ACT No. V of 2012 AN ACT to implement Budget measures for the financial year 2012 and other administrative measures.

I assent.

G EORGE A BELA

(L.S.)

President

14th May, 2012

ACT No. V of 2012

AN ACT to implement Budget measures for the financial year

2012 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

Implementation Act, 2012.

PART I

The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2012.

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

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

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 seven hundred 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 Cap. 161.

Securities) Ordinance on such terms and conditions as the said

Minister may approve.

(1) Any money borrowed under the authority of this Purpose.

Part shall be appropriated and applied for the purpose of

(a) meeting excess expenditure over revenue incurred in

the Consolidated Fund for year 2012 and, or subsequent years;

(b) redeeming registered stocks which are due for

redemption during 2012; and

(c)

effecting portfolio changes in relation to amounts

raised through Treasury Bills, amounts raised through

Government Stocks, and in respect of loans raised outside Malta

as and when required in line with Government’s debt

management policies.

(2) Any sum payable by the Government of Malta for the lease

of the Parliament building shall be paid out of the Consolidated Fund

by virtue of this Act and without the need of any further

appropriation.

PART II

This Part of this Act amends the Customs Ordinance and it Amendments of

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

Ordinance.

hereinafter in this Part referred as "the Ordinance".

In article 63 of the Ordinance, for the words "not Amendment of

exceeding one thousand and one hundred and sixty-four euro and article

Ordinance.

sixty-nine cents (1,164.69)" there shall be substituted the words "not

exceeding two thousand euro (€2,000)".

PART III

(1) This Part of this Act amends the Income Tax Act and Amendments of

the Income Tax

it shall be read and construed as one with the Income Tax Act, Act.

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

(2) The following provisions of this Part shall come into force

as follows

(a)

article 12 shall be deemed to have come into force as

from the year of assessment 2011;

(b) article 18 shall come into force as from the year of

assessment 2012; and

(c)

articles 11(b), 13 to 17, 19, 20, 21, and 22(a), (b) and

(d) shall come into force as from the year of assessment 2013.

In the first proviso to the definition ''participating holding'',

in sub-article (1) of article 2 of the principal Act, for the words ''in a

body of persons constituted,'' there shall be substituted the words ''in a

body of persons or a collective investment vehicle that provides for

limited liability of investors constituted,''.

Article 5 of the principal Act shall be amended as follows

(a)

in paragraph (b) of sub-article (1) thereof, the

definition ''partnership'' shall be substituted by the following

'' ''partnership'' means

(a)

any partnership constituted

under the Companies Act or under the

Commercial Partnerships Ordinance,

being either a commercial partnership

en nom collectif or a commercial

partnership en commandite the capital of

which is not divided into shares;

(b) any other partnership having

a legal personality distinct from that of

its members constituted, incorporated or

registered under any other law in force

in Malta;

(c)

any body of persons

constituted, incorporated or registered

outside Malta, and of a nature similar to

the aforesaid partnerships;

(d) a

European

Economic

Interest Grouping (EEIG) formed

pursuant to the provisions of the

Companies Act (European Economic

Interest Grouping) Regulations;''; and

(b) in the proviso to paragraph (b) of sub-article (9A)

thereof for the words ''member of a group.'', there shall be

substituted the words ''member of a group:'' and immediately

thereafter there shall be added the following new proviso

''Provided further that where the chargeable

company ceases to be a member of the original group,

solely as a result of a change in the direct or indirect

individual shareholders of the company from which it had

acquired the shares referred to in paragraph (a), the

chargeable company shall, for the purpose of this

paragraph, not be treated as ceasing to be a member of the

original group as a result of such change, so however that

for the purpose of determining whether the chargeable

company ceases to be a member of the original group it

shall be deemed that such change had not taken place and

such determination shall be made by reference to the same

individuals referred to in sub-article (9)(iii) taken into

account in determining whether the chargeable company

and the company from which it had acquired the shares

satisfied the provisions of sub-article (9)(i) and (iii) on the

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

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

article 5A of the

principal Act.

(a)

paragraph (j) of sub-article (4) thereof shall be

amended as follows

(i) for the words ''who owns or own, all of the

share capital (disregarding the holding of one share having

no preferential rights) of the said company transferring the

property as aforesaid.'', there shall be substituted the words

''who owns or own, directly or indirectly, not less than 95%

of the share capital and voting rights of the said company

transferring the property as aforesaid.'';

(ii) in sub-paragraph (i) of the proviso thereto, for

the words ''held all of the share capital (disregarding the

holding of one share having no preferential rights)'', there

shall be substituted the words ''held, directly or indirectly,

not less than 95% of the share capital and voting rights'';

(iii) in sub-paragraph (ii) of the proviso thereto,

the words ''one transferable unit, being either'' shall be

deleted;

(b) immediately after paragraph (c) of sub-article (5)

thereof, there shall be added the following new paragraph

''(d) Subject to the provisions of paragraphs (b)

and (c) of this sub-article, when a transfer to which this

article applies is a transfer of property in the circumstances

referred to in article 31C(1), the tax thereon shall be

chargeable at the rate of 10% of the transfer value.''; and

(c)

in the proviso to paragraph (b) of sub-article (12A)

thereof, for the words ''member of a group.'', there shall be

substituted the words ''member of a group:'' and immediately

thereafter there shall be added the following new proviso

''Provided further that where the chargeable

company ceases to be a member of the original group,

solely as a result of a change in the direct or indirect

individual shareholders of the company from which it had

acquired the property referred to in paragraph (a), the

chargeable company shall, for the purpose of this

paragraph, not be treated as ceasing to be a member of the

original group as a result of such change, so however that

for the purpose of determining whether the chargeable

company ceases to be a member of the original group it

shall be deemed that such change had not taken place and

such determination shall be made by reference to the same

individuals referred to in article 5(9)(iii) taken into account

in determining whether the chargeable company and the

company from which it had acquired the property satisfied

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

acquisition referred to in paragraph (a).''.

In sub-article (2) of article 6 of the principal Act, for the

words ''shall not be liable to tax'' there shall be substituted the words

''may opt not to be liable to tax''.

Paragraph (v) of sub-article (1) of article 12 of the

principal Act shall be amended as follows

(a)

for the words ''Royalties and similar income derived

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

trade'' there shall be substituted the words

''Royalties, advances and similar income derived

from -

(i)

patents, in respect of inventions

(ii) copyright

whether in the course of a trade''; and

(b)

in the second proviso thereto, for the words

''royalties and similar income'' there shall be substituted the

words ''royalties, advances and similar income''.

Paragraph (b) of sub-article (1) of article 14B of the Amendment of

article 14B of

principal Act shall be substituted by the following new paragraph

the principal

Act.

''(b) two thousand three hundred euro (€2,300) in respect

of each child who attended such secondary school, or one

thousand six hundred euro (€1,600) in respect of each child who

attended such primary school, or one thousand three hundred

euro (€1,300) in respect of each child who attended such

kindergarten:''.

Paragraph (b) of article 14C of the principal Act shall be Amendment of

article 14C of

substituted by the following new paragraph

the principal

Act.

''(b)

one thousand three hundred euro (€1,300):''.

Paragraph (b) of article 14D of the principal Act shall be Amendment of

article 14D of

substituted by the following new paragraph

the principal

Act.

''(b)

two thousand five hundred euro (€2,500):''.

