also delinquent with the VAT.

He further stated that after letters are issued to offenders they will have a five-day period in which to respond and make “satisfactory arrangements” with the department.

Failure to make payments or these arrangements will result in the legal actions being commenced – and Pompey made a point to stress how serious he is.

“We are resolute this particular time to go all the way in terms of these proceedings,” Pompey said.

He told SEARCHLIGHT that businesses and self employed professionals have a 40 per cent non compliance rating, which his department is determined to clamp down on.

March 31st is the official deadline for filing all income tax returns and paying all outstanding monies.