S.L. 123.68 Art. 7Reduction of additional tax by 50%.

Where an omission is not due to fraud, art, contrivance or gross or wilful neglect, the additional tax chargeable for an omission shall be reduced by fifty per cent (50%) of the full amount and the circumstances in which the additional tax is to be so reduced shall include where:

(a) a person is or should be aware that an enquiry has been conducted into his tax declarations and liabilities and on which the additional tax in respect of the omission has been reduced according to the provisions of rule 6, but he again omits, from a return submitted after the outcome of the enquiry is known, an item which the enquiry has indicated should have been so included; or

(b) the omission is manifestly contrary to accepted principles and practices of tax law or accountancy, including, without limiting the generality thereof:

(i) over-claiming deductions against income chargeable under article 4(1)(b) of the Act;

(ii) claiming deductions for alimony payments when no right for such deductions exists;

(iii) failing to declare alimony payments received;

(iv) excessive or unjustified claims for deduction against rental income.