According to the Income Tax Department’s recent press release, prosecution proceedings would be initiated for delays in depositing tax deducted at source. Those proved guilty can face rigorous imprisonment up to seven years. Earlier, the Central Board of Direct Taxes initiated prosecution proceedings if the deductor retained TDS for a year or more. However, under the revised guidelines, the minimum retention period of twelve months has been dispensed with. Any delay in depositing TDS beyond the prescribed period shall attract prosecution. Offence can be compounded by the jurisdictional Chief Commissioner, either before or after the launch of prosecution proceedings. Stricter regime for private PF trusts Under Finance Act 2006, all private provident fund (PF) trusts needed approval from PF authorities in addition to approval from the Chief Commissioner or Commissioner of Income Tax. The deadline for approval from PF authorities was initially March 31, 2007, which has been subsequently extended every year. Now, the deadline is March 31, 2014. Given the inordinate delay in obtaining the approval, an internal notification requires Regional PF Commissioners to process all pending proposals after carrying out a comprehensive compliance audit up to FY 2011-12. The approvals should be completed by October 31, 2013 and forwarded to the head office by November 15. Further, the Regional PF Commissioners should ensure that establishments seeking exemption fulfil the provisions under PF Act, including relaxation where allowed. If the establishment has wilfully and persistently violated the condition, the exemption can be withdrawn subject to further opportunity. A copy of the withdrawal of relaxation order will be forwarded to the head office to be taken up with the appropriate government. Taxing times for drivers in Big Apple To help regularise tax collection, the New York State Department of Taxation and Finance has launched an innovative programme that aims to suspend the driver’s licence of any taxpayer with outstanding tax liability exceeding $10,000. The department plans to send 16,000 suspension notices to defaulters, who have to pay the outstanding amount within 60 days from the mailing date. As a second step, the Department of Motor Vehicles will issue a reminder, granting the taxpayer an additional 15 days to settle the demand. The driver’s licence will remain suspended until the tax is paid. Driving during the suspension period could lead to arrest and penalties; however, the defaulters can apply for a restricted licence to drive to work and home. Online sellers under Philippines tax net With the emergence of online shopping, The Philippines’ Bureau of Internal Revenue has issued a memorandum for tax collection from individuals and businesses selling online. Online sellers have to register at their Revenue District Office by paying a fee, after which the registration certificate would be issued specifying the tax to be paid. Further, sales invoices, delivery receipts, charge invoices and other commercial receipts for goods or services have to be issued. Online sellers also have to withhold the required creditable/ expanded withholding tax, final tax, tax on compensation of employees among others, and remit to BIR after issuing the tax withheld certificate to customers. Additionally, they have to file tax returns before the due date, pay the correct taxes and submit returns.
Posted on: Wed, 11 Sep 2013 17:25:41 +0000
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