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A Tax payer discovers that he has two Tax Account Numbers, what must he do?
By first indentifying themselves, the tax payer will give the two tax account numbers and will be required to provide the revenue officer with information that will assist in identifying which account number is the correct one. The other number will then be discarded in order to complete the process.
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Can my tax refund be used to pay off my driver’s or vehicle license?
There are no provisions in the either the Income tax act or the Road & Traffic Act to facilitate this requirement. The Income Tax is under the Authority of the Comptroller of Inland Revenue while the Road & Traffic Act is under the authority of the Commissioner of police
The main functions of the Inland Revenue are to facilitate the receiving of payments and to maintain the records under the Road & Traffic Act.
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How long does it take for a tax refund to be paid?
There is no specific time for paying tax refunds. It has been the policy of the Revenue to attempt at processing Tax refunds as soon as possible. One major constraint that the Revenue is faced with is the availability of funds under Central Government budget system to pay refunds.
Taxpayers are to be aware of certain situations as it relates to refunds:
- The Revenue processes refunds in date order as they are filed
- Returns filed on the same date may not be paid at the same time since the budgetary constraint will cause some refunds to be left out for later transactions
- Due to the nature of some tax Returns, the Revenue must perform a review before authorizing the refund
- And it is never possible to review all required returns at the same time
- In general, refunds cannot be process all at once considering the constraints being faced
- However, the Revenue tries its best to facilitate taxpayers who are in urgent need of their refunds. These circumstances may range from medical needs, educational needs, travel needs, etc.
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I am self-employed and was not aware that I had to submit yearly returns. For how many years do I have to file to get my account updated?
There is no legislated limit on how far back the Taxpayer can be requested to file his/her Tax Return if he has never filed. The Tax laws clearly states that every taxpayer who is required to file a tax return must do so within the stipulated time frame. In certain circumstances the Comptroller may decide to use a cut off point to file. The six years mentioned under section 83 relates to how far back the comptroller can assess a taxpayer after he or she has filed. In the case of tax returns filed within the stipulated time the comptroller has up to six years after end of the year in which the return was due; and in cases where the tax return was filed after the due date the Comptroller has six years after the date that the return was filed.
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I have not received an income tax return form. Does this mean that I do not have to file?
Every tax payer has a civic responsibility to file his/her tax return under the self-assessment system currently existing. This stipulation is a must under the following conditions:
- Where the taxpayer only source of taxable income is from employment and is above the existing threshold
- Where the taxpayer is in business and such business income is not exempt under the tax act
The Comptroller is required to provide the prescribed form for producing the required tax returns and to facilitate the process of filing tax returns, the Comptroller forwards the prescribed forms to registered taxpayers. Where a taxpayer does not receive a form from the Revenue, it is his or her responsibility to obtain one from the tax office.
By not receiving a Tax return through the mail or by delivery, does not relieve the taxpayer from his/her responsibility of complying with the filing requirements of the tax laws
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I realize that there has been an increase my tax contribution. Why is it that I am paying more?
Your employer is required to deduct tax in accordance to the prescribe tax tables provided by the Inland Revenue. Your salary/wage for the pay period is referenced in the tables and the tax amount shown is deducted accordingly. If your pay increases in subsequent pay period(s) its obvious that your tax deducted will increase.
Depending on the level of your pay increase, your taxed bracket may change, ie, changed from one tax rate to a higher tax rate. It means, therefore, that if your pay is reverted back to its original amount you are most likely to have overpaid tax and would reflect on your tax return when filed.
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I stopped working during the course of the year or my small business had to be closed due
Section 67(b) of the Income Tax Act indicates that individuals whose businesses ceased operation within a calendar year are required to file an income tax return. Also to those who ceased employment during the course of the year are also required to submit a return. This would allow them to recover any excess tax which was deducted from their salary.
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Is the income I receive from overseas taxable?
All taxpayer meeting the requirement as a resident individual in Dominica during the basis period for the year of assessment is subjected to be taxed on their global Income. Their global Income should exclude income tax are exempt under the Tax act, income that can only be taxed in the jurisdiction where it is earned if there is in existence of a Tax treaty.
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When a tax payer changes his or her name and /or address, should he notify the Division?
The tax payer should communicate to the Division, either in writing or electronically notifying them of the change of address as well as any other updates that are required. In the case of a name change, the Taxpayer must provide legal documentary evidence to satisfy the Inland Revenue.