The Seychelles Revenue Commission (SRC) has during the third quarter of the year completed a total of 195 audits comprising of 23 issue oriented cases, 1 default cases, 2 comprehensive cases and 169 desk audit.
Domestic taxes covered as part of the audit for the third quarter included business tax, corporate social responsibility tax, income and non-monetary benefit tax, tourism marketing tax, value added tax, withholding tax as well as tax imposed on residential and commercial rent.
Following the evaluation and inspection of the audited accounts, the main issues identified were inaccurate declaration of expenses, underpayment as well as non-payment of income tax and its emoluments; plus, failure to remit taxes due to misinterpretation of the law.
In many cases where errors have been detected, SRC does provide taxpayers the final opportunity to voluntarily disclose any inaccurate reporting made to obtain possible reduced penalties. However, taxpayers are being reminded that the amount of additional tax and penalties payable will vary on a case by case basis.
To avoid such errors and to obtain further understanding of the law, taxpayers are being advised to consult the SRC’s Provision of Advice Unit for further clarity about any tax type or processes to be followed via email to advisory.center@src.gov.sc or by calling 4293737.
SRC is also urging taxpayers to be aware of their tax obligations and consequences for non-compliance, as the organization prepares for the annual lodgment of return for the year 2023 set to take place on or before 31 March 2024. Taxpayers with outstanding business or presumptive tax returns for prior years are also being advised to do their part for lodgment of these returns to avoid incurring further penalties.
To note, even if a business registered with SRC was not in operation or trading during a tax year, the taxpayer is still required to lodge a ‘NIL’ business or presumptive tax return at the end of that tax year to SRC. Taxpayers are therefore being encouraged to adhere to their obligations timely, to avoid any penalties, as in the event that a business does not submit their returns, SRC may issue a ‘Default Assessment’ and penalties will be applicable.