Immediately after article 14F of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

'' Fees for

14G. Notwithstanding anything to the

cultural

contrary contained in this Act, if an individual

activities.

proves to the satisfaction of the

Commissioner that in the year preceding a

year of assessment he has paid fees in respect

of his children who have not attained the age

of sixteen years, attending creative or cultural

courses organised by institutions or persons

licensed or accredited by the Malta Council

for Culture and the Arts, he shall, for each

child, be allowed as a deduction against his

income the lesser of these amounts -

(a)

the amount actually paid;

(b) one hundred euro

Provided that the deduction shall only be

allowed if the payment and the details of the

individual making the claim are confirmed by

information provided by the licensed or

accredited person or institution through the

Malta Council for Culture and the Arts, in

such format and content as determined by the

Commissioner.''.

Sub-paragraphs (5) to (9), both inclusive, of paragraph (vi)

of sub-article (1)(b) of article 27 of the principal Act shall be

substituted by the following new sub-paragraphs

''(5) profits or gains from the sale or disposal of

investments, which gains or profits shall, for the purposes

of this paragraph, in all cases be deemed to be gains or

profits falling within the purport of paragraph (a) of sub-

article (1) of article 4, so however that where any

investments were capital assets as at the thirty-first (31st)

day of December 2008, the cost of acquisition of such

investments for the purpose of this paragraph shall be the

market value applicable thereto as at that date;

(6) capital gains subject to tax under the

provisions of this Act and derived from the transfer of

assets other than investments referred to in sub-paragraph

(5) and realized differences on exchange relating to the

long term fund;

(7) other

technical

income

including

commissions, allowances and fees received and receivable;

and deducting from the aggregate of the above the aggregate of

the following

(8) the deductions allowable under Part IV

relating to the income of the long term fund including -

(i) claims, maturities and surrenders paid,

including, for the avoidance of doubt, the tax paid

by the insurer in respect of determinable amounts

due in relation to contracts of long term business in

terms of sub-article (2);

(ii) reinsurance premiums paid;

(iii) other technical charges including

commissions and allowances paid and payable;

(9) losses from the sale or disposal of

investments and other assets of the long term fund referred

to in sub-paragraphs (5) and (6), so however that where

any investments were capital assets as at the thirty-first

(31st) day of December 2008, the cost of acquisition of

such investments for the purpose of this paragraph shall be

the market value applicable thereto as at that date; and

(10) technical provisions at the end of the year;''.

Immediately after article 31A of the principal Act, there Addition of new

articles to the

shall be added the following new articles

principal Act.

'' Rental income

(1) Notwithstanding any other

on Housing

provision of the Income Tax Acts or any

Authority

regulations made thereunder, this article shall

subsidised rent.

apply where any person who is an owner of

immovable property rents such property to a

person receiving rent subsidy under any

scheme administered by the Housing

Authority and the said owner is registered

with the Housing Authority for this purpose

and complies with any conditions imposed by

the Housing Authority.

(2) The tax chargeable in the

circumstances mentioned in sub-article (1)

shall be at the rate of 10% of the gross rental

income received. Such tax shall be final and

not be available as a credit against the tax

liability of the said person or refundable to

him in any way.

(3) The Housing Authority shall

deduct the tax from the rent subsidy

mentioned in sub-article (1) and shall render

an account to the Commissioner of all such

amounts deducted specifying amounts

together with the details of the person

receiving the rent.

(4) The Housing Authority shall remit

the tax collected in accordance with sub-

article (3), together with the account

mentioned in the said sub-article, to the

Commissioner by the fourteenth day

following the end of the month during which

the rent subsidy was paid.

(1) Notwithstanding any other

Rental income

from restored

provision of the Income Tax Acts, this article

property.

shall apply to any person who is the owner of

immovable property which has been restored

in accordance with any scheme issued for this

purpose by the Malta Environment and

Planning Authority providing for the

restoration of grade 1 or grade 2 scheduled

property or property situated in an urban

conservation area, provided that the said

person complies with any conditions imposed

by the Malta Environment and Planning

Authority in connection with such scheme

and submits such forms and documentation as

the Commissioner may require.

(2) Where the person referred to in

sub-article (1) rents immovable property in

the circumstances mentioned in the said sub-

article, the tax chargeable shall be at the rate

of 10% of the gross rental income received

where the rent is for a residential purpose, and

at the rate of 15% of the gross rental income

received where the rent is for a commercial

purpose. Such tax shall be final and not be

available as a credit against the tax liability of

the said person or refundable to him in any

way. The tax as aforesaid shall be remitted to

the Commissioner, together with the forms

and documentation referred to in sub-article

(1) by not later than the 30th June of the year

following that to which the income refers.

(3) The Malta Environment and

Planning Authority shall provide the

Commissioner with a yearly account of the

details of all persons who availed themselves

of any such scheme and such account shall be

provided in such manner as the Commissioner

may require.''.

20. Article 37 of the principal Act shall be substituted by the

Substitution of

article 37 of the

following new article

principal Act.

" Option for

(1) Where no election under

recipients to

article 35 has been made, a recipient who is

declare where

an individual may declare investment income

no election has

been made.

on his tax return or in such manner as the

Commissioner may require and, where a

declaration is made as aforesaid, any tax due

shall be determined as if the investment

income provisions had not been enacted.

(2) Where a recipient who is an

individual has declared investment income on

his tax return or in such manner as the

Commissioner may require, any tax withheld

in respect of such income under the

investment income provisions shall be

available as a credit against the recipient's tax

liability, or for a refund as the case may be,

for the relevant year of assessment.

(3) No tax withheld may be claimed

back as provided by this article if more than

two years have elapsed from the end of the

year in which the tax was withheld.''.

21. Paragraph (b) of article 39 of the principal Act shall be Amendment of

article 39 of the

substituted by the following new paragraph

principal Act.

"(b) subject to the provisions of article 37(1), no person

shall be charged to further tax in respect of the investment

income under this Act.".

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

article 56 of the

principal Act.

(a)

in item (iv) of the proviso to paragraph (b) of sub-

article (1) thereof, for the words ''of the said child.'', there shall

be substituted the words ''of the said child:'' and immediately

thereafter there shall be added the following new proviso

''Provided further that where, in the year preceding

the year of assessment, a parent maintained under his or

her custody a child, or paid maintenance in respect of his

or her child as provided in article 12(1)(t), and such child

was not over 18 years of age (or not over 21 years if

receiving full-time instruction at a tertiary education

establishment) and not gainfully occupied, or if gainfully

occupied did not earn income in excess of €2,400, then the

said parent shall be entitled to be charged to tax at the

following rates

For every euro of the first €9,300 … 0c

For every euro of the next €6,500 .. 15c

For every euro of the next €5,400 .. 25c

For every euro of the remainder … 35c;'';

(b) in paragraph (b) of sub-article (9) thereof, for the

words ''in his capacity as such.'', there shall be substituted the

words ''in his capacity as such; and'', and immediately thereafter

there shall be added the following new paragraph

''(c) thirty cents (0.30) on every euro of the

chargeable income in respect of a transfer of property in

the circumstances referred to in article 31C(1), provided

that such income shall be deemed to constitute the last part

of the person’s total income for the year.'';

(c)

in paragraph (a)(ii) of sub-article (11), for the words

''sub-article (1)(a)'' there shall be substituted the words ''sub-

article (1)(a) or (b)''; and

(d) immediately after sub-article (24) thereof, there

shall be added the following new sub-article

''(25) An individual who is established in a field of

excellence and returns as an ordinary resident in Malta

may opt to have his income from employment exercised in

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

provided that he has been ordinarily resident in Malta for

at least twenty years but has not been ordinarily resident in

Malta for the ten consecutive years prior to his return, and

subject to such terms and conditions as may be prescribed,

including the minimum income chargeable and the number

of years over which the benefit may be availed of.''.

