The tax authority of Guernsey had updated the Statement of Practice M46 on penalties imposed for non-submission of tax returns which was published on 8 December 2016.
As per the statement, all taxpayers are required by law to submit income tax returns annually, unless they have been advised by the Director, in writing, that they no longer need to complete a return. Income tax returns must be submitted by 30 November in the year following the end of the calendar year to which the return relates (e.g. the calendar year 2015 income tax return must be submitted by 30 November 2016). If income tax return is submitted after this deadline, it is considered late and, as such, a penalty would be due.
In December, a reminder letter will be issued to all taxpayers who have not completed their returns. In January, penalty imposed in all cases where the return has still not been received. There will also be a continuing penalty for each further day that the return remains outstanding. The legislation provides, however, that the maximum penalty shall not exceed £50 if the taxpayer proves that they would not have been liable to pay any income tax if the income tax return had in fact been submitted. This does not apply to companies whose income is taxed at 0%, unless they actually have no taxable income or profits.
Online filing is mandatory for corporate taxpayers, while individuals may opt to use paper forms.
