ACT No. I of 2010 AN ACT to implement various budget measures and other administrative measures.

I assent.

G EORGE A BELA

(L.S.)

President

16th April, 2010

ACT No. I of 2010

AN ACT to implement various budget measures 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

The short title of this Act is the Budget Measures Short title.

Implementation Act, 2010.

PART I

The provisions of this Part shall be deemed to have come Coming into

force of this

into effect on the 1st January, 2010.

Part.

For the purpose of this Part, "revenue" has the same Interpretation.

meaning as is assigned to it in article 2 of the Financial Cap. 174.

Administration and Audit Act, but does not include proceeds from

loans.

(1) Subject to the provisions of this Act, the Authority to

Government of Malta may raise in Malta, by way of loan, a sum of raise loan.

money not exceeding five hundred and fifty million euro.

(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

Minister may approve.

Any money borrowed under the authority of this Part shall

be appropriated and applied for the purpose of

(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.

PART II

(1) This Part amends the Pensions Ordinance, and it

shall be read and construed as one with the Pensions Ordinance,

hereinafter in this Part referred to as "the principal law".

(2) The provisions of this Part shall be deemed to have come

into force on the 1st January, 2010.

In paragraph (b) of subarticle (2) of article 8C of the

principal law, for the words "National Audit Office." there shall be

substituted the words "National Audit Office, Management Systems

Unit, Malta Information Technology and Training Services Ltd and

Malta Information Technology Agency.".

Article 12 of the principal law shall be amended as

follows

(a)

the present article shall be renumbered as subarticle

(1) thereof and the said subarticle (1) as renumbered shall be

amended as follows

(i)

immediately after the words "office in the

service of Malta" there shall be added the words ", or is or

was after his retirement appointed to an office established

by the Constitution also being a pensionable office under

this Ordinance,";

(ii)

immediately after the words "retires in

circumstances in which he may be granted a pension,"

there shall be added the words "or leaves office at the end

of his appointment or re-appointment as the case may be,";

(iii) immediately after the words "on his

previous or final retirement from the service of Malta,"

there shall be added the words "or from the said office

established by the Constitution,"; and

(iv)

in the proviso thereto, the words "the

gratuity already paid." shall be substituted with the words

"the gratuity already paid:" and immediately thereafter

there shall be added the following new proviso

"Provided further that in the case of an officer

who has retired for the first time from one of the

offices, posts or positions mentioned in paragraphs

(a), (b) or (c), excluding the proviso, of subarticle (2)

of article 2 of the Public Administration Act, the

provisions of this subarticle shall only apply if the

final retirement from the service of Malta or from the

office established by the Constitution took place

before the 1st January, 2010."; and

(b) immediately after subarticle (1) as renumbered there

shall be added the following new subarticle

"(2) Notwithstanding the other provisions of this

Ordinance or of any other law or other regulations, when a

person is the holder of one of the offices, posts or positions

mentioned in paragraphs (a), (b) or (c), excluding the

proviso, of subarticle (2) of article 2 of the Public

Administration Act, such person may, on being re-

employed in the service of Malta after his retirement from

the service of Malta or on being retained in employment in

the service of Malta beyond the age of sixty-one years,

during such period in employment after the age of sixty-

one years receive and continue to receive any pension,

including any gratuity or commuted pension, without any

reduction except as specified under this Ordinance,

provided that the said period of re-employment or of

retention in employment shall not be taken into

consideration for any other purposes of this Ordinance.".

PART III

(1) This Part amends the Income Tax Act, and it shall be

read and construed as one with the Income Tax Act, hereinafter in this

Part referred to as "the principal Act".

(2) (a)

Articles 13(a)(i) and 13(b)(iv) shall be deemed to

have come into force as from the 10th November, 2009.

(b) Articles 15(b), 16, 17, 18, 19, 20 and 27(a) shall

come into force as from the year of assessment 2011.

(c)

Article 10(a) shall be deemed to have come into

force as from the 1st May 2004.

(d) Articles 10(b), 10(c), 10(d), 10(e), 15(a), 15(c) and

23 shall be deemed to have come into force as from the year of

assessment 2009.

(e)

Articles 11, 14, 24, 28, 29 and 30 shall be deemed to

have come into force as from the 1st January 2009.

Article 2 of the principal Act shall be amended as follows

(a)

in the definition "company", for the words "or a

partnership anonyme:" there shall be substituted the words "or a

limited liability company or any company constituted as such

under any other law in force in Malta:";

(b) in the definition "equity holding", for the words "a

holding of the share capital in a company when the shareholding

entitles the shareholder to a right to votes, to profits available

for distribution to shareholders and to assets available for

distribution on a winding up of that company, and "equity

shares", "equity shareholder" and "equity shareholding" shall be

construed accordingly;" there shall be substituted the words "a

holding of the share capital in a company which is not a

property company, when the shareholding entitles the

shareholder to at least any two of the following rights

(hereinafter referred to as "equity holding rights")

(i)

a right to votes;

(ii)

a right to profits available for distribution to

shareholders; and

(iii) a right to assets available for distribution on

a winding up of that company,

and "equity shares", "equity shareholder" and

"equity

shareholding" shall be construed accordingly

Provided that the Commissioner shall be entitled to

determine that an equity holding exists even where such holding

is not a holding of the share capital in a company or does not

consist solely of such a holding of share capital, but where it can

be demonstrated that in substance there is at any time an

entitlement to at least two of the equity holding rights;";

(c)

in paragraph (a) of the definition "foreign income

account", for the words "derived from a participating holding or

from the disposal of such holding" there shall be substituted the

words "derived from a participating holding in a company not

resident in Malta or from the disposal of such holding";

(d) the definition "participating holding" shall be

amended as follows

(i)

paragraph (a) shall be substituted by the

following

"(a) a company holds directly at least ten

percent of the equity shares of a company whose

capital is wholly or partly divided into shares, which

holding confers an entitlement to at least ten percent

of any two of the following

(i)

right to vote;

(ii) profits available for distribution; and

(iii) assets available for distribution on a

winding up

Provided that the Commissioner shall be entitled

to determine that the provisions of this paragraph are

satisfied even where the said minimum level of

entitlement exists in the circumstances referred to in

the proviso to the definition of "equity holding";";

(ii)

in paragraphs (b), (c), (d), and (f) thereof,

the words "not resident in Malta" wherever they appear

shall be deleted;

(iii) in paragraph (e) thereof, for the words "an

equity shareholder which invests a minimum sum of one

million, one hundred and sixty-four thousand euro

(1,164,000) (or the equivalent sum in a foreign currency)

in a company not resident in Malta and that investment in

the company not resident in Malta is held for an

uninterrupted period of not less than 183 days" there shall

be substituted the words "an equity shareholder which

holds an investment representing a total value, as on the

date or dates on which it was acquired, of a minimum of

one million, one hundred and sixty-four thousand euro

(€1,164,000) (or the equivalent sum in a foreign currency)

in a company and that holding in the company is held for

an uninterrupted period of not less than 183 days";

(iv)

in the proviso to the definition, for the

words "entitles the holder to a right to votes, to profits

available for distribution and to assets available for

distribution on a winding up of the said body of persons,

and the term "equity shareholder" shall be construed

accordingly;" there shall be substituted the words "entitles

the holder to at least two of the following rights

(a)

a right to vote;

(b)

a right to profits available for distribution;

and

(c) a right to assets available for distribution on

a winding up of the said body of persons,

and the term "equity shareholder" shall be construed

accordingly

Provided that the Commissioner shall be

entitled to determine that an equity holding exists even

where the particular company does not have a holding in

the share capital in a company or does not consist solely of

such a holding of share capital, but it can demonstrate that

in substance it holds an entitlement to at least two of the

equity holding rights

Provided further that in the case of a

holding falling within the purport of paragraph (a) above,

the provisions of the said paragraph shall be deemed to be

satisfied even where the minimum level of entitlement

referred to in that paragraph exists at any time by reference

to the circumstances referred to in the proviso to the

definition of "equity holding";"; and

(e)

immediately after the definition "prescribed" there

shall be added the following new definition

" "property company" shall mean a company which

owns immovable property situated in Malta, or any rights

over such property, or a company which holds, directly or

indirectly, shares or interests in a body of persons which

owns immovable property situated in Malta or any rights

over such property

Provided that where a company or body of persons

carrying on a trade or business owns immovable property

situated in Malta or any rights over such property,

consisting only of a factory, warehouse or office used

solely for the purpose of carrying on such trade or

business, such company or body of persons shall, for the

purpose of this definition, be treated as not owning

immovable property or any rights over such property if not

more than fifty percent of its assets consist of immovable

property situated in Malta and it does not carry on any

activity the income from which is derived directly or

indirectly from immovable property situated in Malta;".

