ACT No. VII of 2019 AN ACT to implement Budget Measures for the financial year 2019 and other administrative measures.

I assent.

(L.S.)

MARIE-LOUISE

COLEIRO PRECA

President

22nd March, 2019

ACT No. VII of 2019

AN ACT to implement Budget Measures for the financial year

2019 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, 2019.

PART I

The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2019.

For the purposes 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, by way of loan, a sum of money not raise loan.

exceeding four hundred fifty million euro (€450,000,000).

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

for Finance is hereby authorised to raise such loans under the

provisions of the Government Borrowing and Management of Public Cap. 575.

Debt Act, on such terms and conditions as the said Minister may

approve.

Any money borrowed under the authority of this Part shall Purpose.

be appropriated and applied for the purpose of

(a)

redeeming registered stocks which are due for

redemption during 2019; and

(b)

contributing funds in the sinking fund; 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 Amendments to

read and construed as one with the Customs Ordinance, hereinafter in the

Ordinance.

this Part referred to as "the Ordinance".

The Ordinance shall be amended as follows

General

amendment of

the Ordinance.

(a)

the words "officer of the Customs" and "officer of

Customs" shall be substituted by the words "Customs official"

wherever they occur; and

(b) the words "an officer of the Customs" and "an

officer of Customs" are to be substituted by the words "a

Customs official" wherever they occur.

Article 2 of the Ordinance shall be amended as follows

Amendment of

article 2 of the

Ordinance.

(a)

immediately before the definition "breaking bulk"

thereof, there shall be added the following new definition

" "authorised and empowered" means an official

that has an identity card issued by the Department of

Customs and which shows the powers given to him by the

Commissioner by virtue of the provisions of the laws of

Malta and the European Union;";

(b) immediately after the definition "Commissioner for

Revenue" thereof, there shall be added the following new

definition

" "computer" means any electronic device used for

information storage or retrieval and includes a mobile phone

or any other electronic means of information storage or

retrieval;";

(c)

immediately after the definition "customs

declaration" thereof, there shall be added the following new

definition

" "Customs official" means any official of the

Department of Customs as authorised and empowered by

the Commissioner, by virtue of the relevant legislation and

includes any other person having an express or implied

authority to act for the said Commissioner in carrying out

the provisions of this Ordinance as authorised for this

purpose by the applicable legislation;";

(d) immediately after the definition "importer" thereof,

there shall be added the following new definition

" "information in a non-legible form" means

information that needs to be deciphered before being

understood;";

(e)

the definition "officer of the Customs" thereof, shall

be deleted; and

(f)

immediately after the definition "place beyond the

seas" thereof, there shall be added the following new definition

" "records" means any books, accounts, documents

or other recorded information, including information in a

computer or information in other non-legible form;".

Article 62 of the Ordinance shall be amended as follows

(a)

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

statement or furnishes any document or information which, to

his knowledge, is false in a material particular, or recklessly

makes 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:" shall be substituted by the words "makes

or gives or submits or is instrumental in the making or the giving

of any declaration, document or information to the

Commissioner, and which to his knowledge is false in any

detail:";

(b) paragraph (q) thereof, shall be substituted by the

following

"(q) knowingly or negligently fails to give to the

Customs official information required by law, or knowingly

or negligently fails to give to the Customs official any

document or records requested according to law or

knowingly or negligently neither places the goods under any

Customs procedure nor exports them within the given time

limit; or";

(c)

in paragraph (r) thereof, the words "knowingly or

negligently presents an incomplete declaration to the Customs

officer," shall be substituted by the following

"knowingly presents an incomplete declaration to

the Commissioner, including when the person is not in

possession of a document which is required with the

declaration

Provided that a person who makes an incorrect

declaration and informs the Commissioner in writing about

the said incorrect declaration;

(i) before the Commissioner informs the

person that the particulars of the customs declaration

are not correct; and

(ii) during the period where it is not yet

established, in the systems relating to the processing

of customs declarations, whether manual or

electronic, if control of the goods will be exercised,

or when it is established that such control is not to be

exercised; and

(iii) such information is given to the

Commissioner by not later than ten working days

from the date of release of the goods; and

(iv) such incorrect declaration does not tend to

make the declaration applicable to goods, other than

those which were originally covered by the

declaration,

such person shall be deemed not to have committed

an offence under this paragraph,"; and

(d) the paragraph that immediately follows paragraph

(r) thereof, including its proviso, shall be substituted by the

following

"shall, on conviction, for each such offence be

liable to a fine (multa) equivalent to three times 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, or to such

fine together with imprisonment for a term not

exceeding three years, and the offender may be either

detained or proceeded against by summons, in the

manner and form, and subject to all other provisions

laid down in the Criminal Code

Provided that

(a) in the case of offences relating to

tobacco mentioned in the First Schedule, on

conviction the offender is liable for each such

offence to a fine (multa) equivalent to three times

the amount of duty payable on the goods or five

times the amount of duty endangered, whichever

is the lesser, but in each case not less than four

thousand euro (€4,000), and such that one-third

of such amount shall be considered as a civil debt

owed and payable to the Department of Customs,

together with imprisonment for a term not

exceeding three years, and the offender may be

either detained or proceeded against by

summons, in the manner and form, and subject to

all other provisions laid down in the Criminal

Code;

