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Q:
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How can the applicant make the application?
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A:
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The application for instalment payment can be made:
By completing and submission of the relevant application forms; or
In person at the Revenue Tower; or
In writing.
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Q:
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Does the applicant need to provide information/documents to support the application?
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A:
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Yes, all applicants must provide the following information and documents in support of the application:
concrete payment proposal;
copies of bank statements / passbooks for the latest 3 months; and
debts repayment details.
In addition to the above, Individuals / Sole Proprietorships are also required to provide details of income and expenditure for the latest 3 months, Partnerships are also required to provide management accounts for the latest 3 months, while corporations are also required to provide cash flow position and forecast in addition to the said management accounts.
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Q:
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When should the applicant make the application?
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A:
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The applicant should apply to the IRD for payment of tax by instalments before the due dates of the relevant demand notes. The IRD will review, approve, adjust or reject your instalment proposal/application in light of your financial position within 21 working days after receipt of the application.
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Q:
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How tax payments can be made if no reply is received from the IRD before the due date of the relevant demand note?
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A:
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In such case, the applicant can make payments according to the respective payment proposal. If IRD rejects the instalments application, IRD will inform the applicant of the rejection in writing and the applicant will be asked to settle the tax on or before the due date specified on the respective demand notes or within 14 days from the respective date of issue of the rejection letter, whichever is later.
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Q:
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What is the consequence if the approved instalment plan cannot be duly followed?
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A:
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If the approved instalment plan cannot be duly followed, the instalment arrangement will be cancelled immediately. The IRD will impose 5% surcharge on the tax remaining unpaid and will take immediate action in recovery of the outstanding amount. Further 10% surcharge may also be imposed on the remaining unpaid amount of tax and surcharge 6 months after the date of imposition of 5% surcharge.
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FAQ
