ACT No. III of 2013 AN ACT to implement Budget measures for the financial year 2013 and other administrative measures.

I assent.

G EORGE A BELA

(L.S.)

President

17th May, 2013

ACT No. III of 2013

AN ACT to implement Budget measures for the financial year 2013

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, 2013.

PART I

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

force of this

into effect on the 1st January, 2013.

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 six hundred and fifty million euro.

(2) For the purpose of raising the aforesaid loan the Minister

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

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 2013 and, or subsequent years;

(b) redeeming registered stocks which are due for

redemption during 2013; 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

This Part amends the Customs Ordinance, and it shall be

read and construed as one with the Customs Ordinance, hereinafter

referred to as "the Ordinance".

In the arrangement of Ordinance, for the word "Schedule"

there shall be substituted the words "First Schedule", and

immediately thereafter there shall be added the words "Second

Schedule".

Article 2 of the Ordinance shall be amended as follows;

(a)

immediately after the definition "Commissioner for

Revenue" there shall be added the following new definition

" "customs declaration" means the act by which a

person indicates in the prescribed form and manner the

desire to place goods according to a particular customs

procedure;";

(b) immediately after the definition "duty" there shall be

added the following new definitions

" "duty due" means all the duty due on the goods

and includes both the duty which has been paid as well as

the duty endangered;

"endangered duty" means the difference between

all the duty due on the goods and the duty which has been

paid on the same goods;".

Article 62 of the Ordinance shall be amended as follows

Amendment of

article 62 of the

Ordinance.

(a)

in paragraph (m) thereof, for the words "any

statement which is false in a material particular; or" there shall

be substituted the words "any statement which is false in a

material particular, or knowingly or negligently makes or gives,

or is instrumental in the making or the giving of, any

declaration, document or information, to the Commissioner,

which is not true in any of its material particulars; or";

(b) in paragraph (n) thereof, for the words "in terms of

sub-article (2) of the said article," there shall be substituted the

words "in terms of sub-article (2) of the said article; or" and

immediately thereafter there shall be added the following new

paragraph

"(o) knowingly registers or presents for the second

time or more a customs declaration of the same objects,";

(c)

for the words "the amount of duty payable on the

goods or five hundred and eighty-two euro and thirty-four

cents (582.34), whichever is the greater, so however that one

third of this amount shall be deemed as a civil debt owed and

payable to the Department of Customs" there shall be

substituted the words "the amount of duty payable on the

goods or five times the amount of the endangered duty,

whichever is the lesser, so however that in each case it will not

be less than six hundred euro (€600), such that one-third of such

amount shall be considered as a civil debt owed and payable to

the Department of Customs";

(d)

the proviso to the same article shall be amended as

follows

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

out in the Schedule hereto" there shall be substituted the

words "set out in the First Schedule hereto"; and

(ii) paragraph (c) thereof shall be deleted.

Article 63 of the Ordinance shall be amended as follows

Amendment of

article 63 of the

Ordinance.

(a)

the current article shall be re-numbered as sub-

article (1) of the said article;

(b) in sub-article (1) thereof, as re-numbered, for the

words "in the case of any irregularity which, if undetected,

would involve loss of customs duty not exceeding two thousand

euro (€2,000), the Commissioner may, with the concurrence of

the importer, impose a penalty equivalent to the duty

endangered as an alternative to proceedings in court:", there

shall be substituted the words "in the case of any irregularity

where the duty endangered does not exceed two thousand euro

(€2,000), the Commissioner may, with the concurrence of the

person committing the offence, impose a penalty equivalent to

the duty endangered as an alternative to proceedings in court:";

and

(c)

immediately after the proviso to sub-article (1)

thereof, as re-numbered, there shall be added the following new

sub-article

"(2) In the case where one of the irregularities

referred to in the Second Schedule to this Ordinance is

committed, which irregularity is committed after the 30

April 2013, and the agreement referred to in sub-article (1)

is entered into, the penalty on the person committing the

irregularity

(a) for the first time over the twelve months

immediately before the date on which the

irregularity is committed, shall be equivalent to

25% of the endangered duty or fifty euro (€50)

whichever is the higher, and

(b) for the second time over the twelve

months immediately before the date on which the

irregularity is committed, shall be equivalent to

50% of the endangered duty or seventy-five euro

(€75) whichever is the higher, and

(c) for the third time or more over the

twelve months immediately before the date on

which the irregularity is committed, shall be

equivalent to 100% of the endangered duty or one

hundred euro (€100) whichever is the higher.".

In sub-article (3) of article 63A of the Ordinance, for the

words "mentioned in the Schedule to this Ordinance" there shall be

substituted the words "mentioned in the First Schedule to this

Ordinance".

In sub-article (2) of article 68 of the Ordinance, for the Amendment of

words "for condemnation of the said vessel in a sum of one thousand article

Ordinance.

and one hundred and sixty-four euro and sixty-nine cents (1,164.69).

And for this purpose the Commissioner may require, as to any vessel

referred to in this subarticle, the deposit in his hands of a sum of one

thousand and one hundred and sixty-four euro and sixty-nine cents

(1,164.69) to abide the decision of the court" there shall be

substituted the words "for condemnation of the said vessel in a sum of

twenty-five thousand euro (€25,000). And for this purpose the

Commissioner 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 the decision of the court".

In sub-article (1) of article 69 of the Ordinance, for the Amendment of

words "shall forthwith be delivered into the care of the article

Ordinance.

Commissioner." there shall be substituted the words "shall forthwith

be delivered into the care of the Commissioner or in any other way

be securely placed in a place where the Commissioner exercises

control.".

In article 81 of the Ordinance, for the words "the Schedule Amendment of

article 81 of the

hereto" there shall be substituted the words "the Schedules hereto".

Ordinance.

In the Schedule to the Ordinance, for the word "Schedule" Amendment of

the Schedule to

there shall be substituted the words "First Schedule".

the Ordinance.

Immediately after the First Schedule to the Ordinance, as Addition of new

amended by this Act, there shall be added the following new Schedule

Ordinance.

Schedule

"SECOND SCEDULE

(Article 63)

The irregularities which are referred to in article 63 are

-

where the currency is not indicated or the correct

currency is not indicated in the customs declaration

-

when the transport fare of the goods is not indicated

or is not correctly indicated in the customs declaration.".

PART III

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

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

Act.

Part referred as "the principal Act".

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

(a)

article 18(a) and (c) and article 21 thereof, as from

year of assessment 2013;

(b)

article 18(b) thereof, as from 1st January, 2012;

(c)

article 19 thereof, as from 14th May, 2012; and

(d) articles 22, 25 and 26 thereof, as from year of

assessment 2014.

