Valletta - 13th April 2000 
Re: INFORMATION SHEET NUMBER 101  
 

As you are undoubtedly aware, all Malta registered companies must submit annual accounts to the Commissioner of Inland Revenue.  As of basis year 1998 (year of assessment 1999), the Inland Revenue Department has become more stringent in enforcing the law.  Hence, a company must submit the annual accounts and Income Tax computation by not later than 9 (nine) months after the end of the financial year i.e. by September of the following year.  Companies submitting late or incomplete accounts incur the same heavy penalties as those companies which do not present accounts at all.  These penalties are enforced on the company, the directors or the shareholders personally.  The Department will not be lenient and has no power to waive or even reduce penalties levied.

Therefore, when a company does not abide by the law, a best of judgement assessment is issued and on this, interest is calculated at 1 % per month.  Besides this, a fine of Lm20 for late submission is levied.  When the accounts are submitted, the best of judgement assessment previously issued will be cancelled as well as the interest thereon.  However, the fine for late submission (Lm 20 for the first three months and more thereafter) will not and cannot be waived/reduced.  Hence, your co-operation in this matter is greatly appreciated.

Therefore, kindly send us accounts for any years which are still outstanding as failing to submit same will render the company, directors or shareholders personally liable to the fines and penalties above-mentioned.

In order to enable our auditors to file these documents on time, please ensure that unaudited accounts are sent to us latest by 31st May of each year.