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Frequently Asked Questions (FAQs)

How do I avoid the penalties and interest charges?
All taxpayers who have paid their tax debt in full on or before the tax due date will not be liable to any penalty/ interest charges. Therefore it is important that you to comply with the due dates and submit your tax return either physically or electronically.
 

 

PENALTIES FOR VALUE ADDED TAX

 

VALUE ADDED TAX GENERAL PENALTIES

Section 93 of Value Added Tax Act, 2010 states that “A person who commits an offence under this Act in respect of which no penalty is prescribed shall be liable, on summary conviction, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding six months or both.

VALUE ADDED TAX CIVIL PENALTIES

Failure to register or display certificates Section 96; subsection (1) – A person who fails to apply for registration as required by subsections (4),(6), (9), (11), and (13) of section 2 shall be liable to pay a civil penalty equal to double the amount of output tax payable from the time the person is required to apply for registration until the person files an application for registration with the Comptroller. Subsection (2)

A person who fails to display the certificate of registration issued by the Comptroller as required by section 20 shall be liable to pay a civil penalty of $50 per day in respect of each day or portion thereof that the failure continues.

FAILURE TO NOTIFY COMPTROLLER

A person who fails to notify the Comptroller as required by section 22 or 23. (1) and (12) shall be liable to pay a civil penalty not exceeding one thousand dollar.

FALSE TAX INVOICE (SECTION 98)

A person who issues a false invoice or false sales receipt, uses a false taxpayer’s identification number, fails to provide a tax invoice, sales receipt, tax credit note, or tax debit note, or provides one otherwise than as provided for in section 43 or 44,shall be liable to pay a civil penalty not exceeding twenty-five thousand dollars.

LATE FILING PENALTY (SECTION 99)

A person who fails to file a return within the time required under this Act shall be liable to pay a civil penalty of one hundred dollars per month, or part thereof, for the period during which the return remains unfiled.

FAILURE TO COMPLY WITH NOTICE FOR RECOVERY OF TAX (SECTION 100)

A person who fails to comply with a notice issued pursuant to the provisions of section 59 shall be liable to pay a civil penalty not exceeding twenty-five percent of the amount sought to be recovered from the person.

FAILURE TO KEEP RECORDS (SECTION101)

A person who fails to maintain proper records as required by section 79 shall be liable to pay a civil penalty of fifty dollars per day in respect of each day or portion thereof during which the failure continues.

FAILURE TO PROVIDE FACILITIES (SECTION 102)

A person who fails to provide a taxation officer with reasonable facilities and assistance as required by section; 83(3) shall be liable to pay a civil penalty not exceeding one thousand, five hundred dollars.

FAILURE TO COMPLY WITH NOTICE UNDER SECTION 81 (NOTICE TO OBTAIN INFORMATION OR EVIDENCE)

A person who fails, within the specified time, to comply with a notice issued under section 81 shall be liable to pay a civil penalty not exceeding ten thousand dollars.

LATE PAYMENT PENALTY (SECTION 105)

Where a person knowingly or recklessly makes a statement to a taxation officer which is false or misleading in a material particular or omits from a statement made to a taxation officer any matter or thing without which the statement is misleading in a material particular, and the tax properly payable by the person exceeds the tax that would be payable if the person were assessed on the basis that the statement is true. The person shall be liable to pay to the Comptroller a civil penalty equal to the greater of twenty thousand dollars.

What is the interest rate?

Please see the summary schedule below;

TAXES INTEREST RATE PER MONTH PENALTY
Corporate Income Tax 1% 10% of tax due
$100 per month (late filing)
$1000 (exempt companies)
Value Added Tax 1.25% 10% of tax due
$100(late filing)
Island Enhancement Fund 1.25% 10% of tax due
Property Tax 1% 10% of tax due
Unincorporated Business Tax 1% 10% of tax due (payments only)
$100 per month (late filing)
Hotel Accommodations & Restaurant Tax 1.25% 10% of tax due (payments only)
$100 for late filing
Withholding Tax 1% 10% of tax due
Business & Occupation Licence 1% $50 per day

 

Please see the applicable penalties summary schedule below:

PENATALTIES FOR VAT TAXES PENALTY RATE OR AMOUNT
General Penalty $10,000 or imprisonment for a term not exceeding six months or both
Late Payment Penalty 10% of Tax Due
Late Filing Penalty $100 per month or part thereof for the unfiled period
Penalty for Making False or Misleading Statements $100,000 or imprisonment for a term not exceeding 5 years or both
Are insurance companies required to declare the fee to the customer ?
Kindly refer to the Insurance Act Cap 21.11 section 228 (3) which states 
“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”
Will a change in the policy affect the registration fee ?