Sub-article (1) of article 2 of the principal Act shall be

amended as follows

(a)

the definition "foreign income account" shall be

amended as follows

(i) in paragraph (a) thereof, immediately after

the words "participating holding in a company resident in

Malta", there shall be added the words "or in a partnership

en commandite the capital of which is not divided into

shares which is resident in Malta," and immediately after

the words "liable to tax in Malta" there shall be added the

words "and shown as part of the company’s chargeable

income in the return made pursuant to article 10 of the

Income Tax Management Act,"; and

(ii) paragraph (c) thereof shall be substituted by

the following new paragraph

"(c) all profits or gains of a company

registered in Malta, which are liable to tax in Malta

and shown as part of the company’s chargeable

income in the return made pursuant to article 10 of

the Income Tax Management Act and attributable

to a permanent establishment (including a branch)

situated outside Malta, and for these purposes

"profits or gains" shall be calculated as if the

permanent establishment is an independent

enterprise operating in similar conditions and at

arm’s length; and";

(b) the definition "industrial building or structure" shall

be substituted by the following new definition

" "industrial building or structure" includes a

building used as a hotel and a car park. For the purpose of

this definition

(a) the word "hotel" includes any number of

constructions suitably furnished and equipped,

with accommodation in single or double bedrooms,

provided that such constructions are grouped

together and have in common ancillary hotel

services and amenities within a single and defined

parcel of land and are operated by a common

management for the accommodation and for the

use of guests against payment;

(b) the word "car park" refers to a structure

of a commercial nature available to the general

public, which is the main income generating

activity of any person claiming any deductions in

its respect under article 14(1)(f) or (j), and which is

first used for this purpose after the 1st January

2012."; and

(c)

the first proviso in the definition "participating

holding" shall be substituted by the following new proviso

"Provided that a holding of a company in -

(a) a partnership en commandite the capital

of which is not divided into shares constituted

under the Companies Act, not being a property

partnership, or

(b) a body of persons which is constituted,

incorporated or registered outside Malta, not being

a property partnership, and is of a nature similar to

a partnership en commandite the capital of which is

not divided into shares constituted under the

Companies Act, or

(c) a

collective

investment

vehicle

constituted, incorporated or registered outside

Malta and which is not resident in Malta, where the

liability of investors in such scheme is limited to

the amount invested by them,

shall be deemed to constitute a participating holding if it

satisfies the provisions of any of paragraphs (a) to (f)

above which shall apply mutatis mutandis to such holding.

For the purposes of this proviso, the terms "equity shares"

or "shares" shall be construed as referring to the capital in

the said body of persons or collective investment scheme

which entitles the holder to at least two of the following

rights

(i)

a right to vote;

(ii) a right

to

profits

available

for

distribution; and

(iii) 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:".

In paragraph (b) of the definition "partnership" in article

5(1)(b) of the principal Act, for the words "any other partnership

having a legal personality" there shall be substituted the words

"except for the purposes of subparagraph (v)(b), any other partnership

having a legal personality".

Article 5A of the principal Act shall be amended as

(a) in paragraph (b) of sub-article (3) thereof, for all

three instances of the words "seven years" there shall be

substituted the words "twelve years";

(b) in paragraph (f) of subarticle (4) thereof, for the two

instances of the words "seven years" in the second and third

provisos respectively, there shall be substituted the words

"twelve years"; and

(c)

in the second proviso to paragraph (g) of subarticle

(4) thereof, for the words "seven years" there shall be

substituted the words "twelve years".

Sub-article (1) of article 12 of the principal Act shall be

amended as follows

(a) the paragraph (u) thereof shall be renumbered as

paragraph (u)(1);

(b) in the third proviso to paragraph (u)(1) thereof, as

renumbered, for the words "holdings in companies resident in

Malta,", there shall be substituted the words "holdings in

companies and partnerships en commandite the capital of which

is not divided into shares, which are resident in Malta,";

(c)

immediately after paragraph (u)(1) thereof, as

renumbered, there shall be added the following new paragraph

"(u)(2) any income or gains derived by a company

registered in Malta (hereinafter "the particular company")

which are attributable to a permanent establishment

(including a branch) situated outside Malta or to the

transfer of such permanent establishment, whether such

permanent establishment belongs exclusively or in part to

the particular company, including a permanent

establishment operated through any entity or relationship

other than a company, in which the particular company has

an interest, where the taxpayer has not shown such income

or gains as part of its chargeable income in the return made

pursuant to article 10 of the Income Tax Management Act,

and for these purposes "profits or gains" shall be calculated

as if the permanent establishment is an independent

enterprise operating in similar conditions and at arm’s

length

Provided that where, in the opinion of the

Commissioner, a series of transactions is effected with the

sole or main purpose of reducing the amount of tax payable

in terms of this Act by any person by reason of the

operation of this provision, such a person shall be

assessable as if this provision did not apply and, for the

purpose of this provision, a series of transactions shall

mean any two or more corresponding or circular

transactions carried out by the same person, either directly

or indirectly, as the case may be

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) in paragraph (v) thereof, immediately under the

words "(ii) copyright" there shall be added the following

"(iii) trademarks".

Article 14D of the principal Act shall be amended as Amendment of

article 14D of

the principal

Act.

(a) the marginal note thereof shall be substituted by the

following

"Fees in respect of homes for the elderly and the

disabled.";

(b) for the words "a private home for the elderly," there

shall be substituted the words "a private home for the elderly or

the disabled, or at a respite centre for the disabled,"; and

(c) in the second proviso thereof, for the words "private

home for the elderly." there shall be substituted the words

"home or centre.".

Paragraph (c) of article 21 of the principal Act shall be

substituted by the following new paragraph

"(c)

must be made by the later of -

(i)

the tax return date for the relative year of

assessment in respect of which the claim is made, or

(ii) twelve months following the end of the

company’s accounting period, which date falls within the

year immediately preceding the year of assessment for

which the claim is made.".

Immediately after article 22 of the principal Act, there

shall be added the following new article

" Single taxable

22A. The Minister for finance may

person basis.

make rules providing for bodies of persons

under common ownership to be entitled to

elect to compute and bring to charge their

chargeable income or losses as the case may

be, on a collective basis, and for the

consequent carrying out of the relevant

provisions and obligations under the Income

Tax Acts as if they are a single body of

persons, subject to such terms and conditions

as may be laid down in such rules.".

In paragraph (a) of sub-article (2) of article 27 of the

principal Act, for the words "other than a death claim,", there shall be

substituted the words "other than a death claim, or a claim referring to

a critical illness or a permanent total disability,".

Subarticle (1) of article 56 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, the rates specified therein

shall be substitued by the following

"For every euro of the first €11,900 .................... 0c

For every euro of the next €9,300 ....................... 15c

For every euro of the next €7,500 ....................... 25c

For every euro of the next €31,300 ..................... 32c

For every euro of the remainder ......................... 35c;";

(b) in paragraph (b) thereof, the rates specified therein

shall be substitued by the following

"For every euro of the first €8,500 ...................... 0c

For every euro of the next €6,000 ....................... 15c

For every euro of the next €5,000 ....................... 25c

For every euro of the next €40,500 ..................... 32c

For every euro of the remainder ......................... 35c;";

(c)

in the second proviso to paragraph (b) thereof, the

rates specified therein shall be substitued by the following

"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 next €38,800 ..................... 32c

For every euro of the remainder ......................... 35c;".

