Extra time is granted for tax filings

In response to growing pressure regarding COVID-19 and the impact this is having on businesses, the Isle of Man Income Tax Division has announced a number of different deadline deferrals. The statement issued is as follows:

“In the forthcoming weeks there are a number of statutory deadlines approaching for the submission of tax returns whilst the issue of tax returns to all individual taxpayers normally takes place in early April each year.

The Isle of Man Government recognises the considerable pressures that the coronavirus outbreak is placing on all aspects of the everyday lives of individuals and business. It is therefore announcing a series of measures today which are intended to ease any concerns that you may have regarding the completion and submission of tax returns.

Treasury Minister Alfred Cannan MHK said:

‘These are worrying times for all of us and it is vital that we take the appropriate steps so that no one is put under any unnecessary pressure to submit their tax returns in the forthcoming weeks.

‘Many of the officers in the Income Tax Division have been working tirelessly to maintain critical tax functions whilst others have been supporting the various measures we have put in place to provide essential financial support across our community.

‘I would ask that you should show patience in terms of the processing times of your assessments and enquiries over the forthcoming months, but would emphasise that priority will be given to those taxpayers who are entitled to the repayment of tax where it is abundantly clear that the current crisis is resulting in financial hardship.’

Full details of the measures being announced are as follows:

Individuals

Individual taxpayers or their agents who are registered users of Online Tax Services will receive their returns for the year ending 5 April 2020 as normal on or around 6 April 2020.

Paper tax returns for the year ending 5 April 2020 issued by post to individual taxpayers on or around 6 April 2020 will be delayed. The Division will review this postponement no later than 30 April 2020 and recognises that consideration may need to be given to extending the current deadline for their submission on 6 October 2020 (which would also apply to the returns made available online too for the same period).

Anyone who receives a return by this method and wishes to receive their return during April should either register for Online Tax Services or contact the Income Tax Division on +44 1624 685400 to request a paper copy but should only do so if it is absolutely necessary for them to complete the return early.

Where an individual has failed to submit their tax return for the year ended 5 April 2019 by 6 April 2020 a penalty of £200 would normally be issued. If the outstanding return is submitted no later than 5 June 2020 no further penalty will be issued.

The Division requests that anyone who submits their 2019/20 tax returns in the forthcoming weeks or who has not received their 2018/19 assessment must appreciate that there will be delays in the processing of your returns given the availability of officers during this challenging period. You should only contact the Division to request the urgent processing of your tax return where you are expecting a refund and suffering financial hardship as a result of the current crisis.

Employers

The deadline for employers’ tax returns for the year ended 5 April 2020 is extended from 5 May 2020 to 5 June 2020.

Companies

First penalties will not currently be issued for the non-submission of any company tax returns still outstanding and due to be submitted between 1 April 2020 and 5 June 2020. This measure results in the filing date for these returns being extended to 5 June 2020 in order to prevent the issue of a first penalty.

Second penalties will not currently be issued for late submission of any company tax returns still outstanding that would be liable to the second penalty between 1 April 2020 and 5 June 2020. If the returns are still outstanding at 5 June 2020 the second penalty will then be issued.

Retirement Pension forecasting

The processing of requests will be suspended until further notice.”

If you would like to discuss any of the above statement with one of our advisors, send a message to email@hardinglewis.com.

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