VALUE ADDED TAX (REMITTANCE OF INTEREST AND ADMINISTRATIVE PENALTIES UNDER THE VALUE ADDED TAX ACT, 1998, THE CUSTOMS

VALUE ADDED TAX (REMITTANCE OF INTEREST AND ADMINISTRA-

TIVE PENALTIES UNDER THE VALUE ADDED TAX ACT, 1998, THE CUS-

TOMS AND EXCISE TAX ACT AND THE VALUE ADDED TAX ACT, 1994)

SUBSIDIARY LEGISLATION 406.18

VALUE ADDED TAX (REMITTANCE OF INTEREST

AND ADMINISTRATIVE PENALTIES UNDER THE

VALUE ADDED TAX ACT, 1998, THE CUSTOMS

AND EXCISE TAX ACT AND THE VALUE ADDED

TAX ACT, 1994) REGULATIONS

14th November, 2011

LEGAL NOTICE 456 of 2011, as amended by Legal Notices 468 and 506

of 2011, 112 and 212 of 2012, and 240 of 2013.

(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.

(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 reg ulatio ns, t he Com mi ssio ner m ay d ed uct th e

equivalent of such remitted interest amount from any interest on

any refund of tax which may become due to that person within six

y e a r s f r o m t h e d a t e t h e r e m i t ta n c e o f i n t e r e s t u n d e r t h e s e

regulations had taken place.

VALUE ADDED TAX (REMITTANCE OF INTEREST AND ADMINISTRA-

TIVE PENALTIES UNDER THE VALUE ADDED TAX ACT, 1998, THE CUS-

TOMS AND EXCISE TAX ACT AND THE VALUE ADDED TAX ACT, 1994)

ANNEX A

L.N.468 of 2011;

Conditions and procedures for the Remittance of

L.N. 506 of 2011.

Substituted by

Interests and Administrative Penalties incurred under

L.N. 112 of 2012.

the Acts

L.N. 212 of 2012;

L.N. 240 of 2013.

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 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.

4. 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

VALUE ADDED TAX (REMITTANCE OF INTEREST AND ADMINISTRA-

TIVE PENALTIES UNDER THE VALUE ADDED TAX ACT, 1998, THE CUS-

TOMS AND EXCISE TAX ACT AND THE VALUE ADDED TAX ACT, 1994)

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.

5. 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.

6. 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

VALUE ADDED TAX (REMITTANCE OF INTEREST AND ADMINISTRA-

TIVE PENALTIES UNDER THE VALUE ADDED TAX ACT, 1998, THE CUS-

TOMS AND EXCISE TAX ACT AND THE VALUE ADDED TAX ACT, 1994)

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 and where the remittance would

concern administrative penalties and interest incurred pursuant to

assessments raised by the Commissioner or voluntary disclosures by the

registered person in relation to that conviction;

(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.

Notwithstanding the provisions of paragraph 4 of this Annex, the

Commissioner may allow a registered person to qualify for remittance under the

scheme where in his opinion the failure on the part of that person to qualify for

remittance was due to a reasonable excuse

Provided that the Commissioner shall not allow any further extensions

beyond 30 November 2013, which date is considered final or the purposes of

allowing registered persons to qualify for remittance under the scheme

Provided further that where a registered person is so allowed to qualify for

remission, the Commissioner shall determine new dates for payments in respect of

the option under paragraph 5 of this Annex.