Tax Remission of Interest and Penalties 2020

Following the expiry of Tax Amnesty Order, the Government has, effective 8 May 2020, issued the Tax Administration (Remission of Interest and Penalties) Regulations 2020 to provide guidelines to eligible applicants who make voluntary disclosure the TRA Commissioner General to apply for remission of interest or penalties.

The main criteria to apply for remission is financial hardship as determined by the TRA Commissioner Genera, whose decision is final and cannot be appealed against or reviewed.

NB interest or penalties arising from the following are excluded:

1. an order of compounding an offence;
2. breaches related to acquisition or use of EFD devices;
3. fraudulent evasion of taxes;
4. tax liability established from a tax audit or investigation;
5. failure to pay income tax payable by a way of withholding tax mechanism for Income Tax, VAT, excise duty, airport service charge or any other tax liability which the applicant has a statutory obligation to pay as an agent of TRA to collect from third parties and pay the same to the Commissioner General;
6. penalty arising from failure to file tax returns; and
7. failure to maintain documents.

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