Tax interest

Complete your 2012 tax return and avoid interest on tax payable

For the 2012 tax return the calculation of tax interest has changed.

In the past, if you filed your tax return before the 1st of April, then you could expect an assessment from the tax office before the 1st of July. If you were entitled to a refund, then you would receive interest over the period from the 1st of January to the date of the assessment. If tax was payable, then the payable amount was increased by interest charged. Under the new regulations, interest will no longer be calculated from the 1st of January, but only from the 1st of July.

If you file your tax return before the 1st of April 2013, you will receive an assessment before the 1st of July, but this will not include any interest. If you are entitled to a refund, you will not receive any extra interest. Should you be liable to pay tax, no interest will be charged to you. If you are unable to file your tax return before the 1st of April 2013, you can submit a request for an amendment to an earlier preliminary assessment for 2012 or request a 2012 tax assessment. If you do this before the 1st of May 2012, you will not pay any interest. You will receive an assessment without interest charged in this case.

If you file your tax return after the 1st of April 2013 and do not submit a request for an assessment or an amendment to a preliminary assessment before the 1st of May 2013, then the tax office will calculate interest from the 1st of July 2013. If it turns out you have the right to a refund, interest will only be accrued if the tax office takes more than 3 months to send their assessment for the filed tax return. If the tax calculation means there is an amount payable, interest is calculated and the amount payable will increase. Only if the tax office takes longer than three months after the filing of the return to respond by imposing a tax assessment, will the interest be reduced.

To avoid interest on tax, it is advisable to file your tax return before 1 April 2013, or at least to submit a request to the tax office for an assessment or a preliminary assessment for 2012. We can of course provide more information on how to make this request, and it can also be arranged for you by us in a relatively easy manner. Please contact our office if you have any questions.