Cap. 37 Art. 63Imposition of compromise penalties.

(1) Notwithstanding any other provision of this Ordinance, and without prejudice to any other proceedings to which the offender may be liable under any other law, in the case of any irregularity in any of the circumstances referred to in the following paragraphs of this sub-article, the Commissioner may, with the concurrence of the person committing the irregularity, impose the penalty hereunder as an alternative to proceedings in court:

(a) where the endangered duty does not exceed twenty-five thousand euro (€25,000), the Commissioner may collect the endangered duty and impose a penalty equivalent to the endangered duty;

(b) in the case where there is no endangered duty but there exist endangered taxes, the Commissioner may collect the endangered taxes and impose a penalty equivalent to five per cent (5%) of the difference in the value of the goods or, if there is no difference in the value, a penalty equivalent to one per cent (1%) of the value of the goods, together with a penalty equivalent to the endangered taxes;

(c) in the case where there is no endangered duty but there exist endangered taxes in relation to goods entered in Malta by a person who is registered with the VAT Department under article 10 of the Value Added Tax Act, and the irregularity consists of a breachof article 62(m) and of article 62A, the Commissioner may collect from the offender the endangered taxes and impose a penalty equivalent to 50% of the endangered value added tax up to a maximum of ten thousand euro (€10,000), together with a penalty equivalent to the other endangered taxes;

(d) in the case where both duty, of not more than twenty-five thousand euro (€25,000), as well as taxes on the goods are endangered, the Commissioner may collect the endangered duty as well as the endangered taxes and impose a penalty equivalent to the endangered duty and the endangered taxes;

(e) in the case where there are endangered duty of not more than twenty-five thousand euro (€25,000) as well as endangered taxes in relation to goods entered in Malta by a person who is registered with the VAT Department under article 10 of the Value Added Tax Act, and the irregularity consists of a breach of article 62(m) of this Ordinance, the Commissioner may collect from the offender the endangered duty as well as the endangered taxes and impose a penalty equivalent to the endangered duty together with a penalty equivalent to 50% of the endangered value added tax up to a maximum of ten thousand euro (€10,000), together with a penalty equivalent to the other endangered taxes;

(f) in the case where no other duty or tax on the goods is due or endangered, and there exists no restriction or prohibition on the importation of the goods, or limitation or condition on their exportation, the Commissioner may impose a penalty of one hundred euro (€100);

(g) in the case where no other duty or tax on the goods is due or endangered, but there exists a restriction or prohibition on the importation of the goods, or there exists a limitation or condition on their exportation, the Commissioner may impose a penalty of two hundred euro (€200) or 10% of the value of the goods, up to a maximum of six hundred euro (€600), whichever is the higher. Where the value of the goods cannot be established, the Commissioner may impose a penalty of two hundred euro (€200).

(2) (a) In the case where one (1) of the irregularities referred to in the Second Schedule is committed, which irregularity is committed th after the 30 April 2013, and the agreement relating to the irregularity referred to in sub-article (1) is entered into, or where the irregularity was th committed before the 30 April 2013 but the agreement relating to such th irregularity referred to in sub-article (1) was entered into after the 30 April 2013, the penalty on the person committing the irregularity:

(i) for the first time over the twelve (12) months immediately before the date on which the irregularity is committed, shall be equivalent to twenty-five per cent (25%) of the endangered duty and taxes, as the case may be, or fifty euro (€50) whichever is the higher; and

(ii) for the second time over the twelve (12) months immediately before the date on which the irregularity is committed, shall be equivalent to fifty per-cent (50%) of the endangered duty and taxes, as the case may be, or seventy-five euro (€75) whichever is the higher; and

(iii) for the third time or more over the twelve (12) months immediately before the date on which the irregularity is committed, shall be equivalent to hundred per cent (100%) of the endangered duty and taxes, as the case may be, or one hundred euro (€100) whichever is the higher.

(b) Without prejudice to sub-article (5), an agreement in lieu of criminal proceedings with regard to the irregularities mentioned in the Second Schedule shall only be regulated by this sub-article.

(3) For the purposes of this article, when any irregularity leads to loss of duties and the Commissioner would have imposed an excise duty penalty under the Excise Duty Act, with the concurrence of the person committing the irregularity, the Commissioner shall not impose another excise duty penalty under this Ordinance.

(4) For the purposes of this article, the signing of this agreement shall also mean that the person is renouncing to any claim he may have against the Commissioner, the State Advocate or the Attorney General resulting from the case.

(5) Where in one (1) declaration there is more than one (1) item about which an irregularity was committed, and the agreement referred to in this article takes place instead of criminal proceedings, the penalty that the person shall pay is that applicable for every separate item, except where there is more than one (1) irregularity in the same declaration which falls under paragraph (f) of sub-article (1), in which case the penalty is of one hundred euro (€100) for all those irregularities in that declaration which fall under paragraph (f) of sub-article (1).