MT
DETERMINATION OF ADDITIONAL PENALTY RULES
Table of Provisions (8)
Statutory Text (8 Articles)
DETERMINATION OF ADDITIONAL PENALTY
SUBSIDIARY LEGISLATION 406.23
DETERMINATION OF ADDITIONAL PENALTY
RULES
12th August, 2025
LEGAL NOTICE 177 of 2025.
(1)
The title of these rules is the Determination of
Additional Penalty Rules.
(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 52A of the Income Tax Management Act and article
84A of the Value Added Tax Act;
"tax" shall have the same meaning assigned to it by the
Income Tax Acts;
DETERMINATION OF ADDITIONAL PENALTY
"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 same meaning as assigned to them in the Duty on Documents and
Transfers Act, the Income Tax Management Act and the Value Added
Tax Act, respectively.
(1)
The additional penalty shall be calculated on the
total amount of duty on documents and transfers, income tax, Final
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
upon the signing of the agreement or in instalments over a period of
time, as may be determined by the Commissioner.
(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
DETERMINAZZJONI TA’ PENALI ADDIZZJONALI
4,000,000
2,500,001
0
and over
Each rate applies only to the portion of the amount falling
within its respective bracket