Accountants say deadline for warehousing debt is ‘unreasonable’

Accountants told tax commissioners it was ‘unreasonable’ and extremely concerning to file all overdue tax returns by April 30 to continue to benefit from low interest rates through the debt warehousing scheme .

If taxpayers fail to file returns, all debts will be payable immediately and normal interest rates of 8pc or 10pc will apply, instead of the regime’s reduced interest rates of 0pc and 3pc.

The CCAB-I accounting coordination group raised questions about the tight deadline.

“CCAB-I believes that the limited time between the issuance of tax correspondence and the filing deadline of April 30, 2022 is unreasonable and places unnecessary pressure on businesses and agents who continue to operate under difficult conditions with limited resources due to the high rate of Covid-19 infections,” he said.

“Members also noted that as the program has been extended multiple times and different timelines apply depending on whether a business was impacted by the December 2021 public health restrictions, there is a level of confusion among companies as to the deadlines applicable to them.”

Comments are closed.