Settlement of overdue tax liabilities

Under a new amendment of the law 4(1)/2017, a new extension is given for those who wish to take advantage of the scheme. The new extension for submitting an application is the 3rd of July 2018.

Some important points that should be kept in mind:

  • For being eligible for application, the following returns and obligations should be fulfilled:

  1.  All IR4 up to the tax year 2015 including or up to 2016 for those submitting their application after 31/3/2018

  2.  IR7 due for filing up to 30/4/2017 or up to 30/4/2018 for those submitting their application after 30/4/2018

  3. VAT returns due for filing by the date of application

  4.  All tax liabilities due for payment and refer to post 2015 tax years should be settled

  • Although temporary assessments, self-assessments, declaration for D.D.D. and other withholding taxes due for filing or for payment may not be checked at the time of application, the approved arrangement may be rejected at a later stage, if it is found out that such a liability existed as per accounts by the time of the application for the scheme

  • For tax liabilities which will be finalized after 3/7/2018 and refer to years up to 31/12/2015, an application for arrangement under the scheme can be raised six months after the issuance of the assessment but only if tax returns for the years up to 2015 had been filed by 30/6/2018

  • Any refunds issued or to be issued after 3/7/2017, irrespective of which year concerns, cannot be set off against interest and penalties of liabilities eligible to be included in the arrangement scheme




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