Update on the law regulating the settlement of overdue taxesnconstantinou
The law regulating the settlement of overdue taxes is applicable from 3 July 2017.
The overdue taxes which are covered by the law are:
- All taxes due for the years up to and including 2015
- Amounts which become payable as a result of submission of a self-assessment up to and including the year 2015. The relevant tax returns must have been submitted but no tax payment is made
- Tax liabilities which are assessed after 3 July 2017 by the Commissioner of Taxation and relate to tax years up to and including 2015.
Relief of interest and penalties will be given depending on the number of instalments, These are shown below:
- No of instalments / % of relief
- 1 (Full settlement) / 95%
- 2-8 / 90%
- 9-15 / 85%
- 16-21 / 80%
- 22-28 / 75%
- 29-35 / 70%
- 36-42 / 65%
- 43-49 / 60%
- 50-56 / 55%
- 57-60 (maximum instalments) / 50%
A settlement scheme is terminated in cases where the taxpayer:
- Fails to file tax returns and VAT returns during the settlement period OR
- Fails to settle a liability that relates to a period after the 31st December 2015 OR
- Delays to pay any 3 instalments OR
- Delays to pay an instalment for more that 3 consecutive months, including the month the instalment was due.