Six months Tax Amnesty Programme is to be introduced
June 04, 2021
Taxpayers who are in arrears with their payments are being offered a six months grace period to settle their total amount owed.
The Tax Amnesty Programme which will come into effect as of 1st July, will provide waivers on accrued interests and penalties on the amount owed to the Seychelles Revenue Commission (SRC).
The grace period on offer will be subjected to approval from the National Assembly, as it will require amendments to the Revenue Administration Act.
Here is how it will work:
1. Any full payment made between July and August will get a 75% waiver on interests
2. Any full payment made between September and October will get a 50% waiver on interests
3. Any full payment made between November and December will get a 25% waiver on interests
During the six months grace period, the waiver on penalties will be 100%.
Speaking to the local media on Wednesday, the Minister for Finance, Economic Planning and Trade, Naadir Hassan explained that such a programme is a common practice worldwide, especially in times of economic hardships.
“The tax amnesty programme is to encourage taxpayers who have defaulted on their payments to come and pay their tax owed, as they will benefit from a reduction on interest and penalties.”
The Director General for Tax and Financial Sector, Policy Division, within the Ministry, Seylina Verghese, gave further details on the implementation of the programme.
Among the taxpayers being targeted are;
1. those who have lodged their returns but have never paid
2. those who have lodged their returns but have under declared their income and
3. those who have never lodged a return
Mrs. Veronique Herminie, the Commissioner General of the Seychelles Revenue Commission, said the programme will assist to clear the R1.034 billion total debt owed to SRC by taxpayers.
“Out of the total debt owed, R437 million are penalties and interests accrued throughout the years.”
Taxpayers wanting to benefit from the Tax Amnesty Programme are being urged to take up the opportunity, but most important is that they will have to pay their total amount owed in full.
“In this programme, the total amount owed to SRC will have to be paid in full, and not in installments”, said Mrs. Herminie.
The programme is for a period of six months only, ending at the end of December.
As of January 2022, SRC will follow its normal procedures to go after tax defaulters.
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