PART IV

This Part amends the Import Duties Act and it shall be read Amendments to

and construed as one with the Import Duties Act, hereinafter in this the

Part referred as "the principal Act".

Article 18A of the principal Act shall be deleted.

PART V

(1) This Part amends the Duty on Documents and Amendments to

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

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

as ''the principal Act''.

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

into force on 1st January, 2013.

In article 18 of the principal Act, for the words ''from the Amendment of

day on which the default occurs:'', there shall be substituted the words article

''from the day on which the default occurs or from the day of the

receipt by the Commissioner of the notice referred to in article 51,

whichever is the later:''.

In article 25 of the principal Act, for the words ''referred to

in the first proviso to this article.'', there shall be substituted the words

''referred to in the first proviso to this article:'', and immediately

thereafter there shall be added the following

''Provided further that no duty shall be charged where

(i) the policy holder is a legal person which is

incorporated or otherwise created in Malta, and

(ii) the said legal person holds the policy in the

capacity of a trustee or other fiduciary, and

(iii) the life assured and persons who can benefit

under the policy are all not resident in Malta, and

(iv) such trust or other fiduciary arrangement is

exempt under the provisions of article 12(1)(d) of the

Income Tax Act.

For the purpose of this article, the term ‘sum assured’ shall

refer to the fixed guaranteed amount payable by the insurer

under the policy on the death of the life assured

Provided that where the sum assured of a linked, long term

policy of insurance is a variable figure up to a maximum

amount and by reference to a percentage of the value of

underlying assets linked to such policy, the duty chargeable

shall be calculated on the maximum possible amount payable on

maturity or surrender of such policy but after first deducting the

amount to be invested by the policyholder through the payment

of premium at the time of issuance of the policy.''.

Article 32 of the principal Act shall be amended as

follows

(a)

in sub-article (3) thereof, for the words "and the

heirs of the deceased spouse." there shall be substituted the

words "and the heirs of the deceased spouse:", and immediately

thereafter there shall be added the following proviso

"Provided that, for the purpose of this sub-article,

the assignment of immovable property between spouses,

consequent to a consensual or judicial separation, shall

include immovable property owned by a company which is

fully owned by any or both spouses.";

(b)

sub-article (4) thereof shall be amended as follows

(i) paragraphs (a), (b) and (c) thereof shall be

substituted by the following

"(a) Subject to the provisions of

paragraph (b), in the case of a person who does not

require a permit by the Minister for the purposes of

the Immovable Property (Acquisition by Non-

Residents) Act and who acquires, inter vivos, any

immovable property or any real right over such

property for the purpose of establishing therein or

constructing thereon his sole, ordinary residence,

or who redeems any groundrent or other burthen

imposed on any such property acquired by him by

any title inter vivos, duty under this Title in respect

of the first one hundred and fifty thousand euro

(€150,000) or such greater amount as may be

prescribed, of the aggregate value of the

consideration paid for the acquisition and for the

redemption of such property, shall be charged at

the rate of three euro and fifty cents per one

hundred or part thereof.

(b)

Where such residence is acquired by

an emphyteutical or sub-emphyteutical grant made

for a period exceeding fifty years, even though the

relative ground-rent may be revised at stated

intervals of time, and there is also payable on such

deed any other consideration, the duty chargeable

under this Act shall be reckoned as follows

(i) where the duty chargeable on the

ground-rent calculated in terms of article

40(1)(a) and capitalised at the rate of five per

centum (hereinafter referred to as "the capital

value of the ground rent") together with the

value of any consideration paid or payable

(the sum of such consideration and the capital

value of the ground rent hereinafter

collectively referred to as "the aggregate

consideration"), do not exceed one hundred

and fifty thousand euro (€150,000), or such

greater amount as may be prescribed in

accordance with paragraph (a), duty shall be

chargeable in respect of the said ground-rent

at fifty per centum of the result obtained by

applying the rates specified in article

40(1)(a), and at the rate of three euro and fifty

cents per one hundred euro or part thereof in

respect of any other consideration; and

(ii) where the aggregate consideration

exceeds one hundred and fifty thousand euro

(€150,000) or such greater amount as may be

prescribed in accordance with paragraph (a),

the duty payable shall be calculated as

follows

(1) the duty payable on the

emphyteutical or sub-emphyteutical

grant shall amount to fifty per centum

of the result obtained by applying the

rates specified in article 40(1)(a), so

however that such duty shall in no

event exceed three thousand, seven

hundred and fifty euro (€3,750);

(2) if the capital value of the

ground-rent referred to in sub-

paragraph (1) does not reach one

hundred and fifty thousand euro

(€150,000), the duty chargeable on that

part of the consideration until the

aggregate consideration reaches the

sum of one hundred and fifty thousand

euro (€150,000), shall be chargeable to

duty at the rate of three euro and fifty

cents per one hundred euro or part

thereof;

(3) any amount of the aggregate

consideration exceeding one hundred

and fifty thousand euro (€150,000)

shall be chargeable to duty at the rate of

five euro per one hundred euro or part

thereof.

(c)

Where such property is not fully

acquired by such person the amount of the value

that shall be charged at the rates specified in this

subarticle shall be such amount as is proportionate

to one hundred and fifty thousand euro (€150,000)

or the value of the property (whichever is the less)

as the proportion of the share so acquired by such

person is to the whole."; and

(ii) paragraph (e) thereof shall be substituted by

the following

"(e) For the purposes of this article,

article 32C, and article 35 "residence" shall also

include

(i) a garage attached to or underlying

such residence or a garage situated in the

same block of residential apartments of which

the residence forms part or a garage of not

more than thirty square metres situated within

five hundred metres of such residence or

block of apartments, where such garage has

been acquired together with such residence on

the same deed;

(ii) land which the owner has for his

own occupation and enjoyment with that

residence as its garden or grounds consisting

of an area which, regard being had to the size

and character of the dwelling house, is

required for the reasonable enjoyment of it as

a residence;

and "ordinary residence" means the principal

residence being a dwelling house which is the only

or main residence of a person. Any part of the

residence which is used exclusively for

commercial purposes shall not be considered as

"ordinary residence" and this part shall be

apportioned on the basis of the area occupied for

this purpose as a proportion of the whole area of

the relative dwelling house.".

Article 32C of the principal Act shall be substituted by the Substitution of

article 32C of

the principal

Act.

