TAXES THAT ARE NOT PAID ON TIME
When one files a tax returns and it is calculated that taxes are owed but are not paid by the due date (31st March of every year), then that tax figure becomes in arrears and therefore attracts interest and penalty. Where the whole tax or instalment is not paid on or before the due date, then such shall be deemed to be in arrears.
Interest is charged on the tax due at a rate of 1.04% per month, plus 10% late payment penalty.
IF AN ASSESSMENT FROM THE I.R.D. IS RECEIVED, MUST THE WHOLE BALANCE BE PAID OFF ALL AT ONCE?
The Department’s policy is to collect the amount owing in full. However, if one is unable to meet that obligation in full, the Department may accept an arrangement to pay the balance in stages. A collection officer willreview the financial situation an will work with the taxpayer to determine the payments that will be made. Financial details such as living costs, bank accounts, debts, etc. may be requested by the collections officer.
IF THE AMOUNT OWED IS NOT AGREED UPON
Voluntary compliance with St. Lucia’s Tax Laws contributes greatly to the efficient administration of the Inland Revenue’s statutory and fiscal responsibilities. The St. Lucian Tax System aims at fairness, even when differences arise between taxpayers and the Department. The Income Tax Act gives taxpayers the right to contest an assessment or reassessment.
The Appeal process begins within the Department where mechanisms for resolving disputes are designed to do so in an impartial and timely manner.
- 1st Step
Taxpayers who do not understand or who disagree with a notice of assessment or reassessment should first contact the nearest tax office for an explanation. They can do so in writing or in person.
- 2nd Step
If differences persist after the initial explanations, the taxpayer may file an objection in writing to the Comptroller. The notice of objection must be filed within thirty (30) days from the date the notice of assessment or reassessment has been deemed served (7 days after the date it was posted).The objection must state the reasons for the objection as well as any other relevant facts.
- 3rd Step
If still dissatisfied with the outcome of the objection, the taxpayer may appeal in writing within thirty (30) days to the Appeal Commissioners.
The Appeals Commission is contacted via mailing address:
Secretary of Tribunal
c/o The Attorney General’s Chambers
Legislative Drafting Department
Francis Compton Building