23. Article 90A of the principal Act shall be amended as

(a) in paragraph (b) of sub-article (5) thereof, for the

words ''the 15th February of the year following the relevant year

or such other date as may be prescribed.'', there shall be

substituted the words ''such date following the relevant year as

may be prescribed.''; and

(b) in sub-article (8) thereof, for the words ''the 15th

February of the year following the relevant year or such other

date as may be prescribed,'' there shall be substituted the words

''such date following the relevant year as may be prescribed,''.

PART IV

24. (1) This Part amends the Social Security Act, and it Amendments to

shall be read and construed as one with the Social Security Act, the

Security Act.

hereinafter in this Part referred to as ''the principal Act''.

(2) The following provisions of this Part shall come into force

as follows

(a)

articles 26 and 29 shall be deemed to have come into

force on 2nd January, 2012; and

(b) articles 25, 27, 28, 30 and 31 shall be deemed to

have come into force on 7th January, 2012.

25. In article 2 of the principal Act, the definition "Service Amendment of

article 2 of the

Pension" shall be amended as follows

principal Act.

(a)

paragraph (vii) thereof shall be substituted by the

following new paragraph

"(vii) with effect from 1st January 2011, for the

purpose of calculating the rate of a pension under this Act,

a service pension net of another two hundred euro

(€200);";

(b) paragraph (viii) thereof shall be re-numbered as

paragraph (ix); and

(c)

immediately after paragraph (vii) thereof, there shall

be added the following new paragraph

"(viii) with effect from 7th January, 2012, for the

purpose of calculating the rate of a pension under this Act,

a service pension net of another two hundred euro (€200);

and".

26. sub-article (3) of article 16 of the principal Act shall be Amendment of

article 16 of the

amended as follows

principal Act.

(a)

in paragraph (d) thereof, for the words ''a

contribution in terms of this Act is not due.'' there shall be

substituted the words ''a contribution in terms of this Act is not

due;''; and

(b) immediately after paragraph (d) thereof, there shall

be added the following new paragraph

''(e) for any calendar week, with effect from the

2nd January, 2012, for which according to article 72 such

person would be entitled to Maternity Leave Benefit and

for which a contribution in terms of this Act was not due.''.

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

following new article

" Disability

27. (1) Save as provided for in

Pension and

article 96 and subject to the other provisions

Pension for the

of this Act, a person who -

Visually

Impaired.

(a)

has attained the age of

sixteen years; and

(b) is certified to be suffering

from a mental severe subnormality or to

be a severely disabled person in

accordance with the provisions of this

Act, or to be suffering from cerebral

palsy; and

(c)

shows to the satisfaction of

the Director that he is a citizen of Malta

and normally resides in Malta;

shall be entitled to a Disability Pension under

this Act and the highest rate of which,

including any increases in terms of the

provisions of article 90, shall be such in

accordance with Part III of the Sixth Schedule

and with the provisions of sub-article (3).

(2) Subject to the provisions of this

Act, a visually impaired person who -

(a)

has attained the age of

fourteen years; and

(b) produces such certificates

regarding his visual impairment, as the

Director may, in particular cases,

require; and

(c)

shows to the satisfaction of

the Director that he is a citizen of Malta

and normally resides in Malta;

shall be entitled to a Pension for the Visually

Impaired under this Act in accordance with

Part III of the Sixth Schedule and with the

provisions of sub-article (3).

(3) The rate of Pension of a person

who becomes entitled to a pension under sub-

article (1) or (2) shall be such weekly amount

as will bring the total weekly means of the

person with the disability, calculated in

accordance with Part V of the Second

Schedule, up to the scale rate applicable to

that person, as determined by Part III of the

Sixth Schedule

Sohowever that, saving the provisions of

article 96 and of the second proviso to

paragraph 4 of Part V of the Second Schedule,

where a married person and the spouse both

qualify for a pension under the provisions of

this article or of article 66, any such pension

as is payable to one of the spouses shall cease

to be payable

Provided further that with effect from

the 1st January, 2005, where a married person

qualifies for a pension under the provisions of

this article, the applicable rate shall be that

payable in accordance with Part III of the

Sixth Schedule.''.

28. Sub-article (1) of article 40 of the principal Act shall be Amendment of

article 40 of the

substituted by the following new sub-article

principal Act.

''(1) Subject to the provisions of sub-article (2), a widow

who is in receipt of any pension under this Part shall, upon

remarriage, continue to be entitled to receive a Widow’s Pension

for the period starting from the first Saturday following the date

of her remarriage, or the 6th January 2007, whichever is the

later, and ending on the Friday of the 260th week following the

date of marriage, at a weekly rate equivalent to the rate of

Widow’s Pension specified in the Twelfth Schedule, as was

applicable in her case until the date of her remarriage in terms of

articles 31 or 33 and thereafter such pension shall cease to be

payable

Provided that, with effect from the 7th January, 2012, the

period of 260 weeks mentioned in this article shall be increased

annually by 52 weeks with effect from the first Saturday in

January of each year.''.

29. Article 71 of the principal Act shall be amended as

follows

(a)

the marginal note thereof shall be substituted by the

following new marginal note

''Maternity Benefit or Maternity Leave Benefit'';

and

(b) immediately after sub-article (3) thereof, there shall

be added the following new sub-articles

''(4) A woman who, at any time on or

after the 1st January, 2012 -

(a)

is in insurable employment

and has a right to maternity leave

without pay in accordance with the

provisions of the Protection of

Maternity (Employment) Regulations;

or

(b) is self-occupied and has

exhausted her maternity benefit

entitlement,

shall qualify for Maternity Leave Benefit.

(5) In the case of a person who is in

insurable employment, the Maternity Leave

Benefit will be payable only for the period

where the leave entitlement is without pay

according to the Protection of Maternity

(Employment) Regulations.

(6) A self-occupied person shall not

qualify for the Maternity Leave Benefit unless

such person proves to the satisfaction of the

Director that she has ceased all gainful

activities for the duration of her Maternity

Benefit and Maternity Leave Benefit.''.

30. Article 72 of the principal Act shall be amended as

follows

(a)

the marginal note thereof shall be substituted by the

following new marginal note

''Payment of Maternity Benefit or Maternity Leave

Benefit''; and

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-articles

''(3) The Maternity Leave Benefit

according to article 71 shall be payable

(a)

with effect from the 7th

January, 2012 for not more than two

weeks; and

(b) with effect from the 5th

January, 2013 for a period of not more

than four weeks.

(4) The rate of Maternity Leave

Benefit according to sub-article (3) shall be

(a)

according to the rate

mentioned in Part IV of the Fourteenth

Schedule; and

(b) in the case of an employed

person, from the first Saturday

immediately following the day on which

the paid maternity leave ceases in

accordance with the Protection of

Maternity (Employment) Regulations;

or

(c)

in the case of a self-occupied

person from the first Saturday following

the date on which the entitlement to

Maternity Benefit in terms of article 71

ceases.''.

31. Part V of the Second Schedule to the principal Act shall be Amendment of

Part V of the

amended as follows

Second

Schedule to the

principal Act.

