Penalties/Non-Compliance

Section 73 

(Failure to Notify of Changes in Taxpayer Information)

maximum of $2500 penalty for persons who fail to notify the Comptroller of – change of business particulars (Section 9(6); appointment of company representative (Section 46(4) OR change of business particulars/application for cancellation of VAT registration under VAT Act.

Section 74

(Falsification of Invoices, Receipts, Credit and Debit Notes)

maximum of $25,000 penalty if a person uses a false taxpayer identification number, issues a false VAT invoice or sales receipt, issues a false VAT credit note or debit note, or provides, or fails to provide, an invoice, credit note, debit note, or sales receipt as provided under Part IX of the VAT Act.

Section 75

(Late Filing of Tax Returns)

the GREATER of 5% of the amount of the tax owing, plus a further 1% of the amount of tax owing for each month or part of a month during which the failure to file continues AND $500.00 plus a further $100 for each month in default.

This penalty must be capped at $10,000.

Section 76

(Late Payment)

20% of the amount of tax due but not paid.

Section 77

(Negligent or Fraudulent Underpayment)

The value of the penalty is based on the underpayment:

(1) 75% of the underpayment if the underpayment is greater than $150,000 OR greater than 25% of the person’s tax liability for the tax period

(2) if (1) does not apply, then the penalty is 25% of the underpayment.

Section 78

(False or Misleading Statements made to a tax officer)

minimum of $250 and a maximum amount that is based on the amount of tax that would have been assessed OR refund reduced based on the false/misleading information provided.

Section 79

(Failure to Maintain Documents)

$50.00 per day for each day that the failure continues

Section 80

(Failure to Comply with Third Party Notice)

25% of the difference between the amount payable by the third party and the amount paid to the Comptroller by the specified due date.

Section 81

(Failure to Provide Facilities)

maximum of $1,000 penalty for a person who fails to provide a tax officer with reasonable facilities and assistance as required under the Act.

Section 82

(Failure to Comply with Notice to Give Information)

maximum of $2500 penalty for a failing to comply with a request for information properly made, within the specified time.

The Comptroller must issue a warning notice before assessing the penalty. If the taxpayer complies with the warning notice within 3 days of service of the notice, then there is no penalty.