Immediately after article 4 of the principal Act, there shall Addition of new

article 4A to the

be added the following new article

principal Act.

" Profits or

4A. When a person

income prior to a

(i)

changes his residence and

change

in

residence or

becomes resident in Malta and he was

domicile.

at no time domiciled or resident in

Malta prior to such change in residence;

or

(ii) changes his domicile and

becomes domiciled in Malta and he was

at no time domiciled or resident in

Malta prior to such change in domicile;

or

(iii) is "a company resulting

from the merger" which is registered in

Malta as set out in sub-regulation (2) of

regulation 3 of the Cross-border

L.N. 415 of 2007

Mergers

of

Limited

Liability

Companies Regulations (hereinafter

referred to as "Cross-border Mergers

Regulations") and none of the assets

owned by the company on the day of

the merger was owned by any merging

company which is domiciled and, or

resident in Malta at any time prior to

the date of the particular merger,

and has made an election for the purpose of

this paragraph by notice in writing to the

Commissioner, all assets which are situated

outside Malta and which were acquired by

him, or in the case of a company resulting

from the merger, by any non-resident

merging company, prior to the above-

mentioned change in domicile or residence or

prior to the entry into force of the merger

(each of which shall hereinafter be referred to

as "occurrence"), shall be deemed, for the

purpose of calculating any income that would

not have been subject to tax had it arisen

before the particular occurrence would have

taken place, to be assets acquired on the date

of the particular occurrence, at a cost which

is proved to the satisfaction of the

Commissioner to be the market value which

it had on the date of the said occurrence

Provided that such an election shall not

be available unless the particular person

exercises the election by not later than the

end of the year of assessment immediately

following the basis year in which the

occurrence takes place.".

Article 5 of the principal Act shall be amended as follows

(a)

paragraph (a) of subarticle (1) thereof shall be

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 subarticle (9A) and

from a transfer of value in securities as provided

for in subarticle (13)(b)(ii).";

(b) in paragraph (b) of subarticle (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 subarticles (9A)

and (13)(b),";

(c)

(i) in the proviso to paragraph (c) of subarticle (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, other

than a capital redemption reserve and profits available for

distribution, is applied in paying up to any extent any

shares allotted by the company, the cost of acquisition of

such shares shall be zero;";

(ii) immediately after paragraph (f) of subarticle

(3), there shall be inserted the following new paragraph

"(g) in the case of a transfer of shares listed on a

stock exchange recognised under the Financial Markets

Act, not being securities in a collective investment scheme

and not being exempt from tax under the provisions of

paragraph (b) of article 5(6)

(i) the transfer value shall in no case exceed

the market value of the said shares immediately upon

being admitted to listing, and

(ii) the cost of acquisition taken into account

shall be the cost of acquisition of the original shares

For the purpose of this paragraph "original shares"

shall have the same meaning assigned in paragraph (b) of

article 5(6).";

(d) in paragraph (b) of subarticle (6) thereof, the words

"in a company" shall be deleted and for the words "collective

investment scheme;" there shall be substituted the words

"collective investment scheme:" and immediately thereafter

there shall be added the following new provisos

"Provided that the exemption provided for in this

paragraph shall not apply where the transfer is made by a

person who held the said shares or the original shares,

immediately before the said shares or the original shares

were admitted to listing: For the purpose of this paragraph

"original shares" means the shares held by a person which

have been admitted to listing and which represent the

shares being transferred

Provided further that where such person held

shares in a company immediately prior to their listing and

also acquired further listed shares in the said company

after the initial listing of shares in the company, any

transfer of shares made by such person shall first be

deemed to be a transfer of the shares acquired after the

initial listing

Provided also that the provisions of the

immediately preceding provisos shall only apply where the

shares transferred were admitted to listing on or after the

1st January, 2010.";

(e)

immediately after paragraph (ii) of subarticle (9)

thereof, there shall be added the following new paragraph

"(iii) Where the asset referred to in paragraph (i)

consists of immovable property situated in Malta or shares

in a property company, the provisions of this subarticle

shall only apply where the individual direct or indirect

beneficial owners of the companies referred to in

paragraph (i) are the same and each such individual holds,

directly or indirectly, substantially the same percentage

interest in the nominal share capital and voting rights in

each of the said companies. For the purpose of this

paragraph "property company" shall mean a company

which owns immovable property situated in Malta, or any

rights over such property, or a company which holds,

directly or indirectly, shares or interests in a body of

persons which owns immovable property situated in Malta,

or any rights over such property

Provided that for the purpose of this paragraph an

individual is deemed to hold substantially the same

percentage interest in the nominal share capital and voting

rights in each of the said companies where the difference

between the percentage interest held in each company does

not exceed twenty percent

Provided further that where an individual holds,

directly or indirectly, less than twenty percent of the

nominal share capital and voting rights in only one of the

said companies, 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 said companies are the same

Provided also that if more than one individual

holds, directly or indirectly, less than twenty 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,

twenty percent or more of the nominal share capital and

voting rights in that company

Provided also that the whole of this paragraph shall

not apply, where the companies referred to in paragraph (i)

of this subarticle are directly or indirectly owned as to

eighty percent or more by a company whose securities are

listed on a stock exchange recognised under the Financial

Markets Act.";

(f)

immediately after subarticle (9) as amended, there

shall be added the following new subarticle

"(9A) (a) If a company ("the chargeable

company") holds shares in a company, which had been

acquired from another company, and such acquisition was

exempt from tax under article 5(9), this subarticle shall

apply if the chargeable company ceases to be a member of

the original group before the lapse of six years from the

date of the said acquisition. References in this subarticle to

a company ceasing to be a member of a group do not apply

to cases where a company ceases to be a member of the

original group by being wound up or dissolved or in

consequence of another member of the original group

being wound up or dissolved

Provided that where a company ceases to be a

member of the original group by being wound up or

dissolved, for the purpose of determining whether the

chargeable company ceases to be a member of the original

group under paragraph (b), such company shall be deemed

to have remained in existence.

(b)

The chargeable company shall cease to be a

member of the original group, if such company and the

company from which it had acquired the shares referred to

in paragraph (a) no longer satisfy the provisions of

paragraphs (i) and (iii) of article 5(9) and such

determination shall be made by reference to the same

individuals referred to in paragraph (iii) of the said article

taken into account in determining whether the two

companies referred to in this paragraph satisfied the

provisions of paragraphs (i) and (iii) of article 5(9) on the

date of the acquisition referred to in paragraph (a) above

Provided that where the acquisition referred to in

paragraph (a) of this subarticle took place before the 1st

January 2010, paragraph (iii) of article 5(9) shall be

disregarded for the purpose of determining whether a

company ceases to be a member of a group.

