A total of 18 local companies – from June to August this year – were ordered to settle fines at the Magistrate’s Court for failing to comply with Section 52(1) of Income Tax Act (Chapter 35) which is failing to submit income tax returns for the financial years.
According to the Revenue Division, Ministry of Finance and Economy (MoFE), 17 companies have pleaded guilty before the Magistrate’s Court for failing to submit income tax returns for the respective financial years.
Meanwhile, one company was found guilty by the Magistrate’s Court for failing to submit income tax returns for the financial years of 2016, 2017, 2018, 2019 and 2020.
The agency said companies registered under Chapter 39 of the Companies Act, are required to submit their income tax returns by June 30 of the relevant year of assessment.
If companies are found guilty for failing to submit income tax returns, along with settling the fines imposed, they are required to submit their outstanding income tax returns and pay the outstanding tax amount and penalties of a maximum 17 per cent of the outstanding amount.