Section 73 (1) of ACT 915 states that a person who fails to file a tax return as required by a tax law is required to pay a penalty. Companies are expected to file their tax returns 4 months after the end of their accounting year. If their accounting year ends on Dec 31st, then the filing should be on or before 30th April the following year. Section 30 (3), states that the Commissioner General may, by written notice, extend the dates by which the return is to be filed. This means the due date for filing the tax returns moves from 30th April to the new date which section 30 (5) states the extended days shall not be more than 60 days. Let me hasten to add that there’s a caveat at section 30 (4) where it states that the extension granted under this section may be subject to the terms and conditions the Commissioner General deems appropriate. Therefore, the Commissioner General may state other conditions in the extension letter such as the computation of penalties if the person fails to file returns on or before the extended period. But if you don’t find such conditions in your extension letter, then the computation of your penalties will start after your extension period as granted by the Commissioner General.