On 10 January 2013, the Director of Income Tax announced that the automatic initial penalty, currently imposed if tax returns are still outstanding 30 days after the issue of a reminder letter by the Income Tax Office, will only be imposed if the 2011 tax return is not submitted by 15 February 2013.

Furthermore, starting from 11 January 2013, in order to incentivize online submission of 2012 tax returns:

• Paper tax returns will no longer be issued automatically
• Returns submitted online will be treated as priority over paper returns
• Individual income tax returns submitted online will be entered into a free draw for three cash prizes of £2,500, £1,500 or £1,000

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