The Internal Revenue (Tax Amnesty) Act, 2012 (Act 853) passed by Parliament is now in force. The GRA encourages the public to take advantage of the Act to regularize their tax affairs.
WHAT IS THE TAX AMNESTY?
The Tax Amnesty is a limited time opportunity for taxpayers who have defaulted in filing their tax returns relating to previous periods or paying the taxes due as required by law to discharge their tax obligations in exchange for forgiveness of a tax liability (including interest and penalties) without fear of criminal prosecution.
WHY TAX AMNESTY?
The Tax Amnesty is intended to:
- Regularize the tax affairs of persons who have defaulted in meeting their tax obligations.
- Improve the tax compliance culture
- Widen the tax net
WHO QUALIFIES FOR TAX AMNESTY?
The Tax Amnesty is available to the following categories of persons:
i) A person who has previously registered with the GRA but has not renewed the registration or is registered with the GRA but has not submitted all returns or made full disclosure of all incomes earned in previous years of assessment.
ii) A person liable to pay tax but who has not been previously registered with the GRA
DURATION OF TAX AMNESTY
The Tax Amnesty will operate for a period of nine months, from January 1st 2013 to September 30th 2013.
HOW DO YOU APPLY FOR THE TAX AMNESTY?
If you qualify for the Tax Amnesty, you are required to submit an application to the Commissioner-General of the GRA on a Tax Amnesty Application form which may be obtained from any office of the Domestic Tax Revenue Division (DTRD) of the GRA (former IRS and VATS offices) countrywide or downloaded from this website.
The application forms must be properly completed and submitted:
i) At any time during the period commencing from 1st January 2013 to 30th September 2013;
ii) Together with the returns of income for the relevant years of assessment as indicated above as well as a statement of all assets (at cost) and liabilities of that applicant as at the end of 2012 year of assessment;
iii) In the case of a person previously registered with GRA, with full payment of all taxes assessed or due.
Where an applicant is unable to provide full particulars of actual amounts on the application form or in any return or statement relating to the application, the applicant may provide a reasonable estimate of those amounts. Where an estimate is made under such circumstances it must be clearly indicated on the application form.
WHO DOES NOT QUALIFY FOR THE TAX AMNESTY?
The provisions of the Tax Amnesty Act, 2012 (Act 853) do not apply in respect of a tax if the person who should have paid the tax:
1. has been notified by on behalf of the Commissioner-General of an assessment or additional assessment in respect of the tax or any matter relating to the tax;
2. has under audit or investigation by the Commissioner-General in respect of an undisclosed income or a matter relating to the undisclosed income;
3. has been notified by or on behalf of the Commissioner-General of an enforcement action relating to failure to submit returns or pay any tax assessed or due; or
4. has failed to comply with the provisions of the Internal Revenue Act, 2000 (Act 592) relating to submission of returns for the 2012 year of assessment.
HOW TO BENEFIT FROM THE TAX AMNESTY (REQUIREMENTS FOR TAX AMNESTY)
In order to benefit from the Tax Amnesty, you should be:
a. A person who has previously been registered with the GRA but has not renewed his registration, nor submitted all previous returns or nor made full disclosure of all incomes earned in previous years of assessment is required to:
I. Submit all outstanding returns or amended returns with full details of all incomes or capital gains earned but not disclosed and
II. Pay all taxes assessed and any taxes due or outstanding under the provisions of the Internal Revenue Act, 2000 Act 592 for the relevant previous years of assessment up to and including the 2012 year of assessment
NO PENALTIES OR INTEREST SHALL BE IMPOSED ON SUCH PERSON FOR THE FAILURE TO FILE THE TAX RETURNS OR MAKE FULL DISCLOSURE OF INCOMES OR CAPITAL GAINS EARNED OR PAY THE TAXES DUE, ONCE THE REQUIREMENTS INDICATED ABOVE ARE MET.
b. A person who is liable to pay tax on incomes or capital gains earned in previous years of assessment but who has not registered with the GRA is required to:
I. Register with the GRA or the
II. Registrar General’s Department; and
III. Submit all tax returns for the previous periods, from the year of assessment in which he earned the undisclosed incomes or capital gains, up to and including the gains, up to and including the 2012 year of assessment.
POWERS OF THE COMMISSIONER-GENERAL
The Commissioner-General shall within thirty days after receipt of an application notify the applicant of the decision to grant or refuse the application. Where there is a refusal of an application the Commissioner-General shall specify the reasons for the refusal.
COMPLAINTS AND DETERMINATION
An applicant who is dissatisfied with the decision of the Commissioner-General to refuse his application for Tax Amnesty may, within thirty days of receipt of the decision, lodge a written complaint with the Commissioner-General for a review of the decision. The Commissioner-General shall make a determination within thirty days of receipt of the complaint and notify the applicant accordingly.
The GRA encourages all who qualify for the Tax Amnesty to take advantage and straighten their tax affairs.
Do you have any enquiries or questions about the tax amnesty?
Tel: 0302 675714
Download Tax Amnesty Form