Helping Your Business Build Success

When you invest in a business, you may claim certain allowances that enable you to pay less tax on profits made.
You can offset the loss you incurred in your business in one year against your business profits of subsequent years ( to reduce the tax payable in the profitable years)
If you fail to submit your income tax Return in time (by the due date) to the MRA, you are liable to pay a penalty of Rs. 2,000 per month or part of the month till the date the Return is submitted (total penalty per year is limited to Rs.20,000).
If you submit your tax return in time but you declare therein a profit not acceptable to the MRA, you may be liable to pay a penalty of 5 % on the additional tax claimed together with interests @ 1 % per month or part of the month since the date the tax should have been paid till the date it actually gets paid (remember that this additional tax will normally get paid only when MRA will claim that tax, perhaps 2 or 3 years later, and therefore the 1 % interest per month for 2 or 3 years may be quite sizeable !)
For late payment of contributions to the N.P.F. a surcharge of 5 % of the month’s contribution is payable for each month’s lateness.
Failure to pay the annual registration fee of your company to the Office of the Registrar of Companies may lead to your company being struck off the Registrar’s register of companies (i.e. your company will cease to exist).
If you have formed a company some years ago but the company has not yet started operating till this day, you still need to file that company’s annual return & accounts with the Registrar of Companies. Otherwise you run the risk of seeing the company being struck off the Registrar’s register, as above.