(a)

paragraph 3 thereof shall be amended as follows

(i) in subparagraph (d) thereof, for the words

''and the manufacture of which does not involve any

mechanical process.'' there shall be substituted the words

''and the manufacture of which does not involve any

mechanical process; and''; and

(ii) immediately after subparagraph (d) thereof,

there shall be added the following new subparagraph

''(e) any

income

from

gainful

employment or self-occupation of the person,

up to a maximum amount equivalent to the

national minimum wage, as applicable to

persons of eighteen years of age or over

established by a National Standard Order

under the Employment and Industrial

Relations Act.''; and

(b) in paragraph 4 thereof, for the words ''Sohowever

that, with effect from the 6th January, 2007, with respect to the

property and income of the spouse of the disabled or visually

impaired person, the provisions of this paragraph shall only

come into effect from the first Saturday following the fifth year

from the date of their marriage'' there shall be substituted the

words '' Sohowever that, with effect from the 7th January, 2012,

with respect to the property and income of the spouse of the

disabled or visually impaired person, the provisions of this

paragraph shall not apply where the marriage was entered into

after the 6th January 2007''.

PART V

32. 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''.

33. Paragraph (c) of sub-article (6) of article 32 of the

principal Act shall be amended as follows

(a)

for the words ''who owns or own, all of the share

capital (disregarding the holding of one share having no

preferential rights) of the said company transferring the

property as aforesaid'', there shall be substituted the words ''who

owns or own, directly or indirectly, not less than 95% of the

share capital and voting rights of the said company transferring

the property as aforesaid'';

(b) in sub-paragraph (i) of the proviso thereto, for the

words ''held all of the share capital (disregarding the holding of

one share having no preferential rights)'', there shall be

substituted the words ''held, directly or indirectly, not less than

95% of the share capital and voting rights''; and

(c)

in sub-paragraph (ii) of the proviso thereto, the

words ''one transferable unit, being either'' shall be deleted.

PART VI

34. (1) This Part of this Act amends the Motor Vehicles Amendments of

Registration and Licensing Act and it shall be read and construed as the

Vehicles

one with the Motor Vehicles Registration and Licensing Act, Registration

Licensing Act.

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

(2) The provisions of this Part, other than those of articles 39

and 40, shall be deemed to have come into force on the 1st January,

2012. (3) The provisions of articles 39 and 40 shall be deemed to

have come into force on the 15th November, 2011.

35. Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

immediately after the definition "agricultural

tractor" there shall be inserted the following new definition

" "ambulance” means a category M motor vehicle

intended for the transport of sick or injured people and

having special equipment for such purpose;";

(b)

the definition "business use" shall be deleted;

(c)

in the definition "certificate of conformity" for the

words "Directive 70/156/EEC as amended" there shall be

substituted the words "Directive 2007/46/EC as amended and

Directive 2002/24/EC as amended";

(d)

the definition "commercial vehicle" shall be deleted;

(e)

immediately after the definition "CO 2 emissions"

there shall be inserted the following new definition

" "cycle" means a cycle fitted with an engine

having a cylinder capacity of more than 50 cm 3 if of the

internal combustion type and, or a maximum design speed

of more than 45 km/h, and includes motor cycles, motor

tricycles and quadricycles;";

(f)

the definition "Council Regulation (EEC) No 881/

92" shall be deleted;

(g) the definition "Council Regulation (EEC) No 684/

92" shall be deleted;

(h)

the definition "Directive 70/156/EC" shall be

deleted;

(i)

immediately after the definition "Directive 1999/96/

EC" there shall be inserted the following new definition

" "Directive 2002/24/EC" means Directive 2002/

24/EC of the European Parliament and of the Council of 18

March 2002 relating to the type-approval of two or three-

wheeled motor vehicles and repealing Council Directive

92/61/EC;";

(j)

immediately after the definition "Directive 2005/55/

EC" there shall be inserted the following new definition

" "Directive 2007/46/EC" means Directive 2007/

46/EC of the European Parliament and of the Council

establishing a framework for the approval of motor

vehicles and their trailers, and of systems, components and

separate technical units intended for such vehicles;";

(k) immediately after the definition "M3 motor vehicle"

there shall be inserted the following new definition

" "motor caravan" or "motor home" means a

special purpose motor vehicle constructed to include living

accommodation which contains at least the following

equipment

-

seats and table,

-

sleeping accommodation which may be

converted from the seats,

-

cooking facilities, and

-

storage facilities.

This equipment shall be rigidly fixed to the living

compartment; however, the table may be designed to be

easily removable;";

(l)

the definition "private use" shall be deleted;

(m)

the definition "private motor vehicle" shall be

deleted;

(n)

immediately after the definition "Regulation (EC)

No 715/2007" there shall be inserted the following new

definition

" "Regulation (EC) No 1072/2009" means

Regulation (EC) No 1072/2009 of the European

Parliament and of the Council on common rules for access

to the international road haulage market;";

(o) immediately after the new definition "Regulation

(EC) No 1072/2009" there shall be inserted the following new

definition

" "Regulation (EC) No 1073/2009" means

Regulation (EC) No 1073/2009 of the European

Parliament and of the Council on common rules for access

to the international market for coach and bus services;";

and

(p) for the definition "special purpose vehicle" there

shall be substituted the following

" "special purpose vehicles" shall have the same

meaning as assigned to it in Annex II of Directive 2007/46/

EC but, for the purposes of this Act, shall only include the

vehicles listed under items 5.2, 5.7 and 5.8;".

36. In sub-article (3) of article 8 of the principal Act, for the Amendment of

words "and every year thereafter." there shall be substituted the words article

principal Act.

"and every year thereafter:", and immediately thereafter there shall be

inserted the following new proviso

"Provided that the owner of a motor vehicle shall be

exempted from renewing the circulation licence thereof where

that motor vehicle -

(a) is being held by the Police or Customs or the

Authority, or

(b)

has been seized by a Court’s order, or

(c) has been stolen and the theft has been

reported to the Police, or

(d)

has been exported, or

(e)

its owner is serving a prison sentence

Provided further that such exemption shall cease once the

vehicle is returned to the owner in respect of paragraphs (a), (b)

and (c), or the owner leaves prison in respect of paragraph (e)

Provided further that such vehicle shall not be driven on

the road until the licence thereto has been renewed.".

37. Article 18 of the principal Act shall be amended as

(a)

sub-article (1) thereof shall be amended as follows

(i) in paragraph (a) thereof, for the words "any

private motor vehicle, including a caravan or motor home,"

there shall be substituted the words "any private vehicle";

for the words "used for personal or business purposes" in

sub-paragraph (iv) thereof, in the English text, there shall

be substituted the words "for private use or for business

use"; in the proviso thereto for the words "private motor

vehicle" there shall be substituted the words "private

vehicle" and for the words "from his residence in that

country to his place of work" there shall be substituted the

words "between his residence in that country and his place

of work" and immediately after the said proviso, there

shall be inserted the following

"For the purposes of the provisions of this

paragraph -

"business use" means the use of a vehicle in

the direct exercise of an activity carried out for

consideration or financial gain;

"private use" means any use other than

business use;

"private vehicle" means an M1 motor vehicle,

including its trailer, if any, a motor caravan, a

motor home or a cycle;";

(ii) in paragraph (b) thereof, for the words "any

motor vehicle" there shall be substituted the words "any

M1 motor vehicle or cycle", for the words "arrival in

Malta:" there shall be substituted the words "arrival in

Malta;", and the proviso thereto shall be deleted;

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

"private motor vehicle" there shall be substituted the words

"M1 motor vehicle or cycle", for the words "for the

purpose of" there shall be substituted the words "for the

sole purpose of", for the words "education authorities:"

there shall be substituted the words "education

authorities;" and the proviso thereto shall be deleted;

(iv) in paragraph (e) thereof, for the words

"Community authorisation in accordance with Council

Regulation (EEC) No 881/92" there shall be substituted the

words "Community licence in accordance with Regulation

(EC) No 1072/2009";

