On 1 December 2019, the MIRA introduced the Third Amendment to the Enforcement Policy bringing some important changes that benefit enterprises carrying on business with the State, and also introduces new commitment payment rates and payment schedules for small business, defunct business, and special rates and schedules for delinquent taxpayers that apply for an instalment plan between 1 December 2019 to 28 February 2020.
One of the more notable changes made in the amendment, now takes into consideration, delinquent taxpayers that have not received payments owed from the State or Majority State-owned enterprises, or unpaid monies which are the subject of dispute in the courts. In such situations, if the delinquent taxpayer has proof that they have submitted the matter to the courts, or that the monies are owed by the State or a Majority State-Owned Enterprise, no action will be taken under the enforcement policy until conclusion of those proceedings. This, however, is contingent on the basis that the money sought after in court, or from the State or majority State-Owned Enterprise relates to a taxable period to which the delinquent taxpayer has not received payment
Further, the amendment reverts the notice period sent under Section 3 of the Enforcement Policy to 30 (thirty) days. Once the first 30 (thirty) day notice period has transpired, the delinquent taxpayer will receive a final notice of 30 (thirty) days, following from which action will be taken as stipulated in the Policy.
One more notable addition under the amendment, is the inclusion of Schedules 3, 4, and 5 which respectively allot special commitment rates and payment schedules for defunct businesses, delinquent taxpayers which are not small businesses, and delinquent taxpayers which are small businesses. Schedules 4 and 5 respectively, have special commitment payment rates and payment schedules for eligible taxpayers that apply for an instalment plan between 1 December 2019 and 28 February 2020.
The amendment comes into effect from 1 December 2019 onwards.