"32C. Notwithstanding any other provision of this Act, in

the case of transfers by a gratuitous title by a person to his

descendants in the direct line who acquire immovable property

for the purpose of establishing therein or constructing thereon

their sole, ordinary residence, in assessing the duty otherwise

chargeable in terms of the said Act no account shall be taken of

the first two hundred thousand euro (€200,000) or such other

greater amount as may be prescribed of the value of the property

transferred as aforesaid and duty shall be charged on the

remaining value thereof at the rate of three euro and fifty cents

per one hundred euro or part thereof, provided that this is the

first transfer by such a person to such a descendant for this

purpose and in this manner and provided that the notary who

receives any deed of such a transfer shall record in the deed a

written declaration by the person so transferring and the person

so acquiring that the property is being acquired for the said

purpose for the first time and the notary shall warn the said

person and descendant of the importance of the truthfulness of

such declaration

Provided that where such immovable property is not

fully owned or otherwise held by the said person, the amount of

the value that shall not be taken into account shall be such

amount as is proportionate to two hundred thousand euro

(€200,000) or such other greater amount as may be prescribed

as aforesaid or the value of the immovable property (whichever

is the less) as the proportion of the share of the ownership or

other title under which the immovable property is held by such

person is to the whole

Provided further that where such immovable

property is transferred to more than one descendant, the amount

of the value that shall not be taken into account shall be such

proportion of the amount arrived at in accordance with the first

proviso hereof as is equal to the proportion of the share held by

the said person that is transferred to the descendant

Provided that if such immovable property or part

thereof is transferred inter vivos by the said descendant during

the first five years from the date of the transfer by a gratuitous

title, the duty which would have been payable on the transfer by

a gratuitous title of the property or part thereof that is so

transferred, but for the relief granted under this article, shall be

levied on the said amount not taken into account at the rate of

three euro and fifty cents per one hundred euro or part thereof at

the time of the said transfer inter vivos.".

Immediately after article 32E of the principal Act, there

shall be added the following new article

" Rules

32F. Notwithstanding the provisions

concerning

contained in this Act, the Minister may make

mergers and

rules regulating the duty treatment of

divisions of

companies.

companies and their members and other

similar bodies or persons concerning mergers

and divisions of companies, transfer of assets

between companies and exchange of shares

concerning companies and for the purposes of

this article the definitions contained in article

27A of the Income Tax Act shall apply.".

Article 35 of the principal Act shall be amended as Amendment of

article 35 of the

principal Act.

(a)

sub-article (2) thereof shall be amended as follows

(i) in paragraph (iii) thereof, the words ",

provided that if such residence is transferred by the

surviving spouse during the first ten years from the date of

death of the person from whom the transfer originates, the

duty which would have been payable on the death of the

predeceased spouse shall be levied at the time of the

transfer by the surviving spouse; and" shall be deleted;

(ii) in paragraph (iv) thereof -

1. for the words "no duty shall be levied at

the time of the transfer causa mortis of that

property:", there shall be substituted the words "no

duty shall be levied at the time of the transfer causa

mortis of that property;"; and

2. the words "Provided that if such

property or part thereof is transferred inter vivos by

the said transferee causa mortis during the first ten

years from the date of the transfer causa mortis in

question, the duty which would have been payable on

the transfer causa mortis of the property, or part

thereof, that is so transferred shall be levied at the

time of the said transfer inter vivos." shall be deleted;

and

(iii) immediately after paragraph (iv) thereof,

there shall be added the following new paragraph

"(v) where all the following conditions are

satisfied, that is -

(a) the property transferred causa

mortis consists of a dwelling house or a part

thereof, or of any real right over a dwelling

house;

(b) the property is transferred by the

person from whom the transfer causa mortis

originates to his descendants in the direct line;

(c) the said dwelling house was, at

the time of the transfer, and during the whole

period of three years preceding the transfer,

the ordinary residence of the person from

whom the transfer originates,

no duty shall be levied at the time of the transfer

causa mortis of that property."; and

(b) sub-article (4) thereof shall be substituted by the

following

"(4) (i) Any exemption or relief granted under this

article shall only be available where the deed of the

transfer causa mortis is made within one year from the

relative succession and if notice thereof is given to the

Commissioner in accordance with article 33 by not later

than either fifteen working days after the date of the

publication of the deed or the expiration of the said period

of one year, whichever is the later.

(ii) Where the declaration is made more than one

year after the happening of the transfer causa mortis there

shall be payable together with the duty assessed in

accordance with this Act interest at the rate of eight per

centum per annum, or such rate as may be prescribed, on

any duty remaining unpaid in respect of each year or part

thereof that elapses between the first anniversary of the

date of the transfer causa mortis and the date of the making

of the declaration.".

Article 40 of the principal Act shall be substituted by the

following

"40. (1) There shall be charged on every contract of

emphyteusis and sub-emphyteusis a duty to be assessed in

respect of the yearly ground-rent or average yearly ground rent

as the case may be, as follows

(a) where the ground-rent payable is not subject

to revision or increase

if the term does not

exceed ten years ........... twelve euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

ten years but does not

exceed twenty five

years ............................ thirty-three euro per

one hundred euro or

part thereof of the

yearly ground-rent;

where the term exceeds

twenty-five years but

does not exceed fifty

years ............................ sixty-five euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

fifty years but does not

exceed

seventy-five

years ............................ eighty euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

seventy-five years but

does not exceed one

hundred years .............. ninety-five euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

one hundred years, in

perpetuity or otherwise an amount equivalent to

one year’s ground-rent;

(b) where the ground-rent is to be revised or

increased at specified amounts or rates, the duty shall be

calculated by taking into account the duration of the

contract of emphyteusis or sub-emphyteusis as the case

may be, and applying the following rates to the average

ground rent payable on each respective portion of the term

of the contract, with the total duty being the aggregate of

the duty chargeable in respect of each portion of the term

of the contract

in respect of the first

ten years or part thereof forty euro per one

hundred euro or part

thereof of the average

annual ground rent due

during the particular

period;

in respect of the period

of ten years or part

thereof

immediately

following the first ten

years ............................ twenty-two euro and

fifty cent per one

hundred euro or part

thereof of the average

annual ground rent due

during the particular

period;

in respect of the period

of thirty years or part

thereof

immediately

following the first

twenty years ................. seven euro and fifty

cent per one hundred

euro or part thereof of

the average annual

ground rent due during

the particular period;

in respect of the period

of fifty years or part

thereof

immediately

following the first fifty

years ............................ two euro per one

hundred euro or part

thereof of the average

annual ground rent due

during the particular

period;

in respect of any period

in excess of one

hundred years, whether

in

perpetuity

or

otherwise ..................... one euro per one

hundred euro or part

thereof of the average

annual ground rent due

during the ten years

immediately following

the first one hundred

years;

(c) where the ground-rent is to be revised or

increased in relation to the rate of inflation or in relation to

a rate which cannot be quantified at the time of the grant

where the term does not

exceed ten years ........... thirty euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

ten years but does not

exceed twenty years ..... sixty euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

twenty years but does

not exceed thirty years ninety-five euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

thirty years but does not

exceed fifty years ......... one hundred and thirty

euro per one hundred

euro or part thereof of

the yearly ground-rent;

where the term exceeds

fifty years but does not

exceed eighty years ...... one hundred and eighty

euro per one hundred

euro or part thereof of

the yearly ground-rent;

where the term exceeds

eighty years but does

not exceed one hundred

and fifty years .............. two

hundred

and

twenty euro per one

hundred euro or part

thereof of the yearly

ground-rent;

where the term exceeds

one hundred and fifty

years or in perpetuity ... two hundred and fifty

euro per one hundred

euro or part thereof of

the yearly ground-rent.