(v) in paragraph (f) thereof, for the words

"Council Regulation (EEC) No 684/92" there shall be

substituted the words "Regulation (EC) No 1073/2009";

(b) in sub-article (2) thereof for the words "paragraphs

(c) and (d)" there shall be substituted the words "paragraphs (b),

(c) and (d)", and for the words "under those conditions

prescribed by regulations" there shall be substituted the words

"under those conditions, restrictions or limitations prescribed by

the Minister responsible for finance";

(c)

for sub-article (3) thereof there shall be substituted

the following

"(3) Notwithstanding any other provision of this

Act, an M1 motor vehicle or a cycle registered in another

Member State that is temporarily brought into Malta shall

be exempt from the requirement to be registered with the

Authority and from the payment of registration tax thereon

if the vehicle is brought into Malta by a person residing in

Malta for his private or business use where such person -

(a) is employed by, or is a director,

manager, shareholder or partner of an undertaking

established in another Member State which

provides a vehicle as part of their contract of

employment, where such vehicle is owned or

leased by the undertaking, or

(b) is a self-employed pursuing

an

economic activity in another Member State

and the vehicle is principally used in another Member

State

Provided that such vehicle shall not be used in

Malta for more than thirty consecutive days from the date

of its entering Malta; otherwise it shall be registered with

the Authority and the appropriate registration tax paid

thereon in accordance with the provisions of this Act.";

(d) for sub-article (4) thereof there shall be substituted

the following

"(4) An M1 motor vehicle or a cycle which is

hired or leased from a car hire undertaking established in

another Member State by a person who is not a resident of

Malta shall be exempt from the requirement to be

registered with the Authority and from the payment of

registration tax thereon if that vehicle is used in Malta for a

continuous period of not more than thirty days, during

which period it may -

(a) be re-hired once only to a person who

does not have his normal residence in Malta with a

view of the said vehicle being taken out of Malta,

or

(b) be returned by an employee of the car

hire undertaking whether or not the employee has

his normal residence in Malta, and

where the vehicle remains in Malta for more than thirty

days it shall be registered with the Authority and it shall be

charged to a registration tax at the rate or in the amount

specified in the Second Schedule.".

Article 19 of the principal Act shall be amended as

(a)

for sub-article (3) thereof, there shall be substituted

the following

"(3) The following motor vehicles shall,

upon registration with the Authority, be

exempt from the payment of registration tax

(a)

vehicles supplied to the

Government of Malta for the public

service;

(b) vehicles supplied to the

Armed Forces of Malta;

(c)

vehicles to be used by

institutions of the European Union;

(d) vehicles supplied to any

international organisation recognised as

such by the Minister responsible for

foreign affairs for official use in Malta;

(e)

vehicles supplied under

diplomatic,

consular

or

similar

arrangements in virtue of the Diplomatic

Immunities and Privileges Act; and

(f)

any M1 motor vehicle or a

cycle which is the personal property of a

private individual and is being brought

permanently into Malta by the individual

when he is transferring his normal

residence from a place outside Malta to a

place in Malta, provided that that vehicle

qualifies for such exemption. The said

exemption shall be given under those

conditions, restrictions or limitations

prescribed by the Minister responsible

for finance."; and

(b) for sub-article (5) thereof there shall be substituted

the following

"(5) The vehicles listed under paragraphs (a) to (e)

of sub-article (3) shall also be exempt from the payment of

any circulation licence fees.".

In sub-article (5) of article 21 of the principal Act, for the Amendment of

words "fails to pay" there shall be substituted the words "fails to pay, article

principal Act.

for unjustified reasons", and for the words "€2 for each day the

applicable circulation licence fee remains unpaid" there shall be

substituted the words "€10 for each month the applicable circulation

licence fee remains unpaid, with such amount not exceeding €100".

For article 24 of the principal Act there shall be substituted Substitution of

article 24 of the

the following

principal Act.

" Deferred

24. The payment of registration tax in

payment of

respect of motor vehicles which are registered

tax.

with the Authority by authorised motor

vehicle importers or authorised motor vehicle

dealers by the 30 th April, 2012, may be

deferred until the 31 st December, 2012.".

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

the First

as follows

Schedule to the

principal Act.

(a)

in the ‘Tax rate formula’ under Category A thereof,

for the words "a certificate showing the emission levels

equivalent to Euro standards" there shall be substituted the

words "an official document showing the emission levels

equivalent to Euro standards (the said official document may be

a certificate of conformity or a type approval certificate or a

vehicle registration certificate or a declaration by the vehicle’s

manufacturer)", immediately before the words "Where an

importer or dealer or owner" there shall be inserted the words

"Where an importer or dealer or owner of a motor vehicle

intends to change the engine of a motor vehicle prior to its

registration with the Authority, he shall inform the Authority in

writing.", and the words "established within a Member State"

shall be deleted;

(b) immediately after the words "or airports or seaports

............ 0%" under Category E thereof, there shall be added the

following new category

"Category F: machinery without a chassis

Forklifts, shovels, excavators,

road rollers, bulldozers, road

pavers, road scarifiers, rock

cutters and asphalt finishers .....

0%"; and

(c)

in the last paragraph thereof, for the words "for

Categories B to E" there shall be substituted the words "for

Categories B to F".

The Second Schedule to the principal Act shall be

amended as follows

(a)

For Category A thereof there shall be substituted the

following

"Category A: M1 motor vehicles (including vehicles to be

registered to be used as taxicars, hired or leased vehicles and

chauffeur driven vehicles), other than those vehicles classified

under Category H, whether new or used (rates based on the CO 2

and length of the vehicle)