(b) where the goods in respect of which

the offender is proceeded against are any of the

goods set out in the First Schedule, the

punishment of imprisonment herein prescribed

shall in every case be applied; and

(c)

in the case of a second or subsequent

conviction for any offence under this article

within a period of twelve months from the date

of the previous conviction, the offender shall be

liable to imprisonment for a term from six

months to four years, in addition to the pecuniary

penalties herein prescribed.".

Immediately after article 62 of the Ordinance there shall Addition of new

article 62A to

be added the following new article

the Ordinance.

62A. It is a duty of every importer to submit a

complete and correct declaration about his goods to the

Customs official. Any person who

(a) negligently makes or gives or submits

or is instrumental in the making or the giving of

any declaration, document or information to the

Customs official which is false in any detail; or

(b) negligently submits an incomplete

declaration to the Customs official, including

when the person is not in possession of a

document which is required with the declaration;

or

(c) leaves out or mistakenly declares a

letter, number, currency, unit of measure or other

similar data elements in his declaration to the

Customs official,

shall be deemed to have breached this obligation and

committed a crime of negligence, and shall, on

conviction, for each such offence, be liable to a fine

(multa) equivalent to three times the duty endangered

but not less than three hundred and fifty euro (€350)

Provided that in the circumstances mentioned in

paragraph (b), when it is a case of a refund of duty and,

or taxes, it shall be deemed that an offence has not been

committed.".

Article 65 of the Ordinance shall be renumbered as article Addition and

65A, and immediately before, there shall be added the following new renumbering

article 65 of the

Ordinance.

65. (1)

Every economic operator shall give

access to his computer systems and all his records to the

Commissioner so that a systems based audit can be

carried out as and when requested by the

Commissioner.

(2) For the purposes of sub-article (1), the

Commissioner may delegate to any person any right,

duty, power and other function vested in him, conferred

to him or imposed upon him by this Ordinance as the

Minister may direct in writing

Provided that the Commissioner may not

delegate those rights, duties, powers and other functions

vested in him to any person, if that person is not

considered by the Commissioner as a fit and proper

person to exercise those rights, duties, powers and other

functions.

(3) Every person having been so delegated

together with all his employees, shall be bound by the

duty of secrecy and confidentiality of public officers as

provided in the relevant laws, and the person and all his

employees shall also be subject to the rules of protection

of data according to the relevant laws.".

In article 70B of the Ordinance, the words "committing an

offence against this Ordinance and or against its subsidiary legislation,"

shall be substituted by the words "committing an offence against this

Ordinance and or against its subsidiary legislation, or against any law

and or its subsidiary legislation where the Commissioner is empowered

Various articles of the Ordinance shall be amended as

(a)

in articles 4(2), 7(2), 12, 13(2), 17, 19(1), 22(2), 23,

28, 35, 41, 42, 43, 44(2), 45, 51, 52, 60(c) and (d), 62(c) and (d),

70A, 72 and 86 thereof, the words "officer" and "officers" shall

be substituted by the words "official" or "officials" respectively,

wherever they occur;

(b) in article 70B thereof, the words "officer" and

"officers" shall be substituted by the words "official" or

"officials" respectively, wherever they occur, with the exclusion

of the words "officer of the Police force"; and

(c)

in articles 70 and 71 thereof, the words "such

officer" shall be substituted by the words "such official or

officer", wherever they occur, with the exclusion of the words

"Police officer".

PART III

This Part amends the Certain Powers of Officers of Amendments to

Customs Regulations and it shall be read and construed as one with the

Powers of

the Certain Powers of Officers of Customs Regulations, hereinafter in Officers

Customs

this Part referred to as "the principal regulations".

Regulations.

Regulation 2 of the principal regulations shall be Substitution of

regulation 2 of

substituted by the following

the principal

regulations.

2. (1)

A

Customs

official,

when

authorized by the Commissioner, shall, in addition to

the powers and duties assigned to him under the

Customs Ordinance, be empowered to exercise all the

powers and duties as are by law vested in an officer of

the Executive Police in any place set out in the

Schedule in connection with an offence committed or

suspected of having been committed.

