Newsletter June 2006

Reminders for 2005 tax returns sent by mistake.


Last week the tax office has sent out reminders/warnings for 2005 income tax returns and also the corporate income tax returns. Research learnt that most of the reminders were sent out too early like what already happened earlier this year with VAT and Wage Tax.


Again the computer system is blaimed for this problem. Reminders were sent before all time extension agreements with tax advisors and accountants, including ours, were processed. Also reminders were sent for tax returns which have already been filed and for which the tax office confirmed receipt weeks ago.


We have had contact with the tax office every day between 19 June till 23 June and we have been assured several times that time extension for our clients has and will be granted. Also the list of clients on the time extension ruling has been checked and approved. So we can confirm that if you are a client of Expatax that a time extension till March 2007 is granted by the tax office.


If you have received a reminder and your advisor (Expatax or another firm) has arranged a time extension then the tax office should destroy the reminder and send an apology letter to you. At least we are doing everything possible to convince the tax office to send an apology letter, because the reminders have caused a lot of unnecessary stress and extra work which is no good to anybody. We are also in discussion with the State Secretary of Finance about this.


If time extension was not arranged it is important that the tax return is filed within 10 working days after the date of the reminder (23 June 2006). Expatax can assist with this.


The fine mentioned in the reminder is E 1,000 which normally is reduced to E 113 if this is the first reminder you ever received. But as said, if the reminder was not right the fine will be reduced to nil.


Because of the reminders we received a huge amount of phone calls and emails last week which delayed other work which had to be done. We hope you can understand our position and we will do everything we can to deal with the outstanding issues.