Once the endorsement does not result in a change in the value of the policy, the registration fee would not be changed. However, on renewal of policies the registration fee is applicable.

How is fee to be described on the invoice?

Kindly refer to the Insurance Act Cap 21.11 section 228 (3) which states
“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”

Is the fee based on payments received or billings?

The insurance registration fee is based on the value of the policy issued.

Is the registration fee to be paid upfront or when payments are received ?

The insurance registration fee is paid to the Department in the period in which the policy was issued.  For example, policies issued in October 2019 would be reported on the tax return covering the period 01 September – 30 November 2019 due December 16, 2019.

If after the payment of the registration fee, a policy is cancelled (for example non-payment; sale of motor vehicle). Is it that on cancellation there will be a refund ?

No, the insurance registration fee is not refundable on cancelled polices.

What are the instructions where there is no sum insured (e.g. Motor Third Party Policies)?

For third party policies that do not carry a policy value , the registration fee will be paid on the maximum liability the insurer will cover on the third party policy. 

How is the fee calculated?

Example: The sum insured is $14,600 (14.6).  The correct calculation of the tax: 14 x $2.00 = $28.00.  The registration fee for sum insured of $14,600 is 28.00.

What is the registration fee payable on? Premium income or sum insured.

The fee is payable on the sum insured (Value of policy).

Third party policies do not have a sum insured. What is the registration fee paid on?

For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third party policy.

If insurance companies were to pay the registration fee for our third party policies on amount of our liability this will not be consistent with our comprehensive policies.

For comprehensive policies which carry a value, the registration fee would be payable on the policy value (sum insured).

Will this registration fee be payable only on new policies or all existing policies as well?

This fee is payable on any new policy and on any renewal of a policy.  Section 22 of the
Insurance Act states:
                      (22)     Effect of cancellation of registration
            (2)       For the purpose of subsection (1), an insurance company shall be treated as having entered into a new policy if a policy entered into prior to the date of the notification under section 23 is renewed or varied after that date.

Is the Two Dollars ($2.00) per Thousand Insurance Registration Fee to be paid on Policy Premiums or Policy Values?

The registration fee is paid on the value of the policy.

If Policy Values, kindly state how the Third Party Insurance Registration Fees are to be determined as Third Party Policies do not carry any values.

For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third-party policy. 

WHAT ARE THE HOURS OF OPERATION AT INLAND REVENUE DEPARTMENT?
We are open to receive payments from 8:00am to 3:00pm, Monday to Friday except holidays. The other sections of the Department operate from from 8:00am to 4:00pm.  By registering to use our e-Services you can file your tax returns and or make payments at anytime and from any location.
WHAT PROCESS MUST I FOLLOW TO ENSURE I USE MY TIME WISELY AT INLAND REVENUE DEPARTMENT?

Taxpayers should first visit the customer service desk to make enquiries, verify outstanding amounts or obtain tax payment forms. Your next step is the cashier’s station to make payment.

WHAT ARE THE MODES OF PAYMENT FOR TAXES AND LICENSES?

Cash
Cheques (payable to Accountant General and from individuals or companies in good standing)
Credit or Debit cards (Visa /Master card only)
Money Orders
Wire Transfers

WHEN DO TAXES BECOME DUE AND PAYABLE?

Payments are due monthly, quarterly and annually depending on the type of tax. For ease of reference please sees our Tax Calendar located on our website, www.sknird.com.

DO I HAVE TO PAY TAXES THAT ARE YEARS OVERDUE?

Overdue taxes increase over time due to fines, penalties and interest for non-payment. No matter how much time has passed, you are still responsible for any tax liability incurred by you or your business. It is advisable to pay your taxes immediately or make arrangements with Inland Revenue to pay over a short time period.

IF MY BUSINESS CLOSES AM I STILL RESPONSIBLE FOR THE TAXES?