(2) Before any such official shall exercise any

of the roles referred to in sub-regulation (1), he shall

take the following oath

"I ........................................ do solemnly

swear/affirm that I will bear true faith and

allegiance to the people and the Republic of

Malta and its Constitution, and that I will

faithfully serve the said Republic in my service

as a Customs official and with the powers given

to me as an officer of the Executive Police,

according to law, without fear or favour,

attraction or hate. (So help me God)"

Provided that such functions, powers and duties as

are by law reserved to officers holding the rank not

below that of inspector of Police shall only be

exercisable by officials not below the rank of Customs

officer as listed in the Annual Financial Estimates in

virtue of the Financial Administration and Audit Act.".

PART IV

(1)

This part amends the Income Tax Act and shall be Amendments to

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

Act.

Part referred to as "the principal Act".

(2) Articles 18(b), 19, 20 and 22 of this Part shall come into

force as from the year of assessment 2020.

Immediately after the first proviso to paragraph (b) of sub-

article (5) of article 5A of the principal Act, there shall be added the

following new proviso

"Provided also that this paragraph (b) shall not apply if the

transferor so elects by means of a declaration made to the notary

at the time of the publication of the deed of the transfer and

recorded in the said deed:".

Article 12 of the principal Act, shall be amended as

(a) in paragraph (d) of sub-article (1) of article 12 of the

principal Act, immediately after the words "any Act replacing

the said Act," there shall be added the words "or derived by a

company from long term contracts of insurance that are treated

as qualifying personal retirement schemes or qualifying

occupational retirement schemes in terms of the provisions of

such rules as may be prescribed,"; and

(b) the third proviso to sub-paragraph (1) of paragraph

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

substituted by the following

"Provided also that in respect of

(a) a participating holding in a company,

partnership, EEIG, other body of persons or

collective investment scheme referred to in the first

proviso to the definition of "participating holding" in

sub-article (1) of article 2, that is resident in Malta;

or

(b) a participating holding in any other body of

persons that holds, directly or indirectly, shares or

other interests in a company, partnership, EEIG,

other body of persons or collective investment

scheme referred to in the first proviso to the

definition of "participating holding" in sub-article (1)

of article 2, that is resident in Malta,

gains or profits arising on the transfer of any

holding referred to in paragraph (a) or paragraph (b)

derived by a company registered in Malta

(hereinafter in this sub-article referred to as "the

transferor company"), shall only qualify for the

exemption if such gains or profits would have been

exempt in terms of sub-paragraph (ii) of paragraph

(c) had the transfer of the holding been made by the

beneficial owner of the transferor company. Where

the beneficial owner is more than one (1), and if

gains or profits made by one (1) or more thereof

would have been exempt (hereinafter in this sub-

article referred to as "the exempt beneficial owner")

and others not been exempt, the exemption shall

apply to that part of the gain or profit to which the

exempt beneficial owner is beneficially entitled. For

the purpose of this proviso any body of persons or

collective investment vehicle which is resident in

Malta shall be deemed not to fall within the purport

of the term "beneficial owner"

Provided further that where the transferor

company has claimed the exemption contemplated in

terms of the immediately preceding proviso on the

whole or part of the said gains or profits, and any

person who would not have qualified for exemption

in terms of sub-paragraph (ii) of paragraph (c) had

the transfer of the holding been made thereby

(hereinafter in this sub-article referred to as "the non-

qualifying shareholder"), thereafter becomes

beneficially entitled to all or any of such gains or

profits or to a larger part thereof than was the case at

the time they arose, even prior to their distribution,

such untaxed gains or profits or such additional part

thereof to which the non-qualifying shareholder

becomes entitled, shall be taxed at the rate referred to

in sub-article (6) of article 56 and such tax shall

constitute tax payable by the company in the year of

assessment in respect of which such person shall

become entitled to such profits even prior to their

distribution.".

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

article 14B of

principal Act shall be substituted by the following

the principal

Act.

"(b) two-thousand six-hundred euro (€2,600) in respect of

each child who attended such secondary school, or one-thousand

nine-hundred euro (€1,900) in respect of each child who attended

such primary school, or one-thousand six-hundred euro (€1,600)

in respect of each child who attended such kindergarten:".

In paragraph (c) of sub-article (6) of article 43 of the Amendment of

principal Act, the words "which has applied the provisions of article article

principal Act.

12(1)(u) to any of its income or gains or" shall be deleted.

Paragraph (ii) of sub-article (27) of article 56 of the

principal Act, shall be amended as follows

(a)

for the words "but which is not received in Malta"

thereof, there shall be substituted the words "but which is not

received or not fully received in Malta"; and

(b) for the words "(excluding capital gains chargeable in

terms of article 5A of this Act)" thereof, there shall be substituted

the words "(excluding income from transfers of immovable

property that are chargeable in terms of article 5A)".

In paragraph (a) of sub-article (1) of article 57 of the

principal Act, the words "fifteen per centum (15%)" shall be substituted

by the words "fifteen per centum (15%), or such other amount as may

be prescribed by the Minister from time to time,".

