Overview of the Tax Arrears Settlement Scheme (TASS) – Mauritius
The Mauritius Revenue Authority (MRA) has announced the renewal of the Tax Arrears Settlement Scheme (TASS) as of August 10, 2022. This scheme offers taxpayers an opportunity to settle outstanding tax liabilities with significant relief, notably through the waiver of penalties and interests, provided certain conditions are met. This notice aims to inform the public and guide eligible taxpayers on the scheme’s scope, application process, and key considerations.
Objective and Scope of the Scheme
The primary objective of TASS is to facilitate the clearance of tax arrears by encouraging taxpayers to settle their outstanding liabilities in a manner that benefits both the revenue authority and the taxpayer. The scheme applies to tax arrears as at 7 June 2022, under assessments issued or returns submitted on or before this date, relating to:
- Income Tax Act
- Value Added Tax (VAT) Act
- Gambling Regulatory Authority Act
Taxpayers who have pending assessments or unresolved tax obligations falling within these categories are eligible to participate, provided they act within the stipulated deadlines.
Key Provisions and Conditions
The scheme offers the following benefits and conditions:
- Full waiver of penalties and interest: Taxpayers who fully settle their arrears on or before 31 March 2023 will have all penalties and interests waived, contingent upon submitting a formal application to the MRA by 31 December 2022.
- Application process: Eligible taxpayers must submit an application through the prescribed channels before the deadline. The MRA’s online portals and designated offices facilitate this process.
- Settlement of arrears: The scheme emphasizes the importance of full payment of the outstanding amount by the specified deadline to benefit from the waiver.
Implications for Pending Legal Cases and Disputes
Taxpayers involved in ongoing assessments or disputes have specific options under the scheme:
- Those with assessments pending before the Assessment Review Committee, the Supreme Court, or the Judicial Committee of the Privy Council can benefit from the scheme by withdrawing their cases from these institutions before the application deadline.
- This withdrawal must occur prior to the submission of the TASS application to qualify for the waiver of penalties and interest.
Exclusions and Ineligibility Criteria
The scheme explicitly excludes certain categories of individuals and cases, including:
- Persons convicted of offences: Individuals convicted of offences on or after 1 July 2012 are not eligible.
- Pending legal proceedings: Those involved in ongoing civil or criminal proceedings related to tax or other offences cannot participate.
- Serious criminal investigations: Persons subject to investigations under laws related to drug trafficking, arms trafficking, terrorism, money laundering, or corruption are excluded.
Practical Steps for Interested Taxpayers
Taxpayers wishing to benefit from TASS should:
- Review their outstanding tax liabilities to confirm eligibility under the scheme.
- Prepare the necessary documentation, including assessment notices, tax returns, and identification details.
- Submit their application either online via the official Mauritius Revenue Authority portal or at designated MRA offices before the deadline of 31 December 2022.
- Ensure full payment of the arrears by 31 March 2023 to secure the waiver of penalties and interest.
Further Information and Assistance
For additional guidance or clarification regarding the TASS, taxpayers are encouraged to visit the official MRA website or contact the MRA helpdesk during working hours:
- Website: www.mra.mu
- Helpdesk Phone: +230 207 6000
This initiative underscores the Mauritius Revenue Authority’s commitment to fostering voluntary compliance and providing taxpayers with a structured opportunity to regularize their tax affairs efficiently and transparently.
