COMPANIES, SELF-EMPLOYED individuals and organisations must file their income tax returns within the next nine days if they want to avoid penalties or face legal action for non-compliance with the island's revenue services.
The Tax Administration Services Department (TASD) said March 15 is the due date to file income tax returns and make final payments for 2001. Estimated returns for 2002 and payments of the first quarter instalments are also due on that date.
If individuals and companies fail to file income tax returns, the tax administration authorities can make an estimated assessment, which, in the best judgement of the tax authorities is the amount that ought to have been paid. The individual or company can also be taken to court for failure to file their returns.
The TASD said returns should be filed using the prescribed forms as follows:
Individuals who are self-employed should use the IT01
Organisations which are body corporate should use the IT02
Organisations that are denoted unincorporated bodies other than Life Assurance should use the IT03
Organisations designated Life Assurance should use the IT04
The form for individuals (employees/PAYE, pensioners, etc.) is the IT05.
Return forms are available at any of the 28 tax collectorates islandwide and should be fully completed and submitted to any tax office.
The TASD said the Taxpayer Service Staff, available at all collectorates, are trained to assist taxpayers. There are also tax specialists manning a toll-free line 1-888-TAX-HELP (1-888-829-4357) and are available to answer queries about income tax matters.
PROPER RECORDS
According to the TASD's recent monthly bulletin, business operators are required by law to maintain proper records to substantiate their income and expenses. Therefore, all receipts, invoices, bank records and sales records, among others, are to be kept.
Records are to be maintained for a minimum of six years. However, records are to be kept for longer periods if the year of assessment in question is being investigated or a matter has not been resolved.
The TASD said that was necessary as business operations were periodically audited by the tax authorities to verify accuracy.
According to the TASD, it is important that business operators practise proper record-keeping because it may shorten the length of time a tax audit takes to be completed; proper books and records may help in obtaining loans from banks and other lending institutions; it will keep the management better informed about the financial position of the business; well-kept records can mean tax savings as it can be used as a reminder of deductible expenses and credits, and proper records can help verify business expenses for tax purposes.
The income tax threshold for individuals is $120,432 annually, $10,036 monthly and $2,316 weekly. This means that no tax is deductible from those persons earning up to those amounts. Otherwise, the individual tax rate is 25 per cent. The company tax rate is 33.3 per cent.
Quarterly payments of estimated income tax are due on March 15, June 15, September 15 and December 15.
Pay-As-You-Earn (PAYE), Education Tax, National Insurance Scheme (NIS) and National Housing Trust (NHT) monthly payments are due on the 14th day of each month for the previous month. Property Tax payments are due on
April 1.
General Consumption Tax (GCT) monthly and bi-monthly returns must be filed by the last day of the month following the period for which the returns are made.