PART V

This Part amends the Cash Control Regulations and it

shall be read and construed as one with the Cash Control Regulations,

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

The definition "the Comptroller" in regulation 2 of the

principal regulations shall be substituted by the following new

definition

" "Commissioner" means the Commissioner for

Revenue, and it has the same meaning assigned to it in

the Customs Ordinance.".

In the principal regulations, the word "Comptroller" shall

be substituted by the word "Commissioner" wherever it occurs.

PART VI

This Part amends the Social Security Act and it shall be

read and construed as one with the Social Security Act, hereinafter in

this Part referred to as "the principal Act".

In sub-paragraph (a) of paragraph (ii) of the definition

"Service Pension" in article 2 of the principal Act, the words "shall be

taken into account, and" shall be substituted by the words "shall be

taken into account:" and immediately thereafter there shall be added the

following new proviso

"Provided that, with effect from 5 th January 2019, and solely

for the purpose referred to in paragraph (a), where a Service

Pension has been commuted in part only and the pensioner has

reached the age of seventy-two (72), twenty-five per cent (25%)

of the commuted part only of such Service Pension shall be taken

into account; and".

In sub-paragraph (i) of paragraph (b) of sub-article (3) of Amendment of

article 17 of the principal Act, the words "Special Unemployment article

principal Act.

Benefit; and" shall be substituted by the words "Special Unemployment

Benefit:" and immediately thereafter there shall be added the following

new proviso

"Provided that, with effect from the 5 th January 2019, the

provisions of sub-paragraph 3(b)(i) shall cease to apply; and".

In sub-paragraph (ii) of paragraph (b) of sub-article (1) of Amendment of

article 20 of the principal Act, the words "from such a condition;" article

principal Act.

shall be substituted by the words "from such a condition:" and

immediately thereafter there shall be added the following new proviso

"Provided that, with effect from 1 st January 2019, a person

who is the head of household shall be entitled to Sickness

Assistance under this article if he proves to the satisfaction of

the Director that he or a member of his household who on the

date of the claim for such assistance is medically certified as

suffering from a terminal disease, bi-polar disorder or psychotic

depression, provided that the person suffering from that

condition proves to the satisfaction of the Director that he has

been undergoing regular treatment for such a condition for at

least three (3) years and that within the three (3) months

immediately prior to his claim for such assistance his condition

had been investigated by a psychiatrist who is or was a

consultant psychiatrist in Government employment and certified

by the said psychiatrist to be suffering from such a condition;

and".

Article 23 of the principal Act shall be amended as Amendment of

article 23 of the

follows

principal Act.

(a)

in sub-article (1) thereof

(i) immediately after the words "the provisions of

this Act" there shall be added the words "and the provisions

in the Health Act";

(ii) immediately after the words "and other

prosthetic aids" there shall be added the words "or other

additional Free Medical Aid as indicated by regulations

made under this Act";

(iii) the words "Chief Government Medical

Officer" shall be substituted by the words "Chief Medical

Officer to Government";

(iv) in the first proviso to sub-paragraph (b)

thereof, the words "Chief Government Medical Officer"

shall be substituted by the words "Chief Medical Officer to

Government"; and

(v) in the second proviso to sub-paragraph (b)

thereof, immediately after the words "Total Parenteral

Nutrition" there shall be added the words "or any other

medical conditions as may be indicated by regulations

under this Act"; and

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

Government Medical Officer" shall be substituted by the words

"Chief Medical Officer to Government".

In the proviso following paragraph (c) of sub-article (3) of

article 27 of the principal Act, the words "under article 106(f); and"

shall be substituted by the words "under article 106(f); or"; and

immediately thereafter there shall be added the following new

"Provided that the person achieves a score of

fourteen (14) or more in accordance with Table 10 of

the Impairment Tables Regulations, after the Director

will have acted in accordance with the advice given by

the multi-disciplinary panel appointed under article

106(f); and".

Sub-paragraphs (iii) to (vii) of paragraph (b) of sub-article

(6) of article 30 of the principal Act, shall be renumbered as sub-

paragraphs (iv) to (viii), and immediately after paragraph (ii) of

paragraph (b) of sub-article (6) of article 30 of the principal Act, there

shall be added the following new sub-paragraph

"(iii) a head of household, reaching the age of

twenty-three (23) or over, who is in receipt of Social

Assistance in accordance with the provisions of this

article, who is enrolled in the University of Malta or

MCAST course of studies, shall be entitled to receive

such rate of Social Assistance and stipend so as to

ensure that the total amount received does not exceed

the National Minimum Wage as is applicable to a

person of eighteen (18) years of age or over in

accordance with a National Order issued under the

Employment and Industrial Relations Act;".

