Offenses & Penalties

For purposes of this provision, the terms “employer” and “self-employed worker” include any director, member, officer, employee, or agent of an employer or self-employed worker who as such, is responsible for seeing that quarterly reports are filed or contributions are paid.

False statements and reports

• Any employer or self-employed worker who fails to report any amount of earnings paid, or fails to pay any amount of contributions due to the Administration is, at the discretion of the Administration, liable for a penalty of not more than one hundred percent (100%) of the total amount of the contributions withheld, including worker’s and employer’s shares, or US$250, whichever is greater.
  

Failure to report

• Any employer, or self-employed worker, who fails to report any amount of earnings paid or fails to pay any amount of contribution due to the Administration is, at the discretion of the Administration, liable for a penalty of not more than one hundred percent (100%) of the total amount of the contributions withheld, including worker’s and employer’s shares, or two hundred and fifty dollars (US $250), whichever is greater. 
• Any employer or self-employed worker who knowingly fails to report any amount of earnings paid or knowingly fails to pay any amount of contribution due, including penalties and interest to the Administration is, in addition, guilty of an offense and shall upon conviction be liable for a fine of not more than five thousand dollars (US $5,000). 
• The terms “employer” and “self-employed worker” include any director, member, officer, employee, or agent of an employer or self-employed worker who as such is responsible for seeing that quarterly reports are filed or contributions are paid.

Penalties and interest; attorney and collection fees; and court costs

• Penalty charges: Penalty shall be charged if the quarterly tax return is filed and paid after the deadline. It is computed at $5.00 if the employer has 1 to 10 employees. If the employer has more the 10 employees, 50 cents will be applied for HF and another 50 cents for RF, to each employee. 
• If the contributions or the penalty are not paid on or before the date prescribed for such payment, there shall be collected, in addition to such contributions and penalties, interest levied on the unpaid balance of the contributions and/or penalties at the rate of twelve percent (12%) per annum from its due date until the date it is fully paid. In the event that the unpaid balance of contributions, penalties, or interest due is referred to an attorney for collection, whether or not suit is brought for the collection thereof, the employer or the self-employed worker shall additionally be liable for all reasonable attorney’s fees and costs of collection, plus court costs. 
• Interest is computed based on the total principal of tax contributions plus penalty charges, multiplied by 12%, times the number of the days late, divided by 365 days.

Refunds

• If a worker contributes on earnings in excess of the covered earnings, whether from one or more employers, and his contributions are withheld and paid to the Administration, the excess of the worker’s contributions during the four quarters ending December 31st shall be refunded by the Administration to the worker within ninety (90) days after that date.

  No refund shall be made to any worker of any amount less than US$5.00.

Difference between a refund and over-payment

• A refund is the amount returnable to an employee who has two or more employers, for taxes paid on wages in excess of $10,000 per calendar quarter. An over-payment is the excess of the actual payment over the correct amount due, and the employee may have one or more employers. An over-payment is not refundable. It shall be applied to a delinquent quarter, if any. If all the quarters are fully paid, then the overpayment shall be applied to the next quarter. A credit advice shall be issued in this case.

TAX AUDIT

Examination of copying of records

• Any person who willfully fails to allow the Administration to examine and copy books, accounts, records and other information shall be guilty of an offense and shall upon conviction be liable to a term of imprisonment not exceeding one year, or to a fine of not more than five thousand dollars (US $5,000), or both.