Tax filing for YA2000 (current year basis)

The Income Tax (Amendment)(No. 2) Bill 1999 deals with self-assessment for companies. For the year of assessment 2000 (current year basis), penalties will be imposed on late payment of income tax as well as on underestimation of income tax payable.

Instalment Payments:

Companies will be required to make payment by 12 monthly instalments starting from February 2000 to January 2001 if the accounting year ends on 31 December 2000. For companies having a year end other than 31 December, the monthly instalments will commence in January 2000 and continue until Decemer 2000. Payment is due on the 1^st of each month.

IRB issues notice of instalment payment (Form CP200) and the monthly income tax payment slips (Form CP203) in January 2000.

Revision of Tax Instalments:

In the event some companies want to make revision of instalments, it must be made before 15 April 2000.  However, the Finance Bill 1999, which is due to be tabled in Parliament on 29 February 2000, proposes to extend this time limit to 30^th June each year.

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Issuance of Return Forms:

IRB will issue income tax return forms to companies for their tax agents to fill up. The forms will be issue as follows:

Submission of Returns:

IRB will require all return forms to be submitted within 6 months of the closing date for the company’s year end accounts. For those companies who habitually close their year end accounts late and submit for auditing, they may face considerable constraint in meeting the dateline for tax submission.

The analysis for the companies with different year-end is as follows:

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Likely Problems:

Those companies that have their financial year end between January 2000 and June 2000 will have two return submissions in year 2000. One is for the year of assessment 2000 (preceding year basis, i.e. for between 31/01/99 and 30/06/99), while the other is for the year of assessment 2000 (current year basis, i.e. for between 31/01/00 and 30/06/00). Directors must be careful to prevent late submissions and resulting in penalties.

Notice of Assessment for YA 2000 (Current Year Basis)

IRB will issue the notice of assessment (Form J) and taxpayer is required to pay within 30 days from notice of assessment. Any objection must be lodged within the same time. IRB may grant a concession of up to 44 days.

Payment of the balance of tax:

The balance of tax between the actual income tax payable and the instalment plan have to settle with IRB as follows:

(a)      if notice of assessment was issued before the last monthly instalment, then the difference of the income tax must be payable on the following month after the last monthly instalment;

(b)      within 30 days from the notice of assessment in the event that the notice of assessment as issued after the last monthly instalment.

Staggering of Monthly Income Tax

Companies with year end other than 30 November and 31 December have overlapping tax instalment payments in view of the monthly instalments payment for YA 2000 (current year assessment) and YA 2001 (current year assessment).

The mechanics and application for staggering are complex. Please request a tax consultant or tax agent to assist you to apply for the staggering of tax instalments for the overlapping months for YA 2000 (current year assessment)

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