EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Taxpayer penalized for being late in notifying IRD its chargeability to tax
While directors or shareholders residing overseas or having insufficient knowledge or experience in financial or accounting matters would not generally constitute a reasonable excuse for such an offence, depending on the factual context of a case, reliance on professional advice in good faith could.
A lingering issue of the case may be whether the tax tribunal could have decided the case differently if the taxpayer had been able to produce evidence justifying why it initially believed its profits were non-taxable offshore income, albeit abandoned later.
Clients who take the position that they are not required to notify the Commissioner of Inland Revenue of their chargeability to tax on the grounds that their profits are offshore sourced should seek professional tax advice.