Yes, once the tax debt was incurred while the business was still operating you are responsible for payment. Overdue taxes increase over time due to fines, penalties and interest for non-payment. No matter how much time has passed, you are still responsible for any tax liability incurred by you or your business. It is advisable to pay your taxes immediately or make arrangements with Inland Revenue to pay over a short time period.

WHAT HAPPENS TO TAXES OWED WHEN A TAXPAYER IS DECEASED?
Any asset owned by the deceased person, in whole or in part, shall be used to recover the applicable taxes. If the deceased person has multiple creditors the Inland Revenue Department has the right to claim these assets before any other creditor
IF A TAXPAYER LOSES PART OF, OR HIS ENTIRE BUSINESS, DUE TO A NATURAL DISASTER, IS THE TAXPAYER ALLOWED A GRACE PERIOD TO PAY HIS TAXES?

The Department empathizes with situations such as these, however, taxpayers in these circumstances should contact the Inland Revenue Department immediately. An officer will assist you in making the appropriate arrangements for filing and payment of taxes.

WHAT HAPPENS IF A TAXPAYER DOES NOT HONOR HIS PAYMENT AGREEMENT?

Breech in payment agreements, results in the Department recovering the tax using the recovery methods outlined in Part VI of the Tax Administration and Procedures CAP 20.52.

DOES THE INLAND REVENUE DEPARTMENT ACCEPT PARTIAL PAYMENT FROM TAXPAYERS?

Payment Agreements which are not honored, results in the Inland Revenue Department recovering the full tax using the recovery methods outlined in Part VI of the Tax Administration and Procedures CAP 20.52.

INCOME TAX

WHO IS LIABLE FOR CORPORATE INCOME TAX?
Any company registered or incorporated under the Companies Act CAP 20.22. A corporation is required to file even if no business transactions has occurred during the year or if a tax holiday or an exemption was granted. Remember there are penalties if a tax holiday or an exempt company does not file on time.
WHEN IS THE TAX RETURN DUE?

Companies are required to file 3 1/2 months after the end of their fiscal year. Filing is based on the regular periods, which normally runs from 1st January to 31st December. Companies desirous of using a different reporting period commencing any month outside of January and concluding 12 months after, must request permission from the Comptroller of Inland Revenue.

CAN AN EXTENSION TO FILE BE GRANTED?
An extension may be granted at the sole discretion of the Comptroller. To obtain consideration for an extension, the taxpayer must make an application in writing to the Comptroller outlining the specific reason requested for the extension.
WHAT HAPPENS IF A COMPANY FAILS TO FILE A RETURN?

If a taxpayer fails to file a return as required, the Comptroller has the authority to make an assessment based on whatever relevant information may be available at that time or to make an assessment to the best of the Comptroller’s judgment. As long as the return remains unfiled, the Comptroller can indefinitely reassess the ‘best judgment assessment’, as many times, as new information is discovered. Remember there are penalties if a company does not file on time.

WHAT IS AN INCOME TAX INSTALLMENT?

An installment is a prepayment of taxes. An installment for income tax is an amount equal to one quarter of the tax as estimated by the taxpayer at the rate of 33% on their chargeable income for that year.

WHEN ARE INSTALLMENTS DUE FOR INCOME TAX?

Generally, taxpayers are required to pay their Corporate Income tax in installments. Installments are due on the 15th day of each calendar year quarter.

March 15th

June 15th

Sept 15th

Dec 15th

Section 44 (6) of the Income Tax Act Amendment Act No. 6 of 2006 states;, any balance owing on a Corporate Income Tax Return is due on the filing deadline of the return. If payment is received after that date, interest will be charged commencing on the filing deadline and will be charged up until the amount owing has been fully paid.

WHAT ARE SOME OF THE PENALTIES FOR CORPORATE INCOME TAX?

Any person who fails to file a return on or before the date on which filing is due, is liable for:

• Penalty of 10% of the amount tax owing.

• $100 per month or part thereof during which failure to file continues.

• $1000 per month or part thereof during which failure to file continues by a person who is exempt from the payment of any tax.

• Underpayment of tax as a result of an incorrect statement or material omission in the taxpayer’s return attracts a penalty of 25% of the sum underreported.

• Any person who knowingly makes false statement or false representation, concerning income on which tax is payable, commits an offence and is liable to a fine not exceeding $50,000 or imprisonment with or without hard labor for a term exceeding 12 months.