(c)

For the purpose of this subarticle the term

"original group" shall mean the two companies referred to

in paragraph (b) above, and the individual direct or indirect

beneficial owners of the said companies who were taken

into account in determining whether the provisions of

paragraphs (i) and (iii) of article 5(9) had been satisfied on

the date of the acquisition referred to in paragraph (a)

above

Provided that where the two companies referred to

in this paragraph are directly or indirectly owned as to

eighty percent or more by a company whose securities are

listed on a stock exchange recognised under the Financial

Markets Act, the term "original group" shall mean the two

companies referred to above and the company whose

securities are listed on the said stock exchange as existing

on the date of the acquisition referred to in the paragraph

(a) above

Provided further that where an individual acquires

shares in terms of a donation exempt from tax under the

provisions of article 5(2)(e), or a transfer causa mortis,

such individual shall be deemed for all the purposes of this

subarticle to have held such shares from the date such

shares were previously acquired in an acquisition

preceding the date of the donation or the transfer causa

mortis.

(d)

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 referred to in paragraph (a) of this

subarticle, it had transferred and immediately re-acquired

the shares at that time.

(e)

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 subarticle (9) or by means of

an allotment, which ever is the later.

(f)

(i) For the purpose of ascertaining the

gains or profits arising under this subarticle, 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.

(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 other

than a capital redemption reserve and profits available for

distribution, is applied in paying up to any extent any

shares allotted by the company, the cost of acquisition of

such shares shall be zero.

(g)

Any gain or loss on the transfer referred to

in paragraph (d) above 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 (b).

(h)

For the purpose of paragraph (a) of this

subarticle the term "shares in a company" shall mean

shares in a company which, on the date of the acquisition

referred to in the said paragraph owned, directly or

indirectly, any immovable property situated in Malta and

the said property or any part thereof is still, directly or

indirectly, owned by such company on the date it ceases to

be a member of the group in accordance with the

provisions of paragraph (b) of this subarticle. For the

purpose of this paragraph a company is treated as

indirectly owning immovable property if it holds, directly

or indirectly, shares or interests in a body of persons which

owns any immovable property situated in Malta.

(i)

Where in accordance with paragraph (d) of

this subarticle the chargeable company is treated as having

transferred and immediately reacquired the shares, and a

chargeable gain or a capital loss accrues to the chargeable

company on the deemed transfer, the chargeable gain or

capital loss accruing on the deemed transfer shall be

treated as accruing not to the chargeable company but to a

related company (“company A”) if -

(i)

at the time of accrual, company A was

incorporated in Malta, and

(ii) a joint election under this paragraph is

made by the chargeable company and company A

to treat the chargeable gain or capital loss as

accruing to company A, and

(iii) such joint election is made by notice

given to the Commissioner not later than twelve

months after the end of the accounting period of

the chargeable company or company A (whichever

is the earlier) in which the time of accrual fell, and

(iv) provisional tax payable in accordance

with article 43 of the Income Tax Management

Act, is paid by company A at a rate of thirty-five

percent of the market value of the shares deemed

transferred within the period prescribed in the said

article.

For the purpose of this paragraph company A is

related to the chargeable company if both companies form

a group for the purposes of article 5(9) at the time of

accrual and "time of accrual" means the time at which, by

virtue of paragraph (d), the gain or loss is treated as

accruing to the chargeable company.";

(g)

subarticle (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 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, it shall be deemed that no loss or gain has

arisen from the transfer.";

(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 ("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

voting rights attached to such shares, and such

value passes into other shares in or rights over the

company held by any other person ("the

transferee"), the transferor shall be deemed to have

made a transfer of such value so reduced to the

transferee. 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 said change

Provided that this paragraph shall not apply

where the change in the issued share capital or

change in voting rights does not produce any

change in the individual direct or indirect

beneficial owners of the said company or in the

proportion in the value of the said company

represented by the shares owned beneficially

directly or indirectly by each such individual

Provided further that this paragraph shall not

apply where the change in the issued share capital

consists of an allotment of shares in a company as a

result of an exchange of shares on a restructuring

of holdings exempt from tax under the provisions

of article 5(14)

Provided also that this paragraph shall not

apply where the said company is a company whose

securities are listed on a stock exchange recognised

under the Financial Markets Act

Provided also that this paragraph shall not

apply where the transfer of value is made by the

transferor to a person referred to in paragraph (i) of

article 5(2)(e)

Provided also that this paragraph shall not

apply where the said company is not a "property

company" and it can be shown to the satisfaction of

the Commissioner that the said change is effected

for bona fide commercial reasons and does not

form part of a scheme or arrangements of which the

main purpose, or one of the main purposes is

avoidance of liability to tax. For the purpose of this

paragraph "property company" shall mean a

company which owns immovable property situated

in Malta, or any rights over such property, or a

company which holds, directly or indirectly, shares

or interests in a body of persons which owns

immovable property situated in Malta, or any rights

over such property."; and

(iii) in paragraph (c) thereof, for the words "in

question" there shall be substituted the words "referred to

in paragraph (b)(i)"; and

(h) in the second proviso to subarticle (15) thereof, for

the words "had this subarticle not been applied." there shall be

substituted the words "had this subarticle and article 5A not

been applied.".

Article 5A of the principal Act shall be amended as Amendment of

article 5A of the

principal Act.

(a)

subarticle (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 resident in Malta;";

(b)

subarticle (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

"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

Provided also that on a subsequent transfer of

the said property made within a period of seven

years after the date of the acquisition thereof as

determined in accordance with the second proviso

to paragraph (b) of subarticle (3), the cost and date

of acquisition of the said property shall, where the

transferor elects to exclude the transfer from the

scope of this article, be the original cost and the

date referred to in article 5(9)(i)."; and

(iv)

in the second proviso to paragraph (g)

thereof, for the words "five years", there shall be

substituted the words "seven years";

(c)

subarticle (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)

subarticle (12A) thereof shall be amended as

follows

(i)

in paragraph (a) thereof, for the words

"ceases to be a member of the group" there shall be

substituted the words "ceases to be a member of the

original group", and 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 immediately after paragraph (a) the

following proviso shall be added

"Provided that where a company ceases to

be a member of the original group by being wound

up or dissolved, for the purpose of determining

whether the chargeable company ceases to be a

member of the original group under paragraph (b),

such company shall be deemed to have remained in

existence.";

(ii)

paragraph (b) thereof shall be deleted and

substituted by the following

"(b) The chargeable company shall cease

to be a member of the original group, if such

company and the company from which it had

acquired the property referred to in paragraph (a)

no longer satisfy the provisions of paragraphs (i)

and (iii) of article 5(9) and such determination shall

be made by reference to the same individuals

referred to in paragraph (iii) of the said article

taken into account in determining whether the two

companies referred to in this paragraph satisfied

the provisions of paragraphs (i) and (iii) of article

5(9) on the date of the acquisition referred to in

paragraph (a) above

Provided that where the acquisition referred

to in paragraph (a) of this subarticle took place

before the 1st January 2010, paragraph (iii) of

article 5(9) shall be disregarded for the purpose of

determining whether a company ceases to be a

member of a group.";

(iii) the present paragraphs (c), (d), and (e) shall

be renumbered as paragraphs (d), (e), and (f) respectively

and in paragraph (d) as renumbered for the words

"acquisition of the property" there shall be substituted the

words "acquisition of the property referred to in paragraph

(a) of this subarticle";

(iv)

immediately after paragraph (b), there shall

be added the following new paragraph

"(c) For the purpose of this subarticle the

term "original group" shall mean the two

companies referred to in paragraph (b) above, and

the individual direct or indirect beneficial owners

of the said companies who were taken into account

in determining whether the provisions of

paragraphs (i) and (iii) of article 5(9) had been

satisfied on the date of the acquisition referred to in

paragraph (a) above

Provided that where the two

companies referred to in paragraph (b) above are

directly or indirectly owned as to eighty percent or

more by a company whose securities are listed on a

stock exchange recognised under the Financial

Markets Act, the term “original group” shall mean

the two companies referred to above and the

company whose securities are listed on the said

stock exchange as existing on the date of the

acquisition referred to in paragraph (a) above

Provided also that where an individual

acquires shares in terms of a donation, exempt

from tax under the provisions of article 5(2)(e), or a

transfer causa mortis such individual shall be

deemed for all the purposes of this subarticle to

have held such shares from the date such shares

were previously acquired in an acquisition

preceding the date of the donation or the transfer

causa mortis."; and

(v)

immediately after paragraph (f) as

renumbered, there shall be added the following new

paragraph

"(g) Where in accordance with paragraph

(d) of this subarticle the chargeable company is

treated as having transferred and immediately

reacquired the property, the tax chargeable on the

deemed transfer in accordance with paragraph (f)

shall be treated as being due not by the chargeable

company but by a related company ("company A")

if

(i)

company A is incorporated in

Malta;

(ii) a joint election under this

paragraph is made by the chargeable

company and company A to treat the tax

chargeable on the deemed transfer as being

due by company A;

(iii) such joint election is made by

notice given to the Commissioner not later

than fifteen working days from the date on

which the chargeable company ceases to be

a member of the group as provided in

paragraph (b); and

(iv) the tax chargeable referred to in

paragraph (f) is paid by company A within

the period referred to in the said paragraph.

