On 23 July 2021, the Commissioner of Tax under the powers granted to him by the law, issued a decree relating to the settlement of overdue taxes. The decree refers to the process, years of applicability and relevant reliefs to be provided. To enter the scheme, an application should be submitted within 12 months from the date that the amending law entered into force (29 April 2021), namely 29 April 2022.

A. Overdue taxes covered by the scheme

The overdue taxes covered by the new scheme are:

1. Overdue taxes for the years 2016 to 2019, which at the date of the application have been assessed by the Department of Taxation and have been booked as payable. This provision includes overdue taxes irrespective of whether they have been assessed through a court order or by agreement with the department of taxation.
2. Overdue Taxes that become payable from the submission of the self-assessment form for 2019, in cases where the taxpayer has submitted his income tax return without paying the resulting taxes.

B. Taxpayers that have the right to apply

The Taxpayers that can apply for the scheme for the overdue taxes, as mentioned in paragraphs (1) and (2) include:

1. businesses and self-employed individuals subject to VAT, and;
2. businesses and self-employed individuals that are exempt from the obligation to register in the VAT registrar,

provided that, they have experienced a decrease in their turnover of at least 25% in 2020 compared to 2019 due to the restrictions imposed due to the pandemic.

C. Instalments and exceptions from the scheme.

The overdue taxes of Section A will be relieved from interest and penalties on a percentage basis depending on the monthly instalments.

D. Instalments

The payment of instalments will be submitted through collection agencies (financial institutions) using a unique payment code obtained through Ariadne Portal or in specific cases to the Department of Taxation.

E. Termination of the scheme
The scheme is terminated in the below 3 cases:

1. where the taxpayers do not file tax and VAT returns according to their obligations;
2. where the taxpayers have a new tax liability created after 31 December 2015 and fail to settle, and;
3. delays in the payment of any 5 cumulative instalments

F. Other Provisions

1. In case the taxpayer disagrees with the decision of the Commissioner of Taxation, the taxpayer can proceed with an objection to the local tax office using a predetermined document. The Commissioner’s decision must be made available to the taxpayer within 30 days from the date of receipt of objection.
2. In case where the taxpayer is under criminal prosecution and submits an application for this scheme which is approved, the Commissioner will inform the Attorney General accordingly in order to suspend the prosecution, if deemed necessary. In such case the taxpayer is not obliged to file the relevant request towards the Attorney General.

Contact:

Tax Department
tax@kinanis.com