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Maltese Laws |
AN ACT to implement Budget measures for the financial year 2010 and other administrative measures.
BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-
Short title. 1. The short title of this Act is the Budget Measures
Implementation Act, 2010.
Coming into force of this Part.
Interpretation. Cap. 174.
Authority to raise loan.
Cap. 161.
(2) For the purpose of raising the aforesaid loan the Minister responsible for finance is hereby authorised to issue stock in Malta
under the provisions of the Local Loans (Registered Stock and Securities) Ordinance on such terms and conditions as the
said
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Minister may approve.
(a) meeting excess expenditure over revenue incurred in the Consolidated Fund for year 2010 and/or subsequent years;
(b) redeeming registered stocks which are due for redemption during 2010; and
(c) effecting portfolio changes in relation to amounts raised through Treasury Bills, amounts raised through Government Stocks,
and in respect of loans raised outside Malta as and when required in line with Government’s debt management policies.
(2) The provisions of this Part shall come into force on such date as the Minister responsible for finance may, by notice in the Gazette, establish, and different dates may be so established for different provisions or different purposes of this Part.
amended as follows:
(i) in sub-paragraph (ii) thereof, for the words "business, goodwill," there shall be substituted the words "business,
goodwill, business permits,";
(ii) in sub-paragraph (iii) thereof, for the words "of such trust.", there shall be substituted the words "of
such trust; and" and
(iii) immediately after sub-paragraph (iii), as amended, there shall be added the following new sub- paragraph:
"(iv) gains or profits arising from a transfer of securities as provided for in sub-article (9A) and from a transfer of value
in securities as provided for in sub-article (13)(b)(ii).";
Purpose.
Amendments to the Income Tax Act.
Cap. 123.
Amendment of article 5 of the principal Act.
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(b) in paragraph (b) of sub-article (1) thereof, in the definition of "transfer", for the words "long term policies
of insurance," there shall be substituted the words "long term policies of insurance, and any occurrence that is deemed
to be a transfer in accordance with the provisions of sub-articles (9A) and (13)(b),";
(c) in the proviso to paragraph (c) of sub-article (3) thereof, for the words "Minister responsible for finance;"
there shall be substituted the words "Minister responsible for finance:" and immediately thereafter there
shall be added the following new proviso:
"Provided further that where an amount standing to the credit of any of a company’s reserve accounts or of its profit and
loss account is applied in paying up to any extent any shares allotted by the company, the cost of acquisition of such
shares shall be zero.";
(d) in paragraph (b) of sub-article (6) thereof, for the words "in a collective investment scheme;" there shall be substituted
the words "in a collective investment scheme:" and immediately thereafter there shall be added the following new proviso:
"Provided that this paragraph shall not apply where the transfer of such shares is made by any shareholder of the said company
existing immediately before the shares were admitted to listing, and where such shares where held in the said company before
they where admitted to listing.";
(e) immediately after paragraph (ii) of subarticle (9)
thereof, there shall be added the following new paragraph:
"(iii) The provisions of this subarticle shall only apply where the individual direct or indirect beneficial owners
of the companies referred to in this subarticle are the same and each such individual holds, directly or indirectly, substantially
the same proportion of the nominal share capital and voting rights in each of the said companies:
Provided that for the purpose of this paragraph an individual is deemed to hold substantially the same proportion of the nominal share
capital and voting rights in each of the said companies where the difference between
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the proportions held in each company does not exceed twenty percent:
Provided further that where an individual holds, directly or indirectly, less than five percent of the nominal share capital and
voting rights in only one of the companies referred to in this subarticle, such individual shall, for the purpose of this
paragraph, not be taken into account in determining whether the individual direct or indirect beneficial owners of the companies
referred to in the said subarticle are the same:
Provided also that if more than one individual holds, directly or indirectly, less than five percent of the nominal share capital
and voting rights in only one of the said companies, the previous proviso shall not apply where together such individuals hold, directly
or indirectly, five percent or more of the nominal share capital and voting rights in the company.";
(f) immediately after sub-article (9) thereof, as amended, there shall be added the following new sub-article:
"(9A) (a) If a company ("the chargeable company") owns shares in a company, which have been acquired from another
company, and such acquisition was exempt from tax under sub-article (9), this sub-article shall apply if the chargeable company ceases
to be a member of the group before the lapse of six years from the date of the said acquisition. References in this sub-article
to a company ceasing to be a member of a group of companies do not apply to cases where a company ceases to be a member of a
group by being wound up or dissolved or in consequence of another member of the group being wound up or dissolved:
Provided that if a company, other than the chargeable company, ceases to be a member of a group by being wound up or dissolved, for
the purpose of determining whether the chargeable company ceases to be a member of the group under paragraph (b), such company shall
be deemed to remain in existence.
