How to avoid income tax return related penalties

It is essential that your income tax return for 2013 should reach the Tax and Customs Administra­tion before the first of April 2014 in order for you not to be penalised – or you could cut yourself some slack by applying for a time extension.

Your income tax return is required to be filed by the first day of April, albeit that the option is available to apply for a time extension. Tardy filing without having been granted extra time for fil­ing will inevitably result in the Tax and Customs Administration fining you for late payment, in amounts ranging from € 235 (initial penalty) to as much as € 4,920 (maximum penalty).

Avoid being fined!
Koppel Tax Consultants has come to a special arrangement with the Tax and Customs Admini­stration in the context of which it has secured a time extension for the filing of the income tax returns of its entire customer base (albeit that certain conditions apply). If you are unable to file your income tax return before the first day of April, please do the sensible thing and liaise with us in order for you not to be fined!

Interest on taxes
The Tax and Customs Administration will charge you with interest – at a minimum rate of 4% – on unpaid income tax in the event of your filing your income tax return after the first day of April.

Pre-completed tax return form
Since the first day of March of this year the pre-completed income tax return form has been available at the Tax and Customs Administration’s web site. If you have decided to go with the pre-completed form, please perform a meticulous check before you go ahead and submit your tax return, as there is always the risk that allowable deductions or taxable balances may have been missed out on.

Alternatively, you could ask Koppel Tax Consultants to apply for a time extension and subse­quently file your income tax return for you.