Processing of individual tax returns

Summary

The request sought statistics on delayed individual tax assessments for the year ended 5 April 2020 and the number of outstanding returns as of November 2020. The Treasury disclosed that 1,106 returns exceeded a six-month processing time and 4,273 returns remained outstanding, citing staff redeployment for COVID-19 support and pending taxpayer information as contributing factors.

Key Facts

• 1,106 individual tax returns for the year ended 5 April 2020 took longer than six months to assess.
• 4,273 tax returns submitted on or before 6 November 2020 remain outstanding.
• Approximately 2,000 cases are delayed due to the Assessor awaiting information or conducting enquiries.
• Income Tax Division officers were redeployed to assist with the Covid-19 Salary Support Scheme.
• Tax assessments cannot be issued until employer remuneration returns are verified and credited.

Data Disclosed

• 1,106
• 4,273
• 2,000
• 5 April 2020
• 6 November 2020
• August 2020
• 22 March 2021
• 25 March 2021
• 1717161

Original Request

How many individual (personal) tax returns submitted in respect of the year ended 5 April 2020 have so far taken longer than six months for the IOM Treasury to issue a tax assessment thereon. How many tax returns submitted on or before 6 November 2020 remain outstanding to be processed.

Data Tables (1)

Full Response Text

xx
Freedom of Information
Seyrsnys Fysseree

The Treasury Government Office,
Douglas Isle of Man, IM1 3PU

Telephone: (01624) 685605 Email: FOI.Treasury@gov.im

Government Website: www.gov.im

Our ref: 1717161 25 March 2021

Dear xx

I write further to your request which was received on 22 March 2021 and which states:

"How many individual (personal) tax returns submitted in respect of the year ended 5 April 2020 have so far taken longer than six months for the IOM Treasury to issue a tax assessment thereon. How many tax returns submitted on or before 6 November 2020 remain outstanding to be processed."

1,106 individual (personal) tax returns submitted in respect of the year ended 5 April 2020 have so far taken longer than six months for the IOM Treasury to issue a tax assessment thereon. This is based on returns received up to and including August 2020 whereby six months since the month of receipt has now been exceeded. 4,273 tax returns submitted on or before 6 November 2020 remain outstanding to be processed.

In considering the above information it is important to note the following;  Where it is necessary for the Assessor of Income Tax to raise enquiries or request outstanding information in respect of any tax return submitted it can delay the issue of an assessment.  There are currently approximately 2,000 cases in which the Assessor is either awaiting information from the taxpayer or their representative or has an ongoing enquiry.  During the past year many of the officers in the Income Tax Division have been redeployed to assist in the processing of various financial support measures such as the Covid-19 Salary Support Scheme.  At the end of each tax year, every employer is required to submit an annual return of their employees’ remuneration and tax deducted which requires verification and crediting against the accounts of the relevant individual taxpayers. An individual's tax assessment can only be issued when the verification process for their own remuneration/occupational pension has been completed.

Please quote the reference number 1717161 in any future communications.

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I will now close your request as of this date.

Yours sincerely

xx