Proposed amendment to ITMA

The Budget Measures Implementation Bill (Bill 173 of 2020) has proposed an amendment to the Income Tax Management Act (CAP 372).

A proposed new proviso to article 13(4), which provides a 5-year time limit within which to adjust a tax return resulting in a reduction in tax payable for an increase in tax repayable, reads:

“Provided that, this sub-article shall not apply when a further return is filed with the Commissioner for the purposes of implementing an agreement reached pursuant to a Mutual Agreement Procedure in terms of an arrangement in terms of article 76 of the Income Tax Act including Convention 90/436/EEC of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises.”