For the purpose of this paragraph company

A is related to the chargeable company if both

companies form a group for the purposes of article

5(9) at the time the original group ceases to exist.".

In subarticle (1) of article 6 of the principal Act, for the Amendment of

words "any individual who is an employee of, or provides services to, article

principal Act.

an investment services company, as defined in article 15" there shall

be substituted the words "any individual who is an employee of, or

provides services to, an investment services company which holds an

investment services licence issued under article 6 of the Investment

Services Act or a company which is recognised by the relevant

competent authority for the purposes of article 9A of that said Act,

and whose activities solely comprise the provision of management,

administration, safekeeping or investment advice to collective

investment schemes as defined in the aforesaid Act,".

Article 12 of the principal Act shall be amended a follows: Amendment of

article 12 of the

principal Act.

(a)

in paragraph (c)(ii) of subarticle (1) thereof, the

word "disposal" (in the English version only) shall be

substituted with the word "transfer" and for the words "and of

any shares or securities in a company (which for the avoidance

of doubt includes redemption, liquidation or cancellation) which

is not a company the assets of which consist wholly or

principally of immovable property situated in Malta:" there

shall be substituted the words "and of any shares or securities in

a company (which for the avoidance of doubt includes

redemption, liquidation or cancellation) which is not a property

company and for the purpose of this paragraph the word

"transfer" shall have the same meaning assigned to it under

article 5(1)(b):";

(b) in paragraph (t) of subarticle (1) thereof, for the

words "the Courts of Malta" wherever they occur there shall be

substituted the words "the Courts of Malta or the Courts of

another country as the Commissioner may approve";

(c)

in paragraph (u) of subarticle (1) thereof, the word

"disposal" shall be substituted with the word "transfer" and

immediately after the second proviso thereof, there shall be

added the following new provisos

"Provided also that in respect of participating

holdings in companies resident in Malta, the provisions of

this paragraph shall only apply to gains or profits derived

from the transfer of such holdings

Provided further that for the purpose of this

paragraph the word "transfer" shall have the same meaning

assigned to it under article 5(1)(b);"; and

(d) immediately after paragraph (u) of subarticle (1) as

amended, there shall be added the following new paragraph

"(v) Royalties and similar income derived from

patents in respect of inventions, whether in the course of a

trade, business, profession or vocation or otherwise,

subject to the satisfaction of such terms and conditions

(including any limits on the maximum amount of the

exempt income) and obtaining such determinations as may

be prescribed

Provided that where any income which is exempt

from tax in terms of this paragraph is derived by a

company, the distribution of the particular profits by way

of dividend by such company shall also be exempt from

tax in the hands of the shareholders, so however that where

the person in receipt of such dividend is itself a company

(hereinafter referred to as "the second company"), any

dividend paid to the members of the second company shall,

to the extent that such dividend is paid out of profits which

are exempt in terms of this paragraph, not be charged to tax

under this Act, and where a member of the second

company is again a company, the provisions of this proviso

shall apply mutatis mutandis as though references to the

second company were references to that member, and the

principle set out in this proviso shall continue to be applied

for as long as the exempt profits referred to in this

paragraph are distributed by way of dividends

Provided further that where such royalties or

similar income are derived by a company, this exemption

shall not apply where the company has shown such income

as part of its chargeable income in the return made

pursuant to article 10 of the Income Tax Management

Act.".

Immediately after subarticle (3) of article 14 of the Amendment of

article 14 of the

principal Act, there shall be added the following new subarticle

principal Act.

"(4) Where a person derives income from work carried

out on or in relation to immovable property situated in Malta,

consisting of brokerage and professional services, construction

work, project 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 such immovable property or

any right thereon to which such work, loans, or credit is

related, shall be deemed to constitute separate chargeable

income for the purpose of this subarticle;

(b)

in determining the chargeable income

derived from the said work, the total deductions allowable

under this article shall not exceed the amount of the

consideration received or receivable for the said work; and

(c)

in determining the chargeable income

derived from the transfer of such immovable property or

any right thereon, the total deductions allowable under this

article shall not exceed the consideration received or

receivable for the said immovable property or right

thereon, in so far that such excess consists of any amounts

paid or payable in respect of the work, loans, or credit

referred to in this subarticle.

For the purpose of this paragraph any amounts paid or

payable in respect of the said work, loans, or credit shall for the

purpose of determining the chargeable income to be taken into

account only after all other allowable deductions have been

taken into account

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

subarticle reflects the amount that would have been paid or

payable if the persons referred to in this subarticle were not

related.

For the purpose of this subarticle -

(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 percent

by the same persons.".

In article 14A of the principal Act, for the words "the

Courts of Malta", wherever they occur, there shall be substituted the

words "the Courts of Malta or the Courts of another country as the

Commissioner may approve".

In article 14C of the principal Act, for the words "children

to a licensed or registered" there shall be substituted the words

"children who were below the age of 12 years to a bona fide”, and

immediately after article 14C, the following new proviso shall be

added

"Provided that the Minister may by rules prescribe the

conditions under which this deduction shall be allowed.".

Immediately after article 14E in the principal Act, there

shall be added the following new article

" Proof of

14F. If an individual proves to the

payment of fees.

satisfaction of the Commissioner that he has

paid fees in respect of his studies at a

recognised tertiary education institution,

whether locally or abroad, he shall be

allowed a deduction against his income in

respect of such fees in such manner and

subject to such conditions as may be

prescribed.".

Article 29 of the principal Act shall be amended as

follows

(a)

the existing wording shall be numbered as subarticle

(1);

(b) in subarticle (1) as renumbered, the words "the

business or air transport or" shall be deleted; and

(c)

immediately after subarticle (1) as renumbered, the

following new subarticle shall be added

"(2) Where a person owns, leases, or operates

any one or more aircraft or aircraft engine (irrespective of

the country of registration of the said aircraft or aircraft

engine) which is used for or employed in the international

transport of passengers or goods, any income of such

person which is derived or otherwise arises from the

ownership, leasing, or operation of such aircraft or aircraft

engine shall, for the purposes of the Income Tax Acts, be

deemed to have arisen outside Malta regardless of whether

the aircraft may have called at, or operated from, any

airport in Malta.".

Article 33 of the principal Act shall be amended as Amendment of

article 33 of the

principal Act.

(a)

the first proviso to subarticle (1) thereof shall be

substituted by the following

"Provided that where the recipient derives

investment income referred to in article 41(a)(viii), tax

shall be deducted at the rate specified in article 56(6) or

such other rate as may be prescribed and rules may also be

prescribed on how the investment income provisions are to

be applied in particular circumstances."; and

(b)

the second proviso to subarticle (1) thereof shall be

deleted.

Immediately after the second proviso to subarticle (2) of Amendment of

article 34 of the principal Act, there shall be added the following new article

principal Act.

subarticle

"(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 prescribed by the

Minister.".

