Tens of thousands of taxpayers who are yet to register online with the Revenue Authority’s new income tax filing system could find themselves $500 poorer in the New Year.
Some 60,000 individuals are yet to log in, said Revenue Authority officials.
Businesses and individuals have been given until January 31 to register with the new Tax Administration and Management Information System (TAMIS), which replaces eTax.
A deadline to upload third-party information is set for the end of February, then an April 30 cut-off date for individual filing of tax returns.
“There is a penalty of $500 for failure to file your Personal Income Tax return by the April 30, 2019 filing deadline. However persons who earn below $18,000 in a calendar year have up to two years to file their Reverse Tax Credit,” BRA spokeswoman Erica Lazare told Barbados TODAY.
Over the past two months, BRA officials have been reminding residents to register with the new integrated tax system. Registration for individuals began in September, while businesses began registering in June.
Lazare told Barbados TODAY that once employees, self-employed individuals, pensioners and companies re-register in TAMIS they would receive their new thirteen-digit Tax Identification Number (TIN) and employees should give this TIN to their employer as soon as possible.
“We are advising people to do it before the end of the year to avoid the last-minute rush next year,” said Lazare.
“Third-party providers such as employers, financial institutions, trade unions, insurance companies, charities and persons who pay professionals for their services, will begin uploading the relevant third-party information with the new TINs of their employees, clients and contractors in February 2019 in order to meet the February 28, 2019 third-party upload deadline,” she said.
“Therefore, for individuals to ensure that they will be able to file their tax return by April 30, 2019, it’s definitely beneficial to make sure that they re-register in TAMIS by January 31, 2019 and make sure to pass on their new TIN to their relevant third-party tax information providers.”
The BRA official said she was expecting some 30,000 individuals to register with the new system within the next week. As at December 11, 2018 a total of 28,472 individuals had either received their new TIN or have submitted their registration to receive their new TIN, which could take a couple days to receive.
Based on figures from previous tax filing seasons, the total number of individuals we expect to re-register is approximately 90,000,” said Lazare.
“Likewise, 9,798 companies have registered and already received their new TIN,” she added.
The TAMIS replaces the electronic tax administration system. Registration can be done by going onto the TAMIS website athttp://tamis.bra.gov.bb and following the instructions.
One tax official told Barbados TODAY he anticipated a rush to register come early next year, warning that this could lead to the wrong information being uploaded, or worse, missing the filing deadline.
“This would lead to individuals incurring a late filing penalty of [$500], and they will have no one else to blame but themselves, because the Barbados Revenue Authority had been encouraging them to file,” said the accountant.
Earlier this month Government passed amendments to the Income Tax Amendment and Validation Bill, to make way for the measures outlined in the June 11 mini-budget to be made legal.
It also made way for writing off all taxes owed for tax years 1968 to 2000 and waiving of interests and penalties
due owing between tax years 2000 and 2017 as long as outstanding payments were made or a payment plan agreed with the BRA.
A tax amnesty is currently in place until the end of December 31, for the waiver of penalty and interest on taxes owed to the BRA for the period January 1, 2001 to December 31, 2017, applicable to Value Added Tax (VAT), Land Tax, Income Tax, including PAYE and Corporate Tax.
For the 2008 to 2016 tax period, Government owed approximately $96 million in income tax, $23 million in reverse tax credits and $102 million in Value Added Tax refunds.
The Mia Mottley administration was aiming for an October deadline to pay all tax refunds, but due to financial constraints had fallen behind.
Up to the end of November, Government is said to have paid out over $25 million in personal income tax refunds for 2017.