Value Added Tax Act (Cap. 406), article 84

84. (1) Notwithstanding any other provisions of this Act, the Commissioner may, in the case of an offence under this Act, ent er into an agreement in writing with the offender whereby the said offender pays a sum equivalent to the fine ( multa ) that may be imposed by way of penalty in accordance with this Act on the conviction of that person for th e said offence, sohowever that where a minimum and a maximu m amount is provided for in respect of the fine ( multa ) that may be so imposed, the sum payable pursuant to the said agreement sh all be a sum equivalent to the said minimum amount increased by on e half of the difference between the said minimum and maximum amounts, and upon the signing of any such agreement by the Commissioner and the offender all criminal liability of the offender under this Act with regard t o the offences in relation to which the agreement has been entered sh all be extinguished. (2) The provisions of sub-article (1) shall apply also in any case where the offender has been charged before a court in rela tion to the offence but before final judgment has been given in the case: Provided that where proceedi ngs before a court have not been commenced, the sum payable in accordance with any agreement as contemplated in sub-article (1) shall be reduced b y ten per cent. (3) Notwithstanding the provisions of sub-articles (1) and (2), the Commissioner may, in the case of an offence by any person against the provisions of articles 76(b), 77( e), 77( f), and 77( o), enter into an agreement with t he offender, whereby the said offender pays to the Commissione r within fifteen days from rece ipt of a notice to this effect by th e Commissioner the following: (a) one hundred euro (€100) in the case of a first offence; (b) two hundred euro (€200) in the case of a second offence; (c) four hundred euro (€400) in the case of a third offence; and (d) five hundred euro (€500) in the case where the offender and, or any of his employees or any other person acting on his behalf is found in default on two separate occasions within a period of six months; and upon the payment of such fine ( multa), all criminal liability under this Act with regard to the offences in relation to which the f ine (multa) has been paid, shall be extinguished. (4) Any sum due in virtue of an agreement entered into in terms of sub-article (1) or sub-article (3) shall be due to the Gover nment as a civil debt. The Commissioner shall not enter into an agree ment as is referred to in sub-article (1) or sub-article (3) unless such agreement is accompanied b the payment of the sum due or a sufficient security for its payment. (5) The provisions of this article shall be without prejudice to 58 CAP. 406.] VALUE ADDED TAX any proceedings or forf eiture instituted or having effect in vi rtue of any other law. (6) The said agreement and the payment of the fine ( multa ) so imposed shall be without prejudice to any tax, interest and administrative penalty due under this Act: Cap. 37. Provided that the Commission er, as head of the Department of Customs, may impose and collect penalties relating to tax on importation due under this Act, in the case of an agreement hav ing been reached in accordance with th e provisions of article 63 of the Customs Ordinance , and may also impose and collect penalties in the case of an agreement having been reached in accordance with the provisions of article 63A of the said Ordinance, so however that any reference to the duty in the fine ( multa ) referred to in article 63A shall be construed as if it were a reference to the tax due under this Act. Special mechanism for out of court settlements. Added by: XXX.2025.11.