Sub-paragraph (i) of the definition "recipient" in paragraph

(c) of article 41 of the principal Act shall be substituted by the

following

"(i) a person who is resident in Malta during the year in

which investment income is payable to him or which is payable

to a person under sub-paragraphs (ii) or (iii) of this paragraph

(other than a person who during that year carried on banking

business under the Banking Act, or a person carrying on the

business of insurance or any other company (hereinafter "owned

and controlled company") which is owned and controlled,

directly or indirectly, by such persons, excluding an owned and

controlled company not carrying on the business of banking or

insurance which is listed on a stock exchange recognised under

the Financial Markets Act and in respect of which the

Commissioner, at his discretion, has issued a determination that

such company falls within the purport of this definition, or a

company which is registered under article 24 of the Malta

Financial Services Authority Act), or".

Subarticle (6) of article 43 of the principal Act shall be

amended as follows

(a)

paragraph (c) thereof shall be substituted by the

following

"(c) Where an individual resident in Malta is

beneficially entitled, directly or indirectly, to the profits

(whether or not distributed) of a company which has

applied the provisions of article 12(1)(u) to any of its

income or gains, such individual shall be deemed to have

received, at the time that the said company has submitted

its tax return in which the said income or gains would have

been charged to tax but for the fact that it applied the said

exemption or the last date on which such a tax return is due

to be submitted, whichever is the earlier, so much of that

income or gains as corresponds to his, direct or indirect,

entitlement to receive that income or gains by way of

dividend or other means through or from any person or

entity in any manner whatsoever and for the purpose of

this paragraph if the company would have already

distributed such income or gains or part thereof it shall be

deemed that no such distribution has been made.";and

(b)

paragraph (f) thereof shall be amended as follows

(i)

in

sub-paragraph

(i),

for

the

words

"recognised under the Financial Markets Act" there shall

be substituted the words "determined by the Commissioner

for the purpose of this provision"; and

(ii)

in sub-paragraph (ii), for the words "not

listed on such a stock exchange and not frequently traded"

there shall be substituted the words "not listed on such a

recognised stock exchange or not frequently traded".

In article 47 of the principal Act, for the words “(whether Amendment of

before or during liquidation)” there shall be substituted the words article

principal Act.

"(whether before or during liquidation) and any distributions from the

untaxed account".

Article 51 of the principal Act shall be amended as Amendment of

article 51 of the

follows

principal Act.

(a) in subarticle (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 subarticle (4) thereof, for the

words "article 14(1)(g)" there shall be substituted the words

"articles 5(10)(b) and 14(1)(g)"; and

(c)

in subarticle (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".

Article 56 of the principal Act shall be amended as Amendment of

article 56 of the

follows

principal Act.

(a)

in subarticle (12) thereof, immediately after

paragraph (c), there shall be added the following new

paragraph

"(d) Where a person has taken action under a

Mutual Agreement Procedure in terms of an arrangement

referred to in article 76 of this 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, any additional tax chargeable in

terms of paragraph (c) of this subarticle shall not apply for

the period between the date when the said action under the

Mutual Agreement Procedure is initiated and the date

when the issue is concluded under the said procedure:";

(b) in subarticle (17), for the words "the last part of that

individual’s total income" there shall be substituted the words

"the first part of that individual’s total income";

(c)

immediately after subarticle (20) there shall be

added the following new subarticle

"(21) Where, during the year immediately

preceding the year of assessment 2011 or any subsequent

year of assessment, an individual who for the purposes of

this subarticle, is not deemed to be ordinarily resident in

Malta derives income subject to tax under article 4(1)(b),

being emoluments payable under a qualifying contract of

employment, and received in respect of work or duties

carried out in Malta, or in respect of any period spent

outside Malta in connection with such work or duties, or

on leave during the carrying out of such work or duties,

then, notwithstanding anything to the contrary contained in

this Act, that individual may opt to have the said income

charged to tax at the rate of 15 cents on every euro

Provided that

(a) where the said option is exercised, the

income that is charged to tax at the said rate shall

be deemed to constitute the first part of that

individual’s total income for the year of assessment

in question and the tax on the remaining income

shall be calculated at the rate or rates that would

have been applicable to that remaining income had

the option not been exercised;

(b) where the said option is exercised, the

minimum amount of income which shall be

chargeable to tax at the said rate in respect of the

year of assessment in question shall be deemed to

be such amount as may be prescribed and the tax

thereon shall not be less than the tax which results

from applying the said rate on the deemed

minimum amount;

(c) the applicability of this subarticle shall

be subject to such conditions and restrictions as

may be prescribed, including

(i) the conditions under which an

individual is to be deemed as being not

ordinarily resident in Malta and under which

a contract of employment is to be deemed as a

qualifying contract of employment for the

purposes of this subarticle;

(ii) the maximum period or number of

years for which, the said option may be

exercised;

(iii) the procedure to be used for the

exercise of the said option;

(iv) such

other

conditions

and

restrictions as the Minister may deem fit.";

and

(d) immediately after the new subarticle (21) there shall

be added the following new subarticle

"(22) In the case of capital gains derived by a

person from the transfer of shares listed on a stock

exchange recognised under the Financial Markets Act, not

being securities in a collective investment scheme, and not

being exempt from tax under the provisions of paragraph

(b) of article 5(6), such income shall be deemed to

constitute separate chargeable income to be taxed

separately at the rate of 15 cents (€0.15) on every euro.".

In article 59 of the principal Act, for the words "company Amendment of

resident in Malta" there shall be substituted the words "company article

principal Act.

registered in Malta".

In paragraph (b) of article 80 of the principal Act, for the Amendment of

words "under the laws of a territory outside Malta." there shall be article

principal Act.

substituted the words "under the laws of a territory outside Malta,

including, in the case of a claim for relief to which paragraphs (a) and

(b) of article 82 applies, tax imposed under the Income Tax Acts.".

In article 81 of the principal Act, the words "which is Amendment of

article 81 of the

payable in a territory other than Malta" shall be deleted.

principal Act.

PART IV

(1) This Part amends the Duty on Documents and

Transfers Act, and it shall be read and construed as one with the Duty

on Documents and Transfers Act, hereinafter in this Part referred to

as "the principal Act".

(2) The provisions of this Part, other than article 43 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 43 shall be deemed to have come into force on 1st

January, 2010.

In article 2 of the principal Act, for the definition

"transfer" there shall be substituted the following

" "t ransfer" in cludes any ass ignment ,

conveyance, sale, partition, donation,

settlement of dowry, sale by instalments,

redemption of ground rent and any acquisition

under any other title, including a declaratory

public deed as is referred to in article 371(4)

and 354(3) of the Companies Act, and any

occurrence that is deemed to be a transfer in

accordance with the provisions of article 42B

of this Act, but, except where specifically

provided in this Act, does not include any

transfer causa mortis;".

Article 4 of the principal Act shall be substituted by the

following

"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.".

Subarticle (1) of article 6 of the principal Act shall be

substituted by the following

"(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.".

Article 25 of the principal Act shall be substituted by the Substitution of

article 25 of the

following

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

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.".

Article 27 of the principal Act shall be substituted by the Substitution of

article 27 of the

following

principal Act.

" Duty on

"27. Notwithstanding the provisions of

policies of

any other article in this Act, including articles

insurance.

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 ten

cents for every euro or part thereof of the

agreed yearly premium, or, if a compounded

p remium is ag reed u pon as a lump sum

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;

(d) duty under this article shall only

be chargeable on policies relating to risks

referred to in the definition of the term

"risk situated in Malta" contained in

article 2(1) of the Insurance Business Act;

(e) persons referred to in article

47(3 ) shall in no case be d eemed to

co n st i t u t e p e rs o n s a s r efe rr ed 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.".

