456 tal-2011 - Regolamenti tal-2011 dwar Taxxa fuq il-Valur Miżjud (Tħassir ta’ Mgħax u Penali Amministrattivi nkorsi taħt l-Att tal-1998 dwar it-Taxxa fuq il-Valur Miżjud, l-Att dwar it-Taxxa tad-Dwana u tas-Sisa u l-Att tal-1994 dwar it-Taxxa fuq il-Valur Miżjud)

L.N. 456 of 2011

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax (Remittance of Interest and Administrative

Penalties incurred under the Value Added Tax Act, 1998,

Customs and Excise Tax Act and Value Added Tax Act, 1994)

Regulations, 2011

IN virtue of the powers conferred by articles 21, 42 and 75

of the Value Added Tax Act, 1998, the Minister of Finance, the

Economy and Investment has made the following regulations

(1) The title of these regulations is the Value Added Tax

(Remittance of Interest and Administrative Penalties incurred under

the Value Added Tax Act, 1998, Customs and Excise Tax Act and

Value Added Tax Act, 1994) Regulations, 2011.

(2) These regulations provide for the remittance of

interest and/or administrative penalties incurred or that shall

accrue under the Acts under the conditions and procedures

contained in Annex A of these regulations.

In these regulations unless the context otherwise requires

“Acts” means the Value Added Tax Act, 1998, the

Customs and Excise Tax Act and the Value Added Tax Act,

1994. Other terms and expressions used in these regulations

shall have the meaning assigned to them in the Acts.

With effect from 1 January 2012 interest and

administrative penalties shall not continue to accrue on any amount

of tax due in any tax period under the Customs and Excise Tax Act

and the Value Added Tax Act, 1994.

The Commissioner may remit, only once, the interest

and/or administrative penalty incurred or that accrue to a person

under the Acts subject to the conditions and procedures contained

in Annex A of these regulations.

Nothing in these regulations shall entitle any person to

claim any refund of any amount whatsoever in respect of interest or

administrative penalties already paid to the Commissioner under the

provisions of the Acts.

Where a person has benefitted from a remittance of interest

under these regulations, the Commissioner may deduct the equivalent

of such remitted interest amount from any interest on any refund of tax

which may become due to that person within six years from the date the

remittance of interest under these regulations had taken place.

ANNEX A

Conditions and procedures for the Remittance of Interests and Administrative

Penalties incurred under the Acts

1. The following Conditions and Procedures shall apply to arrears of tax,

interest and administrative penalties that are due by a registered person under any of

the Acts as at 15 October 2011.

2. For the purposes of paragraph 3 of this Annex

(a) the “total outstanding balance due” is the total balance of tax,

interest and administrative penalties due under each of the Acts separately for

the tax periods whose returns were due to be sent by the 15th October, 2011.

(b) the “total interest and administrative penalties accrued” is the total

interest and administrative penalties accrued under each of the Acts separately

for the tax periods whose returns were due to be sent by the 15th October,

2011, less any administrative penalties and interest which were reduced by any

other scheme or adjustment.

3. The “interest and penalties amount” on which the remittance referred to at

paragraph 5 of this Annex shall apply shall be computed as follows

(a) If the “total outstanding balance due” is equal to or greater than the

“total amount of interest and administrative penalties accrued” then the amount

on which the remittance at paragraph 5 of this Annex shall apply, shall be the

“total amount of interest and administrative penalties accrued”;

(b) If the “total outstanding balance due” is less than the “total amount

of interest and administrative penalties accrued” then the amount on which

the remittance at paragraph 5 of this Annex shall apply shall be the “total

outstanding balance due”;

4. A person registered under any of the Acts shall qualify for the remittance

under paragraph 5 of this Annex if he

(a) Has arrears due as per paragraph 1 of this Annex;

(b) Furnishes by not later than the 15 January 2012 all VAT returns

which were not submitted and which were due to be furnished by the 15

October 2011;

(c)

Furnishes all VAT returns due on the 15 November 2011 and on the

B

dates on which subsequent returns fall due after this date, in time accompanied

by full payment of amount declared in the respective returns;

(d) Effects payments to the Commissioner under the conditions of

paragraph 5 of this annex;

(e) Withdraws any pending appeal before the Appeals Board, the

Administrative Law Tribunal or the Court of Appeal by not later than the 15

January 2012.

5. Each remittance shall be made on the merits of each case and, except for a

person registered under article 11, shall be subject to the following

(a) where a person pays the resultant balance of tax, interest and

penalties by not later than the 15 March 2012, the interest and penalties

amount defined at paragraph 3 of this Annex shall be remitted by 80%;

(b) where a person pays the resultant balance of tax, interest and

penalties by not later than the 15 May 2012, the interest and penalties amount

defined at paragraph 3 of this Annex shall be remitted by 70% provided that

a down payment of 30% of the resultant balance of tax, interest and penalties

is made by not later than the 15 March 2012 and the rest is paid in equal

instalments for each remaining month;

(c) where a person pays the resultant balance of tax, interest and

penalties by not later than the 15 August 2012, the interest and penalties

amount defined at paragraph 3 of this Annex shall be remitted by 60%

provided that a down payment of 30% of the resultant balance of tax, interest

and penalties is made by not later than the 15 March 2012 and the rest is paid

in equal instalments for each remaining month ;

(d) where a person pays the resultant balance of tax, interest and

penalties by not later than the 15 February 2013, the interest and penalties

amount defined at paragraph 3 of this Annex shall be remitted by 50%

provided that a down payment of 30% of the resultant balance of tax, interest

and penalties is made by not later than the 15 March 2012 and the rest is paid

in equal instalments for each remaining month.

6 . In addition all interest and administrative penalties that would accrue

during the time of payment of the arrears will also be remitted provided that

the person furnishes in time by the due date, together with the respective return

payment, any VAT return that falls due after the date stipulated in paragraph 1 of

this Annex.

Where a person was due to submit a declaration under article 11 or article

12 of the Value Added Tax Act, 1998, the administrative penalty shall be reduced

to €10 in respect of each default, provided that all missing declarations and the

payment of the said administrative penalty are submitted by not later than the 15

January 2012.

The Commissioner shall reserve the right to withdraw any arrangement

concerning the remittance of any interest and/or administrative penalties upon the

happening of any one of the following conditions

(a) If the person fails to honour in time at least any two instalments;

(b) If the Commissioner considers that such remittance could lead to

unjustified gain contrary to or in excess of the purposes of the Acts or the

avoidance of compliance with a judgement or order of the Court by any person

who enters such arrangements;

(c) If the person wishing to benefit from the arrangement has been

convicted of any offence under article 77 of the Value Added Tax Act 1998, or

is subject to criminal proceedings in respect of such an act or is subject to other

criminal proceedings relating to VAT fraud (excluding prosecution concerning

non issuance of a fiscal receipt).

No remittance shall have effect in the account of the registered person

unless and before the person effects the final payment, as agreed, to the satisfaction

of the Commissioner.

B

B

€0.54