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The Administrator of Income Tax has published a notice concerning the 2005 legislation which, from 30 June 2006, imposes a surcharge where any amount due under the Income Tax Law is paid later than the due date. The amount of the surcharge is 5% of the sum paid late. Additional surcharges (also at 5%) will be imposed, subsequently, at six monthly intervals for as long as the amount due remains unpaid.
Although there is a right of appeal against a surcharge, the only grounds for an appeal are that:
- the surcharge was imposed incorrectly under the Law, or
- the surcharge was miscalculated.
Many Guernsey taxpayers were due to pay tax relating to the first instalment of their liability, as shown in their assessment for the Year of Charge 2006, by the end of June. If that tax was not paid on time then surcharges will be imposed.
The Administrator does not consider the following to be valid grounds of appeal against the imposition of a surcharge:
- forgot to pay the tax on time
- unable to afford to pay the tax by the due date
- payment was made "only a few days" late
- although knowing in advance that the tax was due, away from the island on the due date, on holiday/attending a family occasion/on a business trip, etc.
- the person's accountant, or other professional adviser, said the amount should be paid
- payment was put in the post prior to the due date but did not reach the Tax Office until after the due date
- funds used to pay the tax were on deposit and notice of withdrawal had to be given to the bank to avoid a loss of interest/penalty on withdrawal
- a cheque was given to an employee/friend/relative to make the payment but they forgot/lost the cheque/made the payment late, etc.
- the cheque was received by the Tax Office prior to the due date but it was incorrect or incomplete.
...back to 6 July 2006
Further information:
Surcharges on the late payment of tax, etc
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For Payroll and Human Resource Professionals
