Frequently Asked Questions and Answers

Did you get an assessment for ZV/OV over November 2017, despite the grace period granted?

As I said before in my previous blog, do not expect any relief from Government.

Expect the opposite.

The SZV has started assessing tax payers for filing late over November 2017, while a grace period was granted until January 15, 2018. Some of our clients and our company got those assessments and we expect to receive more for December 2017.

It’s unfortunate and we now must protest these assessments and our clients are annoyed because they expected us to file for them on time, after Irma.

While we are all trying to recover economically from Irma, the Government is intensifying its grip on tax payers.

Hereby a message from the SZV, stressing to file on time, as if everyone is doing business as usual:

https://www.szv.sx/info/news/2016/4409/accountants-requested-to-be-on-time-with-szv-declarations-and-payments

Are these assessments correct and deliberate, and do you really legally owe them?

Based on the law, if you file and pay late, you get an assessment for the amount filed plus two fines, minus what was paid on the declaration. In short you still owe the fine.

However, if the Government (the Minister of Finance) announces a grace period, the tax payers can take his word for it, especially if it was publicized.

Why is the SZV, and the tax department will soon follow, still sending assessments even if a grace period was announced?

Why are the tax entities creating so much unnecessary confusion?

Because they have no control over their Information systems, which were built in the nineties. Those entities have no control on how these systems function. That control is in the hands of company that build the software and any change to the systems needs to be paid for.

To be clear, if the Minister of Finance says there is a grace period, this cannot be translated into the existing systems and the SZV and Tax department don’t take the

time to manually delete or reverse assessments which were generated over the grace period.

They leave it up the us to protest the wrong assessments, so they have a legal/procedural way to delete the assessment.

This only shows that giving a grace period is much appreciated, but how it is executed is something totally different. It is going to get a lot worse, before it gets any better.

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