In article 61A of the principal Act, the words "whichever Amendment of

pensionable income is the higher." shall be substituted by the words article

the principal

"whichever pensionable income is the higher:" and immediately Act.

thereafter there shall be added the following new proviso

"Provided that, with effect from 1 st January 2019, the

provisions of this article shall also apply to a person born before

1 st January 1962 who becomes entitled to a pension in respect of

retirement or invalidity in accordance with this Act and who had

accepted to partake of an early retirement scheme after the 1st

January 2003, in anticipation of the privatization or as a part of

the process of restructuring of an entity in which the Government,

at the time when such person accepted to take up early retirement,

was the owner or the majority shareholder.".

Article 68 of the principal Act shall be emended as Amendment of

article 68 of the

follows

principal Act.

(a)

in paragraph (a) of sub-article (1) thereof

(i) the words "a single person who has not yet

reached pension age" shall be substituted by the words "a

single person or a married person who has not yet reached

pension age"; and

(ii) the words "on a full-time basis and regularly

of his parent or brother," shall be substituted by the words

"on a full-time basis and regularly of his spouse or parent,

brother,"; and

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

"if his yearly means, calculated according to the provisions of

Part IV of the Second Schedule, do not exceed the highest rate

of a Carer’s Allowance" shall be deleted.

Immediately after sub-article (5) of article 85 of the Amendment of

article 85 of the

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

principal Act.

"(6) Notwithstanding the provisions of sub-articles (4) and

(5), with effect from 1st January 2019, the rate due to persons

who have reached pension age according to the definition

''pension age'' in article 2, but have not yet reached the age of

seventy-five (75), who have retired from employment and are not

entitled to a Contributory Pension, but have paid between fifty

(50) and two hundred and fifty-nine (259) social security

contributions shall be two hundred euro (€200) per year whereas

the rate due to persons who have reached pension age according

to the definition ''pension age'' in article 2, but have not yet

reached the age of seventy-five (75), who have retired from

employment and are not entitled to a Contributory Pension, but

have paid more than two hundred and sixty (260) social security

contributions shall be three hundred euro (€300) per year.".

Immediately after the third proviso of paragraph (ii) of

sub-article (5) of article 116 of the principal Act, there shall be added

the following new provisos

"Provided further that, notwithstanding the provisions of

this sub-article, with effect from 1 st January 2019, a person

providing a document to the satisfaction of the Director,

indicating employment in Libya but never provided a document

of the payment of social security contributions in Libya after the

6 th May 1988, shall pay, if the person so elects, such social

security contributions for a period of ten (10) years arrears at the

rate of the SA category as per Part III of Schedule Ten, during

the year when the claim is made

Provided further, with effect from 1st January 2019, a

person providing an official document to the satisfaction of the

Director, indicating payment of social security contributions in

Libya after the 6th May 1988, such contributions are converted

into contributions in accordance with the provisions of this Act

for the respective year.".

The Second Schedule to the principal Act shall be

amended as follows

(a)

in the title thereof, the words "a Carer’s Allowance,"

shall be deleted;

(b) in paragraph (b) of item 4 of Part II thereof,

immediately after the words "Milk Grant," there shall be added

the words "Carer’s Allowance,"; and

(c)

Part IV thereof, shall be amended as follows

(i) in the title thereof, (and in the Table of the

Arrangement of the Act) the words "Age Pension and

Carer’s Allowance" shall be substituted by the words "Age

Pension";

(ii) in item 1 thereof, the words "of articles 66 and

68(2)(a)," shall be substituted by the words "of article 66,"

and the words "or a Carer’s Allowance" shall be deleted;

and

(iii) in item 3 thereof, the words "or a Carer’s

Allowance" shall be deleted.

PART VII

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 Part the

Duties Act.

referred to as "the principal Act".

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

article 2 of the

amended as follows

principal Act.

(a) immediately after the definition "Commissioner"

thereof, there shall be added the following new definition

" "computer" means any electronic device used for

information storage or retrieval and includes a mobile

phone or any other electronic means of information storage

or retrieval;";

(b) immediately after the definition "import duty"

thereof, there shall be added the following new definition

" "information in a non-legible form" means

information that needs to be deciphered before being

understood;"; and

(c) in the definition "prescribed" thereof, the words "under

article 35." shall be substituted by the words "under article 35;"

and immediately after there shall be added the following new

definition

" "records" means any books, accounts, documents

or other recorded information, including information in a

computer or information in other non-legible form.".

In sub-article (2) of article 10 of the principal Act, Amendment of

immediately after the words "trade book" there shall be added the article

principal Act.

words "or records".

PART VIII

(1)

This Part amends the Motor Vehicles Registration Amendments to

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

Vehicles

Motor Vehicles Registration and Licensing Act, hereinafter in this Registration

Licensing Act.

Part referred to as "the principal Act".

(2)

All the provisions in this Part shall be deemed to have

come into force on the 1st January, 2019.

