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

L.N. 112 of 2012

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax (Remittance of Interest and Administrative

Penalties incurred under the Value Added Tax Act, 1998, the

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

(Amendment) Regulations, 2012

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

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

the Value Added Tax Act, 1994) (Amendment) Regulations, 2012,

and these regulations shall be read and construed as one with the

Value Added Tax (Remittance of Interest and Administrative

Penalties incurred under the Value Added Tax Act, 1998, the Customs

and Excise Tax Act and the Value Added Tax Act, 1994) Regulations,

hereinafter referred to as "the principal regulations".

(2) These regulations shall be deemed to have come into force

on 16th March, 2011.

Annex A of the principal regulations shall be substituted

by the following

"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.

The "interest and penalties amount", on which the

remittance referred to in 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"

Provided that, for the purposes of computing the remittance in

terms of paragraphs 6 and 8 of this Annex, sub-paragraphs (a) and (b)

shall not apply.

A person registered under any of the Acts shall qualify for

the remittance in accordance with this Annex if

(a)

arrears are due in accordance with paragraph 1 of

this Annex;

(b) all tax returns which were not submitted and which

were due to be furnished by the 15 October 2011 are furnished

by not later than the 15 April 2012;

(c)

all tax returns due on the 15 November 2011 and on

the dates on which subsequent returns fall due after this date are

furnished by due date, accompanied by full payment of the

amount declared in the respective returns

Provided that a registered person shall remain eligible for

remittance under the scheme where a tax return due by 15

November 2011, 15 December 2011, 15 January 2012, 15

February 2012, 15 March 2012 or 15 April 2012 is furnished,

with full payment if any, by not later than 15 April 2012, in

which case the applicable date for the purposes of paragraph 1

of this Annex shall be deemed to be the due date of the last

furnished tax return;

(d) payments to the Commissioner are effected under

the applicable conditions as prescribed in this Annex; and

(e)

any pending appeal before the Appeals Board, the

Administrative Review Tribunal or the Court of Appeal is

withdrawn by not later than 15 April 2012.

Each remittance shall be made on the merits of each case

and, except where otherwise applicable in this Annex, 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 or 31

May 2012 as extended, 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 or 31

July 2012 as extended, 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 or 31 May 2012 as extended 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 or 31

October 2012 as extended, 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 or 31 May 2012 as extended 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 or

30 April 2013 as extended, 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 or 31 May 2012 as extended and the rest is paid in

equal instalments for each remaining month.

Any person who by 15 March 2012 made a payment in

accordance with sub-paragraphs (b), (c) or (d) may make an

additional payment by the extended date of 31 May 2012 to gain

further remittance by reverting to another payment plan.

Notwithstanding the provisions of paragraph 5 of this

Annex, the resultant balance of tax, interest and penalties where

applicable incurred under the Value Added Tax Act, 1994, and the

Customs and Excise Tax Act shall be determined in accordance with

the said paragraph 5 except for penalties which shall be payable at

fifty euro (€50) per default

Provided that, where the amount payable by the registered

person after applying the remittance under paragraph 5 is less than as

determined above, then the remittance as determined under paragraph

5 shall apply.

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 tax 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 ten euro (€10) in respect of

each default, provided that all pending declarations are submitted by

not later than the 15 April 2012

Provided that where a person registered under article 12 has a

resultant balance of tax, interest and penalties that stand to be

remitted in accordance with sub-paragraphs (b), (c) and (d) of

paragraph 5 of this Annex, the penalties shall be calculated at ten euro

(€10) in respect of each default.

The Commissioner shall reserve the right to withdraw any

arrangement concerning the remittance of any interest and penalties

in the event that

(a)

the registered person fails to pay in time at least any

two instalments as prescribed unless there is a reasonable

excuse;

(b) the registered person wishing to benefit from the

arrangement has been convicted of any offence under article 77

of the Value Added Tax Act, 1998 (excluding minor convictions

or non-issuance of fiscal receipts), or has been convicted of a

criminal offence under any other law pursuant to VAT evasion

or fraud;

(c)

it is considered 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 a competent Court by any person who enters such

arrangements.

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.".

€0.45