New Conditions on Releasing Frozen Bank Accounts of Taxpayers

On 6 November, the MIRA published the second amendment to its Enforcement Policy, amending bank account release conditions, and introduced a new schedule for instalment payments granted to small businesses to pay outstanding taxes and fines.

The amendment introduces a new subsection and changes to Section 24 of the Enforcement Policy, which addresses circumstances under which frozen bank accounts will be released. The Policy now requires a delinquent taxpayers bank account to be released if the taxpayer comes to an instalment agreement with the MIRA, or a case is filed with a court of law to recover the outstanding amount, or a court orders the release of the frozen bank account.

In addition to those changes, the amendment to the Policy introduces a new instalment schedule for small businesses. Those businesses, classified as having an annual turnover of 20 million rufiyaa or less, will be required to pay a significantly reduced commitment payment and get more instalment periods to settle the outstanding amount.