FILE AN INCOME TAX RETURN AND PAY ANY BALANCE OWING

Under the self-assessment system, taxpayers are expected to volunteer the facts about their earnings and calculate the amount of taxes they must pay.In most cases, individual taxpayers have already paid all or part of their tax liability through payroll deductions (PAY AS YOU EARN-P.A.Y.E.) or by instalment payments.

Corporate taxpayers are also required, in respect of every year, to file a tax return after the end of their financial year.Any balance owing must be paid when the return is filed.

Arrangement to pay

If after trying to secure a loan or rearranging your financial affairs, you are unable to pay the outstanding balance in full, the Department may accept an arrangement to pay the balance over an acceptable period of time.If you are in this situation, you should contact the Collections Section of the Department, to discuss a mutually satisfactory payment arrangement based on your ability to pay.

In the event that you are experiencing some financial difficulties and would like a short delay in paying the balance, you should contact the Collections Section to inform them of your financial position.If the Department agrees that you are unable to make payment towards your liability, collection action will be temporarily delayed until your financial situation improves.

Interest at one and one half percent per month (eighteen percent per year, which is greater than the interest you may have to pay on loans from the bank or other lending institutions), will continue to accrue on all outstanding balances.It is therefore to your benefit to pay your tax liability as soon as possible.

REFUND OFFSET

If you are entitled to a refund of taxes but you owe taxes for any other year, your refund may be used to reduce or pay in full the amount you owe.