Filing your late tax returns
If your tax return is overdue then IRD may do default assessment which may not be correct reflection of your tax position. When we file your overdue tax return then we get to know the correct position of tax. Overdue tax returns may bring large tax bill and penalty. The longer a tax return is pending, the higher the penalty will be. IBBZ Accounting can provide solutions. We help you to file overdue tax return and avoid further penalties.
Problem: Not declaring income and not filing tax returns are criminal offenses. Late returns also incurs penalties and the longer the return is left unfiled, the higher the penalty. As not filing returns is a criminal offence, the IRD does prosecute people who don’t comply with the tax laws. The current tax regime is very harsh on people who do not want to comply with tax laws.
Solution: IBBZ accounting will help you to file your tax returns on time to avoid further penalties. The main reason that people do not file their tax returns is because they do not have a sufficient bookkeeping method in place. Without a sufficient bookkeeping system, it is hard for people to keep a proper record of transactions. This is how we can help you. We will update your information technology and provide you with an effective and efficient bookkeeping system. With a good system in place, it is easier for your business to file your tax returns on time.
This small business had four years of overdue tax returns including PAYE, GST and Income Tax. Upon submitting the returns the debt was over $100,000 and had a penalty of $65,000. They had serious cash flow problems, suppliers, IRD, and staff were not getting paid on time. We found out the root cause of the problems. We fixed the problems and made the tax compliant. We negotiated successful payment plan which helped them to repay everything in six months’ time, and currently all their tax payments are being paid on time and they are a successful small business.