Next Of Kin Responsible For Tax Owing

The government does not want to amend the Income Tax Act which stipulates that the administrator or next-of-kin of a deceased income taxpayer has to pay the tax arrears. Deputy Finance Minister claimed that if the act is not implemented against the executors and heirs, it is feared that the motivation and sense of responsibility of the people to pay their taxes will decline.

Unmotivated To Pay Taxes - Finance Ministry believes that if this (compulsion) is not done, there are parties who are irresponsible and unmotivated to pay taxes. They are waiting to die because then all debts do not need to be paid and debts with IRB (Inland Revenue Board) are settled.

The matter is already (included) in the act and the IRB informed that the amount (tax) charged is the amount of (taxable) income until his death. If the heirs can pay the tax they should do so. 

Next Of Kin Responsible For Taxes - Inland Revenue Board said that the next-of-kin of deceased taxpayers are fully responsible for their commitments including income tax management. Section 74 of the Income Tax Act 1967 stipulates that any income tax arrears cannot be automatically written off even if the individual involved is certified dead.