REMISSION OF INTEREST AND ADMINISTRATIVE PENALTIES RULES

REMISSION OF INTEREST AND ADMINISTRATIVE PENALTIES

SUBSIDIARY LEGISLATION 406.20

REMISSION OF INTEREST AND

ADMINISTRATIVE PENALTIES RULES

28th March, 2014

LEGAL NOTICE 107 of 2014, as amended by Legal Notices 75 of 2015

and 209 of 2017.

The title of these rules is the Remission of Interest and

Administrative Penalties Rules.

(1) The Commissioner may, at his discretion, remit

wholly or in part, any interest incurred and any administrative

penalty incurred under any of the provisions of the Value Added

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

Act, 1994

Provided that the Commissioner may only remit such

interest or administrative penalty if he is satisfied that the tax due

was not paid within the prescribed period due to a reasonable

excuse, sohowever that reliance placed on any other person to

perform any task shall not constitute a reasonable excuse.

(2) In these rules "Acts" means the Value Added Tax Act, the

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

and any other terms and expressions used in these rules shall have

the meaning assigned to them in the Acts.

(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 sub-rule (1) be infringed by the

person concerned, any remission of interest or administrative

penalty granted by the Commissioner shall be forfeited.

(3) The Commissioner shall communicate in writing to the

person concerned any condition imposed under sub-rule (1), the

c o n s e q u en ce s o f a n i n f r i n g e m en t o f a n y s u c h c o n d i t i o n i n

accordance with sub-rule (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 the Acts 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-

REMISSION OF INTEREST AND ADMINISTRATIVE PENALTIES

compliance with the provisions of rule 3, then the interest will be

charged as if it had never ceased.

Where a person has benefited 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.

Nothing in these rules shall entitle any person to claim any

refund of any amount whatsoever in respect of interest or

administrative penalty already paid to the Commissioner under the

provisions of the Act.