Latest European

Latest European

Latest European

Latest European

Standard minus 3

Standard

Standard minus 1

Standard minus 2

and older

CO 2 x RV x 0.13%

CO 2 x RV x 0.13%

CO 2 x RV x 0.20%

CO 2 x RV x 0.23%

More than 100g/km

up to and including

130g/km

CO 2 x RV x 0.15%

CO 2 x RV x 0.15%

CO 2 x RV x 0.23%

CO 2 x RV x 0.26%

More than 130g/km

up to and including

140g/km

CO 2 x RV x 0.17%

CO 2 x RV x 0.17%

CO 2 x RV x 0.26%

CO 2 x RV x 0.30%

More than 140g/km

up to and including

150g/km

CO 2 x RV x 0.19%

CO 2 x RV x 0.19%

CO 2 x RV x 0.29%

CO 2 x RV x 0.33%

More than 150g/km

up to and including

180g/km

CO 2 x RV x 0.21%

CO 2 x RV x 0.21%

CO 2 x RV x 0.32%

CO 2 x RV x 0.37%

More than 180g/km

up to and including

220g/km

CO 2 x RV x 0.23%

CO 2 x RV x 0.23%

CO 2 x RV x 0.35%

CO 2 x RV x 0.40%

More than 220g/km

up to and including

250g/km

CO 2 x RV x 0.25%

CO 2 x RV x 0.25%

CO 2 x RV x 0.38%

CO 2 x RV x 0.44%

More than 250g/km

CO 2 x RV x 0.27%

CO 2 x RV x 0.27%

CO 2 x RV x 0.41%

CO 2 x RV x 0.47%

Diesel-engined with particulate matter of 0g/km up to and including 0.005g/km

Latest European

Latest European

Latest European

Latest European

CO 2

Standard minus 3

Standard

Standard minus 1

Standard minus 2

and older

0g/km up to and

including 100g/km

CO 2 x RV x 0.13%

CO 2 x RV x 0.13%

CO 2 x RV x 0.20%

CO 2 x RV x 0.23%

More than 100g/km

up to and including

130g/km

CO 2 x RV x 0.15%

CO 2 x RV x 0.15%

CO 2 x RV x 0.23%

CO 2 x RV x 0.26%

More than 130g/km

up to and including

140g/km

CO 2 x RV x 0.17%

CO 2 x RV x 0.17%

CO 2 x RV x 0.26%

CO 2 x RV x 0.30%

More than 140g/km

up to and including

150g/km

CO 2 x RV x 0.19%

CO 2 x RV x 0.19%

CO 2 x RV x 0.29%

CO 2 x RV x 0.33%

More than 150g/km

up to and including

180g/km

CO 2 x RV x 0.21%

CO 2 x RV x 0.21%

CO 2 x RV x 0.32%

CO 2 x RV x 0.37%

More than 180g/km

up to and including

220g/km

CO 2 x RV x 0.23%

CO 2 x RV x 0.23%

CO 2 x RV x 0.35%

CO 2 x RV x 0.40%

More than 220g/km

up to and including

250g/km

CO 2 x RV x 0.25%

CO 2 x RV x 0.25%

CO 2 x RV x 0.38%

CO 2 x RV x 0.44%

More than 250g/km

CO 2 x RV x 0.27%

CO 2 x RV x 0.27%

CO 2 x RV x 0.41%

CO 2 x RV x 0.47%

Diesel-engined with particulate matter of over 0.005g/km

Latest European

Latest European

Latest European

Latest European

CO 2

Standard minus 3

Standard

Standard minus 1

Standard minus 2

and older

-

CO 2 x RV x 0.18%

CO 2 x RV x 0.32%

CO 2 x RV x 0.37%

-

CO 2 x RV x 0.21%

CO 2 x RV x 0.36%

CO 2 x RV x 0.42%

-

CO 2 x RV x 0.24%

CO 2 x RV x 0.41%

CO 2 x RV x 0.47%

-

CO 2 x RV x 0.27%

CO 2 x RV x 0.45%

CO 2 x RV x 0.53%

-

CO 2 x RV x 0.29%

CO 2 x RV x 0.51%

CO 2 x RV x 0.60%

-

CO 2 x RV x 0.32%

CO 2 x RV x 0.56%

CO 2 x RV x 0.65%

-

CO 2 x RV x 0.35%

CO 2 x RV x 0.60%

CO 2 x RV x 0.70%

-

CO 2 x RV x 0.38%

CO 2 x RV x 0.65%

CO 2 x RV x 0.75%

Length

Rates

0 up to and including 3450mm

0.0020% x Length x RV

More than 3450mm up to and including 3640mm

0.0022% x Length x RV

More than 3640mm up to and including 3770mm

0.0024% x Length x RV

More than 3770mm up to and including 4030mm

0.0026% x Length x RV

More than 4030mm up to and including 4370mm

0.0028% x Length x RV

More than 4370mm up to and including 4570mm

0.0030% x Length x RV

More than 4570mm up to and including 4770mm

0.0032% x Length x RV

More than 4770mm

0.0034% x Length x RV

For the purpose of registration tax, where an M1 motor

vehicle whose year of manufacture falls under any of the

following years of manufacture, is not accompanied by an

official document showing the emission levels equivalent to

Euro standards (the said official document may be a certificate

of conformity or a type approval certificate or a vehicle

registration certificate or a declaration by the vehicle’s

manufacturer), the registration tax rates to be paid thereon shall

be equivalent to those under the different Euro standards

Euro 1

Euro 2

Euro 3

Euro 4

Euro 5

Up to and

1997 to 2000 2001 to 2005

2006 to 2010

from 2011

including year

Where an importer or dealer or owner of a motor vehicle

intends to change the engine of a motor vehicle prior to its

registration with the Authority, he shall inform the Authority in

writing.

Where an importer or dealer or owner of a motor vehicle

provides a certificate as approved by an accredited technical

service, that the engine of that particular vehicle meets lower

emissions despite the vehicle’s year of manufacture, that vehicle

shall on registration be taxed the rate pertaining to its equivalent

euro standard.";

(b) for item (3) under the ‘Tax rate formula’, thereof

there shall be substituted the following

"(3) Where the particulate matter value in respect of M1

diesel-engined vehicles fitted with a Euro 3 or Euro 4 or Euro 5

standard engine is not provided to the Authority by the motor

vehicle owner, the Authority shall apply the rate of 0.05g/km in

respect of vehicles manufactured between 2001 and 2005 with a

Euro 3 engine, the rate of 0.025g/km in respect of vehicles with

a Euro 4 engine with a year of manufacture between 2006 and

2010, and the rate of 0.005g/km in respect of vehicles with a

Euro 5 engine with a year of manufacture from 2011 and

thereafter.";

(c)

in item 2 of Category F thereof, for the words "a

certificate showing the emission levels equivalent to Euro

standards" there shall be substituted the words "an official

document showing the emission levels equivalent to Euro

standards (the said official document may be a certificate of

conformity or a type approval certificate or a vehicle

registration certificate or a declaration by the vehicle’s

manufacturer)", immediately before the words "Where an

importer or dealer or owner" there shall be inserted the words

"Where an importer or dealer or owner of a motor vehicle

intends to change the engine of a motor vehicle prior to its

registration with the Authority, he shall inform the Authority in

writing.", and the words "established within a Member State"

shall be deleted; and

(d)

Category G shall be amended as follows

(a) for item 2 thereof there shall be substituted

the following

''2 Motor vehicles, including go-karts,

quad bikes and motor cycles used for racing

purposes, whether new or used ................... 0%'';

(b) in item 3 thereof, for the word ''Caravans''

there shall be substituted the words ''Motor caravans''.

PART VII

This Part amends the Income Tax Management Act, and it

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

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

In sub-article (3) of article 7 of the principal Act, for the

words "for payment of the tax due.", there shall be substituted the

words "for payment of the tax due:" and immediately thereafter there

shall be added the following proviso

"Provided that this sub-article shall not

apply to an official receiver, or any other

person, appointed in accordance with the

provisions of article 225 of the Companies

Act.".

Immediately after sub-article (5) of article 27 of the

principal Act, there shall be added the following new sub-article

"(6) For the purpose of this article, a

European Economic Interest Grouping

(EEIG) formed pursuant to the provisions of

the Companies Act (European Economic

Interest Grouping) Regulations shall be

deemed to be a partnership and the provisions

of sub-article (1) shall apply notwithstanding

that a trade or business is not carried on by the

EEIG.".

In sub-article (2) of article 57 of the principal Act, for the

words ''in article 14(1)(a)(i)'' there shall be substituted the words ''in

article 15(1)(a)(i)''.

PART VIII

(1) This Part of this Act amends the Bunkering (Fuels)

Tax Act and it shall be read and construed as one with the Bunkering

(Fuels) Tax Act, hereinafter in this Part referred as "the principal

Act".

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

into force as follows

(a)

the provisions of articles 48 and 49 shall be deemed

to have come into force on the 15th November, 2011; and

(b) the provisions of article 50 shall be deemed to have

come into force on the 9th May, 2012.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

immediately after the definition "bunkering" there

shall be added the following new definition

" "Combined Nomenclature" means Annex 1 to

Council Regulation (EEC) No. 2658/87 on the tariff and

statistical nomenclature and on the Common Customs

Tariff;"; and

(b) for the definition "fuel", there shall be substituted

the following new definition

" "fuel" means any non-volatile marine grade fuel

oil used to fuel a ship or its machinery and includes

lubricating oil and also those products falling under

subheadings 2710.19.43 to 2710.19.48 or 2710.20.11 to

2719.20.19 or under subheadings 2710.19.62 to

2710.19.68 or 2710.20.31 to 2710.20.39 of the Combined

Nomenclature;".

