Determination of Additional Penalty Rules, 2025

L.N. 177 of 2025

DUTY ON DOCUMENTS AND TRANSFERS ACT

(CAP. 364)

INCOME TAX MANAGEMENT ACT

(CAP. 372)

VALUE ADDED TAX ACT

(CAP. 406)

Determination of Additional Penalty Rules, 2025

IN EXERCISE of the powers conferred by article 22A of the

Duty on Documents and Transfers Act, article 58 of the Income Tax

Management Act and article 75 of the Value Added Tax Act the

Minister responsible for finance has made the following rules:-

(1) The title of these rules is the Determination of

Additional Penalty Rules, 2025.

(2) The scope of these rules is to establish the manner in which

the additional penalty shall be determined for the purposes of article

68 of the Duty on Documents and Transfers Act, article 52A of the

Income Tax Management Act and article 84A of the Value Added Tax

Act.

(rule 3)

Endangered Tax

Endangered Tax

Progressive rate

(€)

(€)

(%)

Up to 1,500,000

15. 0 1,500,001 2,500,000

20. 0 2,500,001 4,000,000

(1)

In these rules, unless the context otherwise requires

"additional penalty" means the additional penalty

established in article 68 of the Duty on Documents and Transfers

Act, article 52A of the Income Tax Management Act and article

84A of the Value Added Tax Act;

"agreement" means the agreement provided for in article 68

of the Duty on Documents and Transfers Act, article 52A of the

Income Tax Management Act and article 84A of the Value

Added Tax Act;

"Commissioner" means the Commissioner for Tax and

Customs;

"duty on documents and transfers" shall have the same

meaning assigned to it by the Duty on Documents and Transfers

Act;

"endangered tax" means the difference between the tax

declared to be chargeable by the taxpayer, after taking into account

any exemption, relief, allowance or tax credits to which he may be

entitled, and the tax chargeable after considering the same,

however such difference shall not include any additional tax and

interest;

"offence" means any breach or connected breach as defined

in article 68 of the Duty on Documents and Transfers Act, article Cap.

364. 52A of the Income Tax Management Act and article 84A of the Cap. 406.

Value Added Tax Act;

"tax" shall have the same meaning assigned to it by the

Income Tax Acts;

"value added tax" shall have the same meaning assigned to

it by the Value Added Tax Act.

(2) Unless the context otherwise requires, all other words and

phrases used in these rules which are not defined herein, shall have the Cap. 364.

same meaning as assigned to them in the Duty on Documents and Cap. 372.

Transfers Act, the Income Tax Management Act and the Value Added Cap. 406.

Tax Act, respectively.

(1) The additional penalty shall be calculated on the total Determination

amount of duty on documents and transfers, income tax, Final of

penalty.

Settlement System tax and value added tax, resulting as due in relation

to the offence to which the agreement refers.

(2) The additional penalty shall not be less than ten thousand

euro (€10,000) but not more than one million euro (€1,000,000)

according to a progressive rate as indicated in the Schedule.

(1) The additional penalty shall be paid immediately Payment

upon the signing of the agreement or in instalments over a period of method

additional

time, as may be determined by the Commissioner.

penalty,

additional tax

and interest.

(2) Where the amount is to be paid in instalments, the first

instalment shall amount to at least ten percent (10%) of the additional

penalty which shall be paid upon the signing of the agreement. The

debtor shall be obliged to provide a guarantee to the satisfaction of the

Commissioner covering the payment of the amount of the additional

penalty which is still outstanding at the time of the agreement.

(3) Where the debtor defaults on any one or more of the

payments in instalments in respect of the tax due, additional tax,

interest and additional penalty, the Commissioner shall be entitled to

recover the entire outstanding balance which shall become

immediately due and payable by virtue of the executive title obtained

upon the signing of the agreement.

0

and over

Each rate applies only to the portion of the amount falling within its respective bracket

€0.27