Saint Kitts And Nevis Introduces Late Tax Payment Penalty
by Mike Godfrey, Lowtax.net, Washington
29 April, 2016
Saint Kitts and Nevis has introduced a penalty on unpaid income tax equal to 10 percent of the owed amount, and has halved the late filing penalty to five percent of the owed amount.
In addition, taxpayers will be liable to pay a XCD100 (USD37) late filing penalty for each month an income tax return is outstanding. This replaces the one percent late filing penalty for each month (or part month) that a return is outstanding.
The XCD1000 (USD370) monthly late filing penalty remains for persons with tax exemptions who fail to file their returns on time.
Prime Minister Timothy Harris said: "Presently, the Tax Administration and Procedures Act (TAPA) provides for the imposition of a penalty on taxpayers who file their taxes after the due date, but there are no consequences for the late payment of taxes."
"This, however, is not the case in the VAT Act. Penalties are imposed for both late filings and late payments. The amendment that is being put forward today is intended to rectify this discrepancy between both pieces of legislation. The proposed amendment seeks to bring some consistency in our tax legislation with respect to the application of penalties for the late filing of tax returns and the late payment of taxes."
"We, of course, would like every taxpayer to adhere to the law by not only filing their returns on time, but paying their taxes by the due date." He added: "It is common practice for provisions to be built into the law to deter people from paying late."
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