REMISSION OF INTEREST RULES

REMISSION OF INTEREST

SUBSIDIARY LEGISLATION 372.26

REMISSION OF INTEREST RULES

1st November, 2013

LEGAL NOTICE 361 of 2013.

The title of these rules is the Remission of Interest Rules.

The Commissioner may, at his discretion, remit wholly or

in part, any interest chargeable on any person under the provisions

of article 44(2A) of the Income Tax Management Act, hereinafter

referred to as "the Act"

Provided that the Commissioner may only remit such

interest if he is satisfied that the tax due was not paid within the

prescribed period due to a reasonable cause, sohowever that

reliance placed on any other person to perform any task shall not

constitute a reasonable excuse.

(1) The Commissioner may impose any condition that he

may consider appropriate for any remission under rule 2, including

the requirement that the person concerned shall not make a default

or omission within such period as the Commissioner may establish

or that the said person shall make a payment of tax in such amount

and within such time as the Commissioner may determine.

(2) Should any condition imposed by the Commissioner in

accordance with the provisions of subrule (1) be infringed by the

person concerned, any remission of interest granted by the

Commissioner shall be forfeited.

(3) The Commissioner shall communicate in writing to the

person concerned any condition imposed under subrule (1), the

consequences of an infringement of any such condition in

accordance with subrule (2) and, when such is the case, the fact that

forfeiture has been incurred.

(4) The use of the Commissioner’s discretion under this rule

shall not be questioned in any appeal.

Interest chargeable under the provisions of article 44(2A)

of the Act on the amount of tax payable under a payment plan not

exceeding two years shall cease to be incurred from the date a

person enters into such payment plan

Provided that if the remission is not effected due to non-

compliance with the provisions of rule 2, than the interest will be

charged as if it had never ceased.

Where a person has benefitted from a remission of interest

under these rules, the Commissioner may deduct the equivalent

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

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

date the remission of interest under these rules had taken place.

REMISSION OF INTEREST

Nothing in these rules shall entitle any person to claim any

refund of any amount whatsoever in respect of interest already paid

to the Commissioner under the provisions of the Income Tax Acts.