(2) Where the duration of the emphyteusis may be

extended, or is extended, or where two or more emphyteutical

grants are made in respect of the same immovable in favour of

the same emphyteuta or his successor in title, duty shall be

assessed at the rates applicable to the total duration of the

emphyteutical grant or grants, but allowance shall be made for

any duty already paid in respect thereof.

(3) Where an ordinary residence as defined in article 32

is acquired by an emphyteutical or sub-emphyteutical grant for

a period exceeding fifty years, even though the relative ground

rent may be revised at stated intervals of time, the duty

chargeable under this Act on the first five thousand eight

hundred and twenty-three euro and forty three cent (€5,823.43)

or such greater amount as may be prescribed of the yearly

ground-rent shall be reckoned at fifty per centum of the result

obtained by applying the rates specified in sub-article (1)(a)

Provided that where, together with the imposition of

ground-rent, there is also payable any other consideration the

duty shall be reckoned at the rates established in article

32(4)(b).".

Paragraph (a) of sub-article (1) of article 42 of the

principal Act shall be substituted by the following

"(a) (i) notwithstanding the provisions of article 4, on

every transfer inter vivos, whether executed in Malta or outside

Malta, of foreign marketable securities held in a property

company as defined in article 2(1) of the Income Tax Act, made

to or by any person resident in Malta;

(ii) notwithstanding the provisions of article 4, on

every transfer inter vivos, whether executed in Malta or outside

Malta, of foreign marketable securities held in a company

having, directly or indirectly, more than 50% of its business

interests in Malta, made to, or by any individual who is

ordinarily resident and domiciled in Malta or by any other

person (other than any person referred to in article 47(3)) who is

owned or controlled, directly or indirectly, or acts on behalf of,

an individual who is ordinarily resident and domiciled in Malta

Provided that the provisos to article 47(3)(e) shall apply

mutatis mutandis to the interpretation of the term "business

interests in Malta";

(iii) on every document whereby any other foreign

marketable security is transferred inter vivos to, or by any

person resident in Malta

Provided that where the marketable securities in question

are not held in a property company as defined in article 2(1) of

the Income Tax Act nor in a company having, directly or

indirectly, more than 50% of its business interests in Malta as

set out above, no duty shall be chargeable where such transfer is

effected through a local bank or through a person holding an

investment services licence under the Investment Services Act.

For the purpose of this proviso, the provisos to the said

definition of "property company" in article 2(1) shall not

apply;".

Article 45 of the principal Act shall be amended as Amendment of

article 45 of the

follows

principal Act.

(a)

sub-article (1) thereof shall be substituted by the

following

"(1) (a) A person to whom an interest in a

partnership registered in Malta or shares in a company

registered in Malta, are transmitted causa mortis

(hereinafter in this article referred to as a "transferee causa

mortis"), shall not later than such term after the happening

of the transfer causa mortis as may be prescribed, give

notice to the Registrar of Companies.

(b) A transferee causa mortis of shares held

in a company which is registered in a jurisdiction outside

Malta or of interests in a partnership registered outside

Malta, having, directly or indirectly, more than 50% of its

business interests in Malta, where the transferee causa

mortis is ordinarily resident and domiciled in Malta, shall,

not later than such term after the happening of the transfer

causa mortis as may be prescribed, give notice thereof to

the Commissioner

Provided that the provisos to article 47(3)(e) shall

apply mutatis mutandis to the interpretation of the term

"business interests in Malta"."; and

(b) in sub-article (3) thereof, for the words "subarticle

(1)" there shall be substituted the words "subarticle (1)(a)".

Article 47 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words "persons

defined in subarticles (3) and (4)", there shall be substituted the

words "persons defined in subarticles (3) and (4) and trusts and

fiduciary arrangements referred to in subarticle (3)(e)"; and

(b) paragraph (e) of subarticle (3) thereof shall be

substituted by the following

"(e) a trust or fiduciary arrangement the income of

which qualifies for exemption in terms of article 12(1)(d)

of the Income Tax Act and whose beneficiaries consist

solely of individuals who are not resident in Malta, or a

company, where the trustee, fiduciary or company as the

case may be, proves to the satisfaction of the

Commissioner, that the trust, fiduciary arrangement or

company carries on, or intends to carry on, business, or

has, or intends to have, business interests to the extent of

more than ninety percent outside Malta by demonstrating

that it satisfies such conditions as to the Commissioner

may appear appropriate:".

Article 50 of the principal Act shall be amended as

(a)

in paragraph (c) thereof, for the words "by any

regulation under this Act;", there shall be substituted the words

"by any regulation under this Act; or"; and

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

be added the following new paragraph

"(d) fails to pay in whole or in part the penalty

chargeable under article 51,".

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

article 51 of the

principal Act.

(a)

in sub-article (1) thereof, for the words "he shall,

within such time as may be prescribed for the payment of any

duty, and together with such payment", there shall be substituted

the words "he shall, within forty (40) days and together with the

payment of such duty";

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

following new sub-article

"(2) Any notary who fails to give such notice

together with any relative payment as provided in sub-

article (1), or gives incorrect or incomplete particulars or

details shall incur interest at the rate of point seven per

cent (0.7%) per month or part thereof on any duty due on

the transfer to which such duty refers provided the total

interest shall not exceed the amount of the said duty."; and

(c)

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

be added the following new sub-article

"(3) Interest imposed under sub-article (2) shall be

imposed by the Commissioner and shall be paid to him,

and all actions for the recovery thereof shall be brought by

the Commissioner before the courts of civil jurisdiction in

terms of article 466 of the Code of Organization and Civil

Procedure.".

Sub-article (4) of article 52 of the principal Act shall be Amendment of

article 52 of the

amended as follows

principal Act.

(a)

the present provision shall be re-numbered as

paragraph (a) of the said sub-article (4);

(b) in paragraph (a) thereof, as re-numbered, for the

words "an additional duty equivalent to the amount of duty

assessed", there shall be substituted the words "an additional

duty equivalent to twenty per centum (20%) of the amount of

duty assessed";

(c)

for the proviso thereto, there shall be substituted the

following

"Provided that, in addition to the above-mentioned

additional duty, the transferor in a transfer inter vivos and

the transferee shall be liable to pay interest at the rate of

point seven five per centum (0.75%) per month or part

thereof, which interest shall start accruing after the

expiration of three months from either of the following

(i) the date of notification of the original

assessment where no objection is made, or where

the value is not reduced by the Commissioner

following the filing of an objection; or

(ii) the date of notification of the revised

assessment issued in terms of article 56, where the

value has been reduced by the Commissioner

following an objection

Provided further that the additional duty and

interest shall in no case exceed in total fifty per centum

(50%) of the duty assessed by the Commissioner in respect

of each assessment."; and

(d) immediately after the proviso, as added by

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

paragraph

"(b) The transferee only shall be liable to any duty

or additional duty assessed because the declaration or

statement referred to in subarticle (2) is not complete,

correct and true.".

