A: First and foremost, there are financial consequences. A late filing surcharge of 5% of your income tax liability for 2016 will be levied on any late returns. If you fail to file your return by 31 December 2017 this surcharge doubles to 10%.
Also, interest at a rate of .0219% per day will be charged on the underpayment of any income tax due. This will also be backdated to the 31 October income tax deadline and not the extended pay and file deadline of 16 November.
As is the case with all outstanding returns, not just income tax, failure to keep up to date with your tax obligations will result in your Tax Clearance Certificate being revoked. This can be especially problematic for those businesses who require this certificate to tender for work in the public sector or apply for grants from State bodies.
Any tax refunds due under other tax heads e.g. VAT will not be processed until the outstanding return is filed and taxes paid.
Finally, and probably most importantly, failure to file your tax returns on time increases the risk of being chosen for the dreaded Revenue Audit!
If you have missed the tax deadline the advice is simple, act immediately to get the return filed to minimise any further financial exposure and administration headaches for your business
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.