WHAT MUST BE SUBMITTED WHEN FILING CORPORATE INCOME TAX?

• Returns must be accompanied by the company’s

• Financial Statements

• Statement of Financial Position (Balance Sheet)

• Statement of Comprehensive Income (Profit and Loss)

• Cash Flow Statement

• Statement of Retained Earnings

• Notes and Disclosures to Financial Statement

WHAT RECORDS SHOULD BE KEPT AND FOR HOW LONG?

Taxpayers are required to keep all documents and records to support the Corporate Income Tax Returns filed for a minimum of six years after the date on which the original tax return was required to be filed.

WHO CAN BE AUDITED?

Any corporation which was incorporated in St. Kitts and Nevis or individual operating a business can be audited by the Inland Revenue Department.

WHAT KIND OF ACCOUNTING SYSTEM SHOULD I USE?

Taxpayers are required by law to keep in the English language a proper set of books of accounts. There are many systems available that will meet the book of accounts standards required by the tax legislation, both computerized and manual.

DO FINANCIAL STATEMENTS HAVE TO AUDITED?

Taxpayers are required to file Audited Financial Statements using IFRS or other recognized GAAP requirements for submissions to the Inland Revenue Department. These financial statements must be compiled by an independent third party. The Inland Revenue Department will also accept compilations and reviews that are performed using IFRS and other recognized GAAP requirements by an independent third party.

 

DRIVERS’ LICENCE

 

WHAT IS THE COST TO RENEW DRIVER’S LICENCE?

The Drivers’ licence Fees payable are as follows;

LICENCE TYPE LICENCE FEE
Learners Permit $62.50
First Licence $162.50
Licence Renewal (3 Year Licence) $187.50
Instructors Licence $62.50
Lost/Stolen/Misplaced $75.00
Upgrade Licence $68.75
Temporary Licence 3 months – $62.50 or 1 year – $125.00
WHEN WILL MY DRIVER LICENCE EXPIRE?

All Drivers’ Licence issued by the Inland Revenue Department has a maximum duration of 3 years. Each license is set to expire the day before the holders’ birthday.

IS THERE A LATE FEE FOR NOT RENEWING YOUR DRIVER’S LICENCE AFTER IT EXPIRES?
No, however it is an offence to operate a motor vehicle with an expired Driver’s Licence. There are implications associated with such, renewing your licence late will result in your licence duration being less than the three allotted years.
CAN I RENEW MY ST. KITTS AND NEVIS DRIVERS’ LICENCE WHILE ABROAD?

Yes, the procedure below gives details as to the entire process. Click the link below: here

MOTOR VEHICLE LICENCE

 

WHAT IS THE COST TO LICENCE OR RENEW MY VEHICLE?
Weight and rate of vehicle licence fees schedule:

WEIGHT/LBS 1 YEAR 3/4 YEAR 1/2 YEAR 1/4 YEAR
Motor Cycle $186.00 $139.50 $93.00 $46.50
Motor Cycle (with side) $218.00 $163.50 $190.00 $54.50
Motor Vehicles – 1120 $287.00 $215.25 $143.50 $71.50
1121-2240 $325.00 $243.75 $162.50 $81.25
2241-4480 $362.00 $271.50 $181.00 $90.50
4481-6720 $400.00 $300.00 $200.00 $100.00
6721-7840 $431.00 $323.25 $215.50 $107.75
7841-8960 $468.00 $351.00 $234.00 $117.00
8961-100800 $500.00 $375.00 $250.00 $125.00
10081-11200 $575.00 $391.25 $287.50 $143.75
11201-12320 (Plus $2500) $593.00 $444.75 $296.50 $148.75
12321-13440 (Plus $2500) $687.00 $515.25 $343.50 $171.50
13441 & Over (Plus $2500) $1100.00 $825.00 $550.00 $275.00
Trailers under 2240 $150.00 $112.50 $75.00 $37.50
Trailers over 2240 $250.00 $187.50 $125.00 $62.50
All vehicles must be licence upon purchase before the owner drives the vehicle.*
ARE THERE FEES FOR LATE PAYMENT OF WHEEL?

There is a 1% interest charge if you renew after its expiry date.