PART VI

(1) This Part amends the Motor Vehicles Registration

and Licensing Act and it shall be read and construed as one with the

Motor Vehicles Registration and Licensing Act, hereinafter in this

Part referred to as "the principal Act".

(2) The provisions of this Part, other than article 51(a) and (d),

shall be deemed to have come into force on the 29th November 2012.

(3) The provisions of article 51(d) shall be deemed to have

come into force on the 1st January, 2013.

(4) The provisions of article 51(a) shall be deemed to have

come into force on the 9th April, 2013.

Article 2 of the principal Act shall be amended as follows

(a)

the definition "ambulance" shall be substituted by

the following

" "ambulance" means a motor vehicle of category

M, or of category N if manufactured before the 29th

October, 2012, intended for the transport of sick or injured

people and having special equipment for such purpose;";

(b) immediately after the definition "Authority" there

shall be added the following new definitions

" "autogas” means liquefied petroleum gas with

specifications according to MSA EN 589 used for the

propulsion of motor vehicles;

"autogas vehicle" means, for the purposes of this

Act, a category M1 vehicle equipped with an autogas

fuelling system;"; and

(c)

the definition "owner" shall be deleted.

In paragraph (a) of sub-article (1) of article 2A of the Amendment of

principal Act, immediately after the words "or charge is not" there article

principal Act.

shall be added the words "left standing on the road or is not".

In article 3 of the principal Act, for the words "of article Amendment of

18.", there shall be substituted the words "of article 18:" and article

principal Act.

immediately thereafter there shall be added the following provisos

"Provided that the payment of registration tax in respect of

a used motor vehicle which is registered with the Authority by

authorised motor vehicle importers or authorised motor vehicle

dealers may be deferred until such date in which that vehicle is

licensed by the Authority

Provided further that should the registration tax and, or

value applicable at the date of payment of the tax be lower than

that applicable on the date of deferred registration, an

authorised motor vehicle importer or an authorised motor

vehicle dealer shall pay the registration tax applicable at date of

payment of the said registration tax.".

Paragraph (e) of sub-article (3) of article 8 of the principal Amendment of

article 8 of the

Act shall be substituted by the following

principal Act.

"(e) its owner is being held in jail or is serving a prison

sentence;".

Immediately after the proviso to sub-article (2) of article 9

of the principal Act, there shall be added the following new proviso

"Provided further that where a person who is transferring

his residence from a place outside Malta to a place in Malta

applies for an exemption from the payment of registration tax in

respect of a motor vehicle brought or imported into Malta in

terms of article 19(3)(f), the registration value of that vehicle

and the registration tax to be paid thereon if the application is

rejected shall be those applicable on the date when his

application for exemption is received by the Ministry

responsible for finance.".

In article 24 of the principal Act, for the words "30th April,

2012, may be deferred until the 31st December, 2012" there shall be

substituted the words "30th April, 2013, may be deferred until the

31st December, 2013".

In Category C of the First Schedule to the principal Act,

for the words "35 years", wherever they occur, there shall be

substituted the words "30 years" and for the words "10.5%" wherever

they occur, there shall be substituted the words "0%".

The Second Schedule to the principal Act shall be

amended as follows

(a)

in Category A thereof -

(i) for the words "M1 motor vehicles (including

vehicles", there shall be substituted the words "M1 motor

vehicles (including autogas vehicles, vehicles";

(ii) the third column in the table under the

heading "Petrol engined" shall be substituted by the

following

"

Latest European

standard minus 1

CO 2 x RV x 0.15%

CO 2 x RV x 0.17%

CO 2 x RV x 0.19%

CO 2 x RV x 0.22%

CO 2 x RV x 0.24%

CO 2 x RV x 0.26%

CO 2 x RV x 0.29%

CO 2 x RV x 0.31%

";

(iii) the third column in the table under the

heading "Diesel-engined with particulate matter of 0g/km

up to and including 0.005g/km" shall be substituted by the

following

"

Latest European

standard minus 1

CO 2 x RV x 0.15%

CO 2 x RV x 0.17%

CO 2 x RV x 0.19%

CO 2 x RV x 0.22%

CO 2 x RV x 0.24%

CO 2 x RV x 0.26%

CO 2 x RV x 0.29%

CO 2 x RV x 0.31%

";

(iv) the third column in the table under the

heading "Diesel-engined with particulate matter of over

0.005g/km" shall be substituted by the following

"

Latest European

standard minus 1

CO 2 x RV x 0.21%

CO 2 x RV x 0.24%

CO 2 x RV x 0.27%

CO 2 x RV x 0.31%

CO 2 x RV x 0.33%

CO 2 x RV x 0.36%

CO 2 x RV x 0.40%

CO 2 x RV x 0.43%

";

(b) in Category B thereof, for the words from "Category

B" to "of article 6(2) of this Act", there shall be substituted the

words "Category B: Used category M1 vehicles (including

autogas, electric and hybrid electric motor vehicles) and

quadricycles imported from third countries in terms of article

6(2) of this Act", and the column showing year 5 in the table

thereof shall be substituted by the following

"

€

1,000

1,000

2,000

3,500

4,000

7,000

12,000

13,500

";

(c)

the table in Category D thereof shall be substituted

by the following

" Electric operated quad bikes to be used

on the road

RV x 1.71%

Other quad bikes to be used on the

cc x RV x 0.18%

";

(d) in paragraph (5) of the ‘Tax rate formula’, the words

"Hybrid vehicles" shall be deleted and immediately after the

words "shall be reduced by 30%." there shall be added the

"Autogas vehicles

In respect of autogas vehicles the CO 2 emissions of

the vehicle shall be -

(a) those submitted by the manufacturer of

the vehicle or by an approved accredited technical

service in respect of vehicles which run solely on

autogas or vehicles which run on both autogas and

petrol or diesel, or

(b) where no emissions are submitted by a

vehicle’s manufacturer or by an approved

accredited technical service in terms of paragraph

(a) or where a vehicle has been converted to run on

autogas and no emissions are submitted, the CO 2

emissions of the said vehicle shall be automatically

reduced by 10%.";

(e)

Category H thereof shall be amended as follows

(i) for the words "35 years", wherever they

occur, there shall be substituted the words "30 years";

(ii)

item 1 thereof shall be substituted by the

following

"1. Category M vehicles with an age of 50

years or over from date of manufacture (classic,

vintage or veteran vehicles) certified authentic by

the vintage vehicle classification committee with

an engine capacity of

Rate of

Tax

Percentage

of RV

1.032.082

1.1 not exceeding 1000cc ..........

0%

1.032.182

1.2 exceeding 1000cc but not

exceeding 1300cc ................

0%

1.032.282

1.3 exceeding 1300cc but not

exceeding 1500cc ................

0%

1.032.382

1.4 exceeding 1500cc but not

exceeding 1800cc ................

0%

1.032.482

1.5 exceeding 1800cc but not

exceeding 2000cc ................

0%

1.032.582

1.6 exceeding 2000cc but not

exceeding 2500cc ................