Subarticle (6) of article 32 of the principal Act shall be

amended as follows

(a)

the whole subarticle shall be renumbered as

paragraph (a) thereof; and

(b) immediately after paragraph (a) thereof, as

renumbered, there shall be added the following new paragraph

"(b) The provisions of paragraph (a) shall only

apply where the individual, direct or indirect, beneficial

owners of the companies referred to in the said paragraph

are the same and each such individual holds, directly or

indirectly, substantially the same percentage interest in the

nominal share capital and voting rights in each of the said

companies.

For the purpose of this paragraph an individual is

deemed to hold substantially the same percentage interest

in the nominal share capital and voting rights in each of the

said companies where the difference between the

percentage interest held in each company does not exceed

twenty percent

Provided that where an individual holds, directly or

indirectly, less than twenty percent of the nominal share

capital and voting rights in only one of the companies

referred to in paragraph (a), such individual shall not be

taken into account in determining whether the individual

direct or indirect beneficial owners of the companies

referred to in paragraph (a) are the same

Provided further that if more than one individual

holds, directly or indirectly, less than twenty percent of the

nominal share capital and voting rights in one of the said

companies, the preceding proviso shall not apply where

together such individuals hold, directly or indirectly,

twenty percent or more of the nominal share capital and

voting rights in that company

Provided also that the whole of this

paragraph shall not apply, where the companies referred to

in paragraph (a) of this subarticle are directly or indirectly

owned as to eighty percent or more by a company whose

securities are listed on a stock exchange recognised under

the Financial Markets Act.".

Article 42 of the principal Act shall be amended as Amendment of

article 42 of the

principal Act.

(a)

in the proviso to paragraph (b) of subarticle (1)

thereof, the words "which do not own any immovable property

other than such premises as may be prescribed" shall be deleted;

(b) immediately after sub-paragraph (iii) of the proviso

to paragraph (b) of subarticle (1) thereof, there shall be added

the following new provisos

"Provided further that where the companies

referred to in the immediately preceding proviso own,

directly or indirectly, any immovable property or rights

over an immovable, the immediately preceding proviso

shall only apply where the individual, direct or indirect,

beneficial owners of the companies referred to in the said

proviso are the same and each such individual holds,

directly or indirectly, substantially the same percentage

interest in the nominal share capital and voting rights in

each of the said companies both before and after the

transfer or exchange, as the case may be. The provisions of

paragraph (b) of article 32(6) shall apply mutatis mutandis

for the purpose of making such determination. For the

purpose of this proviso a company is treated as indirectly

owning immovable property or any rights over an

immovable if it holds, directly or indirectly, any shares or

interests in a body of persons which owns immovable

property or any rights over an immovable

Provided also that the immediately preceding

proviso shall not apply, where the said companies are,

directly or indirectly, owned as to eighty percent or more

by a company whose securities are listed on a stock

exchange recognised under the Financial Markets Act.";

(c)

immediately after paragraph (c) of subarticle (1)

thereof, there shall be added the following new paragraph (d)

"(d) on a transfer of real value in marketable

securities as provided for in article 42B.";

(d) subarticle (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 the company referred to in article

42B, or whose marketable securities are transferred holds,

directly or indirectly, shares in a 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 paragraph (b) above shall only apply

where the aggregate value of

(i)

immovable property or any right over

an immovable owned by a property company or

companies (as represented by the percentage

interest held in such company or companies), and

(ii) immovable property or any right over

an immovable owned by the company referred to in

article 42B or whose marketable securities are

transferred,

is equal to or exceeds seventy-five percent of the total non-

current assets of the property company or companies (as

represented by the percentage interest held in such

company or companies) and of the company referred to in

article 42B or whose marketable securities are transferred,

disregarding the book value of shares held, directly or

indirectly, in the property company or companies and

taking into account total current assets consisting of

immovable property

Provided further that paragraph (b) 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) of this

subarticle.

(c) For the determining of the amount or value

of the consideration or the real value of the marketable

security or of the real value of the company referred to in

article 42B, 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 other

than -

(i)

a bank loan relating to the cost of

acquisition and improvements of the immovable

property or real right thereon; or

(ii) a debt registered at the Public Registry

relating to the acquisition cost of the aforesaid

immovable, where such debt is registered within

three months from the date of acquisition of the

said immovable,

proved in each case by the production of such documents

to the satisfaction of the Commissioner, as the

Commissioner may require."; and

(e)

immediately after subarticle (2) as substituted, there

shall be added the following new subarticles

"(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.

(4)

The Minister responsible for finance may

make rules under this Act or the Income Tax Act for the

implementation of the provisions of this article and article

42B and, without prejudice to the generality of the

foregoing, such rules may provide for

(a) the manner in which the real value of a

company is to be determined;

(b) the manner in which the real value of

marketable securities is to be determined;

(c) the manner in which a transfer of real

value in marketable securities as provided for in

article 42B is to be determined; and

(d) any matter that may be prescribed under

this article.".

Immediately after article 42A of the principal Act there

shall be added the following new article

" Reduction of

Where the real value of shares held

real value of

by a person (hereinafter referred to as the

shares.

"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 voting

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

Provided that this article shall not apply

where

(i)

the change in the issued share

capital or change in voting rights does

not produce any change in the individual,

direct or indirect, beneficial owners of

the said company or in the proportion in

the real value of the said company

represented by the shares owned

beneficially, directly or indirectly, by

each such individual; or

(ii) the change in the issued share

capital consists of an allotment of shares

in a company, as a result of an exchange

of shares from one company to another

exempt from duty under the provisions

of article 42(1); or

(iii) the transfer of value is the

result of a change in voting rights and

such transfer is made by the transferor to

a person referred to in paragraph (i) of

article 5(2)(e) of the Income Tax Act; or

(iv) the said company is a

company whose securities are listed on a

stock exchange recognised under the

Financial Markets Act; or

(v) the said company is not a

"property company" and it can be shown

to the satisfaction of the Commissioner

that the said change is effected for bona

fide commercial reasons and does not

form part of a scheme or arrangements of

which the main purpose, or one of the

main purposes is avoidance of liability to

duty. For the purpose of this paragraph

"property company" shall mean a

company which owns any immovable

property situated in Malta, or any rights

over such property, or a company which

holds, directly or indirectly, shares or

interests in a body of persons which

owns any immovable property situated in

Malta, or any rights over such property.".

40. The proviso to subarticle (2) of article 43 of the principal Amendment of

article 43 of the

Act shall be substituted by the following two provisos

principal Act.

"Provided that a notice given as aforesaid may stipulate

that it will apply also to other transfers of marketable securities

executed outside Malta that may be made in the future by the

same person, in which case that person will not be required to

give notice of such further transfers

Provided further that notice shall not be given where duty

is not chargeable under any of the provisions of this Act.".

41. Article 47 of the principal Act shall be amended as

follows

(a)

immediately after subarticle (2) thereof, there shall

be added the following new paragraph

"For the purpose of this article acquisitions or

disposals of marketable securities shall include a transfer

of real value in marketable securities as referred to in

article 42(1)(d)."; and

(b) immediately after paragraph (e) of subarticle (3)

thereof, there shall be added the following new provisos

"Provided that the holding of marketable securities

in, and the carrying on of business activities with, a

company or companies referred to in paragraphs (c), (d) or

(e) shall be deemed to constitute business interests outside

Malta

Provided further that for the purpose of

determining whether a company referred to in article 384

of the Companies Act satisfies the provisions of this

paragraph, only such company’s operations in Malta shall

be taken into consideration.".

42. Article 49 of the principal Act shall be renumbered as

subarticle (1) thereof and immediately thereafter there shall be added

the following new subarticle

"(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.".

(1)

Article 52A of the principal Act shall be deleted.

(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.

Subarticle (1) of article 64 of the principal Act shall be Amendment of

article 64 of the

substituted by the following

principal Act.

"(1) No person or authority shall, where a transfer is

subject to duty under this Act, register any transfer, reduction,

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.".

PART V

This Part amends the Income Tax Management Act, and it Amendments to

shall be read and construed as one with the Income Tax Management the

Management

Act, hereinafter in this Part referred to as "the principal Act".

