ACT No. XVI ot l994 AN AcrlO QfMrW lM Duty on Docu!Mnu and Trons/tn Acl, /993.

I asse nt ,

(L.S.)

Uoo Mlf'SUD 8 01'11'110

President

13th September. 1994

ACT No. XVI ot l994

AN AcrlO QfMrW lM Duty on Docu!Mnu and Trons/tn Acl, /993.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Re .... esentatives. in this pl"(HPt Parliament

I\SM:mbled, and by the IIIIthorily oftbe same, as follows :-

I . (I) This Act may be: cital as the Duly on Documents and

Transfers (Amendment) Act, 1994, and shall be read and conslnied as onc

with the Out)' on Documents and Transfers Act, 1993, hereinafter referred

to u "the principal Act".

(2) This Act shall come into force on such dale as the Minister

responsible for finance may by notice in the Gazette appoint.

or

the principal

( I) OM I-An jislI' jissejjaJ\ I·Att ta' 1·1 994 li jefilcnda I-At! ""1iI; " ".

dwar it-Tuxa fuq Dokumenti u Trufttimrnli, U &band" jinqan. u

jiftichem hag.1l'lIlIda ma' I-All ta' 1-1993 dwar il-Taua fuq Dokunxnti

u Trasferimenti, hlwnhekk itjed 'iI quddicm

imsejjab

'1·An

printipeliH.

(2) Da.n I-An ghandu jibda j sehh rdik id-d.ata li l-Ministru

l'esponsabbl.i ghall-finanri jista' jis\abbilixx.i b',vvit fll-G"zzelta.

1. Fis-subartikolu (3) ta' \-artikohl 1 fit-tnl Inglit ta' I-An

prino!ipeli. minflok il-klicm "in any public deed shall be deemed" ghandu

jidhol il-Idicm "in any publ ic deed be deemed ".

In subsection (3) of $eClioo I of the English text

Act, for the wonb "in any public deed shall be: ckullcd" there shall be

sub5tiWlcd the words "in any public deed be deemed" ,

In section 2 of the principal Act immediately aftcr the definition

of "prescribed" there shaD be inserted the following new definition

" "resident in Malta" has the same meaning assigned 10 it III

section 2 of the locornt Tax Act;",

For 5ubSCI:lion (2) of section 6 of the principal Act there shall be

sub5titutc:d the following

"(2) For the purposes of this section, a document executed outside

Malta is deemed to be made u.o;e of in Malta, when: it is produced

befO!e I court, arbitrator or referee as evidence O£ is produced before

any person or authority in Malta for its enforcement or regisb'ation.".

For section 19 of the principal Act there shall be substituted the Soiboril..- 01

following

( 1) Wbere !be Conuniuioner, or any officer

"Pow'Cl'd

~otfken

IUlborised by him in writing, fUSpecU thaa this Act

~

has not been compljed with in rE Spect of a documeot,

;

he ahall have the power to require any person holdin&

such docllT .... Jll to prom"' it for the purposes d

verifying tbaI this Act has been complkd with in

respect of such document, and may seize the dcx:ument

if there are reasonable grounds for it to appctu' to Ilim

that the provisions of this Act have not been complied

with in respect of that document.

(2) Where !be Commissioner, or any officer

.·SetJ

autborised by him in writing, SU$p«U that

have

been Wldervalued fOl"!he pwpcacs of the app\icllkm d

this Act, bc or any architecl or IUlVcyor III.Ithorised by

him shall have full and free iIOtr.1I to all buildings or

places to the extc:ot that such ace' u is likely to assist

him in determining !be value of IlK said ISSCU, but

shall DOt have any powc:r to seize any item or remove it

from the ptlliis cs.

(3) If IIr.CCSS to any of the premises refelled to

in the previous s"hscction requires access to premises

occupied in whole or in part for the purposes of

habitalion, such access shall not take place between

seven o'clock in the evening and nine o'clock in the

morning.

(4) The examination of notarial acts shall be

carried out by the vis iton constituti ng the Court cl

Revision of Nocarial Acu who shall mm a report to

the Commis.\;ioner of any offence againS! this Act

which may come 10 thei r notice during such

examination.

Provided that the provisions cl this subsection

shall not preclude any such off)Cc:f IUi is referred 10 in

subsection (I) rrom inspecting acll ;lIl tr vivos at the

A

pteJtlises or elsewbcn: of a notary for the pwpose of

ascertaining compliance with thUI Act..