 

PROPERTY TAX

 

WHEN IS MY PROPERTY TAX DUE?
Property Tax is due on or before 30th June of each year. Bills are mailed by the first day of May. If you do not receive your bill by the first day of June please contact the Inland Revenue Department.
WHAT IS THE RATE OF TAX APPLIED TO PROPERTIES?

The Property Tax Act Cap 20.32 states that each property must be categorized in at least one valuation class in accordance with the property’s use. The table below shows the five different valuation classes and the applicable tax rate.

VALUATION CLASS RATE APPLICABLE
Residential 0.002%
Commercial 0.003%
Accommodation 0.003%
Institutional 0.00%
Agriculture 0.00%
HOW IS PROPERTY TAX CALCULATED?

Example of calculation of tax on a residential property with market value $140,000.00 (building value $120,000 and land value $20,000)

Building Value $120,000.00
Exemption – $80,000.00
Taxable building value $40,000.00
  x 0.002%
Tax on building $80.00
Land value $20,000.00
  x 0.002%
Tax on land $40.00
Tax on building $80.00
Tax on land $40.00
Tax Due $120.00
WHAT ARE THE PENALTIES AND INTEREST CHARGES ASSOCIATED WITH PROPERTY TAX?

The charges are as follows: 1% per month or 12% per annum .

WHAT HAPPENS IF I DO NOT PAY MY PROPERTY TAX?

Where taxpayers default on paying their property tax, the Comptroller reserves the right to prepare a certificate confirming the default and send it to the Provost Marshall where the remedy may be either sale by public auction of the property itself or part thereof or seizure and sale of goods and chattels of the owner.

WHAT IS AN INTENTION TO LEVY EXECUTION?
The Intention to Levy Execution freezes cash held in banks, other financial institutions or any third party with whom the tax debtor conducted business. It allows the taxpayer adequate time to make satisfactory arrangements with the Inland Revenue Department to settle the outstanding tax debt. It withholds a part of future wages or salary however it is not applied to salaries of $1000.00 or less.
WILL THE THIRD PARTY OWE THE TAX DEBTOR ONCE THE IRD DEBT IS PAID?

Once the third party pays the tax debt to the Inland Revenue Department the tax debtor cannot claim those funds as theirs.

WHEN DOES COLLECTION ENFORCEMENT ACTION BEGIN?

Collection enforcement action begins when a taxpayer fails to file their tax returns and fails to pay their taxes on or before the due dates.

WHAT HAPPENS WHEN YOU FAIL TO VOLUNTARILY PAY YOUR TAXES?

The Inland Revenue Debt Management Unit shall do all within its power to collect all taxes using progressive collection actions. The progressive collection actions that the Department shall employ are as follow:

• Request payment in full from taxpayers, taxpayer’s agent or executor of an estate.

• Negotiate collections payment arrangement plan.

• Set off taxes with income from other government departments.

• Issue third party demands notices, i.e. request payment from any person or institution that owes you money Place crown liens on taxpayers’ property.

• Liens are claims for tax debt that may be placed on the title of a property that must be paid when the property is sold.

• Enforce liens created on every tax debt at the time of assessment.

• Issue an intention to levy execution and a levy of execution (garnishee order) against taxpayer’s property.

NOTE: The intention to levy execution allows the Inland Revenue Department to inform a tax debtor of the Department’s intention to seize his bank account, receivables and or wages. The tax debtor is given at least thirty days to contact the Department before any action is taken regarding his/her property. Once the thirty days has passed and the taxpayer has failed to contact Department, an execution levy would be warranted.

Assets equivalent to the owing tax All Seize and sell goods and property that are not personal effects, furnishings and tools used in taxpayer’s trade, collect payment as a civil debt in court.

I OWE TAXES AND CANNOT AFFORD TO PAY THE BALANCE AT ONCE, CAN THE DEPARTMENT FACILITATE ME?

Yes, taxpayers are encouraged to schedule a meeting with a Debt Management Officer who will design a payment agreement.

WHO IS A DEBT MANAGEMENT & COMPLIANCE OFFICER?

The Debt Management and Compliance Officer helps delinquent taxpayers who are either in arrears or those that have not filed the mandated tax returns or remitted the associated payments. There are two sub-groups of Debt Management & Compliance Officers, one group works with late and non filers, while the other pursues payment.

How do I file a Notice of Objection?

