Tax agency announces instructions to slash fines

AMMAN — Income and Sales Tax Department (ISTD) Director General Bashar Nasser on Tuesday announced a mechanism to implement the Cabinet's decision related to partial exemption from fines imposed on defaulting taxpayers. 

The Council of Ministers on Sunday delegated related powers to the director general of ISTD to work out the necessary mechanism of implementation and look into any discrepancies that might occur.

The mechanism will be applied as of Wednesday, October 12, and the decision is valid for a 90-day period, the Jordan News Agency, Petra, reported.

Under the decision, accumulated public money claims related to income and sales taxes, their fines and the additional 9 per cent in  civil and legal compensations, should be collected from taxpayers whose dues at the end of 2015 reached or exceeded JD5,000.

The decision stipulates that if taxpayers pay their overdue taxes during the 90-day period and pay also the fines as well as interests and civil and legal compensation, which amount to 9 per cent of the total, then they will be entitled to a waiver of 50 per cent of the value of the fines as well as the 9 per cent. 

In case taxpayers wanted to pay their dues in instalments, they will get exemption worth 25 per cent of the fines and the 9 per cent, provided they pay 25 per cent of the total of their dues as an advance payment and pay the rest in a total of 12 instalments over 90 days, in addition to providing bank cheques covering each instalment. 

If taxpayers want to pay in more than 12 instalments, they are exempted from paying only the additional 9 per cent, but have to pay the fines and overdue taxes in no more than 24 instalments, also during the 90-day period, in addition to providing bank cheques covering each instalment. 

If taxpayers default on paying any instalment, they will still have to pay the rest of the instalments, but all exemptions will be cancelled.

If any disputes arise while applying the exemption decision, such cases shall be referred to the director general to examine them and make the appropriate decision, Petra added.