Cap. 406 Art. 42Reasonable excuse.

(1) Notwithstanding the provisions of articles 37 to 41, both inclusive -

(a) no administrative penalty shall be due by a person for any default if that person proves that there is a reasonable excuse for the default;

(b) if a person does not prove that there is a reasonable excuse for a default, but the Commissioner is of the view that the default resulted from particular circumstances that merit a mitigation of the administrative penalty, he may, in his discretion, remit part of the administrative penalty for that default;

(c) if the Commissioner is of the view that the default resulted from a genuine mistake he may remit in whole or in part the administrative penalty for that default;

(d) no administrative penalty under article 38 shall be due where a return required to be made in terms of article 27 or a declaration required to be made in terms of article 30(1) is furnished in an electronic format through the established web portal designated for the purpose by the Commissioner, not later than seven days from the date on which the said return or declaration should have been submitted under the provisions of this Act.

(2) For the purposes of sub-article (1)(a) and (b) -

(a) an insufficiency of funds to pay any tax due; or

(b) when reliance is placed on any other person to perform any task, the fact of that reliance or any dilatoriness or inaccuracies on the part of the person relied upon, shall not constitute a reasonable excuse.

(3) Notwithstanding the provisions of articles 43 and 44, the use of the Commissioner’s discretion for the purpose of sub-article (1)(b) and (c) shall not be questioned in any appeal or in any reference made to the Tribunal.

(4) The Minister may by regulations prescribe other conditions under which part of, or all, the administrative penalty incurred under articles 37 to 41 may be remitted. Such regulations may also make provision for the remission of any administrative penalties due under the Value Added Tax Act, 1994, and under the Customs and Excise Tax Act.