Amendments to the Process of Adjustment of Tax Arrears Law of 2017

The Process of Adjustment of Tax Arrears Law of 2017, Law 4(I) of 2017, established a procedure for settling tax arrears by monthly instalments, providing up to 95% waiver of interest and penalties and covering all nationally imposed taxes, including income tax, VAT, SDC tax, capital gains tax, stamp duty and special contribution payable by employees, pensioners and self-employed persons.

Although the law was enacted in February 2017, it did not take effect immediately, in order to allow time for the necessary payment systems to be put in place. The deadline for submitting applications to participate in the scheme was set at three months after the law took effect. The law took effect on 3 July 2017 and the deadline for submitting applications was therefore 3 October 2017. The law has now been amended, by Law 129(I) of 2017, which took effect on 29 September 2017. It extends the deadline for submitting applications from three months after the law took effect to six months after the law took effect. Applications may therefore now be submitted until 3 January 2018. In addition, it relaxes the requirement regarding submission of outstanding tax returns. The initial law required all tax returns for tax years up to and including 2015 to have been submitted before an application was made. The amendment to the law replaces this requirement with a stipulation that applicants must submit any pending tax returns for tax years up to and including 2015 no later than 30 June 2018.

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