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Consumption Tax Penalties and Offences

Penalty for failure to apply for CT registration

If a person is required to register under either section 6(1) or (3) neglects or fails to register, the person is liable to a penalty under the CT law. The amount of penalty as prescribed by s 30 of the CT law is double the amount of the CT payable during the period commencing on the day on which the person was required to apply for registration and ending on the day the person files an application for registration or the person is registered by the Commissioner. The penalty imposed is recovered by issuing an assessment under the provisions of section 35 of the Revenue Services Administration Act 2002. The penalty imposed may be remitted in the whole or in part by the Commissioner on his own accord or if an application is made to the Commissioner for remission

Other Administration Penalties

In addition, a person responsible to meet with CT obligations could be liable to administrative penalties under the Revenue Services Administration Act 2002 for neglecting or failing to do things required for the purposes of determining the correct CT. The situations where the Commissioner could impose an administrative penalty include the following:

  • If you fail to lodge a CT Return when required or any other form under the CT law
  • If you do not to pay the CT on time
  • If you neglect to maintain proper records of your taxable supplies
  • If you make a false or misleading statement in any other CT document.

CT Offences

In addition to penalties, the CT law also prescribes various omissions as serious offences for which you can be prosecuted. The offences include the following:

  • You fail to apply for registration when the CT law requires you to be registered
  • As a registered person you fail to inform the Commissioner in writing of any change in any of these particulars: the business name, your business address, place of business, or nature of your business within 21 days after any such change
  • If you cease to carry on your business or your taxable supplies no longer exceed the $100,000 and you fail to apply for the cancellation of your registration
  • If after you have ceased to be registered for CT, you continue to advertise that you a registered person or
  • After your registration is cancelled, you fail to return the CT registration certificate to the Commissioner.

If any of the above events occur, you would commit an offence and if found guilty by the court as a result of prosecution undertaken by the Commissioner, you could be fined up to T$10,000 or sent to prison for a term not exceeding 2 years or both.

Other offences

In addition to the above CT offences, you can also be prosecuted for other offences which are prescribed by the Revenue Services Administration Act which include the following:

  • You fail to deliver your CT return by due date
  • You fail to respond to a notice to pay outstanding CT
  • You neglect or fail to keep accounts and other records relating to your business
  • You do not provide the necessary facilities and assistance to an officer seeking to enter and search your business premises for business records, computer information etc
  • You fail to provide information sought from you or attend an interview requested by the Commissioner.

The offences carry heavy monetary fines and in some cases you could go to prison.

For further details, please refer to CT Guidelines or arrange an appointment to meet with one of the Revenue Officers in the Compliance and Audit Division.

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