Notification under the Law Regulating the settlement of overdue taxes

On 23 June 2017 the Notification under the law Regulating the Settlement of Overdue Taxes was published in the official gazette. The Notification provides details of the process and the years to which the scheme will apply as well as the discounts to be provided.

The provisions of the scheme apply to tax liabilities arising under the Income Tax Law, Special Defence Contribution Law, Immovable Property Tax Law, Capital Gains Tax Law, Inheritance Tax Law, Special Contribution Law, Stamp Duty Law and VAT Law.

Applications should be submitted within 3 months from the date the law enters into force, which is the 3rd of July 2017 except in cases where the tax liability is assessed after the 3rd of July, whereby the application should be submitted within 3 months from the date on which the tax becomes due.

The overdue taxes covered are all taxes due for the years up to and including 2015 which at the date of the application have been assessed by the tax department and appear as payable, and amounts which become payable as a result of the submission of a self-assessment in respect of tax years up to and including 2015 where the tax returns for the relevant tax year have already been submitted, but no tax payment was made as well as tax liabilities which are assessed after 3 July 2017 by the commissioner of taxation and relate to tax years up to and including 2015. In this case, an application for regulation must be made within three months from the date on which the tax becomes due.

Relief of interest and penalties from 50% to 95% will be given on the overdue taxes depending on the number of instalments ranging from 1 with a maximum of 60. For overdue taxes which are regulated under the provisions of this law, no additional charges will accrue.

The law enters into force on 3 July 2017.