In sub-article (1) of article 7 of the principal Act, for the Amendment of

words "more than two euro and thirty-three cents (2.33) per metric article

principal Act.

ton or part thereof.", there shall be substituted the words "more than

ten euro (€10.00) per metric ton or part thereof.".

The Schedule to the principal Act shall be substituted by Substitution of

the Schedule to

the following new Schedule

the principal

Act.

"SCHEDULE

(Article 3)

Fuel falling under subheadings 2710.19.43 to 2710.19.48 or

2710.20.11 to 2710.20.19 of the Combined Nomenclature; a tax of

one euro and eighty-six cents (€1.86) per metric ton or part thereof.

Fuel falling under subheadings 2710.19.62 to 2710.19.68 or

2710.20.31 to 2710.20.39 of the Combined Nomenclature; a tax of

ninety-four cents (€0.94) per metric ton or part thereof.".

PART IX

(1) This Part of this Act amends the Excise Duty Act

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

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

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

into force on the 15th November, 2011.

The Third Schedule to the principal Act shall be amended

as follows

(a) for the words in the "Rate of Excise Duty" column

thereof in respect of the item "Cigarettes", there shall be

substituted the following

"25.0% of the retail price plus €77.00 per 1000

cigarettes but not less than €127.50 per 1000 cigarettes";

(b) for the words in the "Rate of Excise Duty" column

thereof in respect of the item "Cigars and Cigarillos", there shall

be substituted the following

"€18.34 per 1000 units";

(c) for the words in the "Rate of Excise Duty" column

thereof in respect of the item "Hand-Rolling Tobacco", there

shall be substituted the following

"€81.81 per kg.";

(d) for the words in the "Rate of Excise Duty" column

thereof in respect of the item "Other Smoking Tobacco", there

shall be substituted the following

"€81.81 per kg."; and

(e)

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

thereof in respect of the item "Pipe Tobacco", there shall be

substituted the following

"€26.00 per kg.".

The Fourth Schedule to the principal Act shall be amended

as follows

(a)

in the ''Description of excise goods'' column, for the

words ''Leaded petrol falling within CN Codes 2710.11.31,

2710.11.51 and 2710.11.59'' there shall be substituted the words

''Leaded petrol falling within CN Codes 2710.12.31, 2710.12.51

and 2710.12.59'';

(b) in the ''Description of excise goods'' column for the

words ''Unleaded petrol falling within CN Codes 2710.11.41,

2710.11.45 and 2710.11.49'' there shall be substituted the words

''Unleaded petrol falling within CN Codes 2710.12.41,

2710.12.45 and 2710.12.49'';

(c)

in the ''Description of excise goods'' column for the

words ''Gas Oil falling within CN Codes 2710.19.44 to

2710.19.49'' there shall be substituted the words ''Gas Oil falling

within CN Codes 2710.19.43 to 2710.19.48 or 2710.20.11 to

2710.20.19'';

(d) in the ''Description of excise goods'' column instead

of the words ''Heavy fuel oil falling within CN Codes

2710.19.61 to 2710.19.69'' there shall be substituted the words

''Heavy fuel oil falling within CN Codes 2710.19.62 to

2710.19.68 or 2710.20.31 to 2710.20.39'';

(e)

in item (h) of the section beginning with the words

''The term ‘energy products’ shall cover:'', for the words

''products falling within CN Code 3824.90.99 if these are

intended for use as heating or motor fuel;'' there shall be

substituted the words ''products falling within CN Code

3824.90.97 if these are intended for use as heating or motor

fuel;'';

(f)

immediately after item (i) in the section beginning

with the words ''The term ‘energy products’ shall cover:'', there

shall be added the following new item

''(j) products falling within CN Code 3826.''; and

(g) for the paragraphs starting with the words ''Energy

products other than those for which a level of duty is specified

above'', and ending with the words ''or as additive or extender in

motor fuels, shall be taxed as motor fuel'' there shall be

substituted the following

''Energy products other than those for which a level

of duty is specified above shall be subject to excise duty if

intended for use, offered for sale or used as heating or

motor fuel. The rate of duty to be charged shall be fixed at

the rate for the equivalent motor fuel.

In addition to the taxable products listed above, any

product intended for use, offered for sale or used as heating

or motor fuel, or as additive or extender in motor fuels,

shall be taxed as motor fuel.''.

In Schedule Five A to the principal Act for the words in

the "Rates of Excise Duty" column in respect of the item "Portland

Cement, excluding White Cement", there shall be substituted the

following

"€12.00 per 1000 kg".

PART X

(1) This Part amends the Electronic Communications

(Regulation) Act, and it shall be read and construed as one with the

Electronic Communications (Regulation) Act, hereinafter in this Part

referred to as ''the principal Act''.

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

into effect on the 1st January, 2012.

Sub-article (1) of article 28 of the principal Act shall be

substituted by the following new sub-article

''(1) No person shall, without a radiocommunications

individual licence given in writing by the Minister, install or use

any apparatus prescribed by the Minister.''.

The Schedule to the principal Act shall be deleted.

PART XI

(1) This Part of this Act 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 as "the principal Act".

(2) The following provisions of this Part shall come into force

as follows

(a)

article 61 shall be deemed to have come into force

on 1st January, 2012; and

(b)

article 65 shall come into force on 1st January, 2013.

Article 10 of the principal Act shall be amended as

follows

(a)

sub-article (7) thereof shall be revoked; and

(b) immediately after sub-article (8) thereof, there shall

be added the following new sub-article

''(9) Nothing in this article shall prevent or shall

be deemed to prevent the Commissioner from enforcing

any of the provisions of Council Regulation (EU) No. 904/

2010 of the 7th October 2010, or of any other Council

Regulation (EU) which substitutes or amends the said

Council Regulation (EU).''.

Immediately after sub-article (7) of article 13 of the Amendment of

article 13 of the

principal Act, there shall be added the following new sub-article

principal Act.

"(8) Every person registered under articles 10, 11 or 12

shall, within fifteen days from the happening of any of the

following events, notify that event in writing to the

Commissioner

(a) a change in circumstances that affects the

particulars declared in the application for his registration

under articles 10, 11 or 12 or otherwise furnished to the

Commissioner in connection with his registration or

appearing in the registration certificate;

(b) the cessation or transfer of his economic

activity or part thereof;

(c)

such other event as may be prescribed.".

Immediately after sub-article (4A) of article 21 of the Amendment of

article 21 of the

principal Act, there shall be inserted the following new sub-article

principal Act.

"(4B) Notwithstanding the other provisions of this article,

interest in a particular tax period shall cease to accrue where the

total amount of payments appropriated to that tax period in

terms of article 67 is equivalent to or exceeds the amount of tax

payable for that tax period.".

sub-article (3) of article 27 of the principal Act shall be Amendment of

article 27 of the

substituted by the following new sub-article

principal Act.

"(3) A tax return furnished by a person registered under

article 10 shall contain a declaration of the output tax, the input

tax and any other declarations and particulars for that tax period

that are required under this Act and shall be furnished either on

such form as the Minister may by regulations prescribe or in an

electronic format through the established web portal designated

for the purpose by the Commissioner

Provided that the Minister may by regulations prescribe

conditions whereby a tax return shall only be furnished in an

electronic format.".

