Pay taxes until October 2nd without incurring any penalties.
We wish to bring to your attention a critical update concerning the deadline for tax payments for the Year of Assessment 2022/2023.
As you are undoubtedly aware, the initial deadline for tax payments was designated as September 30, 2023. However, September 30th, 2023, coincided with a Saturday, following two consecutive public holidays. This unique timing presented a logistical challenge for individuals intending to make their tax payments through banking channels, particularly via cash or cheque transactions, given that traditional banking services are not available on Saturdays.
In accordance with Section 179(2) of the Inland Revenue Act, No. 24 of 2017, individuals who fail to remit all or part of an installment required under this Act within fourteen days of the due date for the installment shall be subject to a penalty equal to ten percent of the amount of tax due but not paid. Furthermore, as per Section 157(1) of the same Act, taxpayers who do not fulfill their tax obligations by the stipulated due date will incur a 1.5% interest charge on the outstanding amount for the period from the due date (determined without considering an extension of time under section 157) to the date the tax is paid.
Nevertheless, Section 119(1) of the Inland Revenue Act, No. 24 of 2017, provides a practical solution for circumstances such as this. It states that when the final day for executing an action specified under this Act falls on a day when the Department is not open to the public for business, the action shall be considered timely if it is performed on the next succeeding day when the Department is open for business.
In practical terms, this means that should you choose to make your tax payment on October 2nd (Monday), you will not incur the 1.5% interest charge. Furthermore, if your payment is successfully processed before October 14th, 2023, you will also avoid the 10% penalty.
We strongly encourage you to capitalize on this unique opportunity to fulfill your tax obligations without incurring any additional financial burdens. We recommend meticulous planning of your payment and its timely execution for your convenience.
Your compliance with tax regulations is greatly appreciated, and we remain dedicated to providing the necessary assistance to ensure a seamless tax payment process.
