Section 73: Transitional provisions

73. Transitional provisions (1) Notwithstanding this Act, where a person who applies for VAT registration on or before 30 June 2013 ought to have been registered before the date of his registration, he shall submit the statement under section 23 in respect of taxable periods commencing on the date he was required to be registered or 1 January 2010, whichever is the later, and ending on the date immediately preceding the date of his registration. V4 – 47 [Issue 6] Value Added Tax Act (2) A person referred to in subsection (1)— (a) shall submit the statement required under section 23, by 30 September 2013 at latest; (b) may take credit for input tax for the taxable periods in respect of which the statement is submitted; and (c) shall be allowed such deemed credit for input tax as may be determined by the Director-General where he cannot substantiate the VAT paid or payable on the taxable supplies made to him during the period before registration. (3) A person who makes an application for VAT registration pursuant to subsection (1) shall not be liable to— (a) penalty for failure to apply for compulsory registration under section 15A; (b) penalty for late payment of tax under section 27; and (c) interest on unpaid tax under section 27A, from the date the tax was due to 30 September 2013. (4) Where, on or before 30 September 2013, a registered person makes a voluntary disclosure of his undeclared or underdeclared VAT liability for taxable periods before taxable period commencing on 1 October 2012, he shall, at the same time, pay the VAT at the appropriate rate in force in respect of each taxable period, free from any penalty that may have become due in accordance with this Act and free of interest up to 30 September 2013 under section 27A. (5) For the purpose of the disclosure under subsection (4), the person shall be entitled to credit for input tax in respect of the period of the disclosure. (6) Where the VAT disclosed under subsection (4) is not paid by 30 September 2013, any unpaid VAT shall carry interest at the rate of one per cent per month. (7) Where a person who has been assessed to tax— (a) has objected to the assessment under section 38; (b) has lodged a representation with the Clerk of the Assessment Review Committee; or (c) has appealed to the Supreme Court or to the Judicial Committee of the Privy Council, he may apply to the Director-General for the tax assessed to be considered as a voluntary disclosure of undeclared VAT under subsection (4), provided that he withdraws his objection, representation or appeal, as the case may be. (8) Where a person has made an application under subsection (7), his VAT liability shall be recomputed to take into account the credit for input tax for the period assessed and any agreement reached between the person and the Director-General on any item under dispute. [Issue 6] V4 – 48 Revised Laws of Mauritius (9) (a) The disclosure under subsection (4) shall be made in such form and manner and under such conditions as the Director-General may determine. (b) Failure to comply with any condition under this subsection shall entail the withdrawal of any benefits under subsections (4) and (10) to the taxpayer. (10) Where a person— (a) submits a statement of VAT payable in respect of the period before the date of his registration pursuant to subsection (2); or (b) makes a voluntary disclosure of his VAT liability pursuant to subsection (4); and the Director General is satisfied with the statement or disc ditions as the Director-General may determine. (b) Failure to comply with any condition under this subsection shall entail the withdrawal of any benefits under subsections (4) and (10) to the taxpayer. (10) Where a person— (a) submits a statement of VAT payable in respect of the period before the date of his registration pursuant to subsection (2); or (b) makes a voluntary disclosure of his VAT liability pursuant to subsection (4); and the Director General is satisfied with the statement or disclosure, as the case may be, the person shall be deemed, notwithstanding sections 54 to 61, not to have committed an offence. (10A) (a) Where the Director-General and a person have entered into an agreement for the payment of the tax due by that person pursuant to subsection (4) in respect of a period, the Director-General shall not— (i) request from that person any information, statement or return; or (ii) make an assessment on, or a claim on, that person, for that period, unless the Director-General applies ex parte for and obtains the authorisation of the Independent Tax Panel under the Mauritius Revenue Authority Act. (b) Where, before 1 June 2016, an assessment or a claim has been made after the date of an agreement pursuant to subsection (4) in respect of the period covered in the agreement and the assessment or claim has remained pending at the level of objection at the Authority or pending before the Assessment Review Committee, the assessment or claim shall, 1 June 2016, lapse, unless the Director-General applies ex parte for and obtains the authorisation of the Independent Tax Panel. (c) An authorisation under paragraph (a) or (b) shall be granted where the Director-General establishes to the satisfaction of the Independent Tax Panel that there is prima facie evidence of fraud. (11) Where VAT arrears outstanding as at 8 June 20l7 are fully paid by a person on or before 31 May 2018, any penalty and interest included in the VAT arrears shall be reduced by 100 per cent, provided that an application for the reduction is made to the Director-General on or before 31 March 2018. (12) In subsection (11)— “VAT arrears”— (a) means tax in respect of— (i) a return made under section 22; (ii) a statement made under section 23; or V4 – 49 [Issue 10] Value Added Tax Act (iii) an assessment made under section 37, on or before 30 June 2015 and tax and penalties in connection thereto have remained unpaid; but (b) does not include tax due under an assessment which is pending before the Assessment Review Committee, Supreme Court or Judicial Committee of the Privy Council. (13) This section shall not apply to any person— (a) who has been convicted on or after 1 July 2001 of an offence relating to; (b) against whom any civil or criminal proceedings are pending or contemplated in relation to an act of; or (c) in relation to whom an enquiry is being conducted into an act of, trafficking of dangerous drugs, arms trafficking, or an offence related to terrorism under the Prevention of Terrorism Act, money laundering under the Financial Intelligence and Anti-Money Laundering Act or corruption under the Prevention of Corruption Act. (14) Where a person ceases to be a registered person on 1 April 2013 on grounds that his annual turnover does not exceed or is not likely to exceed 4 million rupees and his return for the last taxable period shows an excess amount, that amount shall be deemed to be value added tax on trading stocks held, and in respect of services not su evention of Terrorism Act, money laundering under the Financial Intelligence and Anti-Money Laundering Act or corruption under the Prevention of Corruption Act. (14) Where a person ceases to be a registered person on 1 April 2013 on grounds that his annual turnover does not exceed or is not likely to exceed 4 million rupees and his return for the last taxable period shows an excess amount, that amount shall be deemed to be value added tax on trading stocks held, and in respect of services not supplied, by that person and shall not be refundable and shall not be carried forward as a credit to be offset against his VAT liability, if any. [S. 73 added by s. 31 (u) of Act 15 of 2006 w.e.f. 7 August 2006; amended by s. 31 (j) of Act 17 of 2007 w.e.f. 1 July 2007; repealed and replaced by s. 19 (k) of Act 37 of 2011 w.e.f. 15 December 2011; 1 January 2012; s. 29 (m) of Act 26 of 2012 w.e.f. 22 December 2012; amended by s. 53 (p) of Act 9 of 2015 w.e.f. 1 June 2016; s. 57 (p) of Act 10 of 2017 w.e.f. 24 July 2017.] 74. – 76. — FIRST SCHEDULE [Sections 2, 9, 10, 49, 51, 52 and 53] GOODS OR SERVICES EXEMPTED 1. —