Cap. 123 Art. 9ASpontaneous declaration of undeclared income.

(1) Notwithstanding any other provision of the Income Tax Acts, a person, apart from the return for the year of assessment

1995, may present a spontaneous declaration on the prescribed form and the income of that person falling under articles 4 and 5 for the years of assessment prior to the said year of assessment shall be deemed to be the income as arrived at under the following provisions of this article.

(2) The spontaneous declaration shall show as income falling under article 4(1) for the years of assessment 1994, 1993, 1992 and 1991 a sum based on a true declaration of the income declared by that person falling under article 4(1) (but excluding any investment income as defined in article 41 and capital gains falling under article 5) for the year of assessment 1995 as follows:

(a) for the year of assessment 1994, a sum equivalent to 80% of the relative income declared in the return for the year of assessment 1995, excluding any investment income as defined in article 41 and capital gains falling under article 5 as aforesaid;

(b) for the year of assessment 1993, a sum equivalent to 90% of the sum declared under paragraph (a) hereof;

(c) for the year of assessment 1992, a sum equivalent to 90% of the sum declared under paragraph (b) hereof; and

(d) for the year of assessment 1991 a sum equivalent to 90% of the sum declared under paragraph (c) hereof: Provided that where a person was in any of the years of assessment 1991 to 1994 not registered as a taxpayer and had no income liable to tax under this Act, he shall under paragraphs (a) to

(d) hereof, only declare that he received no income for the years of assessment therein referred to previous to the year of assessment in which he first became liable to tax under this Act.

(3) The spontaneous declaration shall also make a statement of any undeclared capital gains falling under article 5 in respect of each year of assessment where such gains were so undeclared.

(4) Where a spontaneous declaration has been made in accordance with the provisions of this article:

(a) the income of the person making the declaration and subject to tax under the provisions of this Act other than this article shall be deemed to be the income declared by that person in the return for the relative year of assessment: Provided that:

(i) where in respect of any year of assessment the income of that person has been arrived at in an assessment which is final and conclusive the income so arrived at shall be deemed to be the income so declared; and

(ii) where any income falling under article 4(1) has been or is reported by an employer or other person paying the income to the Commissioner in any return required for the purposes of the Deduction of Tax (PAYE) Rules, 1972, or in accordance with such rules ought to be so reported, such income shall be deemed declared by such person;

(b) the assessment for the relative year of assessment shall be raised on the basis of the income declared or deemed declared in accordance with paragraph (a) hereof: Provided that in the case where a return was not submitted to the Commissioner by the 31st March 1995, the assessment for the relative year of assessment shall be raised on the following basis:

(i) If the return is in respect of any of the years of assessment 1991 to 1994, the income for the relative year of assessment shall subject to the provisions of paragraph (a)(ii) hereof be considered to be that declared by such person in the relative return or the income determined in accordance with sub-article (2), whichever is the higher;

(ii) If the return is in respect of a year of assessment prior to year of assessment 1991, the income for the relative year of assessment shall subject to the provisions of paragraph (a)(ii) hereof be considered to be that declared by such person in the relative return or a sum equal to the income determined in accordance with sub-article (2)(d), whichever is the higher; and

(c) any additional tax under article 56(12) in respect of any year of assessment for which there is not an assessment which is final and conclusive, shall be waived.

(5) For the purposes of sub-article (2), (4) and (7), income under article 4(1) and capital gains falling under article 5, means the income as adjusted in accordance with the provisions of this Act.

(6) The income declared in a spontaneous declaration in accordance with this article shall be deemed to be separate chargeable income for the year of assessment 1995, and shall, subject only to the deductions as provided in sub-article (7) be subject to tax at the rate of twenty-five cents (0.25) in the euro.

(7) There shall only be deducted from the income declared in respect of each year of assessment under sub-article (2), the income declared or deemed declared in accordance with sub-article (4), by the taxpayer for the respective year of assessment being income falling under article 4(1) not being investment income as defined in article 41 or capital gains falling under article 5:

Provided that:

(a) where in respect of a year of assessment the income falling under article 4(1)(a) as declared in accordance with sub-article (4) is a loss, such income shall for the purposes of this article be deemed to be nil; and

(b) where in respect of a year of assessment the income declared in accordance with sub-article (4) falling under article 4(1) (excluding investment income as defined in article 41 or capital gains falling under article 5) is greater than the income declared under sub-article (2) in respect of the same year of assessment, the income declared in accordance with sub-article (4) shall be deemed to be equal to that declared under sub-article (2) in respect of the same year of assessment.

(8) The tax on income chargeable under this article shall be payable in three instalments as follows:

(a) fifty per cent by not later than the 15th December 1995 together with the submission of the spontaneous declaration to the Commissioner;

(b) twenty per cent by not later than the 29th March, 1996; and

(c) thirty per cent by not later than the 30th September, 1996.

(9) The Commissioner shall send by registered post to each person who makes a valid spontaneous declaration in accordance with this article, a notice stating the amount of his separate chargeable income for the year of assessment 1995 and the amount of tax payable thereon by him, and the provisions of Part VII and of article 32 of the Income Tax Management Act shall apply to such notice.

(10) The spontaneous declaration referred to in the previous sub-articles to this article shall be deemed not to have been filed with the Commissioner unless:

(a) the prescribed form is fully and accurately completed and is submitted in duplicate to the Commissioner not later than the 15 December, 1995;

(b) all returns for the years of assessment up to and including the year of assessment 1995 are submitted to the Commissioner by the time the declaration is made; and

(c) payment of the first instalment of tax is made as laid down in sub-article (8).

(11) Where it results to the Commissioner that a person who filed a valid spontaneous declaration under this article has underdeclared his income for the year of assessment 1995 or has underdeclared any income which ought to be declared under sub-article (3) hereof or has under the proviso to sub-article (2) hereof declared that he has received no income for any year of assessment in which he was liable to tax, the Commissioner shall recompute the separate chargeable income on the basis of the reassessed income for the year of assessment 1995, and, or as ought to have been declared under sub-article (3), and, or disregarding the provisions of the proviso to sub-article (2) hereof as the case may be, and raise a tax thereon at the rate of sixty-five cents (0.65) in the euro. The Commissioner shall thereupon issue a fresh notice of assessment and any previous notice issued under this article shall be cancelled and any tax already paid in respect of the previous notice or together with the filing of the spontaneous declaration shall be set off from any tax due in accordance with this sub-article.

(12) The relevant provisions of Part VII of the Income Tax

Management Act shall apply to the tax due under sub-article (11): Provided that a person shall have a right of objection and appeal as laid down in articles 33, 35 and 37 of the Income Tax Management Act against a notice of assessment issued in accordance with sub-article (11). (13)(a) Tax charged under the provisions of this article shall not be deemed to be part of any tax paid or payable under this Act for the purposes of articles 59, 76 and 89.

(b) Nothing contained in this article shall affect the provisions of articles 43, 44 and 45.

(14) Where a person makes a spontaneous declaration in accordance with the provisions of this article, the Commissioner shall disregard the provisions of article 14(1)(g) regarding the carrying forward of losses incurred during any year preceding the year of assessment 1995 with respect to the year of assessment 1995 and subsequent years of assessment.

(15) The Minister may make rules generally for carrying out the provisions of this article and may in particular by those rules provide for the form of returns, claims, statements and notices under this article.