International Tax Authority (Administrative Penalties) Regulations, 2023 (SI No. 92 of 2023)

Summary

This regulation sets out the International Tax Authority's (ITA) power to impose administrative and continuing penalties on persons or legal entities that contravene the International Tax Authority Act or mutual legal assistance legislation (such as CRS/FATCA-related obligations). It replaces and revokes the 2022 version of these regulations, updating the penalty amounts and procedure.

• Breach notice: Before imposing a penalty, the Authority must issue a breach notice stating the contravention, proposed penalty amount, and the right to make representations.
• Representations: The person or entity may make representations to the Authority within 21 days of the breach notice, which the Authority must consider before imposing a penalty.
• Penalty notice: After the 21-day period, the Authority may issue a written penalty notice; the penalty must be paid within 14 days of receipt (or by agreed instalments).
• Continuing penalties: If a contravention is not remedied and is not stayed, the Authority may impose a continuing penalty of $50 per day it continues.
• Appeal rights: A person or legal entity aggrieved by a penalty decision may appeal to the Court within 30 days of receiving the notice or decision.
• Limitation period: The Authority cannot issue a breach notice more than 2 years after it first knew (or reasonably should have inferred) the contravention occurred.
• Schedule of penalties: The Schedule sets tiered fines for late filing/response (from $100 up to $10,000 depending on delay), false information ($2,000-$50,000), failure to comply with a notice to produce information ($1,000-$50,000), compliance contraventions ($1,000-$15,000), late payment surcharges (5% per month up to 60% of the fee/penalty), and a general catch-all contravention penalty ($100-$50,000).

The Authority may not impose more than one administrative penalty for the same contravention and may compound multiple penalties where several contraventions occur together. An ongoing prosecution for the same offence precludes an administrative penalty (and vice versa is not precluded).

Key obligations

• A person or legal entity that receives a penalty notice must pay the stated administrative penalty within 14 days of receipt, unless instalments are agreed with the Authority.
• A person or legal entity may make representations to the Authority within 21 days of receiving a breach notice contesting the contravention or proposed penalty amount.
• A person or legal entity aggrieved by a penalty or other decision under these regulations may file an appeal to the Court within 30 days of receiving the penalty notice, continuing penalty notice, or decision.
• If a contravention is not remedied and not stayed, continuing penalties of $50 per day may accrue until remedied.
• Late payment of any fee or penalty under mutual legal assistance legislation or these regulations attracts a surcharge of 5% per month outstanding, up to a maximum of 60% of the total.

Applies to

persons subject to the International Tax Authority Act, legal entities subject to the International Tax Authority Act, persons or entities subject to mutual legal assistance legislation (e.g. CRS/FATCA reporting entities)

Deadlines

• within 21 days of the date of the breach notice: Deadline for a person or legal entity to make representations to the Authority against a proposed administrative penalty.
• within 14 days of receipt of the penalty notice: Deadline to pay the administrative penalty stated in the penalty notice (unless instalments are agreed).
• within 30 days of receiving the penalty notice, continuing penalty notice or decision: Deadline to file an appeal before the Court.
• 2 years from the date the Authority first knew of the contravention: Limitation period after which the Authority may not issue a breach notice for that contravention.
• $50.00 for each day the contravention continues: Basis for calculating continuing penalties where a contravention remains unremedied.

Related documents

• This document is made under International Tax Authority Act (Revised Edition 2020)