An Objection can be filed by completing a Notice of Objection form or by writing a letter to the Comptroller of the Inland Revenue Department. The form must be signed by the taxpayer, the owner of the business or an authorized employee of the company. If a representative is appointed, the taxpayer must provide written authorization. A Notice of Objection may be sent by regular mail or facsimile transmission, or may be hand delivered to the Inland Revenue Department, Bay Road, Basseterre – Objections and Appeals section.
OBJ-001: Objection Form For Tax Assessments: To be used for all tax objections except Property Tax and VAT objections.
OBJ-002 – Objection Form For Property Tax Assessments: To be used for Property Tax objections.
OBJ-003: Objection Form For Value Added Tax Assessments: To be used for VAT objections.

Summary of the Steps

What information do I need to provide?

The Notice of Objection must include:
• the taxpayer’s name
• account or taxpayer’s number
• taxation statute under which the assessment or disallowance was issued
• date and number of the assessment
• period or transaction in question
• amount of tax or refund, and
• a clear description of each issue in dispute, fully setting out the facts and reasons for objecting to each issue
The Inland Revenue Department depends on evidence and supporting documents provided, to determine whether you will win or lose your Objection.

What does it cost to file the Notice of Objection?

There is no fee to file a Notice of Objection. However for a Value Added Tax (VAT) objection, the Value Added Tax Act No. 3 of 2010, Section 64 (4) states:

“(4) An objection to an appealable decision shall be
(a) in such form as may be prescribed by the Comptroller;
(b) specify in details the grounds upon which it is made, and
(c) be accompanied by payment of all tax not in dispute and 50% of the amount of tax in dispute”. 

Do I have to file the Notice of Objection within a specified time?

According to the Income Tax Act Cap 20.22, Section 61 (1), Tax Administration and Procedures Act 2003 – 12 taxation statutes, “A Notice of Objection must be filed within 30 days from the day the Notice of Assessment, Notice of Reassessment or Statement of Disallowance was issued.”

Can I obtain additional time to file my Notice of Objection?

If you have a good reason for requiring more than 30 days to file a Notice of Objection, you can apply to the Comptroller of the Inland Revenue Department for an extension of time, before the 30 days for objections have expired. Extensions are not given for reasons such as vacation, inventory-taking or year-end timing. However, if you apply after the 30-day period for objections, you must be able to demonstrate that it was impossible to file within the 30-day period and that the Notice of Objection was filed as soon as circumstances permitted. If the explanation provided is not satisfactory, no extension of time will be granted, and your Notice of Objection will be considered invalid.

Do I have to pay the amount assessed that is in dispute while the objection is under review?

Yes, payment is required even if you have filed, or intend to file, a Notice of Objection. There are no provisions in the Income Tax Act Cap 20.22, tax statutes that allow for the suspension of payment of an amount that has been assessed, but is in dispute, pending the outcome of an Objection or Appeal.

Even though a taxpayer has lodged an objection against an assessment, or has an appeal to a decision, the tax reflected must be paid as due. (In the case of an objection to VAT assessments, payment of all of the tax not in dispute and fifty percent of the amount of tax in dispute must be paid). Payment of an assessment is not suspended by an appeal. Under the V.A.T. Act, a person can lodge an appeal to the Appeal Commissioners, and thereafter any party may lodge an appeal to the High Court and the Court of Appeal in that order.

Additional interest will be assessed on the principal liability if full payment is not received when the assessed amount is due. Taxpayers who successfully object or appeal will be paid interest on any amounts paid on an assessment, from the dates the payments were made. However, the amount refunded, including interest, will first go to reducing other tax liabilities owed to the Inland Revenue Department before any refund is made.

Tax Administration and Procedures Act 2003 – 12, Section 19 (1 and 2)
Upon written application by a taxpayer, the Comptroller may, for a good cause, extend the time for the payment of a tax beyond the date on which it is required to be paid.Where a taxpayer is granted an extension (payment date), interest shall be payable notwithstanding the extension of time. In the case of a reassessment the due date for the calculation of interest shall be the date on which the tax was originally due for the particular assessment.
Can any of the tax or interest assessed be forgiven since I don’t have the money to pay it?