Article 2 of the principal Act shall be amended as follows

(a)

immediately after the definition of "CO2 emissions"

there shall be added the following definition

" "collectors’ motor vehicle" means a vehicle

imported into Malta from a third country which is

classified by the Customs Department under CN Code

9705000090 (collections and collectors’ pieces of

zoological,

botanical,

mineralogical,

anatomical,

historical, archaeological, paleonthological, ethnographic

or numismatic interest)."; and

(b) in the definition of "invoice", immediately after the

words "an authorised agent of the manufacturer" there shall be

added the words "or an authorised motor vehicle dealer".

Immediately after article 8 of the principal Act, there shall

be added the following new article

" Collectors’

8A. Vehicles which are imported into

motor vehicles.

Malta from third countries and which are

classified as collectors’ motor vehicles shall

be exempt from the payment of registration

tax and circulation licence fee on condition

that these are not, at any time, driven, used or

parked on the roads in Malta.".

Immediately after sub-article (21) of article 25 of the

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

"(22) A vehicle which is classified as a vintage vehicle by

the vintage vehicle classification committee shall be exempt from

the payment of a circulation licence fee and in lieu the

administrative fee established in the Fourth Schedule shall

apply.".

PART IX

This Part amends the Income Tax Management Act and

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

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

In the proviso to sub-paragraph (iii) of paragraph (c) of sub-

article (2) of article 10 of the principal Act, the words "year of

assessment 2015" shall be substituted by the words "year of assessment

In sub-article (1) of article 41 of the principal Act, for the Amendment of

words "the Commissioner may, in his discretion, keep in abeyance the article

principal Act.

collection of not less than ninety per cent (90%) of that part of the tax

assessed thereunder which is in dispute" there shall be substituted the

words "the tax assessed thereunder which is in dispute may be kept in

abeyance".

Article 44 of the principal Act shall be amended as Amendment of

article 44 of the

follows

principal Act.

(a) in paragraph (b) of sub-article (1), for the words

"fifteen days" there shall be substituted the words "thirty days";

(b) in paragraph (c) of sub-article (2A), for the words

"fifteen days" there shall be substituted the words "thirty days".

In sub-article (1A) of article 48 of the principal Act, Amendment of

immediately after the words "but for the application of this sub- article

principal Act.

article" there shall be added the following words

"and, in the case of a person who is a payer as

defined in the Final Settlement System (FSS) Rules, he

has, moreover, submitted all the Payer’s Annual

Reconciliation Statements together with the Payee

Statements of Earnings in accordance with the said rules

in respect of the year 1998 and all subsequent years for

which the submission date precedes the date on which

the refund would have been payable but for the

application of this sub-article.".

PART X

This Part amends the Prevention of Money Laundering Act Amendments to

and it shall be read and construed as one with the Prevention of Money the

of Money

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

Act".

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

article 26 of the

follows

principal Act.

(a) sub-articles (3) to (5) thereof, shall be renumbered

as sub-articles (4) to (6) respectively; and

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

be added the following new sub-article

"(3) For the purposes of pursuing its

responsibilities under sub-article (1) on a risk-sensitive

basis the Unit shall

(a) ensure that is has a clear understanding of

the money laundering and funding of terrorism risks

to which Malta is exposed;

(b) take any necessary action and have access

to any information or documentation that is

necessary to assess and determine the money

laundering and funding of terrorism risk profile of

subject persons;

(c) ensure that the risk profile of subject

persons is reviewed on a regular basis and when

there are significant developments in the

management and operations of subject persons, and

kept up-to-date;

(d) ensure that the frequency and intensity of

on-site and off-site supervision is determined on the

basis of

(i) the risk profile of subject persons,

as assessed and determined by the Unit; and

(ii) the risks of money laundering and

funding of terrorism to which Malta is exposed;

and

(e) when carrying out on-site and off-site

supervision, take into account the degree of discretion

afforded to subject persons, under this Act, any

regulations issued thereunder and procedures and

guidance issued by the Unit, to adopt a risk-based

approach to the implementation of their anti-money

laundering and counter-funding of terrorism

obligations envisaged under this Act, the said

regulations, procedures and guidance.".

Immediately after sub-article (6) of article 27A of the

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

"(7) Where the Unit receives information, data or

documents from a foreign authority, body or agency considered

to have functions equivalent or analogous to those of the Unit

under article 16(1)(a) and (b), the Unit shall comply with any

restriction and condition on the use of such information, data or

documents imposed by that foreign authority, body or agency.".

PART XI

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

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

Act.

referred to as "the principal Act".

In the principal Act, the words "excise officer", "an excise General

officer" and "excise officers" shall be substituted by the words amendment

the principal

"Customs official", "a Customs official" and "Customs officials" Act.

respectively, wherever they appear.

Article 2 of the principal Act shall be amended as follows: Amendment of

article 2 of the

principal Act.