(S) In the exercise of the powers under this

section, any architea Of surveyor referred to in

subsection (2) of this section may DOl. illSpcct any

or

document

other record whaLo;oever,

and _ the

Commissioner, or any person authorised by him as

aforesaid, may not inspect any dreument, or other

record which is protected by the dllfy of professional

secm::y, or listen to any conversation or recording

device which is protected by the mm.. duty. The

Commissioner or ~ duly authorised officer may

require the holder of a document proteCted by

professional secrecy to commllnicate to Ilim an

abslract of the document so as to remove references to

any information protected by professional secrecy. If

such abstract does IIOl enable the Commissioner or his

duly authorised officer to decide whether all the

provisions of this Act have been complied with in

respect of such document, the matter shall be referred

to the competent Court of Voltmtary Jurisdiction

which shall have the power to order the production of

such doeumeDl. bcflm it by any person, and which

shall make a report to the Commissioner of any failw-e

to comply with this Act which comes 10 its notice

during such examination.

(6) The Commissioner and, as the case may

be, the penon authorised by him, shall be bound by the

duty of professional sccrc:cy in respect of anything

which may come to his knowledge in the ~ of the

exercise of his powers under this Act and shall not

disclose the result !hereof excep( to any authority

competent in relation to the co\k:ction of duty under

this Act. Any such nfflcer who otherwise discloses

such result shall be guilty of an offence and shall, on

conviction, be liable to a fme (mu/ta) of not less than

one Itundred liri and not more than one thousand liri,

or to imprisonment for a period not exceeding six

months, o r to both such fine (mu/ta) and

imprisonment.

(7) Saving any proViSion of the Criminal

Code, wllcre the fact coru;titutes a crime liable to a

higher punishment, any person who prevents oc

obstructs the said officer, architect or sUlVeyor in

tile execution of his duties under subsection (2) of this

section, or refuses to comply with any ~uesl made

by such officer in accordance with the provisions of

this section, shall, 011 conviction be liable to a line

(mulUl) not exceeding Lm50 (fifty Maltese 1iri) or to

imprisonment for a term not exc=~jng si,; months Ill"

to both such fine and imprisonment.". .

6. In subparagraph (il) of paragraph (b) of subsection (4) of section Amendmtnlof

32 of the principal Act, for the words "thc:ce shall be fint calculated a ...... =.J~~

duty in respect of the ground·rent capitalised at fifty per ceotum" there pn

shall be substituted the words "there shall be first calculated a duty in

respect of the ground-rent at filly per centum·.

7. In subsection (1) of sectiOll 33 of the Maltese text of the principal ", ... ...:1 ... ", '"

Act, for the words "lilu trasferita proprjeta' causa monu' there shall be ~Act.

substituted the words "lilu trasferita propIjeta' immobbU COUlO mortis".

8. Section 35 of the principal Act shall be amended as follows

(a) in subparagraph (i) of subsection (2) !hereof, for the words

"transferred 10 each ttansferee cau.w m;:lnu as tepte>en[S" there shall be

substituted the words "transferred to each transferee causa mortis

occupying such dwelling house as his ordinary residence as represents";

(b) in subparagraph (ii) of subsection (2) thereof, for the words "one

huntimd !iri or part thereof of the first Lm20,OOO", !here shall be

substituted !be words "one hundred !iri or part thereof in respect of such

share U'aIlsferred to each transferee causa ,"ortis occupying such dwelling

house as his ordinary residence as represents the first Lm20,OOO·; and

(c) in the English text of subsection (5) thereof, for the words "which

is tl()( merely protestative" !here shall be substituted the words "which is

!lOt merely potestative".