(b) A company shall cease to be a member of a group, hereinafter referred to as the "original group", if such company
and the company from which it had acquired the shares referred to in this sub-article no longer
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satisfy the provisions of sub-article (9)(i) and (iii):
Provided that if the chargeable company and the company from which the shares have been acquired cease to be members of the original
group at the same time, within the period referred to in paragraph (a), the chargeable company shall be treated as ceasing to be
a member of the group notwithstanding that the said provisions remain satisfied:
Provided further that the preceding proviso shall not apply where there has not been any change in the individual direct or
indirect beneficial owners of the companies involved or in the proportion in the value of each of the companies involved represented
by the shares owned beneficially directly or indirectly by each such individual.
For the purpose of this paragraph the term "original group" shall mean the two companies referred to in first proviso to
this paragraph, and the individual direct or indirect beneficial owners of the said companies as existing on the date of the
acquisition referred to in the said paragraph.
(c) When the chargeable company ceases to be a member of the group it shall be treated for all the purposes of this
article as if, immediately after its acquisition of the shares, it had transferred and immediately re-acquired the
shares at that time.
(d) The base cost and the date of acquisition of the shares that is taken into account for the purpose of determining any gain
or loss shall be the original cost and the date when the shares had previously last been acquired by a company by means of a transfer
that did not qualify for an exemption in terms of sub-article (9) or by means of an issue of such shares.
(e) (i) For the purpose of ascertaining the gains or profits arising under this sub-article, the acquisition
cost of shares acquired before the 25th November, 1992 shall be valued either on the Equity method of share valuation (net asset
value) based on the last accounts submitted to the Commissioner by the 18th December, 1992 or on the actual purchase price, whichever
is the higher.
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(ii) Shares acquired on or after the 25th
November, 1992, shall be valued on the cost of acquisition:
Provided that where an amount standing to the credit of any of a company’s reserve accounts or of its profit and loss account
is applied in paying up to any extent any shares allotted by the company, the cost of acquisition of such shares shall
be zero.
(f) Any gain or loss on the transfer referred to in paragraph (c) shall be treated as accruing to the chargeable company immediately
before the company ceases to be a member of the group in accordance with paragraph (c).";
(g) sub-article (13) thereof shall be amended as follows: (i) the present provisions of paragraph (b)
thereof shall be renumbered as sub-paragraph (i) of the
said paragraph (b) and for the words "such reduction is effected." there shall be substituted the words "such reduction
is effected:"; and immediately thereafter there shall be added the following proviso:
"Provided that this paragraph shall not apply where there is a proportionate reduction in the shareholding of all the shareholders,
such that the proportion of the shareholding of each shareholder with respect to number, type, class, voting rights and value of
shares is equal before and after the reduction is effected."; and
(ii) immediately after paragraph (b)(i) thereof, as amended, there shall be added the following new sub- paragraph:
"(ii) Where the market value of shares held by a person in a company has been reduced as a result of a change in the issued
share capital of such company, or a change in any rights attached to such shares, and such value passes into other shares in or rights
over the company (held by other shareholders), such person shall be deemed to have made a transfer of such value so reduced.
Any gains or profits shall be calculated by taking into account the difference between the market value of the shares held immediately
before and after the
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said change and shall be determined in such manner as may be prescribed."; and
Amendment of article 5A of the principal Act.
(h) in the second proviso to sub-article (15) thereof, for the words "had this sub-article not been applied." there shall be substituted the words "had this sub-article and article 5A not been applied.".
