Date extensions

Due to the severe weather events in January and February of this year, the Tax Administration (Extension of Due Dates) Order 2023 (SL 2023/48) extends a couple of due dates for those taxpayers significantly adversely affected.

The date extensions are in relation to decisions/actions surrounding bad debt write-offs and beneficiary income distributions.

With respect to a bad debt deduction for the March 2023 income year, the taxpayer must be able to show that the debt was physically written off by 31st March 2023, to claim a deduction for the bad debt in their 31st March 2023 income tax return.

Likewise, in relation to the income year ended 31st March 2022, to reflect an amount as beneficiary income, the latest possible date the decision can be made by the taxpayer to characterise an amount as such, where the taxpayer has an extension of time to file their income tax return to 31st March 2023, is 31st March 2023.

The Order extends both of these dates to 31st May 2023. Do not overlook the fact that the extension is not a general extension to all taxpayers, but similar to various Covid-related extensions, the taxpayer should be able to show that they were significantly adversely affected by one of the events set out in the Order, which was the reason why they were unable to take the required action/make the decision, by the usual due date of 31st March 2023.