Amnesty For Penalties

Flash Report No 5/19 Feb 1996

Further to our Flash Report dated 9 February 1996, we have requested a number of clarifications regarding the amnesty provided by Ordinance No 13/1996. Officials from the local tax office have confirmed that the amnesty applies to all taxpayers in respect of liabilities owing to the State at 31 December 1995.

They also advised the following:

Failure to observe the 60 days term for submission of the Statement specifying the liabilities and penalties not paid by 31 December 1995, would lead to the loss of the right to benefit from the provisions of Ordinance 13 (ie the Statement must be submitted prior to 31 March);

The amount of the penalties and the calculation do not necessarily have to be approved or confirmed by the tax office. However, irregularities in calculations subsequently found by tax reviews could result in the loss of the amnesty. Therefore extreme care must be taken in calculating the penalties.