(a) sub-article (3) thereof shall be amended as follows:
(i) in paragraph (b) thereof, for the words "five years", wherever they occur, there shall be substituted the words
"seven years"; and
(ii) in paragraph (h) thereof, for the words "as may be prescribed;" there shall be substituted the words "as
may be prescribed:" and immediately thereafter there shall be added the following proviso:
"Provided that such person is not owned or controlled by, directly or indirectly, nor acts on behalf of, an individual or individuals
who is or are ordinarily resident and domiciled in Malta;";
(b) sub-article (4) thereof shall be amended as follows: (i) in paragraph (c) thereof, for the words
"vacating the premises:" there shall be substituted the
words "vacating the premises and provided further that this paragraph shall only apply where the transfer would not have been
chargeable under the provisions of article
4(1)(a) but for the provisions of this article:";
(ii) in paragraph (f) thereof, for the words "if it were a transfer to which article 5 applied, would qualify for tax relief
under article 5(9):" there shall be substituted the words "would qualify for tax relief under article 5(9) but for the
provisions of this article:";
(iii) in the proviso to paragraph (f) thereof, for the words "to the said transfer;" there shall be substituted the
words "to the said transfer:" and immediately thereafter, there shall be added the following new proviso:
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"Provided further that if such transfer does not qualify for tax relief under article 5(9) solely for the reason that it is not
a transfer of a capital asset, such transfer shall be exempt from tax under the provisions of this paragraph if the said transfer
is part of a restructuring, involving the transfer of the whole or part of a company’s business to another company and
the said property has been owned by the transferring company for a period exceeding seven years."; and
(iv) in the second proviso to paragraph (g) thereof, for the words "five years", there shall
be substituted the words "seven years";
(c) sub-article (10) thereof shall be amended as follows: (i) in paragraph (b) thereof, for the words "to
the extent that those gains or profits are correctly declared
in the deed of the transfer" there shall be substituted the words "to the extent that they are attributable to a transfer
whose transfer value has been correctly declared in the deed of the transfer or a transfer which has been correctly declared to be
exempt or out of the scope of this article,"; and
(ii) in paragraph (d) thereof, for the words "to which this article applies to the final taxed account." there shall
be substituted the words "to which this article applies, and on which tax is payable in accordance with this article, to the
final tax account.";
(d) sub-article (12A) thereof shall be amended as follows:
(i) in paragraph (a) thereof, for the words "five years" there shall be substituted the words "six years";
and for the words "of the group being wound up or dissolved." there shall be substituted the words "of the group being
wound up or dissolved:", and the following proviso shall be added immediately thereafter:
"Provided that if any company, other than the chargeable company, ceases to be a member of a group by being wound up or
dissolved, for the purpose of determining whether a company ceases to be a member of a group under sub-article (b),
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such company shall be deemed to remain in existence."; and
(ii) paragraph (b) thereof shall be substituted by the following new paragraph:
"(b) A company shall cease to be a member of a group, hereinafter referred to as the "original group",
if such company and the company from which it had acquired the property referred to in this sub-article no longer satisfy
the provisions of subarticle 5(9)(i) and (iii):
Provided that if the two companies referred to in paragraph (a) cease to be members of the original group at the same time,
within the period referred to in the said paragraph, the chargeable company shall be treated as ceasing to be a member of the
group notwithstanding that the said provisions remain satisfied:
Provided further that the preceding proviso shall not apply where there has not been any change in the individual
direct or indirect beneficial owners of the companies involved or in the proportion in the value of each of the
companies involved represented by the shares owned beneficially directly or indirectly by each such individual.
Amendment of article 12 of the principal Act.
Amendment of article 14 of the principal Act.
For the purpose of this paragraph the term "original group" shall mean the two companies referred to in paragraph (a), and the individual direct or indirect beneficial owners of the said companies as existing on the date of the acquisition referred to in the said paragraph.".
"(4) Where a person derives income from work carried out on or in relation to immovable property, consisting of brokerage
and professional services, construction work, project
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management of construction work and work of tradesmen, or from the granting of loans or from any form of credit to finance the acquisition,
development, construction, refurbishment, renovation of immovable property or any right thereon and any other matter which increases
or enhances the value of such immovable property or any right thereon, and such property is owned by a related person, the following
shall have effect:
(a) the income derived from the work, loans, or credit or from the transfer of the ownership or any rights on the immovable
property to which such work, loans, or credit is related, shall be deemed to constitute separate chargeable income for the purpose
of this sub-article;
(b) in determining the chargeable income derived from the said work, loans, or credit, the total deductions allowable
under this article against such income shall not exceed the amount of the said income; and
(c) in determining the chargeable income derived from the transfer of the ownership or any rights on such immovable
property, no loss is to be allowed under the provisions of article 14(1)(g), in so far that such loss arises as a result of deducting
any amounts paid or payable in respect of the work, loans, or credit referred to in this sub-article:
Provided that paragraph (c) shall not apply with respect to income derived from loans or credit, where it can be proved to the satisfaction
of the Commissioner that the amount paid or payable in respect of the loans or credit referred to in this sub-article reflect the
amount that would have been paid or payable if the persons referred to in this sub-article were not related.