(a)

immediately after the definition "a typical mode of

transport" thereof, there shall be added the following new

definition

" "authorised and empowered" means an official

that has an identity card issued by the Department of

Customs and which shows the power to exercise the powers

and duties given to him by the Commissioner by virtue of

the provisions of the laws of Malta and the European

Union;";

(b) immediately after the definition "the Commissioner"

thereof, there shall be added the following new definitions

" "computer" means any electronic device used for

information storage or retrieval and includes a mobile

phone or any other electronic means of information storage

or retrieval;

"Customs official" means any official of the

Department of Customs as authorised and empowered by

the Commissioner, by virtue of the relevant legislation and

includes any other person having an express or implied

authority to act for the said Commissioner in carrying out

the provisions of this Act as authorised for this purpose by

the applicable legislation;";

(c)

the definition "excise officer" thereof, shall be

deleted;

(d) immediately after the definition "importation of

excise goods" thereof, there shall be added the following new

definition

" "information in a non-legible form" means

information that needs to be deciphered before being

understood;";

(e)

immediately after the definition "non-alcoholic

beverage" thereof, there shall be added the following new

definition

" "records" means any books, accounts, documents

or other recorded information, including information in a

computer or information in other non-legible form;"; and

(f)

in the definition "vessel" thereof, the word "vessel"

shall be substituted by the words "vessel or ship".

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

amended as follows

(a)

paragraph (l) thereof, shall be substituted by the

following

"(l) recommends a retail price for cigarettes in

excess of the established retail price on the basis of which

excise duty has been computed in terms of the relevant

Schedule to the Act; or"; and

(b) paragraph (m) thereof, shall be substituted by the

following

"(m) sells cigarettes at a price in excess of the

retail price established by the local manufacturer, or

importer, and on which excise duty has been computed in

terms of the relevant Schedule to this Act; or".

Immediately after article 22 of the principal Act there

shall be added the following new article

" Definition of

22A. In article 21 and 22, the word

the word

"authorisation". "authorisation" means an identity card of the

Department or means of identification issued

by the respective Department according to the

applicable law.".

In the Fourth Schedule to the principal Act, under the

heading "Description of excise goods", the words "Leaded petrol

falling within CN Codes 2710.12.31, 2710.12.51 and 2710.12.59" shall

be substituted by the words "Leaded petrol falling within CN Codes

2710.12.31, 2710.12.50.11, 2710.12.50.19, 2710.12.50.90, 2710.12.51

and 2710.12.59".

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

the Sixth

as follows

Schedule to the

principal Act.

(a)

in the proviso to regulation 18 of Part A thereof, the

words "Officer I" shall be substituted by the words "customs

officer";

(b) sub-regulation (1) of regulation 11 of Part B thereof,

shall be substituted by the following

" Affixing of

11. (1) No

person

may

band or stamp.

manufacture, process, prepare for sale,

expose or offer for sale, sell or otherwise

dispose of any ethyl alcohol as defined in

the Second Schedule with an actual

alcoholic strength by volume of 10% vol.

or more and in containers of 50 centiliters

capacity or above unless a band or stamp

has been affixed as provided for in

regulation 12.";

(c)

sub-regulation (2) of regulation 12 of Part B thereof,

shall be substituted by the following

"(2) The said bands or stamps shall be of a round

shape and continue in a rectangular shape in a way that the

round part is affixed on the cap and the rectangular part is

affixed going down onto the container, in such a way that

when the container is opened, the destruction of the band or

stamp is ensured. The bands or stamps shall be approved by

the Commissioner and shall be supplied at the Custom

House or at any other place to be appointed by the Minister

through a notice in the Gazette.";

(d) immediately after regulation 3 of Part C thereof,

there shall be added the following new regulation

" Retail price

3A. The retail price of cigarettes is

of cigarettes.

that established by the importer or

manufacturer.";

(e)

regulation 6 of Part C thereof, shall be amended as

follows

(i) sub-regulation (1)

thereof,

shall

be

substituted by the following

"(1) No cigarettes shall be placed on the market

unless the packet, box or container immediately

enclosing the cigarettes has been sealed by a band or

stamp affixed either on the side of the packet in such a

manner as to ensure its destruction when such packet,

box or container is opened, or else affixed at the

bottom on the rear side of the packet

Provided that with regards to cigarettes which are

imported in small quantities, which are not available

for sale in Malta, to be sold to persons travelling to

the European Union by air or by sea, the tax band

can be affixed on the container which contains not

less than ten (10) packets each containing not less than

twenty (20) cigarettes"; and

(ii) sub-regulations (2) and (3) thereof, shall be

renumbered as sub-regulations (3) and (4) respectively,

and immediately after sub-regulation (1) thereof, there

shall be added the following new sub-regulation

"(2) No tobacco used for hand rolled cigarettes

shall be placed on the market unless its packet, box or

container is sealed with a band or stamp in a way that

in order for that packet, box or container to be opened,

the destruction of the band or stamp is ensured.";

