WHT on interest income and dividends

Tuesday, 19 May 2020 00:00 - - {{hitsCtrl.values.hits}}

I have read a couple of recent letters to the Editor by concerned senior citizens who are now compelled to open tax files solely due to the withdrawal of WHT on interest income and dividends.

They have pleaded that they be absolved from the cumbersome rigours of collecting data from banks and opening and maintaining tax files with estimated quarterly payments and so on.

As an alternative, they have appealed to the authorities to continue with the WHT on interest and dividends at even a higher rate the authorities deem to impose over and above the new exemption limits.

As we all know, collecting WHT at source, particularly on bank interest and dividends, is an accurate, quick and a very convenient method for Inland Revenue authorities, as the systems in banks and listed companies are already geared to collect and remit WHT without any delay.

In the proposed scenario, the incidence of such tax collection cost becomes zero for the IRD while bringing great relief to the concerned senior citizens whose mobility is naturally and fast-becoming restricted due to current health precautions.

Therefore, we, as senior citizens who are very much aware of the Government’s dire need to collect taxes in the aftermath of the ‘COVID-19’ outbreak, earnestly implore the Government to consider the aforesaid proposal favourably.

Concerned senior citizen