Main Menu

Ministry of Inland Revenue confirm Tax Liability can be written off BUT with conditions

Radio & TV Tonga, Nuku’alofa, 02/09/2019

The Ministry of Inland Revenue this morning confirmed to Radio Tonga News that any tax liability can be written off – but there are conditions.

The conditions include business owners migrating overseas, tax liability not paid after 5 years, bankruptcy and others. Taniela Sila said, with these conditions, the Ministry can recommend to cabinet to write off the tax liability – however cabinet has the final say on whether to write it off or not.

Sila said, there are no demands or recommendation from outside of the Ministry for a specific company’s tax liability to write off – there are regulations – and cabinet only comes in – to make the final say whether or not the recommended business from the Ministry’s tax liability can be write off.

The issue has drawn attention from many media outlets – after allegations were made against the Minister of trade – saying that cabinet wrote off a 900 thousand pa’anga tax liability of a company allegedly owned by Tu’i Uata’s. This issue was raised with the Ministry of Inland Revenue but they said the information is confidential.

Contact had been made to cabinet including the Minister for Inland Revenue for a comment on the issue but to no avail. However, Tu’i has denied the allegations made saying he does not own a business, therefore it is impossible for him to have tax liability.

© Radio and Television Tonga News