Value Added Tax Act (Cap. 406), article 37

37. (1) Saving the provisions of sub-article (2), when a tax return furnished by a person registered under article 10 for a tax period contains an understatement of the output tax or an overstatement of the deductions for that period, that person becomes liable to an administrative penalty in an amount equivalent to twenty per cent of the total of - (a) the excess, if any, of the correct amount of output tax over the output tax as dec lared in the return; and (b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions. (2) Where a person corrects an understatement or overstatement as is referred to in sub-article (1) in accordanc e with the provisions of article 28(1) before he is served with a prov isional assessment for that period, tha t person becomes liable to an administrative penalty in an amount equivalent to ten per cent of the total of - (a) the excess, if any, of the correct amount of output tax over the output tax as dec lared in the return; and (b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions. (3) Where a tax return for a tax period furnished to the Commissioner by a person registered under article 10 who only supplies goods or services listed under Part One of the Fifth S chedule to this Act, does not contain a full and correct statement of t he matters required to be declared by that person in that return and to th e extent that that person does not correct such an understatement or overstatement in accordance with t he provisions of article 28 b efore he is served with an assessment for that period he shall, unless t hat person has in virtue of that default become liable to a higher adminis trative penalty under the other provisions of this article, be liable t o an administrative penalty of one hun dred and fifty euro (€150). (4) Where, during the course of an investigation, a person co- operates with the Commissioner, accepts an agreem ent and within one month from the signing of the agreement pays the amount of tax due, the agreed administrativ e penalty and the interest due , that person shall be liable to an administrative penalty in an amoun t equivalent to 10 per cent of the amount of tax due. Administrative penalty for understated or assessed tax under article 12. Added by: V . 2012.64.