In sub-article (2) of article 30 of the principal Act,

immediately after the words "shall furnish the Commissioner with"

there shall be added the words "a notice of payment in terms of article

21(5) and"; and the words "and at such intervals" shall be deleted.

Immediately after article 37 of the principal Act, there

shall be added the following new article

" Administrative

37A. Where a notice of payment

penalty for

furnished by a person registered under article

understated or

12 contains an understatement of the tax

assessed tax

under article 12.

payable in accordance with articles 21(2) and

21(3) or where the Commissioner makes an

assessment of the tax payable by that person

in terms of article 33(2), that person shall

become liable to an administrative penalty in

an amount equivalent to twenty per cent of the

understated tax payable or the assessed tax.".

In sub-article (1) of article 50 of the principal Act, for the

words

''within thirty days from the earlier of

(a) the date when the goods are delivered or the

services are performed;

(b)

the date on which a payment for that supply is

received.''

there shall be substituted the words ''within the time determined in

accordance with the provisions of the Twelfth Schedule.''.

In paragraph (o) of article 77 of the principal Act,

immediately after the words "supplies or offers to supply to another

person and, or puts up for sale goods, without being in possession"

there shall be added the words ", at the place where he supplies or

offers to supply to another person and, or puts up for sale goods,".

In sub-article (1) of article 80 of the principal Act, for the

words ''articles 18 and 62'' there shall be substituted the words

''articles 18, 60 and 62''.

In sub-article (6) of article 84 of the principal Act, for the

words ''administrative penalty due under this Act.'' there shall be

substituted the words

''administrative penalty due under this Act

Provided that the Comptroller of

Customs may, on behalf of the Commissioner,

impose and collect any compromise penalties

provided for in terms of articles 63 and 63A

of the Customs Ordinance, as if all references

to duties contained in those articles were

references to penalties due under this Act.''.

PART XII

This Part amends the Lotteries and Other Games Act, and Amendments to

the Lotteries

it shall be read and construed as one with the Lotteries and Other and

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

In the ARRANGEMENT OF ACT of the principal Act, Amendment of

for the words ''PART VI The National Lottery'' there shall be Arrangement

Act of the

principal Act.

substituted the words ''PART VI The National Lottery Licence''.

In sub-article (1) of article 2 of the principal Act, in the Amendment of

definition ''National Lottery'', immediately after the words ''to a article

principal Act.

company registered in Malta'' there shall be added the words ''and any

games authorised by the Authority and subject to such terms and

conditions therein''.

In paragraph (b) of article 11 of the principal Act, for the Amendment of

words ''forming part of the National Lottery'' there shall be substituted article

principal Act.

the words ''forming part of the National Lottery licence''.

For the title ''PART VI - THE NATIONAL LOTTERY'' Amendment of

immediately before article 26 of the principal Act, there shall be title

of the principal

substituted the title ''PART VI - THE NATIONAL LOTTERY Act.

LICENCE''.

Article 26 of the principal Act shall be amended as Amendment of

article 26 of the

follows

principal Act.

(a)

in the first proviso to sub-article (1) thereof, for the

words ''may not operate the National Lottery'' there shall be

substituted the words ''may not operate the National Lottery

licence'';

(b) in the second proviso to sub-article (1) thereof, for

the words ''may operate the National Lottery'' there shall be

substituted the words ''may operate the National Lottery

licence'';

(c)

sub-article (2) thereof shall be substituted by the

following new sub-article

''(2) Where the National Lottery licence is

operated by the Minister, the Minister shall exercise all

such powers as may be necessary or expedient for the

purposes of such operation and the provisions of this Act

relating to the National Lottery licence, other than those

relating to licensing and the National Lottery licence, shall

apply and have effect with any necessary modifications or

adaptations as they apply and have effect in relation to the

National Lottery licence as operated by a National Lottery

licensee.'';

(d) in sub-article (3) thereof, immediately after the

words ''may by licence authorise a person to operate the

National Lottery'' there shall be added the words ''and any

games authorised therein''; and

(e)

immediately after sub-article (3) thereof, there shall

be added the following new proviso

''Provided that if the National Lottery licensee does

not operate any one of the games prescribed to form part of

the National Lottery by virtue of regulations made under

this Act for a period as prescribed in the National Lottery

licence, the Minister shall have the right to concede the

operation of such game to another person in terms of

regulations issued by the Minister in terms of article 78.''.

In sub-article (1) of article 28 of the principal Act, for the

words ''the sole object of which'' there shall be substituted the words

''the main object of which''.

In sub-article (1) of article 29 of the principal Act, for the

words ''the sole object of which'' there shall be substituted the words

''the main object of which''.

Article 31 of the principal Act shall be amended as

(a)

in sub-article (4) thereof, for the words ''forming

part of the National Lottery and'' there shall be substituted the

words ''forming part of the National Lottery licence and'';

(b) in paragraph (a) of sub-article (5) thereof, for the

words ''forming part of the National Lottery'' there shall be

substituted the words ''forming part of the National Lottery

licence''; and

(c)

in sub-article (8) thereof, for the words ''have as its

sole object'' there shall be substituted the words ''have as its

main object''.

Article 36 of the principal Act shall be amended as Amendment of

article 36 of the

principal Act.

(a)

for the marginal note thereof, there shall be

substituted the following: ''Permit for person to sell games

forming part of the National Lottery licence.'';

(b) in sub-article (1) thereof, for the words ''forming

part of the National Lottery'' there shall be substituted the words

''forming part of the National Lottery licence'';

(c)

in sub-article (2) thereof, for the words ''forming

part of the National Lottery'' there shall be substituted the words

''forming part of the National Lottery licence'';

(d) in sub-article (3) thereof, for the words ''forming

part of the National Lottery'' there shall be substituted the words

''forming part of the National Lottery licence'';

(e)

sub-article (5) thereof shall be substituted by the

following new sub-article

''(5) Without prejudice to the provisions of sub-

article (6), any such permit shall cease to have effect upon

the revocation or termination of the authority or

appointment of the permit holder given or made by the

National Lottery licensee to sell games forming part of the

National Lottery licence or in the event that a National

Lottery licence ceases to have effect for any reason

whatsoever and the holder of any new National Lottery

licence issued in terms of this Part does not authorise or

appoint the permit holder to sell games forming part of the

National Lottery licence.''; and

(f)

in sub-article (9) thereof, for the words ''forming

part of the National Lottery'' there shall be substituted the words

''forming part of the National Lottery licence''.

PART XIII

(1) This Part amends the Code of Police Laws, and it

shall be read and construed as one with the Code of Police Laws,

hereinafter in this Part referred to as ''the Code''.

(2) The provisions of this Part shall come into force on such

date as the Minister responsible for the Police may, by order in the

Gazette, establish.

Sub-article (9) of article 319 of the Code shall be amended

as follows

(a)

in paragraph (b) thereof, for the words ''but not

exceeding two thousand and three hundred and twenty-nine

euros and thirty-seven cents (2,329.37).'' there shall be

substituted the words ''but not exceeding two thousand and three

hundred and twenty-nine euro and thirty-seven cents

(€2,329.37):''; and

(b) immediately after paragraph (b) thereof there shall

be added the following new proviso

''Provided that where the provisions of

the Trading Licences Act or regulations made

thereunder provide for higher punishments

than those imposed by this sub-article, the

provisions of the said Trading Licences Act or

regulations made thereunder shall apply.''.

Passed by the House of Representatives at Sitting No. 471 of the

9th May, 2012.

M ICHAEL F RENDO

Speaker

R AYMOND S CICLUNA

Clerk to the House of Representatives