The Inland Revenue Division (IRD) is aware of a recent media report suggesting that penalties are being imposed on taxpayer accounts without explanation.

IRD wants to assure people that penalties are not applied arbitrarily. Penalties arise under the tax laws where statutory obligations such as filing returns or making payments on time are not met. In all cases, taxpayers are entitled to understand how and why any penalty has been applied.

If a taxpayer has been charged a penalty and is uncertain what it relates to, IRD encourages them to contact Inland Revenue staff directly to request an explanation. IRD officers are available to explain how a penalty arose and to discuss the taxpayer’s individual circumstances.

“IRD is committed to transparency, fairness, and constructive engagement with taxpayers. If you are unsure about your tax affairs, I encourage you to contact IRD so any questions or concerns can be addressed promptly,” Inland Revenue Commissioner, Joseph Dokekana says.