Act.

In subarticle (1) of article 29 of the principal Act, for the Amendment of

words "properly addressed and posted." there shall be substituted the article

principal Act.

words "properly addressed and posted:", and immediately thereafter

there shall be added the following proviso

"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.".

In subarticle (5) of article 31 of the principal Act, for the Amendment of

words "additional assessment or assessments." there shall be article

principal Act.

substituted the words "additional assessment or assessments:", and

immediately thereafter there shall be added the following proviso

"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.".

Paragraph (b) of article 36 of the principal Act shall be

substituted by the following new paragraph

"(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

without any reasonable excuse the records, documents, accounts

and electronic data in accordance with the proviso to article

31(5);".

In article 38 of the principal Act, for the words "against an

assessment" there shall be substituted the words "against an

assessment or order" and for the words "the assessment as made"

there shall be substituted the words "the assessment or order as

made".

Article 40 of the principal Act shall be amended as

follows

(a)

in subarticle (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

(b) in subarticle (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),".

Article 43 of the principal Act shall be amended as

follows

(a) in subarticle (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) of subarticle (1), for

the words "according to the deed." there shall be substituted the

words "according to the deed:" and immediately thereafter the

following new provisos shall be added

"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

with prescribed rules, the provisional tax payment shall be

equivalent to seven percent of the higher of the market

value and 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 subarticle (13)(b)(ii) of

article 5 of the Income Tax Act, the provisional tax

payment shall be equivalent to seven percent of the gains

or profits referred to in the said subarticle.";

(c)

in paragraph (a) of subarticle (2) thereof, for the

words "any transfer of assets not subject to tax on capital gains,

or to tax under the provisions of article 4 of the Income Tax

Act;" there shall be substituted the words "any transfer of assets

not subject to tax under the provisions of articles 5 and 12 of the

Income Tax Act where the transferor submits to the

Commissioner the prescribed form, stating which provision is

applicable, and any other relevant documents which the

Commissioner may deem necessary

Provided that provisional tax shall in any case be paid if

article 33 of the Income Tax Act is applicable as a result of

claiming the exemption provided for under article 12(1)(u) of

the said Act;"; and

(d) in subarticle (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 securities,

as defined in article 5 of the Income Tax Act, involving a

transfer of a controlling interest in accordance with

prescribed rules, the twenty percent shall be calculated on

the higher of the market value and the consideration.".

Article 44 of the principal Act shall be amended as

(a)

in subarticle (2B) thereof, immediately after

paragraph (b), there shall be added the following new

paragraph

"(c) no interest shall run on any tax payable in

circumstances where a person has taken action under a

Mutual Agreement Procedure in terms of an arrangement

referred to in article 76 of this 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, for the period between the date

when the said action under the Mutual Agreement

Procedure is initiated and the date when the issue is

concluded under the said procedure."; and

(b)

subarticle (3) shall be substituted by the following

"(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.".

Article 48 of the principal Act shall be amended as

(a) immediately after subarticle (1) thereof, there shall

be added the following new subarticles

"(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 subarticle.

(1B) Notwithstanding the provisions of

subarticle (1) of this article, in no case shall

any refund be made under this Act to any

person registered for the purpose of the Value

Added Tax Act, unless and until such person

has filed all tax returns or declarations

required to be furnished for the purpose of the

Value Added Tax Act in respect of tax periods

up to and including the last complete tax

period in the year preceding that in which the

refund would have been payable but for the

application of this subarticle.";

(b) the present provisions 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.";

(c)

(i) immediately after paragraph (a) of subarticle

(4) thereof, there shall be inserted the following new proviso

"Provided that the conditions set out in paragraphs

(i) and (ii) above shall not apply in respect of dividends

paid by any company registered in Malta to any recipient

shareholder who is registered for the purpose of this article

48(4) or article 48(4A) of this Act.";

(ii) paragraph (ii) of the last proviso to subarticle (4)

thereof shall be substituted the following

"(ii) a person resident in Malta, registered for the

purpose of making a claim in terms of this subarticle in

such manner as may be prescribed, may also claim a tax

refund contemplated by this subarticle with respect to

dividends paid from profits allocated to the foreign income

account when such dividend is paid

1. by a company which was a company

registered in Malta on or after 1 January 2007 but

was not resident in Malta before that date; and

2. by any company which has

exercised its option in terms of paragraph (i) of

the proviso to article 48(4A)(b) of this Act; and

3. by any other company registered in

Malta out of profits derived by the said company

in respect of accounting periods which

commenced on or after 1 January 2011.";

(d) in subarticle (4A) thereof, for paragraph (bb) of the

sub-proviso to paragraph 2 of proviso (i) to paragraph (b)

thereof, there shall be substituted the following

"(bb) The Commissioner may, in his discretion,

determine that paragraph 2 above applies to a company if

he is of the opinion that it is likely that in the foreseeable

future more than half of the distributable profits of the

company will consist of any or all of the following

categories of income

-

profits that will be allocated to the

foreign income account;

-

profits which are not subject to tax

but which would otherwise be allocated to the

foreign income account;

-

dividends

received

from

an

international trading company, including, where

applicable, dividends paid after that company has

exercised the option under paragraph 1 of proviso

(i);

-

income derived from the ownership

and, or chartering of any tonnage tax ship as

defined in the Merchant Shipping (Taxation and

Other

Matters

Relating

to

Shipping

Organisations) Regulations, 2004;

-

income derived from the ownership

and, or chartering of any ship, yacht, boat and any

other vessel (in each case not being a tonnage tax

ship as defined in the Merchant Shipping

(Taxation and Other Matters Relating to Shipping

Organisations) Regulations, 2004) provided that

the aforesaid income is derived by a company

which was originally incorporated in terms of and

subject to the Merchant Shipping (Shipping

Organisations - Private Companies) Regulations,

2004 and whose objects were restricted as

required under such Regulations;

-

income of any company qualifying

for benefits in terms of regulation 4, 5 or 6 of the

Business Promotion Regulations, 2001:"; and

(e)

in subarticle (8) thereof, for the words "following

the end of the month in which the refund becomes due" there

shall be substituted the words "following the day on which the

refund becomes due".

PART VI

(1) This Part amends the Excise Duty Act, and it shall Amendments to

be read and construed as one with the Excise Duty Act, hereinafter in the

Act.

this Part referred to as "the principal Act".

(2) Articles 55, 56, 57, 58 and 59 to 63 shall come into force

on such date as the Minister responsible for finance may, by notice in

the Gazette, establish.

(3) Articles 64 and 65 shall be deemed to have come into force

on the 10th November 2009.

Article 13 of the principal Act shall be amended as Amendment of

article 13 of the

follows

principal Act.

(a)

in subarticle (2) thereof, for the words "eleven

thousand and six hundred and forty-six euro and eighty-seven

cents (11,646.87)" there shall be substituted the words "twenty-

five thousand euro (€25,000)"; and

(b) in subarticle (3) thereof, for the words "four hundred

and sixty-five euro and eighty-seven cents (465.87)" there shall

be substituted the words "twenty-five thousand euro (€25,000)

or an amount equal to three times the duty payable on any goods

in respect of which the offence is committed, whichever shall be

the higher".

Article 16 of the principal Act shall be amended as Amendment of

article 16 of the

follows

principal Act.

(a)

in subarticle (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 shall be 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 euro (€25,000)

Provided further that one-third of this amount shall

be deemed as a civil debt owed and payable to the

Department of Customs."; and

(b)

subarticle (2) thereof shall be deleted.

Immediately after article 16 of the principal Act there shall

be added the following new article

" Penalty

16A. Notwithstanding any other provision

instead of

of this Act relating to forfeiture of goods in

proceedings in

favour of the Government, in the case of an

terms of this

Act.

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,

w h i l s t h e f o r f e i t s t h e g o o d s m a y, o n

acknowledgement of the committed offence

by the offender, refrain from 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).".

