Income Tax Amnesty Scheme

On the 4th of September 2009, the Minister of Finance, Hon. Tonio Fenech announced that taxpayers with outstanding tax balances may benefit from a hefty reduction on interest and penalties levied in respect of their outstanding balances. The amnesty scheme shall apply equally to individuals and corporate taxpayers.

The Ministry of Finance through an official press released promised that taxpayers availing themselves of the scheme would only have to pay 10% of the total penalties and interest levied on outstanding tax balances relating to the basis years 1998 to 2007. The other 90% shall be waived off.

With respect to any unpaid tax relating to basis year 1997 and previous period, taxpayers will have 25% of their unpaid tax balances waived off, provided that they pay the difference.

To qualify for this scheme, taxpayers are obliged to settle all their outstanding tax balances by not later than the 15th of January 2010. 

UPDATE: Tax amnesty extended