31st July, 2018
BASSETERRE, St. Kitts (KYSS FM) – Property owners now have the opportunity to regularise their status with the Inland Revenue Department with the announcement of an extension to the Property Tax Amnesty.
The extension, which was announced on 17th July, has now been confirmed by the IRD.
Originally extended until 2nd July, the amnesty on property taxes will now run until the end of August 2018. Property taxes, under normal circumstances, are due on or before 30th June annually.
This is intended to save tax payers the interest and other charges on the arrears of taxes which will in turn encourage tax payers to comply with tax laws and the deadlines moving forward.
The IRD has placed great emphasis on the collection of property tax which has suffered a low compliance rate. It is also important for this tax to be collected as it goes into the Consolidated Fund which in turn covers the finances necessary to support education, infrastructural development and improvement and healthcare for persons across the Federation.
Although property tax compliance remains under 50 percent, there has been a significant increase in tax collections in the country over the period 2015 to 2017, with the highest level of tax compliance occurring in 2017.
Data from the Inland Revenue Department shows that tax compliance staggered at 27 percent in 2011; 32 percent in 2012, then stood at 33 percent in 2013 and 2014. At present it hovers at about 47 percent.