31/05/2018
Tax Season: Why file a return?
Why you should file a tax return this year
Hi there,
You might have been told by someone, maybe even Inland Revenue Department (IRD) Ministry if Finance that you don’t need to file a tax return this year. Take it from us, it’s always best to rather file every year in order to stay tax compliant with IRD.
1. You miss out on your refund.
Why let IRD keep your money if you are due a refund? A refund is money you overpaid on your taxes and it belongs to you. You can only get a refund if you file a return. Something as simple as claiming Medical expenses or working two jobs can trigger a tax refund, depending on your situation. See our refund calculator.
2. You may not be able to borrow money.
If you wish to borrow money in the form of a mortgage for a home, or a long term loan of any kind in future, you may need a Tax Clearance Certificate. This can only be obtained if all your returns are up to date and filed appropriately.
3. IRD might change their mind.
If you normally submit, but this year you don't, IRD could impose administrative penalties later on down the line for not being compliant.
4. You may not be able to access your retirement fund.
Filing a tax return each and every year means that should you receive a pay-out from a fund at any stage, then you won’t have hassles in getting the money. If you retire or are retrenched, or just need to take money out of your fund early, you need to be tax compliant.
5. A complete record stands in your favour.
Having an unbroken filing record leaves IRD officials with no reason to suspect that you are hiding information from them, thus triggering an audit next year. Filing a tax return means you are being a good citizen and contributing towards society!
Regards
GKT
Reference : TaxTim
