A new decision by the Minister of Finance … and that’s what it says


A new decision by the Minister of Finance ... and that's what it says

Finance Minister Youssef Al-Khalil has signed a decision setting out the basis for the settlement of the verification and collection fines imposed under the tax laws for violations that occurred from 1/8/2019.

The decision stipulated the following:
Article One: Unlike any other text, this decision defines the details of the application of the provisions of Act No. 662 of 4/2/2005, which allows the Minister of Finance to reach a settlement on the fines imposed and collected by the Public Finance. Directorate in the Ministry of Finance in accordance with the laws of taxation and direct and indirect fees for violations committed during the period from 1/8/2019 to the date of this decision.

Section One: Verification Fines
second subject:
1. The verification penalties imposed in terms of the laws of income tax, built property, transfer fees, taxes and indirect fees set out above, and value added tax imposed or imposed under the amending texts of these laws (the Tax Procedure Act …) will be reduced in in accordance with the provisions of Article Five of this Decision.

2. The verification penalties associated with this decision include:
Relative fines, including minimum.
Fixed fines.
3. The proportionate or lump sum verification penalty to be imposed or to be imposed for one tax period shall be reduced, provided that the value of verification or collection fines after the reduction shall not be less than £ 50,000.

4. The following fines are excluded from the settlement:
The fine of which the settlement is subject to special legal provisions.
A fine that can not be settled by legal texts.
A fine of less than fifty thousand pounds.
A fine that is not paid along with the tax or fee is specified within the period for payment or the installment request.
The fine resulting from the repetition of the offense, which is set at a lump sum.

5. The leave to pay any investigative fine by which the reduction exceeds the amount of one billion Lebanese pounds is subject to the approval of the Council of Ministers, taking into account that the calculation of the reduction in this case is carried out in accordance with the following:

For each tax period separately from other tax periods.
The reduction of the verification and collection fines is calculated together.
The reduction of the resulting verification penalty (together with the related collection penalty) is calculated for each offense in the case of multiple offenses for the same tax period.

Article Three: The settlement deals with verification fines for offenses as set out in Article 1 of this decision to be imposed or to be imposed in terms of assignment schedules, arrest warrants, urgent costs, tax notices or deductibles, provided that the taxpayer owes the reduced fine or tax the required fee in accordance with the provisions of this decision.

Article Four: This settlement includes the fines arising from the offenses that occurred during the period from 1/8/2019 until the date of this decision was implicitly issued in accordance with the provisions of Article V below, and benefits therefrom:

– Those to whom verification fines have been imposed, according to the order documents, before the issuance of this decision, or it will be imposed on them after the issuance thereof and until the expiration date thereof, and who have not yet paid for the specified violations above, with provided that the fine is paid together with the tax within the period specified in Article 9 of this decision.

Taxpayers applying for installments of tax that can be legally divided into installments, provided that they pay the first payment within the period specified in this resolution, which extends from the date of its entry into force and expires on the date specified in Article Nine of this resolution.

Fifth Article: Verification penalties will be reduced from the date of issue of this decision to the date specified under Article Nine of this decision according to the following:
– fine type verification
-discount percentage.
The relative penalty of 85% for the offenses specified in Article 4 of this decision.
The lump sum fine is 60 percent

Section Two: Fines for delay in payment (collection fines)
Article Six: The settlement deals with fines for delay in payment (collection fines), which are related to various types of tax and direct and indirect fees, including the stamp duties and value added tax, which are due or will be required during the work period. decision, whether the delay in payment occurred before or after the date of the decision The commencement of this decision.

Article Seven: The late payment penalties referred to in Article Six of this resolution, provided that taxes and verification penalties are paid within the time limit specified in Article Fourteen of this resolution, shall be seventy-five percent (75 percent). be reduced.

Eighth article: The competent collection units reduce the collection and verification penalties immediately upon receipt of the taxpayer based on the automatic collection programs, provided that the non-automated collection unit organizes monthly statements of the reduced fines and the collection department in its local financial interest governor, who is in charge of checking the correctness of the calculation.

The specific tax departments in the governors and the Tax Department for Building Property in Beirut, in cooperation with the electronic center, must, within one month of the issuance of the accelerated additional commissioning notices within the reduction period, issue additional commissioning schedules that comply with these notices and check these schedules.

Article Nine: On Value Added Tax:
The Collection Department at the Value Added Tax Directorate issues download notices to reduce verification penalties due to taxpayers and to be paid within the deadlines specified in this decision.

Article Ten: The employee who organizes the tax assignment document must record on this document the type of fines imposed, and specify whether it can not be settled in accordance with the provisions of this decision and whether it is proportional or lump sum fines.

Section Three: Various Provisions:

Eleventh Article: The right of the person charged with the payment of the fines subject to this decision is forfeited in the event that the reduced fine with the required tax or fee is not paid within the time limit specified in Article Nine of this decision not.

Contrary to the provisions of the above paragraph, the tax administration may inform taxpayers of the reduction of fines in accordance with the provisions of Articles Five and Seven above, without linking it to the payment of taxes or fees, if the payment was involuntary by deduction from the amounts due in favor of the taxpayer, provided that the fine is complied with according to the following:
For each tax period separately from other tax periods.

The reduction of the verification and collection fines is calculated together.
The reduction of the resulting verification penalty (together with the related collection penalty) is calculated for each offense in the case of multiple offenses for the same tax period.
– Article Twelve: Fines paid at any time shall be deemed to be an acquired right of the Treasury and may not be recovered except for the reason based on the material error (including repetition in the payment of the fine) or as due to legal objections.

Thirteenth Article: Taxpayers who request the installments of the due tax and fees and benefit from a reduction in fines based on the provisions of this resolution, reserve the right to pay the above fines in the event of their failure to pay one Of the installments and the claim on the entire remaining installments together with the interest accrued therefrom.

Article Fourteen: This decision lasts until 31 December 2022.

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