THE EDITOR: The Government needs the revenue to run the country, hence it is unable to defer tax collection to after the pandemic. In a period of economic slowdown and pandemic, this is understood.
But what about individuals who are owed tax refunds by the Government? They also need money to survive.
Most employers, including the Government, have a computerised payroll. This facilitates the accurate deduction of personal income tax (PAYE) from employees' salaries. At the end of the year, neither the Government nor the employees owe anything to the other.
A variance occurs when someone retires during the year. If someone retires after six months in the income year his salary would have been subjected to PAYE as if he had worked all 12 months.
Here's an actual example: Salary is $7,000 per month, or $84,000 per year. PAYE would be $3,000 per year or $250 per month. For the person working for six months, his total salary would have been $42,000 and he therefore should not have to pay any PAYE but the system deducted $250 a month for six months. He is entitled to a refund of $1,500.
The Government has offered an amnesty to induce people to pay outstanding taxes. The Government needs the money. Individuals also need their money. People are awaiting refunds for 2018 and 2019. Many of these are small amounts of less than $1,000.
Please pay these refunds, Mr Imbert (Finance Minister).
GANESH BIDHESI
via e-mail
The post What about tax refund, Mr Imbert? appeared first on Trinidad and Tobago Newsday.
