The government is to take steps to collect the Lm21 million due in taxes from 6,600 operators but is prepared to waive the Lm5.1 million they owe in penalties as long as they regularise their position by the end of June.
This is one of two schemes - the other being incentives for small self-employed concerns - the government had announced in the last budget and which was launched by Parliamentary Secretary Tonio Fenech yesterday.
The first scheme is split in two and covers waiving the VAT penalties incurred in 1999 and also waiving additional tax imposed in line with the VAT Act of 1998.
About 4,200 operators owe Lm9 million in taxes and Lm2.8 million in penalties. The majority, 1,050 operators, owe about Lm150 and 11 owe over Lm30,000.
All the 6,600 operators who qualify for the scheme will be informed through a letter and their position has to be regularised by June 30.
The adjustments on taxpayers' balances will be effected after June 30, after it is ensured that the balances have been settled.
Mr Fenech appealed to all the operators to grab this one-off opportunity to regularise their position. "If there are those who do not have cash liquidity then they should make arrangements with the bank to determine the best way to pay - the interest rates of the bank will be less than those incurred through late payments," he pointed out.
The second scheme involves measures for the accelerated payment of VAT refunds to small businesses and self-employed concerns with fewer than 11 full-time employees, excluding apprentices or students employed full-time, and whose turnover does not exceed Lm250,000.
Under this scheme operators will receive the payment of VAT refunds due to them within 30 days of the date of their return, as long as this is sent on time.
Before, this scheme only considered those small businesses that employed six full-time employees, including apprentices and students.
Mr Fenech said the department was making the necessary arrangements for this measure to be introduced immediately.
He highlighted the fact that it was in the interest of each operator to inform and update the department on their status and the number of employees to qualify for the scheme.