For the purpose of this sub-article -
(i) an individual is deemed to be related to another person if that other person is a body of persons of which the said
individual is, directly or indirectly, a shareholder, partner or member; and
(ii) two bodies of persons are deemed to be related persons if they are directly or indirectly controlled or beneficially
owned as to more than twenty-five per cent by the same persons.".
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Amendment of article 14A of the principal Act.
Amendment of article 34 of the principal Act.
Amendment of article 47 of the principal Act.
Amendment of article 51 of the principal Act.
"(3) Where an account is not rendered to the Commissioner in the manner required under this article, the payor shall become liable to a penalty of not more than twenty- three thousand euro (€23,000) as may be presrcibedby the Minister.".
(a) in sub-article (2) thereof, immediately after the words "the said scheme and the consequent advantage." there
shall be added the following words "A person who disagrees with an order served upon him as aforesaid shall have the same rights
to object to that order and to appeal from a decision of the Commissioner refusing that objection as if that order were an assessment
issued under the Income Tax Management Act and the relevant provisions of that Act relating to objections and appeals shall apply
mutatis mutandis.";
(b) in paragraph (a) of sub-article (4) thereof, for the words "article 14(1)(g)" there shall be substituted the words
"articles 5(10)(b) and 14(1)(g)"; and
Amendment of article 56 of the principal Act.
(c) in sub-article (5) thereof, in the definition of "scheme", for the words "transfer of assets" there shall be substituted the words "transfer of assets, increase in the share capital of a company".
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(2) The provisions of this Part, other than article 26 hereof, shall come into force on such date as the Minister responsible for
finance may, by notice in the Gazette, establish, and different dates may be so established for different provisions or different
purposes of this Part.
(3) Article 26 shall be deemed to have come into force on 1st
January, 2010.
"transfer" there shall be substituted the following:
" " t r a n s f e r " i n c l u d e s a n y a s s i g n m e n t , c o n v e y a n c e , s a l e , p a r t i t i o n
, d o n a t i o n , s e t tl e me n t of do w r y, s a le by i n st a lm e n ts , redemption of ground rent and any acquisition under
any other title, including a declaratory public deed as is referred to in article 371(4) of
Amendments to the Duty on Documents and Transfers Act. Cap. 364.
Amendment of article 2 of the principal Act.
Cap. 386.
the Companies Act, and any occurrence that is deemed to be a transfer in accordance with the pr ovisions of ar tic le 42B of this Ac t, but, except where specifically provided in this Act, does not include any transfer causa mortis;".
"4. Subject to the provisions of Part III, Title I of this Act, a document subject to duty under this Act, shall become so subject either from its origin if it is executed in Malta or by reason of its use if it is executed outside Malta.".
"(1) Subject to the provisions of Part III, Title I of this Act, a document executed outside Malta shall be chargeable with duty when use thereof is made in Malta, if such document would have been so chargeable according to the provisions of this Act, had it been executed in Malta.".
Substitution of article 4 of the principal Act.
Amendment of article 6 of the principal Act.
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Substitution of article 25 of the principal Act.
"25. Notwithstanding the provisions of any other article in this Act, including articles 4 and 6, there shall be charged on
any policy of life insurance which is not renewable every year, wherever such policy is executed or used, a duty of ten cents for
every one hundred euro or part thereof of the sum assured:
Provided that duty under this article shall only be chargeable on policies where the policyholder is resident in Malta, or in the
case where the policy holder is a legal person, where such policy holder is incorporated or otherwise created in Malta:
Substitution of article 27 of the principal Act.
Provided further that persons referred to in article 47(3) shall in no case be deemed to constitute persons referred to in the first proviso of this article.".
"27. Notwithstanding the provisions of any other article in this Act, including articles
4 and 6, there shall be charged on every policy
of insurance, wherever such policy is executed or used and in respect of which article 25 does not make specific provision, a duty
of te n
cents for every euro or part thereof of the agreed yearly premium, or, if a compounded p r e m i u m i s a g r e e d u p o n a s a
l u m p s u m
payment, or a once only premium is otherwise payable, then of that agreed consideration:
Provided that -
(a) the minimum duty chargeable under this article shall be eleven euro and sixty-five cents (€11.65);
(b) where the premium payable is less than eleven euro and sixty-five cents (€11.65), the minimum duty chargeable shall be reduced
to ten per centum of the amount of premium so payable;
(c) no duty shall be chargeable on any policies of insurance in respect of Aviation, Marine Cargo, Marine Hull or Boat, Credit and
Suretyship, and Medical Cover;
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Cap. 403.