There are no provisions in the Income Tax Act Cap 20.22, tax statutes to allow for the reduction of the tax or interest that has been assessed because of the taxpayer’s inability to pay. The Appeals Officer can only recommend a variance to the tax or penalty that has been assessed if it is his or her opinion that the amount assessed is an error due to an incorrect application of the law.
However, under the Property Tax Act, 2006, No. 13 of 2006 the Minister may perform a Remission of taxes (Section 65) or a Deferral of tax (Section 66) if a taxpayer is experiencing hardship or injustice has resulted or is likely to result.

Will I be compensated for my costs if I win the objection?

No compensation for costs is granted to a taxpayer who may obtain a favourable resolution at the Notice of Objection stage. The Notice of Objection process is intended to be simple, inexpensive and easily accessible

CAN I MAKE AN ARRANGEMENT TO PAY MY TAXES?
Yes, the Inland Revenue Department allows for taxes to be paid using Payment Agreements. The Comptroller must be assured that the taxpayer shall honor all the terms of the contract and settle debt within a year. The burden of proof shall be placed on the taxpayer. Where the taxpayer is uncooperative and fails to provide a collector with the relevant information that will assist in the collection of the tax debt then he or she is said to commit an offence as outlined in the Tax Administration and Procedures Act, 2003 Section 60;1, 2 and 3.
WHAT ARE THE BENEFITS DERIVED FROM PAYING TAXES?

All taxes collected by Inland Revenue Department on behalf of the Government of St. Christopher and Nevis, are used to support the economic and social growth of the Federation.

WHO NEEDS TO FILE A TAX RETURN?
Any person or business entity who possesses a Business and Occupation Licence or is a registered company with the Registrar of Companies in the Federation of St. Kitts and Nevis, whether exempt or not, is required by law to file a tax return or any person or entity operating a business.
WHAT HAPPENS WHEN A TAXPAYER FAILS TO FILE?

If you fail to file when required, the Comptroller shall make an estimated assessment to determine the amount of tax payable.

In the case where the Comptroller has made an assessment to determine the amount of tax payable, he/his designate may enter your place of business and demand the amount of tax outstanding. Failure to comply with the request for payment may result in court action.

DO I STILL NEED TO FILE A TAX RETURN IF I DID NOT CONDUCT ANY BUSINESS FOR A PARTICULAR TAX PERIOD?

Yes, every taxpayer shall file a tax return for each tax period with the Comptroller after the end of the tax period, whether or not tax is payable.

CAN I FILE AN AMENDED TAX RETURN IF THERE WAS AN ERROR?

Yes, a taxpayer may file an amended tax return no later than six years after the due date on which the original tax return was required to be file. The Comptroller may re-assess the taxpayer’s liability if he is satisfied that the previous assessment was incorrect.

WHO IS A NON-FILER AND WHO IS A STOP-FILER?

A non-filer is a taxpayer who fails to voluntarily file a tax return and pay his/her taxes as required by law.

A Stop Filers are taxpayers/assesses who have discontinued filing returns. These were previously voluntary filers but for whatever reason have stopped submitting their returns as required by law.

WHAT IS A SELF-ASSESSMENT?

A self-assessment occurs when the taxpayer calculates his/her tax liability, files the tax return and pays the applicable taxes. Be aware that these tax liabilities may be reassessed by the Comptroller if there is sufficient reason to do so.

WHAT IS A BEST-OF-JUDGMENT ASSESSMENT?
A Best Judgment Assessment is a charge prepared by the Inland Revenue Department when a taxpayer fails to file their tax return. The assessment is made based on knowledge of the taxpayer’s business, historic tax assessments, businesses which conduct similar activity in the same industry.
CAN I OBJECT TO A BEST JUDGMENT ASSESSMENT?

After receiving a Best Judgment Assessment Notice or Any Notice of Assessment from the Inland Revenue Department, the taxpayer has 30 days in which to object. This objection must be in writing to the Comptroller of Inland Revenue. It is noteworthy that when filing an objection, you should provide documentation and the completed Tax Return Form for the period you are objecting, in order to validate your claim

WHAT IS A REASSESSMENT?

A reassessment occurs when the taxpayer has filed his return and the Inland Revenue Department’s examination and computation of the tax liability, reveals an underassessment, overassessment or filing error which will lead to a reassessment of the tax liability. This may also be initiated as a result of an audit, an appeal or court action where the tax liability requires amendment based on a ruling.

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