Deadline Nearing For IoM Tax Returns

by Philip Morton, Investors Offshore.com

22 July 2008

The Isle of Man's Treasury Department this week issued a reminder to citizens that the deadline for submitting 2007/08 personal tax returns is now less than three months away.

Those failing to submit in time will be subject to a penalty, the Department warned.

Tax return penalties were first introduced in 2005, and whilst the number of returns submitted before the deadline has increased as a result, there were still over 4,500 people who incurred penalties last year, it revealed.

If the Income Tax Division has not received personal returns for the tax year ended 5th April 2008 by 6th October 2008, taxpayers will incur a GBP50 penalty.

If the return has still not been received by the Division by 6th April 2009, a further GBP50 penalty will be charged. Even if the penalties are paid, the tax return must still be submitted, and people may be prosecuted for failing to do so.

Outlining the advantages of early submission of tax returns, the Treasury went on to reveal that:

• Returns are reviewed in order of receipt, so the earlier the return is received, the sooner the tax assessment will be dealt with;
• If a tax refund is due, it will be paid earlier; and
• If tax is payable, early submission will mean a longer period in which to pay it.

Anyone who moved to the Isle of Man before 6th April 2008 and hasn’t yet informed the Income Tax Division should do so as soon as possible, the Treasury added, explaining that they are likely to need to complete a tax return for the period from their arrival to 5th April 2008 and may, therefore, be liable to a penalty if the return is not submitted before 6th October 2008.

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