OTA announces ‘Tax Liability Settlement Initiative’
As part of its mission to strengthen the relationship and partnership with taxpayers and support their business ventures, the Tax Authority (OTA) recently announced a move to reduce the burden of income tax through a newly formulated settlement.
In order to reduce the impact of accumulated income tax, the authority launched ‘Tax Liability Settlement Initiative’ to help the taxpayers fulfill their obligations by decreasing the total amount owed. Under the new system, OTA invited taxpayers of tax income with outstanding tax liabilities to submit their settlement requests by email at mubadara@ taxoman. gov. om within six months from the date of its announcement.
Applications will then be processed and reviewed based on a number of terms, including that an application must be provided with documents that prove the taxpayer’s financial burden, such as bouncing cheques, financial issues related to debt payments and bank statements that prove the taxpayer’s financial solvency.
Applications must have all documents related to payments of all tax returns from 2020 onwards. OTA made it clear that an
A taxpayer should be prepared to submit any relevant documents to the Tax Authority if needed for the consideration of the application or for clearing any doubts arising out of any false information furnished
applicant unpaid taxes requested for settlement should be of before January 1, 2020 and that those unpaid taxes are not disputed.
‘A taxpayer should be prepared to submit any relevant documents to the Tax Authority if needed for the consideration of the application or for clearing any doubts arising out of any false information furnished,’ OTA clarified, asserting that any applicant not complying with the set requirements, or submitting a request after January 30, will not be taken into consideration.
The initiative aims to offer a 50% discount on a taxpayer’s outstanding taxes with the possibility of installments to be paid over three years.
Based on the results of this initiative, OTA intends to develop future initiatives aimed at helping taxpayers fulfill their tax obligations and alleviate their financial burden.