Tax amnesty extended to August 31

Finance Minister Colm Imbert has announced the extension of the tax amnesty till August 31.

In a ministry release, he said this decision took into consideration the recent proclamation of the Public Procurement and Disposal of Public Property Act, which requires that all suppliers and contractors to public bodies must have fulfilled their obligations to pay the required taxes and contributions, under Section 29(1)(d) of the Act.

The proclamation of the act will now require suppliers of goods and services to ministries, departments, agencies, statutory authorities, state enterprises and other public bodies to produce a tax clearance certificate from the Inland Revenue Division (IRD) or a certificate of compliance from the National Insurance Board (NIS), if applicable, or alternatively, evidence of payment arrangements with the IRD and/or the NIS to pay outstanding taxes and/or contributions, if applicable.

The Cabinet on Thursday took the decision as it recognised that many small and medium enterprises, which were severely affected by the pandemic, may have fallen behind in their statutory obligations and would be unable to pre-qualify for the supply of goods and services to public bodies.

The release said this extension will allow these businesses an opportunity to pay their outstanding taxes and contributions.