0%

1.032.682

1.7 exceeding 2500cc but not

exceeding 3000cc ................

0%

";

1.032.782

1.8 exceeding 3000cc ................

0%

(iii) item 3 thereof shall be substituted by the

following

"3. Motor cycles with an age of 50 years or

over from date of manufacture (classic, vintage and

veteran vehicles) certified authentic by the vintage

vehicle classification committee with an engine

capacity of

1.111.022

3.1 not exceeding 50cc ..............

0%

1.112.032

3.2 exceeding 50cc but not

exceeding 125cc ..................

0%

1.112.042

3.3 exceeding 125cc but not

exceeding 250cc ..................

0%

1.113.002

3.4 exceeding 250cc but not

exceeding 500cc ..................

0%

1.114.002

3.5 exceeding 500cc but not

exceeding 800cc ..................

0%

".

1.115.002

3.6 exceeding 800cc ..................

0%

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

the Fourth

Schedule to the

principal Act.

(a)

item 1 thereof shall be amended as follows

(i) in the table providing for the circulation

licence to be paid in respect of petrol-engined vehicles, for

the words "5050" in the column for year 3 there shall be

substituted the words "500" and for the words "1,107" in

the column for year 11, "1,218" in the column for year 12,

"1,340" in the column for year 13 and "1,474" in the

column for year 14+, there shall be substituted the words

"1,100" respectively;

(ii) in the table providing for the circulation

licence to be paid in respect of diesel-engined vehicles

with particulate matters of 0g/km up to and including

0.005g/km respectively, for the words "1,107" in the

column for year 11, "1,218" in the column for year 12,

"1,340" in the column for year 13 and "1,474" in the

column for year 14+, there shall be substituted the words

"1,100" respectively;

(iii) in the table providing for the circulation

licence to be paid in respect of diesel-engined vehicles

with particulate matters exceeding 0.005g/km but not

exceeding 0.025g/km, for the words "1,163" in the column

for year 11, "1,279" in the column for year 12, "1,407" in

the column for year 13 and "1,547" in the column for year

14+, there shall be substituted the words "1,125"

respectively;

(iv) in the table providing for the circulation

licence to be paid in respect of diesel-engined vehicles

with particulate matters exceeding 0.025g/km but not

exceeding 0.035g/km, for the words "1,221" in the column

for year 11, "1,343" in the column for year 12, "1,477" in

the column for year 13 and "1,625" in the column for year

14+, there shall be substituted the words "1,150"

respectively;

(v) in the table providing for the circulation

licence to be paid in respect of diesel-engined vehicles

with particulate matters exceeding 0.035g/km, for the

words "1,282" in the column for year 11, "1,410" in the

column for year 12, "1,551" in the column for year 13 and

"1,706" in the column for year 14+, there shall be

substituted the words "1,200" respectively;

(b) immediately after item 1 thereof, there shall be

added the following

"Where no documents are presented to the

Authority showing the CO 2 emissions of an autogas

vehicle or the documents so presented are not acceptable to

the Authority, the CO 2 emissions of that vehicle shall be

considered to be 10% less than those listed in the tables

under item 1.";

(c)

item 6 thereof shall be substituted by the following

"6. For the use of motor vehicles

(including motor cycles) with an age of 30

years from date of manufacture (classic,

vintage or veteran) certified as authentic by

the vintage vehicle classification committee

0";

(Although no circulation licence fee is paid

in respect of such vehicles, an

administrative fee of €8 shall still be paid

to the Authority on the renewal every year

of the circulation licence of such vehicles.)

(d)

item 7 thereof shall be deleted;

(e)

item 8 thereof shall be deleted;

(f)

items 9 to 16 thereof shall be renumbered as items 7

to 14 respectively;

(g) in item 8 thereof, as renumbered, for the words

"10.1", there shall be substituted the words "8.1" and for the

words "10.2", there shall be substituted the words "8.2";

(h) in item 9 thereof, as renumbered, for the words

"11.1", there shall be substituted the words "9.1", for the words

"11.1.1", there shall be substituted the words "9.1.1", for the

words "11.1.2", there shall be substituted the words "9.1.2", for

the words "11.2", there shall be substituted the words "9.2", for

the words "11.2.1", there shall be substituted the words "9.2.1",

and for the words "11.2.2", there shall be substituted the words

"9.2.2"; and

(i)

in item 10 thereof, as renumbered, the words from

"As from the 1st January, 2015" to "€750 respectively." shall be

deleted.

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 as "the principal Act".

Paragraph (c) of article 58 of the principal Act shall be

substituted by the following new paragraph

"(c) for the fees to be levied in relation to the issue of tax

residency and tax balance certificates, application for a ruling in

terms of articles 52 and 27A of the Income Tax Act, registration

of shareholders and application for a refund under article 48(4)

and (4A); and".

PART VIII

(1) This Part 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 on the 29th November, 2012

The Schedule to the principal Act shall be substituted by

the following

"SCHEDULE

(Article 3)

Fuel falling under sub-headings 2710.19.43 to 2710.19.48

or 2710.20.11 to 2710.20.19 of the Combined Nomenclature; a

tax of ninety-three cents (€0.93) per metric ton or part thereof.

Fuel falling under sub-headings 2710.19.62 to 2710.19.68

or 2710.20.31 to 2710.20.39 of the Combined Nomenclature; a

tax of forty-seven cents (€0.47) per metric ton or part thereof.".

PART IX

(1) This Part amends the Excise Duty Act and it shall be

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

Part referred as "the principal Act".

(2) The provisions of articles 65, 66 and 67 shall be deemed to

have come into force on the 9th April, 2013.

In article 2 of the principal Act, immediately after the Amendment of

definition "duty suspension arrangement", there shall be added the article

principal Act.

following new definition

" "endangered duty" means the difference between all the

duty due on the goods and the duty which has been paid on the

same goods;

"excise duty due" means all the excise duty due on the

goods and includes also the excise duty which has already been

paid on those goods;".

Sub-article (1) of article 16 of the principal Act shall be Amendment of

article 16 of the

amended as follows

principal Act.

(a)

paragraph (i) thereof shall be substituted by the

following new paragraph

(i) knowingly makes a declaration or submits

information which he knows to be false in any material

detail, or recklessly makes a declaration which is false in a

material particular, or knowingly or negligently makes or

gives, or suffers to be done or given to the Commissioner,

any declaration, document or information which is false in

a material particular; or

(b) in paragraph (n) thereof, for the words "in the

commission of any of the foregoing offences;" there shall be

substituted the words "in the commission of any of the

foregoing offences; or";

(c)

immediately after paragraph (n) thereof, there shall

be added the following new paragraph

"(o) is the person in whose name a tax warehouse

is registered and fails to report, within the time prescribed

by regulations made under this Act, any quantity of excise

goods released for consumption or for free circulation, and

fails to show to the satisfaction of the court that any such

act or thing done or omitted to be done by any person in his

employment or subject to his authority or control, was

done or omitted without his knowledge, and that he could

not with reasonable diligence have obtained knowledge

thereof;"; and

(d) the first proviso thereof shall be substituted by the

following new 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) equivalent to three

times the excise duty due on goods or five times the

endangered duty, whichever is the lesser, but in any case

not less than six hundred euro (€600) which fine may

exceed twenty-five thousand euro (€25,000) together with

imprisonment for a term not exceeding two years:".

