Thursday, 27 October 2016

Originally posted on Facebook as Financial Planning Tip - Oct 27, 2015 - 002 (applies to Trinidad and Tobago) Payment of Taxes for Year of Income (YOI) 2015.

If you earn income aside from emolument income, at this time you should be aware of your estimated tax liability for corporation tax ( income tax) for the YOI 2015.

If you are liable to tax and have not made any payments, then the Board of Inland Revenue (BIR) has the option to assess your liability to taxation based on the income earned for 2014 ...and ask that you make payments based on that level of Income. If your income in 2014 was higher than that for 2015, then that may not be to your advantage.

There is the option to write to the BIR, asking for a reduction in the amount of Income Tax which is estimated to be paid for YOI 2015. Please attach to your letter support such as draft financial statements with comparative figures, that is, figures for the prior year as applicable. Remember to keep a copy of the letters and support which you send to the BIR for your files. 

Also there is the expectation that a minimum of 80% of your taxes due would be paid by Dec 31, 2015 and that you would communicate in writing if you expect that there is a shortfall in the current year. This communication would be your second official communication to the BIR for the YOI 2015.

This information when added together helps with the financial planning and tax compliance of the country!

We all have a part to play in this!  

Here is some assistance which was provided by the BIR, see the link:…/calculation-of-quarterly-instalment

Some of the above information was acquired through working in the tax department at Deloitte - 16 Victoria Avenue, Port of Spain, Trinidad and Tobago. This firm merged with the local firm of Coopers & Lybrand which was located on Charles Street, Port of Spain. Subsequent to the merger the newly formed firm traded under the name of Coopers & Lybrand, however the offices remained at Victoria Avenue, Port of Spain....
In hind sight, I would say that when firms merge, it takes time for the cultures of the companies to fit and for operating practices to become a way of life....

Also some of the information has been obtained through research, reading, and the development of tax planning knowledge and skills over time.
Copyright Jennifer N Bailey

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