IRD extends tax filing deadline amid bad weather and system issues
The Inland Revenue Department (IRD, struggling to meet the demand to file tax returns by the due date, finally extended the deadline for filing Income Tax Returns for the Year of Assessment 2023/2024 to yesterday (December 7).
This action has been taken following bad weather conditions and computer system issues that made it impossible for taxpayers and accountants to meet the original deadline of November 30. In terms of the Inland Revenue Act, No. 24 of 2017, returns need to be filed within eight months after the end of the assessment year.
Although the IRD had made arrangements to remain open during the weekend of November 30 for the purpose of facilitating such filings, inclement weather—characterised by heavy rains, floods, and power outloads—interrupted the said filings, particularly in the Northern and Eastern provinces.
There were also technical challenges for the IRD, with filings at the last minute, with many users complaining of system crashes while filing.
The process was meant to be filed online, though manual submissions required special approval from the Commissioner-General. The system had been up since October 1 and gave the taxpayers ample time to file, a high official of the department said. The IRD, in view of the problems, had assured taxpayers that there would not be any penalties for late filing and criminal proceedings and default assessments on returns filed by December 7, he added.
Taxpayers failing to file within this extended deadline have to pay penalties comprising 5 per cent of the amount of tax reported plus 1 per cent per month of delay.
Those who willfully evade filing may be fined Rs. 50,000 with an additional Rs. 10,000 for every month of default beyond that.
The extension will relieve those affected by the challenges and make compliance fair, it was said. Taxpayers were expected to make full use of the extended period to get their filings completed without any further delay, he added.
The IRD has targetted a total revenue collection of Rs. 2,024 billion for the year 2024.
The department had targetted to collect Rs. 1,893.4 billion in tax revenue by November 30. But it received only Rs. 1,799.5 billion in revenue from taxpayers, which was Rs. 93.9 billion less than the target.
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