In article 16A of the principal Act, for the words "loss of

excise duty on excise goods not exceeding one thousand euro

(€1000)" there shall be substituted the words "loss of excise duty on

excise goods not exceeding two thousand euro (€2,000)".

In sub-article (4) of article 17 of the principal Act, for the

words "vehicle or other goods" there shall be substituted the words

"vehicle, immovable property or other goods".

In article 24 of the principal Act, for the words "place such

officer" there shall be substituted the words "place such person".

Immediately after sub-article (3) of article 36 of the

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

"(4) Those proceedings shall commence within ten years

from the date of the commission of the offence.".

Immediately after article 38 of the principal Act, there

shall be added the following new article

" Proof of

39. If, when the things are demanded,

payment of

seized due to the lack of payment of the duty,

duty and other

or for any other reasons which result in the

proof.

confiscation, or in proceedings for the

collection of any monetary penalty or

otherwise, according to this Act, an issue

arises as to whether the duty due on those

goods was paid or if those goods were

imported or exported or landed according to

law or regarding the place the goods came

from, in each of these cases the onus of proof

is on the person who makes the claim or the

accused against whom the proceedings are

taken, as the case may be.".

The Third 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 "Cigarettes", there shall be

substituted the following

"25.0% of the retail price plus 82.50 Euro per 1000

cigarettes but not less than 135.00 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

"19.81 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

"88.36 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

"88.36 Euro per kg."; and

(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

"28.08 Euro per kg.".

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

the Fourth

as follows

Schedule to the

principal Act.

(a)

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

thereof in respect of the item "Leaded Petrol", there shall be

substituted the following

"€608.18 per 1,000 litres";

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

thereof in respect of the item "Unleaded Petrol", there shall be

substituted the following

"€489.38 per 1,000 litres";

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

thereof in respect of the item "Gas Oil falling within CN Codes

2710.19.43 to 2710.19.48 or 2710.20.11 to 2710.20.19 and

blends of the foregoing with Biodiesel, excluding Gas Oil or

Gas Oil blended with Biodiesel, with a sulphur content not

exceeding 0.1% sulphur by weight if used for heating

purposes", there shall be substituted the following

"€402.40 per 1,000 litres";

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

thereof in respect of the item "Gas Oil or Gas Oil blended with

Biodiesel with a sulphur content not exceeding 0.1% by weight

if used for heating purpose", there shall be substituted the

following

"€162.09 per 1,000 litres";

(e) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Biodiesel, a diesel quality liquid

fuel produced from biomass or waste cooking oil, with an ester

content of not less than 96.5% by weight and a sulphur content

not exceeding 0.005%, whether in blend or not", there shall be

substituted the following

"€402.40 per 1,000 litres";

(f)

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

thereof in respect of the item "Heavy Fuel Oil", there shall be

substituted the following

"€32.00 per 1,000 Kgs";

(g) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Liquid Petroleum Gas falling

within CN Codes 2711.12 to 2711.13, when used for heating

purposes", there shall be substituted the following

"€36.94 per 1,000 Kgs";

(h) for the words in the "Rates of Excise Duty" column

thereof in respect of the item "Methane falling within CN Code

2711.29.00", there shall be substituted the following

"€36.94 per 1,000 Kgs"; and

(i)

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

thereof in respect of the item "Kerosene falling within CN

Codes 2710.19.21 and 2710.19.25", there shall be substituted

the following

"€402.40 per 1,000 litres".

In Schedule Five A to the principal Act, for the words in Amendment of

the "Rates of Excise Duty" column thereof in respect of the item Schedule

to the principal

"Portland Cement excluding white cement", there shall be substituted Act.

the following

"€17.00 per 1,000 Kgs".

PART X

This Part amends the Companies Act and it shall be read Amendments to

and construed as one with the Companies Act, hereinafter in this Part the

Act.

referred as "the principal Act".

In sub-article (1) of article 173 of the principal Act, for the Amendment of

words "two of the three criteria laid down in article 185(1)(a):", there article

the principal

shall be substituted the words "two of the three criteria laid down in Act.

article 185(6):".

Article 211 of the principal Act shall be amended as Amendment of

article 211 of

follows

the principal

Act.

(a)

in paragraph (b) of sub-article (2) thereof, the words

"is holder of, or has any interest in, any shares or debentures of

the company or" shall be deleted;

(b)

sub-article (3) thereof shall be deleted; and

(c)

sub-articles (4), (5) and (6) thereof shall be

renumbered as sub-articles (3), (4) and (5) respectively.

PART XI

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

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

Tax Act.

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

(2) The provisions of article 74 shall come into force on such

date as the Minister for Finance may, by notice in the Gazette,

establish.

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

article 5 of the

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

principal Act.

"(6) After consultation with the VAT Committee set up in

accordance with article 398 of Council Directive 2006/112/EC,

the Minister may make regulations to regard as a single taxable

person any persons established in Malta who, while legally

independent, are closely bound to one another by financial,

economic and organisational links.".

Sub-article (6) of article 13 of the principal Act shall be

substituted by the following

"(6) A number of persons regarded as a single taxable

person in terms of article 5(6) in accordance with regulations as

may be prescribed shall be registered as one person.".

Immediately after article 38 of the principal Act, there

shall be added the following new article

" Administra-

38A. (1) Any person registered under

tive penalty for

article 10 who, being required to make a

default in the

payment pursuant to a tax return in terms of

payment of the

tax declared.

article 27, does not pay the tax resulting to be

payable in accordance with the declaration of

the tax made therein, shall be liable to an

administrative penalty in an amount

equivalent to the higher of -

(a)

one per cent of the

difference between the amount declared

to be payable and the amount paid; or

(b) twenty euro (€20)

for every month or part thereof that elapses

from the date when the payment of tax should

have been made and the date full payment of

the tax is made

Provided that such administrative

penalty shall in no case exceed two hundred

and fifty euro (€250) for each tax return.

(2) Any person registered under article

12 who, being required to make a payment

pursuant to articles 21(2) and 21(3) does not

pay the tax resulting to be payable in

accordance with the form made in terms of

article 21(5), shall be liable to an

administrative penalty in an amount

equivalent to the higher of -

(a)

one per cent of the

difference between the amount declared

to be payable and the amount paid; or

(b) twenty euro (€20)

for every month or part thereof that elapses

from the date when the declaration in terms of

article 30(2) should have been furnished and

the date when the tax payable in the period

covered by that declaration is paid in full

Provided that such administrative

penalty shall in no case exceed two hundred

and fifty euro (€250) for each form.".

Passed by the House of Representatives at Sitting No. 17 of the

13th May, 2013.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk to the House of Representatives