Mauritius Tax Arrears Settlement Scheme Overview

Overview of the Tax Arrears Settlement Scheme (TASS) in Mauritius

The Mauritius Revenue Authority (MRA) has announced the renewal of its Tax Arrears Settlement Scheme (TASS), a significant initiative designed to assist taxpayers in settling outstanding tax liabilities while benefiting from substantial waivers. This notice provides essential information regarding the scheme’s objectives, scope, and the procedures for participation, aiming to facilitate compliance and promote voluntary disclosure among taxpayers.

Objective and Scope of the Scheme

The primary aim of the TASS is to encourage taxpayers with overdue tax liabilities to settle their debts by offering full waivers on penalties and interest accrued up to a specific date. The scheme applies to tax arrears as of 2 June 2023, covering assessments issued or returns submitted on or before this date under the Income Tax Act, the Value Added Tax Act, or the Gambling Regulatory Authority Act.

By providing a window for full waiver of penalties and interest, the scheme seeks to enhance voluntary compliance, reduce the backlog of unresolved tax cases, and improve revenue collection efficiency. The scheme has been renewed, indicating the MRA’s ongoing commitment to fostering a cooperative tax environment.

Key Conditions and Deadlines

Application Period

• Taxpayers wishing to benefit from the scheme must submit their application for waiver on or before 3 January 2024.
• The payment of the outstanding tax amount must be completed on or before 1 April 2024.

Electronic Application Process

Taxpayers can conveniently apply online via the MRA website at www.mra.mu. The digital platform simplifies the application process, aligning with the government’s push towards e-services and digital administration.

Payment of Tax Arrears

To qualify for the waiver, the full amount of tax arrears must be paid by the specified deadline. Partial payments or delayed settlement will not qualify for the scheme’s benefits.

Legal and Procedural Considerations

Taxpayers with pending assessments before the Assessment Review Committee, the Supreme Court, or the Judicial Committee of the Privy Council may still join the scheme by withdrawing their cases prior to these proceedings. This provision encourages voluntary settlement and reduces legal complexities.

Exclusions from the Scheme

The scheme does not apply to individuals or entities involved in specific serious offences or investigations, including:

• Persons convicted of an offence on or after 1 July 2012.
• Cases currently under or contemplated for civil or criminal proceedings.
• Individuals under investigation related to drug trafficking, arms trafficking, terrorism, money laundering, or corruption, under respective laws such as the Dangerous Drugs Act, the Prevention of Terrorism Act, the Financial Intelligence and Anti-Money Laundering Act, and the Prevention of Corruption Act.

Implications for Taxpayers

This scheme offers a valuable opportunity for taxpayers with overdue liabilities to regularize their tax position with significant financial relief. By settling their arrears within the stipulated deadlines, taxpayers can benefit from the complete waiver of penalties and interest, thereby reducing their overall tax burden.

Participating in the TASS also signifies a proactive approach to compliance, which may positively influence future dealings with the MRA. Moreover, the scheme’s online application process ensures accessibility and ease of use, encouraging wider participation among taxpayers.

Further Information and Support

For additional details regarding the scheme, eligibility criteria, or the application process, taxpayers are advised to visit the official MRA website at www.mra.mu or contact the MRA Helpdesk during working hours at +230 207 6000. The authority remains committed to supporting taxpayers through clear communication and efficient service delivery.

Conclusion

The renewal of the Tax Arrears Settlement Scheme underscores the Mauritius Revenue Authority’s dedication to fostering voluntary compliance and enhancing revenue collection through pragmatic and taxpayer-friendly measures. Taxpayers with outstanding liabilities are encouraged to take advantage of this opportunity to resolve their tax matters efficiently and benefit from the waiver of penalties and interest, provided all conditions are met within the specified deadlines.