9. For paragraphs (a) and (b) of subsection (I) of section 42 of the ....... _"'01

principal Act there shall be substituted the following

"(a) on every document whereby any foreign marketable security

is U'aIlsferred inttr vivos to, or by any person resident in Malta

Provided that no duty shall be chargeable where such transfer is

effected through a local bank or through a person holding an

investment services licence under the Investment Services Act, 1994;

(b) on evay document wt ..... eby l marketable security other than

those mentioned in paragraph (a) hueof is transfwoo 10 Of by any

pcnon in Malta

Provided that upon any rc&truCturing of holdings through mergers,

demqerJ, amalgamations and reorganisations within a group of

companies, no duty sball be chargeable 011

(i) the transfer by an individual of any . hares, hdd in his

own name, forming pan of I group of companies in exchange cl

Ihate:s in a company Of companies forming pan of the same

group;

(ii) the exchange of shares from me company to another

when: such shares are in companies forming pan of the same

group of companies;

(iil)tbe transfer of!bares forconsideratioD from one company

10 another, where luch COOlpanlCS form part of the same group of

companies,",

10. For leCtion 4S of the principal Act there sllal.l be subsUlUled the

following

·~IO

Where any persoo fails to produce to !be

Commissiooer, Of to the officer rd"em!d 10 in section

19 of this Act, any docwncna chargeable with duty, or,

wbc:re the document is proteelal by professional

secrecy, !he abstrBct of the document referred 10 in

subsection (4) of the said section 19, it shall be

presumed that duty OIl such document Iw 00( been

paid and it IMli !ben be lawful foe the CommissiODCl"

to JXoxm! with the ooIlectioo of duty and penalty in

~ with this Act.".

11. ill the English tut of section 47 of the principal Act. for !he

words "to which section 4S refers" there shall be substituted the words "to

which seclion 42 refers",

l2, Ana section 47 and before section 48 of !he principal ACI a new

section 47A shall be insened as follows

"&empliOlll

47A,( I) AcquUitions O£ dispgsals fO£ any reason

forcenain

whatsoever of marketable securities by the persons

mlrtretlbte

defined in .subsections (3) and (4) of lhis section shall

HlCIIrities.

be ellempl from the provisioos oflhis Act.

(2)Acquisitions or disposa!s for any reason

""ha«soevc:r of marketable sccuritie:l isplCd by !be

pmon.I defined in subsections (3) and (4) of lhi$

section shall be exempt (rom the provisions of this

Ad.

(3) The persons refemd. to in subsections (I)

and (2) of this section are

(a) collective investment !Cb ... cs boIdin& •

coJlcetive invesrrnent ICbeme licence under the

Investment Services Act, 1994

(b) persons holding an investment SCf'Iicell

licence issued under the Investment Services Act,

1994, and wbase activities comprise the provision

of lllIIfIIIiemem, adminismttiOll, wekeeping, Of

invesunena advice 10 cone.::tive investtnc:nt sd ..... "u

u dc:rmod in the aforesaid Act;

(c) international trading compmies as defined

in . ubscction ( t ) of section 2 of the Inoome Tax

Act;

scope of

(d)companics falling within the

subscc:tioo (4) of this socOOn.

(4) A company is • company falling within

paragraph (d) of SubsoctiOll (3) of this section if more

than half the ordinary share capital, voting ri ghts and

rights 10 profits are held by pel'$Oll5 wha

(a) are 11()( re$ident in Malta; and

(b) are not awned or controlled dinnly or

indirectly by persons resiclent in Malta,

and slICh company h.1l$ been determined by the

Comm issioner as having the majority of its business

interests oulSide Malta.

(S) For the purposes of subs«tiOll (4) of this

section, a company which is wholly owned and

controlled directly by persons who are not ordinarily

resident or domiciled in Malla shall be deemed 10 be not

resident in Malta.

(6) A

company may apply to the

Commissioner, 011 such foon as the Commi$$iooer Wll

provide. (0(. ddamination pursuant to subsection

m

or 51Jbsrct.ion (8) of this section.

(7) The Conunissioner shall dttc:mUne that l

company falb within paragraph (d) of l"hso'COOn (3) cl

this section if. in addition 10 satisfying the mquimnents

of paragJ1l.pI\lI <a> and (b) of subsection (4) of this

sectioo either

(a) more than half of the distributable profits

of the company wen: alIocalod to the foreign

incxme IICCOUPI (within the meaning of the ll'oc","c

Tu Act) in \be last complete financial year of !he

company: or

(b) all of thc assets tJr,1d by the company are

situated outside Malta. Foc this pwpcse. the temI

"IIS5CU" shall not include any assets in Malta held

by the company for the purposes of carrying on its

busineM.

(8) 'The Commissioner may. in his discretion,

make a detemtination that a company falls wilhln

paragraph (d) of subsection (3) of this section if it is

likely that III()e than halfbf the distributable profits of

the company will be aIJocawl to the foreign i' ....... ,oe

account in the fint financial year of the company.