Cap. 403.
(d) duty under this article shall only be chargeable on policies relating to risks referred to in the definition of the term "
r i s k s i t u a t e d i n M a l t a " c o n t a i n e d i n article 2(1) of the Insurance Business Act;
(e) persons referred to in article
4 7 ( 3 ) s h a l l i n n o c a s e b e d e e m e d t o c o n s t i t u t e p e r s o n s a s r e f e r r e d t o i n paragraph (d)
of the definition of "risk
situated in Malta" in the said article 2(1)
of the Insurance Business Act.".
(a) the whole sub-article shall be renumbered as paragraph (a) thereof and the words "For the purposes of this
subarticle, "a group of companies" shall have the same meaning assigned to it in article 42." shall be deleted; and
(b) immediately after paragraph (a) thereof, as renumbered, there shall be added the following new paragraphs:
"(b) For the purposes of this sub-article, two companies form part of the same group of companies where the individual
direct or indirect beneficial owners of the companies are the same and each such individual holds, directly or indirectly,
substantially the same proportion of the nominal share capital and voting rights in each of the said companies.
(c) For the purposes of paragraph (b), an individual is deemed to hold substantially the same proportion of the nominal
share capital and voting rights in each of the said companies where the difference between the proportions held in each company
does not exceed twenty percent.
(d) Where an individual holds, directly or indirectly, less than five percent of the nominal share capital and voting
rights in only one of the companies referred to in paragraph (a), such individual shall, for the purpose of this sub-article, not
be taken into account in determining whether the individual direct or indirect beneficial owners of the companies referred to in
the said paragraph are the same:
Provided that if more than one individual holds,
Amendment of article 32 of the principal Act.
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Amendment of article 42 of the principal Act.
directly or indirectly, less than five percent of the nominal share capital and voting rights in one of the said companies, this paragraph shall not apply where together such individuals hold, directly or indirectly, five percent or more of the nominal share capital and voting rights in the company.".
(a) immediately after paragraph (c) of sub-article (1)
thereof, there shall be added the following new paragraph:
"(d) on a transfer of real value in marketable securities as referred to in article 42B."; and
(b) sub-article (2) thereof shall be substituted by the following:
"(2) (a) Where it results that seventy-five percent or more of the assets, excluding all current assets other than immovable
property, of the company referred to in article 42B, or of the company whose marketable securities are transferred inter vivos or are transmitted causa mortis in respect of persons from whom the transfer causa mortis originates who died on or after the 1st January, 2000, consists of any immovable property or any right over an immovable, the duty
chargeable in virtue of subarticle (1) shall be increased by three euro for every one hundred euro or part thereof of the amount
or value of the consideration or the real value of the marketable security, whichever is the higher.
(b) Where a company referred to in paragraph (a) owns, directly or indirectly, shares in any other company having seventy-five
percent or more of its assets, excluding all current assets other than immovable property, consisting of any immovable
property or any right over an immovable, hereinafter referred to as the "property company", the duty chargeable in virtue
of subarticle (1) shall be increased by three euro for every one hundred euro or part thereof of the amount or value of the consideration
or the real value of the marketable security, whichever is the higher:
Provided that this paragraph shall not apply where the company referred to in paragraph (a) holds, directly or
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indirectly, less than ten percent of the nominal share capital and voting rights of the property company:
Provided further that this paragraph shall not apply where the duty chargeable in virtue of subarticle (1) has been increased by three
euro for every one hundred euro or part thereof in accordance with paragraph (a).
(c) For the purpose of determining the amount or value of the consideration or the real value of such marketable security in paragraphs
(a) and (b) there shall not be deducted any liability in excess of the value of all assets excluding the value of any such immovable
property or any real right thereon.
(3) The real value of shares in a company is a percentage of the real value of the company corresponding to the higher of -
(a) the percentage of the issued share capital represented by the nominal value of those shares, and
(b) the percentage of the total voting rights in the company represented by the total voting rights attached to those shares:
Provided that in determining the real value of shares in a company after the change in voting rights referred to in article
42B, the percentage of the real value of the company shall be the amount corresponding to the lower of paragraphs (a) and (b).
(4) Subject to the provisions of sub-article (2)(c), the real value of the marketable security referred to in this article and article
42B shall be determined in accordance with rule 5(6) and (7) of the Capital Gains Rules and references to the market value
of a company in such rule shall be deemed to be references to the real value of a company.".
