Cap. 372 Art. 44Additional tax and interest for non- payment of tax, andenforcementof payment.

(1) Where any tax payable within the periods provided for in article 42(1) or (2) or in article 43(1)(b) of this Act or in article

9A(8) of the Income Tax Act, is not settled within the relevant period -

(a) additional tax equal to one per cent of the unpaid tax for each calendar month or part thereof during which such tax remains unpaid shall be added thereto, and the provisions of the Income Tax Acts relating to the collection and recovery of tax shall apply to the collection and recovery of such additional tax;

(b) the Commissioner shall serve a demand note upon the person assessed, and if payment is not made within thirty days from the date of the service of such demand note, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in article 40 after two days from the service on the debtor of an intimation, for payment made by means of a judicial act, or as hereafter provided;

(c) additional tax charged under this sub-article shall not be deemed to be part of any tax paid or payable for the purposes of articles 59, 73, 76 or 89 of the Income Tax Act, or articles 23, 43, 51 or 52, or any rules made thereunder.

(2) The Commissioner may, in his discretion, remit wholly or in part any additional tax chargeable under sub-article (1):

Provided that no such remission shall be effected by the Commissioner unless he is satisfied that the person liable for the payment of the tax was prevented from making payment within the respective periods owing to his absence from Malta or serious sickness or for such other cause as the Minister responsible for finance may prescribe from time to time.

(2A) When any tax is not paid by the date on which it is payable in terms of the relevant provisions of the Income Tax Acts -

(a) interest at the rate of one per cent of the unpaid tax shall be charged thereon from the tax settlement date for each calendar month or part thereof during which such tax remains unpaid and the provisions of the Income Tax Acts relating to the collection and recovery of tax shall apply to the collection and recovery of such interest: Provided that for any period or part thereof commencing on or after 1st January 2009, interest shall be calculated at the rate of point seven five percent (0.75%) per month or part thereof and the total interest shall not exceed the amount of the said tax: Provided further that, for any period or part thereof commencing on or after 1st January 2014, interest shall be calculated at the rate mentioned in the preceding proviso or at such lower rate as the Minister may, from time to time, prescribe by rules and the total interest shall not exceed the amount of the said tax: Provided further that when the date by which the tax shall be payable in terms of the relevant provisions of the Income Tax Acts is the 31 August 2022 or a later date, interest shall be charged at the rate of zero point six percent (0.6%) for every month or part thereof during which the tax remains unpaid or at such other rate as the Minister may, from time to time, prescribe by rules and the total interest shall not exceed the amount of the said tax;

(b) an amount of tax shown as payable for a year of assessment by a person in a determination or an assessment made under article 31 shall unless and until it is substituted by another amount by means of a subsequent determination or assessment be deemed to be the tax payable for that year of assessment for the purpose of paragraph (a) regardless of the date when the said determination is made or when the assessment becomes final and conclusive;

(c) the Commissioner shall serve a demand note upon the person by whom any tax is due and if payment is not made within thirty days from the date of the service of such demand note, the Commissioner may proceed to enforce payment in virtue of the executive title referred to in article 40 after two days from the service on the debtor of an intimation for payment made by means of a judicial act.

(2B) Notwithstanding the provisions of sub-article (2A):

(a) no interest shall run on any tax payable by a person for any year of assessment if the Commissioner has determined and directed by notice in writing given to a payor in accordance with rules made pursuant to article 23 that deductions be made from emoluments payable to that person to cover the said tax and if that notice has not been revoked by a notice in writing given by the Commissioner to that person;

(b) no interest shall run on any additional tax charged pursuant to the provisions of article 56(12) of the Income Tax Act;

(c) no interest shall run on any tax payable in circumstances where a person has taken action under a Mutual Agreement Procedure in terms of an arrangement referred to in article 76 of the Income Tax Act including Convention 90/436/EEC of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises, for the period between the date when the said action under the Mutual Agreement Procedure is initiated and the date when the issue is concluded under the said procedure;

(d) No interest shall run on any tax payable by any person to the Commissioner when the non-payment of that tax renders that person liable to additional tax as provided for in sub-article (1) of this article or in article 73(4) of the Income Tax Act.

(2C) Interest charged under sub-article (2A) shall not be deemed to be part of any tax or additional tax paid or payable for any of the purposes of the Income Tax Acts.

(2D) The Commissioner may, at his discretion, remit wholly or in part any interest chargeable under sub-article (2A) in accordance with rules issued for this purpose by the Minister responsible for finance.

(3) No opposition other than that specifically provided for in this Act shall stay the issue or execution of any executive act obtained thereunder or the paying out of the proceeds of any warrant or sale by auction carried out in pursuance thereof.

(4) The provisions of sub-article (3) shall not prejudice the amount of tax that may be finally determined under the other provisions of the Income Tax Acts.