(9) The Commissionef may, for the future,

caned a determination under subsection (7) or

5Ubsea:ion (8) of this Aa if il appears 10 him lha! the

company ceases 10 satisfy the provisiOllS of those

subsections or of subsection (4) of this Act, provided

!hal such cancellation shall nO( have retroactive

effect".

13. The following proviso shall be: added at the end of subsection (5)

of section 57 of the principal Act

"Provided that DO penon shall, by virtue of this subsection, be

obliged to disclose information in respect of which the first person is

under the duty of professional secl"OCy".

A 5"

14. In subm'lion (2) of section 31 of !he Malta Stock Ellthan&e Acl. '" ., ? MofIX

for the words "in the Duty on Documents Act" tbete Ihall be substituted =:~Aa . c.p.

the wordl "in the Duty on Documems and Transrers Act, 1993 or in any ~S.

Aa ~";nc thaI. Act" and for !he words "Cap. 294" in the maraiD&l DOte

tbaao tbefe Uall be lUt.tihdcd tbc words "Act No. xvn aC 199]",

Passed by the Hou8e of Rqncscntadves aI Sitting No. 303 of !he 2rul

July, 1994

LAWRENCE OONZI

S","",

RlCHARD J. CAUCHI

of R~puulllaJiws

C~'* to t~ HoUl~

rppubblim IJli6.DiIputimeM to' ~ I",,"". 'rzjmi - Kulijja _ f'lJ>/WIU 11, IN D."..,.-~! 111["'" "';0. _ K..'jJitl

ea..."._",

Iotilbu", n.rsu""poriJa w.o ..... - 1'>,uu/« IN

I'rl",u., " ' -

( I) KulI akkwist jew tndlflija ghaI kull

r.guru li tkun ta' valuri Dl'go.zjabbli mill -penuni

mscmmijll fis-sublrlikoli (3) u (4) ta' dan l-artikolu

ghandhom ikunu drnti mid-dispotizzjonijict ta' dan 1-

An.

(2) Kull ILkkwist Jew tnchhija glial kull

raguni li tkun la' vaJuri negozjabbli mahruga mill-

pe:rsuni mscmmijl. fiNubartikoli (3) u (4) la' clan 1-

artikolu gIIandhom ikuRU et.enti mid-dispotizzjonijicl

la' din I· Att.

(3) II -persuni numunija fLS-subartikoli (I) u

(2) la' dan I-artikolu hwna

<I) skemi

la' investiment kollettiv li

j koJlhom lit:en7;I. la' invcstimml kollcttiv tabl I-An

ta' 1·1994 dwar Servizzi la' Investiment;

(b) per5uni li jkollhom lil:mza glial servizzi

la' investimcnt mahruga tabt\-At! ta' \-\ 994 dwar

ScrviZli la' Investimenl. u Ii I.ftttivilajiel taghhom

jinkJudu l-gIIoti la' pariri dwar it-tmcuija,

amministruzjoni, salvagwardjar jew investimcnt lil

skcmi ta' investimenl kollettiv kif imfissrr f1-AII

imsemmi qabcl ;

(l:) kumpannij i intemuzjonali ta' kurruncu~

kif imfisxr fis-sub&rtikolu ( I ) ta' l-artikolu 2 la' 1-

At! dwar il-Taxxa fuq I-Inromt;

(d) kumpenniji li

f1-iskop

jidhlu

Ia$-

5lIbartikolu (4) ta' dan l-artikolu .

(4) KlImpannija \kun kumpumijl. Ii tidhol

fil- parIIgf1lfu (d) tu-subartikolu (3) \11' daD l-artikolu

jeJtk ikw minn nofs il-kapitaJ azzjonarju ordinllju,

jeddijie\ ta' votazzjoni u jeddijiel &ha! profi tti

jintammu minn persuni li

(I) majkunux residenti fMalta; u

(b) ma jkollhomx bhala sidicn taghhom jew

nIB jlrunux kootrol.lati direttamcnt jcw i,ndimtammt

minn persuni residenti fMalta.

u illk il -kumpMnij. tkun tiel detcnninata

mill -

Kummissarju b/IaIa 1i g,bandha l -bi~ \-kbil1 ta' 1-

inkressi Jcummertja.li tag.hla t.rra minn Mala.