Addition of new article to the principal Act.
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shall be added the following new article:
"Reduction of real value of shares.
42B. Where the real value of shares held by a person (hereinafter referred to as the "transferor") in a company has been
reduced as a result of a change in the issued share capital of such company, or a change in any rights attached to such shares, and
such value so reduced passes into other shares in or rights over the company, held by any other person (hereinafter referred to as
the "transferee"), the transferor shall be deemed to have made a transfer of such value so reduced to the transferee, calculated
by taking into account the difference between the real value of the shares held immediately before and after the said change and
duty shall be chargeable in accordance with article 42.
For the purpose of this article, a change in the issued share capital of a company shall include a reduction in the share capital
of such company.".
Amendment of article 49 of the principal Act.
Deletion of article 52A of the principal Act.
Amendment of article 64 of the principal Act.
"(2) Duty as provided in article 42B shall be paid to the Commissioner by the transferee acquiring value within fifteen working days from the date of the change referred to in the said article. Such shareholder shall submit together with the payment referred to above any other documents, forms and details as may be prescribed.".
(2) Notwithstanding the repeal of article 52A of the principal Act, no payment made and which was due prior to the said repeal shall be held to have been made without being due or invalidly as a consequence of the said repeal and any payment still due under the said article 52A in respect of any period prior to the repeal of the said article shall remain due.
"(1) No person or authority shall, where a transfer is subject to duty under this Act, register any transfer, reduction,
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or allotment of company shares whether in the name of a transferee or any other person claiming through or under him or otherwise
before ascertaining that a notice of such transfer has been lodged with the Registrar of Companies in accordance with this Act.".
(2) The provisions of this Part shall come into force on such date as the Minister responsible for finance may, by notice in the Gazette, establish, and different dates may be so established for different provisions or different purposes of this Part.
"Provided that where such notice is not made because the taxpayer could not be found or for other reasons attributable to him and the Commissioner publishes a notice in the Gazette and in one or more daily newspapers stating that a notice has been made and inviting the taxpayer to call for it at the Department, then such notice shall also be deemed to have been duly notified.".
"Provided that if there is evidence that, after being requested by the Commissioner by means of a notice in writing, such person failed to produce without any reasonable excuse any records, documents, accounts and electronic data within thirty days from the date of service of such notice and an order in writing by the Commissioner referred to in article 33(5) has been issued, such person shall not be allowed to produce such records, documents, accounts and electronic data before the Board of Special Commissioners or in any Court of law.".
Amendments to the Income Tax Management Act.
Cap. 372.
Amendment of article 29 of the principal Act.
Amendment of article 31 of the principal Act.
Amendment of article 36 of the principal Act.
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Amendment of article 38 of the principal Act.
Amendment of article 40 of the principal Act.
"(b) notwithstanding the provisions of article 34(7), where the assessment complained of has been raised by the Commissioner
in accordance with the provisions of article
30(1)(b) or (2) or (3), or of article 31(5), no evidence shall be considered by the Board as sufficient to warrant any change in the
assessment concerning that income if the person appealing against the Commissioner’s decision has failed to provide the records,
documents, accounts and electronic data in accordance with the proviso to article 31(5);".
(a) in sub-article (1) thereof:
(i) in paragraph (c) thereof, for the words "final and conclusive assessment" there shall be substituted the
words "final and conclusive assessment or order"; and
(ii) in the proviso thereto, for the words "in article 44(1)(b)" there shall be substituted the words "in
articles 44(1)(b) or 44(2A)(c)"; and
Amendment of article 43 of the principal Act.
(b) in sub-article (2) thereof, for the words "of article
44(1)(b)," there shall be substituted the words "of articles
44(1)(b) or 44(2A)(c),".
(a) in sub-article (1) thereof, for the words "article
5(1)(a)(i) and (ii)" there shall be substituted the words "article
5(1)(a)";
(b) in the proviso to paragraph (b) thereof, for the words "according to the deed." there shall be substituted the words
"according to the deed:" and immediately thereafter there shall be added the following new provisos:
"Provided further that in the case of a transfer of securities, as defined in article 5 of the Income Tax Act, involving a transfer
of a controlling interest in accordance
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with prescribed rules, the provisional tax payment shall be equivalent to 7% of the higher of the market value or the consideration,
and in the case of a transfer to which article
5(9A) of the Income Tax Act applies, such payment shall be made within fifteen days from the date the chargeable company ceases to
be a member of the group:
Provided also that in the case of a transfer of value in securities, as provided for in paragraph (13)(b)(ii) of article 5 of the
Income Tax Act, the provisional tax payment shall be equivalent to 7% of the gains or profits referred to in the said paragraph.";
and
(c) in sub-article (3) thereof, for the words "as the case maybe." there shall be substituted the words "as the
case may be:" and immediately thereafter there shall be added the following new proviso:
"Provided that in the case of a transfer of securites, as defined in article 5 of the Income Tax Act, involving a transfer of
a controlling interest in accordance with prescribed rules, the 20% shall be calculated on the higher of the market value or the
consideration.".