(f)

regulation 9 of Part C thereof, shall be substituted by

the following

" Established

9. When payment of excise duty on

retail price.

cigarettes is effected, the registered

warehouse keeper or registered trader is to

declare in writing the retail price

established by the importer or

manufacturer per packet of twenty (20)

cigarettes or part of such packet."; and

(g) sub-regulation (3) of regulation 10 of Part C thereof,

shall be substituted by the following

"(3) The said bands or stamps shall be of the type

approved by the Commissioner and shall be supplied at the

Custom House or at any other place to be appointed by the

Minister through a notice in the Gazette.";

(h)

immediately after regulation 11 of Part C thereof,

there shall be added the following new regulation

" Track and

11A. Every tobacco importer, tobacco

Trace system.

manufacturer or tobacco trader shall be a

party to the Track and Trace System

established by European Union legislation

and shall adhere to its rules and practices,

and this as one of the conditions of the

authorisation issued to him by the

Commissioner;"; and

(i)

in sub-regulation (1) of regulation 28 of Part D

thereof, the word "bowsers" shall be substituted by the words

"fuel tank trucks and trailers".

In articles 12(1), 16(5), 29(6) and 38(1) of the principal Act, Amendment to

the word "vessels" wherever it occurs shall be substituted by the word various

of the principal

"receptacles".

Act.

PART XII

This Part amends the Value Added Tax Act and it shall be Amendments to

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

Tax Act.

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

Sub-article (3) of article 73 of the principal Act shall be Amendment of

article 73 of the

substituted by the following

principal Act.

"(3) For the purposes of sub-article (2) a notice shall be

deemed to have been properly addressed if it has been addressed

(a)

to any known business or private address of a

person; or

(b) to an electronic address provided by a person

for such purpose as per regulations which the Minister may

prescribe.".

Sub-article (3) of article 83 of the principal Act shall be Amendment of

article 83 of the

deleted.

principal Act.

PART XIII

This Part amends the Commissioner for Revenue Act and it Amendments to

shall be read and construed as one with the Commissioner for Revenue the

Commissioner

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

for Revenue

Act.

The title of Part III of the principal Act shall be substituted

by the following: "Remission of Revenue".

Immediately after article 5 of the principal Act there shall

be added the following new article

5A. (1) The Commissioner may remit in

whole or in part any penalties and interest imposed

under the revenue acts in such circumstances and

subject to such conditions as the Minister may prescribe

by means of rules.

(2) The Minister may delegate to the

Commissioner the power to prescribe the circumstances

in which and the conditions under which penalties and

interest may be remitted and may at any time amend or

revoke any such delegation. To the extent that they fall

within the terms of any such delegation, guidelines

published by the Commissioner for the purposes of this

article shall have the same effect as rules prescribed in

terms of sub-article (1).

(3) In this article "penalties" means additional

tax, additional duty and administrative penalties that are

imposed under the revenue acts.".

PART XIV

This Part amends the Malta Development Bank Act and it

shall be read and construed as one with the Malta Development Bank

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

Article 10 of the principal Act shall be amended as

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

following

"(2) Subject to the authorisation of the Minister

for Finance;

(a) the Government or any institution and, or

entity that is directly or indirectly wholly owned by

Government shall subscribe to one hundred (100) per

centum of the authorised and issued share capital;

(b) the Government or any institution and, or

entity that is directly or indirectly wholly owned by

Government may subscribe to up to thirty (30) per

centum of the authorised and paid-up capital in the

form of moveable and, or immoveable property that

is free and clear of all encumbrances, hypothecs or

other attachments; and

(c) the Bank shall receive from the

Government or the institution and, or entity that is

directly or indirectly wholly owned by Government a

general warranty of title against claims from all

persons, as well as covenants of a right to sell and of

peaceful possession. The value of any immoveable

property transferred to the Bank shall be audited by

the National Audit Office."; and

(b) in sub-article (4) thereof, immediately after the

words "by the Government" there shall be added the words "and

any institution and, or entity that is directly or indirectly wholly

owned by Government,".

Article 42 of the principal Act shall be deleted.

Deletion of

article 42 of the

principal Act.

Articles 43 and 44 of the principal Act shall be Renumbering of

articles 43 and

renumbered as articles 42 and 43 respectively.

44 of the

principal Act.

PART XV

This Part amends the Budget Measures Implementation Amendments to

Act, 2018 and shall be read and construed as one with the Budget the

Measures

Measures Implementation Act, 2018, hereinafter in this Part referred Implementation

Act, 2018.

to as "the principal Act".

Act No. VII

of 2018.

In paragraph (a) of article 28 of the principal Act, the Amendment of

words "for the word "equivalent" " shall be substituted by the words article

principal Act.

"for the words "equivalent to" ".

Passed by the House of Representatives at Sitting No. 209 of the

20th March, 2019.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€2.52