Article 17 of the principal Act shall be substituted by the

following

"17. (1)

If any excise goods -

(a)

are deposited or concealed in any place with

intent to defraud the Government of the excise duty

leviable under this Act; or

(b)

are clandestinely or illegally removed from

or out of any tax warehouse or place of security in which

such excise goods have been duly deposited; or

(c)

after having been delivered from any tax

warehouse or other place of security without payment of

duty for removal to any place authorised by the

Comptroller, are not duly delivered at such place; or

(d)

are brought into Malta and the payment of

excise duty has been evaded or an attempt has been made

to evade the payment thereof,

in every such case, such excise goods shall be forfeited, and the

offender shall moreover be liable to the penalties laid down in

the last preceding article.

(2) Furthermore, all vehicles, vessels and other means

of transport, used or intended to be used for the importation,

landing, removal, keeping, concealing or conveyance of any

uncustomed or other goods liable to forfeiture under this Act

together with the property, whether movable or immovable,

within which the uncustomed or goods liable to forfeiture are

found, shall be forfeited

Provided that no vessel shall be liable to forfeiture under

the provisions of this article unless such vessel is under two

hundred and fifty tons net registered tonnage.

(3) With regard to any vessel of or exceeding two

hundred and fifty tons net registered tonnage, it shall be lawful

for the Comptroller, in any case in which in his opinion a

responsible officer of such vessel is implicated either actually or

by neglect, to take proceedings in the manner prescribed by

article 36 and subject to appeal as laid down in that article, for

condemnation of the said vessel in a sum of twenty-five

thousand euro (€25,000). And for this purpose the Comptroller

may require, as to any vessel referred to in this subarticle, the

deposit in his hands of a sum of twenty-five thousand euro

(€25,000) to abide by the decision of the court, and in default of

payment of such deposit, the Comptroller may detain such

vessel.

(4) No claim for damages shall lie against the

Comptroller in respect of the payment of any deposit or the

detention of any vessel, vehicle or other goods under this article.

(5) The expression "responsible officer" in this article

means and includes the master, mates and engineers of any

vessel, and in the case of a vessel carrying a passenger

certificate, the purser or chief steward.

(6) The expression "neglect" includes cases where

goods unowned by any of the crew are discovered in a place or

places in which they could not reasonably have been put if the

responsible officers having supervision of such place or places

had exercised proper care, at the time of the loading of the ship

or subsequently.".

In subarticle (4) of article 18 of the principal Act, for the

words "eleven thousand and six hundred and forty-six euro and

eighty-seven cents (11,646.87)" there shall be substituted the words

"twenty-five thousand euro (€25,000)".

In subarticle (1) of article 25 of the principal Act, for the

words "may be detained by such excise officer" there shall be

substituted the words "shall be detained by such excise officer".

In subarticle (1) of article 26 of the principal Act, for the

words "may be seized" there shall be substituted the words "shall be

seized".

Immediately after article 29 of the principal Act there shall

be added the following new article

" Power to

29A. (1) The Comptroller may grant

grant, refuse or

to, refuse to grant or withdraw an

withdraw

authorization.

authorization from a person to act as a

registered excise trader or authorized

warehouse keeper.

(2) The Comptroller may refuse to

grant or withdraw an authorization according

to subarticle (1) if in the opinion of the

Comptroller

(a)

where the applicant is a

natural person, the applicant is not a fit

and proper person;

(b) where the applicant is a

partnership, any of the partners are not

fit and proper persons;

(c)

where the applicant is a

company, any director, shareholder or

officer of the company who would be

involved in the direction or control of

the company is not a fit and proper

person.

(3) A natural person, partnership or

company shall be deemed to be unfit and

proper, if amongst others

(a)

they lack honesty, integrity

or competence in their dealings with the

Comptroller of Customs; or

(b) they

lack

financial

soundness; or

(c)

such person has contravened

any of the dispositions of this Act or

any other Act relating to customs; or

(d) such person has been found

guilty of committing a criminal offence

or any other offence relating to property

and public security, public trust,

government revenue or financial

services.

(4) Any person who feels aggrieved

by a decision taken by the Comptroller

according to subarticle (3), may appeal under

article 31 to the Excise Duty Appeals

Board.".

In subarticle (1) of article 31 of the principal Act, for the Amendment of

words "under article 30" there shall be substituted the words "under article

principal Act.

articles 29A and 30".

The Third Schedule to the principal Act shall be amended Amendment of

the Third

as follows

Schedule to the

principal Act.

(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

"31.56 Euro per kg.".

The Fourth Schedule to the principal Act shall be amended

as follows

(a)

for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Electricity falling under CN Code

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".

PART VII

(1) This Part amends the Value Added Tax Act, and it

shall be read and construed as one with the Value Added Tax Act,

hereinafter in this Part referred to as "the principal 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.

In subarticle (2) of article 24 of the Act for the words

"whichever is the later." there shall be substituted the words

"whichever is the later:" and immediately thereafter there shall be

added the following proviso

"Provided that where a person to whom a refund is payable

in terms of this subarticle has, by the date the refund claim is

made, failed to submit a return of income in respect of the year

of assessment 1999 or any subsequent years of assessment by

the date required to be submitted in terms of the provisions of

the Income Tax Management Act and such failure persists until

the date such refund becomes payable, any such refund shall not

be paid to such person and shall be withheld by the

Commissioner until such time as the said return of income is

submitted; and provided further that notwithstanding any other

provisions of this Act, no interest shall be due by the

Commissioner in respect of the period during which the said

refund was withheld on account of failure to submit a return of

income for the purposes of the Income Tax Management Act.".

In subarticle (2) of article 30 of the principal Act, Amendment of

immediately after the words "intra-Community acquisitions" there article

principal Act.

shall be inserted the words "and purchases made for which the

customer is liable for the payment of the tax pursuant to articles

20(2)(b) and 20(2)(c) of the Act".

PART VIII

This Part amends the Eco-Contribution Act, and it shall be Amendment to

read and construed as one with the Eco-Contribution Act, hereinafter the

Contribution

Act.

in this Part referred to as "the principal Act".

Immediately after article 13B of the principal Act there Addition of new

articles 13C and

shall be added the following two new articles

13D to the

principal Act.

" Statements

13C. Any statement issued by the

and

competent authority and any assessment

assessments to

issued in terms of article 13A showing any

constitute

executive title. amount of eco-contribution due by a person

s hal l, unless th e contrary is pro ved, be

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

Part I of Book Second of the Code of

Organization and Civil Procedure.

Validity of

13D. (1) Any

statement,

assessment,

statements, etc.

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.

(2) In the case of a body of persons it shall

be sufficient if only the name of the body of

persons appears on any notice, warrant or

proceeding, including any proceeding in the

Court of Appeal, issued or made under or for

the purposes of this Act.".

Immediately after subarticle (2) of article 16 of the

principal Act, there shall be added the following subarticles

"(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,

at any time before final judgment, be

withdrawn at the request of the competent

authority.

(4) Notwithstanding the provisions of the

Criminal Code, the Attorney General shall

have a right of appeal to the Court of Criminal

Appeal from any judgment given by the Court

of Magistrates in respect of criminal

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

prosecution under any other law or from

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

Act the competent authority or any other

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.

(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

be heard before assuming the duties of a

prosecuting officer unless the necessity of his

g i vi ng e vi de nce aris es at a l ate r st ag e

provided that the Commissioner or other

o fficer as aforesaid may state t he facts

c o n s t i t u t i n g t h e o ff e n c e b e f o r e g i v i n g

evidence.".

PART IX

The following obsolete articles are hereby repealed

Repeal of

certain obsolete

articles in

(a)

article

44(c)

of

the

Budget

Measures

various Acts.

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.

Passed by the House of Representatives at Sitting No. 205 of the

24th March, 2010.

L OUIS G ALEA

Speaker

P AULINE A BELA

Clerk to the House of Representatives