"(3) No opposition other than that specifically provided for in this Act shall stay the issue or execution of any executive act obtained thereunder or the paying out of the proceeds of any warrant or sale by auction carried out in pursuance thereof.".
(a) immediately after subarticle (1) thereof, there shall
Amendment of article 44 of the principal Act.
Amendment of article 48 of the principal Act.
C 1256
be added the following new subarticles:
Cap. 406.
"(1A) Notwithstanding the provisions of subarticle (1), in no case shall any refund be made to any person in respect of the year
of assessment 1999 or any subsequent year of assessment unless and until such person has filed all tax returns, which are required
to be furnished under this Act, in respect of the years of assessment 1999 up to and including the year of assessment preceding the
year in which the refund would have been payable but for the application of this sub-article.
(1B) Notwithstanding the provisions of subarticle (1), in no case shall any refund be made to any person registered under article
10 of the Value Added Tax Act, unless and until such person has filed all tax returns required to be furnished under article 27 of
the said Act in respect of tax periods up to and including the last complete tax period in the year preceding that in whic h the
re fund would ha ve bee n payable but for the application of this sub- article.";
(b) the present provsions of subarticle (2B) thereof shall be renumbered as paragraph (i) of subarticle (2B), and immediately
thereafter there shall be added the following new paragraph:
"(ii) In the case of a person to whom subarticles (1A) or (1B) apply, any refund which would have been payable but for the
provisions of the said subarticles, shall become due or shall be deemed to have become due, as the case may be, on the last day of
the twelfth month following that in which the tax returns referred to in the said subarticles were furnished.".
Amendments to the Excise Duty Act.
Cap. 382.
(2) Articles 38, 39 and 40 shall come into force on such date as the Minister responsible for finance may, by notice in the Gazette,
establish.
(3) Articles 41 and 42 shall be deemed to have come into force
C 1257
on the 10th November 2009.
(a) in sub-article (1) thereof, for the words "shall be guilty of an offence and shall for every such offence be liable,
on conviction, to a fine (multa) not exceeding eleven thousand and six hundred and forty-six euro and eighty-seven cents (11,646.87).", there shall
be substituted the words "shall be guilty of an offence and shall for every such offence be liable on conviction to a fine
(multa) of not less than five hundred euro (€500) and not more than twenty-five thousand euro (€25,000):"; and immediately
thereafter there shallbe added the following proviso:
"Provided that in the case of a conviction relating to the evasion or attempted evasion of excise duty, the offender shall be
liable to a fine (multa) of not less than three times the excise duty on such excise goods, which fine may exceed twenty-five thousand (€25,000) euro.";
and
(b) sub-article (2) thereof shall be deleted.
Amendment of article 16 of the principal Act.
Addition of new article to the principal Act.
"Penalty instead of proceedings in terms of this Act.
"16A Without prejudice to any other provision of this Act relating to forfeiture of goods in favour of the Government,
in the case of an irregularity committed by an offender which, if undetected, would involve loss of excise duty on excise goods not
exceeding one thousand euro (€1000), the Comptroller may, o n a c k n o w l e d g e m e n t o f t h e c o m m i t t e d
o f f e n c e b y t h e o f f e n d e r , r e f r a i n f r o m instituting proceedings in terms of this Act and impose a penalty
equivalent to three times the excise duty endangered, which penalty shall not be less than two hundred and fifty euro (€250).".
"(d) are brought into Malta and the payment of excise
Amendment of article 17 of the principal Act.
C 1258
duty has been evaded or an attempt has been made to evade the payment thereof,".
