Taxing problems: how to avoid sheriff’s notice
The issue is that as a result of 2011 being a year of rising profits, a farmer will get hit for a hefty balance of tax owing for 2011 and worse again, high preliminary tax owing for 2012.
The amount normally recommended to be paid in preliminary tax, to avoid interest on underpayment, is based on the return for the previous year, and therefore a lot of taxpayers will have paid preliminary tax in 2011 based on year 2010, which was a year of lower profits on most farms.
