Collection & Enforcement


  • Penalty imposed at the expiration of 1 month after the due date for filing the return.
  • Company – $300
  • Any other – $100
  • Penalty imposed when a taxpayer fails to pay tax on or before the due date.
  • Rate of 8.7%
  • Penalty imposed if a tax is remained unpaid at the expiration of one month after the due date.
  • Rate 10%


  • The IA tax arrears option is a settlement scheme offered by Inland Revenue Services to taxpayers who are not able to pay in full any tax owed on the due date.
  • They can request to the Commissioner (CEO), by liaising directly with our ‘Collection and Enforcement Division’ to utilize the IA option to pay off these taxes within certain time frames approved under this option (i.e. 1 to 4 years), depending on the amount owed.
  • Before signing an IA form, a down payment of 30% should be made. Please contact our Collection & Enforcement Division directly for more information on this settlement option.
  • Once an IA is signed, all penalties will be put on hold until full settlement of tax arrears. However, once IA payments are defaulted, all penalties held from the date IA was signed will be reinstated any payable in full.
  • All payments should be made on time. (fortnightly, weekly, monthly)
  • Three missed payments will result in Installments Arrangement being cancelled.
  • The Commissioner is authorized under the Tax Act to remit certain administrative penalties imposed after careful consideration of the merits of each request.
  • Taxpayers must apply in writing and must include valid reasons to support their remission request.
  • Only the Commissioner/CEO’s can remit any penalty unless delegation of powers to another officer to do so.


  • Is an assessments issued and calculated by the Commissioner assessing tax payable for a taxpayer due to failure to file a tax return as required by law.
  • Even if a DA is issued to a taxpayer, the law still demands taxpayers to file this tax return to the Commissioner. Failure to do so will lead to persecutionary actions.
  • Once the above tax return(s) has been filed, DA(s) issued will be reversed automatically to take into effect the tax return now filed by taxpayer.
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