(a) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Cigarettes", there
shall be substituted the following:
"50.0% of the retail price plus 22.00 Euro per 1000 cigarettes but not less than 117.00 Euro per 1000 cigarettes";
(b) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Cigars and Cigarillos",
there shall be substituted the following:
"16.25 Euro per 1000 units";
(c) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Hand-Rolling Tobacco",
there shall be substituted the following:
"72.50 Euro per kg.";
(d) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Other Smoking Tobacco",
there shall be substituted the following:
"72.50 Euro per kg.";
(e) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Pipe Tobacco", there
shall be substituted the following:
"23.40 Euro per kg."; and
(f) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Chewing Tobacco and Snuff",
there shall be substituted the following:
Amendment to the Fourth Schedule of the principal Act.
"31.56 Euro per kg.".
(a) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Electricity falling under
CN Code
C 1259
2716", there shall be substituted the following: "1.00 Euro per MWh"; and
(b) for the words in the "Rates of Excise Duty" column thereof in respect of the item "Coal and Coke falling within
CN Codes 2701, 2702 and 2704", there shall be substituted the following:
"0.30 Euro per 1 gigajoule, gross calorific value".
(2) The provisions of this Part shall come into force on such date as the Minister responsible for finance may, by notice in the Gazette, establish, and different dates may be so established for different provisions or different purposes of this Part.
Amendment to the Eco- Contribution Act.
Cap. 473.
Addition of new articles to the principal Act.
"Statements and assessments to constitute executive title.
Cap. 12. Validity of
statements, etc.
13C. Any statement issued by the c o m p e t e n t a u t h o r i t y a n d a n y a s s e s s m e n t issued in terms
of article 13A showing any amount of eco-contribution due by a person s h a l l , u n l e s s t h e c o n t r a r y i s p r o v e
d , b e sufficient evidence that that amount is due to the competent authority by that person and shall constitute an executive title
within the meaning and for the purposes of Title VII of P a r t I o f B o o k S e c o n d o f t h e C o d e o f Organization
and Civil Procedure.
13D. (1) Any statement, assessment, warrant or other proceeding purporting to be made in accordance with the provisions
of this Act shall not be deemed to be void or voidable for want of form or be affected by the reason of a mistake, defect or omission
therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Act.
C 1260
Amendment of article 16 of the principal Act.
(2) In the case of a body of persons it shall be sufficient if only the name of the body of persons a ppears on any notice, wa rrant or proceeding, including any proceeding in the Court of Appeal, issued or made under or for the purposes of this Act.".
"(3) No criminal proceedings under this Act shall be taken except at the instance or with the sanction of the competent
authority, and proceedings that have been so taken may, a t a n y t i m e b e f o r e f i n a l j u d g m e n t , b e withdrawn
at the request of the competent authority.
(4) Notwithstanding the provisions of the
Cap. 9.
Criminal Code, the Attorney General shall have a right of appeal to the Court of Criminal Appeal from any judgment given by the Court
o f M a g i s t r a t e s i n r e s p e c t o f c r i m i n a l proceedings under this Act.
(5) The institution of proceedings or the imposition of a penalty for any offence under this Act shall not relieve any person from
p r o s e c u t i o n u n d e r a n y o t h e r l a w o r f r o m liability to the payment of any tax for which he is or may be liable
under this Act, and the institution of proceedings or the imposition of a penalty for any offence under any other law or the payment
of any tax under this Act shall not relieve any person from any prosecution or penalty under this Act in respect of an offence committed
against this Act.
(6) In any criminal proceedings under this A c t th e c o m pe te nt a u th o r i ty o r a n y ot h e r officer designated by the
competent authority may, notwithstanding the provisions of any other law, produce the evidence, plead and otherwise conduct the prosecution
instead of or jointly with the police.
C 1261
(7) Should the evidence of the competent authority or of the officer designated by the competent authority as aforesaid be required
as part of the case for the prosecution, he shall b e h e a r d b e f o r e a s s u m i n g t h e d u t i e s o f a prosecuting officer
unless the necessity of his g i v i n g e v i d e n c e a r i s e s a t a l a t e r s t a g e : p r o v i d e d t h a t t h e C o
m m i s s i o n e r o r o t h e r o f f i c e r a s a f o r e s a i d m a y s t a t e t h e f a c t s c o n s t i t u t i n g t h
e o f f e n c e b e f o r e g i v i n g evidence.".
(a) article 44(c) of the Budget Measures
Implementation Act, 2003 - Act II of 2003;
(b) articles 15 and 16 of the Various Laws
(Amendment) Act, 2003 - Act IX of 2003; and
(c) article 48 of the Budget Measures Implementation
Act, 2004 - Act II of 2004.
Repeal of certain obsolte articles in various Acts.
The objects of this Bill are to implement various Budget measures and other administrative measures.
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