November 2012: Tax Amnesty extended

A form of tax amnesty introduced in November 2011 was extended for the second time last week, up until the 31st of December 2013. The first period ended on 31st of March 2012 and was initially extended until 31st of October 2012. The amnesty which was introduced as an incentive to prompt settlement of outstanding tax debts up to and including fiscal year 2008, waives late payment interest and related penalties but imposes a 5% surcharge on the amount of tax due.

This time around however, the benefit decreases with each additional month of delayed settlement, as there is an additional 1% surcharge for each month of delay. In order to benefit from the scheme up to 31st March 2012, the whole amount due must be settled at once, while from 1st of April 2013 part payments against the tax due will also be possible.