- On 11 August 2025, the Various Revenue Laws (Amendment) Act, 2025 came into effect, amending multiple laws including the Criminal Code and the Value Added Tax Act, granting the Commissioner of Taxes the authority to enter into structured out-of-court settlement agreements with taxpayers.
- The Act specifies the terms of these agreements, which do not absolve taxpayers from paying due taxes or penalties, and introduces significant penalties ranging from €10,000 to €1 million for breaches, with criminal prosecution possible for fraud or non-compliance.
- Taxpayers are advised to seek professional assistance before entering into new agreements due to potential uncertainties regarding existing settlements and the application of the new provisions, particularly concerning penalties and the treatment of tax arrears.
Source Joseph Sammut
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