(S) GI'IaI I-finijicl tu-subvtikolu (4) ta' dan 1-

artikolu lrumpaonijl li jkollha bbaI. s-sidim koUha

taghha u li tkun kontroUata direttamenl minn persuni Ii

ma jlcunux ordillllljamcnt residenti jew domitiljati

rMatta ghandha tilqies li ma tkunx residculi fMalla.

lappW

liU-

(6) Kumpannija

tisu.'

Kummissarju, fuq dik il-formula 1i I-Kummissarju

jipprovd ~ gha.I dctctm.inazzjoni li IotItol mU-

subartikolu (7) Jew mi5-$llbartikolu (8) ta' dan 1-

Ilrtikolu.

(7) II -Kummi$suju

jiddetemJina

li

lrumpannija tlrun tidhol m-paragrafu (d) tas-sublU'tikolu

(l) ta' dan l+&rtikolu jekk, b'tieda mat-twettieq taI -

htigijict 1aI- pangnr.fi Ca) u (b) w-5IIbartikolu (4) ta'

dan l-artikoiu jcw

Ca) iktar minn nofs il-pufitti 1.LI-kwnpe.nnija

li jitqassmu lricnu aIlokati fiI -kaRt ta' if1COl1le

barrani (fil -kuntest t1111-ti fsir la' I-All dWIr it-Tan.

fuq 1-lncoRHl) f]·ahhar SCIIIl finanzjarja lI\illa tal-

kumpannija; jcw

(b) lrull altiv mi1mum mill _kwnpn nija

j kun jinsab barn. minn Malla.

Glial dan I-gban. 1-

cSpRSSjoni "attiv" m'g.handhiex tinkl udi altiv li jkUD

j ins.b fMalta li j Wn qcd jint.amm mill -lrumpannija

ghal l-finijietl i tiUeslix.xi n-negozj u taghha.

(S) II -KummiSlWju

jisla', fid -diskrezzjoni

tieghu , jaghmcl delemti~ni li kumpannija tkUD

tidhol fiI-paragrafu (d) tas-subartikolu (3) ta' dan 1-

attikotu jekk ikun probabbli li ilctar minn IIOfs il-

p-ofilti taI -kumpannija Ii j ilqassmu jip aUolcati 61--konl

ta' inromc barnni Il -ewwel sma filWl2jarja taI-

kumpannija.

(9) II-Kumrnissarju jista', pal l-futur, ihassar

tahl is-subartikolu (7) jew is-

detenninazzjoni

sulartikolu (S) la' dan I-An jekk buwa jkun j idhirlu li 1-

kumpannija tieqar milli tissodisfa d-dispotittjonijicl

ta' dawk is-subartikoli ,iew tas-sut.rtikolu (4) ta' dan 1-

AU, kenun-il darba dak il_lblssir ma jkol lux scllll

te~ttiy,M.

13. DIn i1.proviJo Ii jej glwodu ji2dicd mi.nnufib 6 tmkm d- F'

t:~ :::~'.

IUbartiIroI u (5) ta' l-utikolu 57 ta' I·At! priDfiplli

"1tdI hadd nil rod", bis f'bba ta' clan i.l--subartikolu, jkun

obbIipt jibc:f ~ taghrif li dwaru wiebc:d itun nIImll biNigric:t

pufc:ssjonali ....

14. Fis--Iubartikolu (2) ta' l-artikolu 3 1 ta' I·An dwar iI·Borta ta' ~dll" """"

Malta. minflok il·1dic:m "ft ·AII dwar it-Tun fuq Dokumenti" "-r 1l-80rtlll'

&fttndbomjKlh\u 1-k1ic:m "D·An ta' I- I993 dwv it.Tuu. fiJq DoIcwnc:oti NMI. ~, :MS.

u Tr-sCc:rimnl1i jrw f'kulJ All ic:bor li jiHOStitwin.i. dak I·AIt" u min60k

il-ldicm "KI.p. 294" 6.o-oota marpna1i rc:lattiva ghandhom jidhlu 1·1dic:m

"An NfU, XVII ta' I-I993".

Mgbnddi mill·Kamra b(\,Deputati 6s-5eduta NnI, 303 ta' 1·20 ta' Lulju,

' 994

LAWRENCEOONZI

S"",",

RICHARD J. CAUCHl

Skn'~ bt/.KAm/a tIId·Dcpuati